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
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, 2005
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Date of reporting period: December 31, 2005
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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.
DECEMBER 31, 2005
RYDEX VARIABLE TRUST ANNUAL REPORT
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
STRENGTHENING DOLLAR FUND
WEAKENING DOLLAR FUND
CORE EQUITY FUND
SECTOR ROTATION FUND
U.S. GOVERNMENT MONEY MARKET FUND
BANKING FUND
BASIC MATERIALS FUND
BIOTECHNOLOGY FUND
COMMODITIES 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
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
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS................................ 3
ABOUT SHAREHOLDERS' FUND EXPENSES......................................... 4
PERFORMANCE REPORTS AND FUND PROFILES..................................... 7
SCHEDULES OF INVESTMENTS.................................................. 53
STATEMENTS OF ASSETS AND LIABILITIES...................................... 162
STATEMENTS OF OPERATIONS.................................................. 170
STATEMENTS OF CHANGES IN NET ASSETS....................................... 178
FINANCIAL HIGHLIGHTS...................................................... 192
NOTES TO FINANCIAL STATEMENTS............................................. 198
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM................... 211
OTHER INFORMATION......................................................... 212
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS............................. 215
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
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DEAR SHAREHOLDER:
Many will remember 2005 as a year of unfulfilled promise. The underpinnings were
in place for a robust year of stock market gains. Corporate earnings growth
continued to set new records, and interest rates, inflation and unemployment
remained low. Corporations had massive amounts of cash on hand to grow their
businesses and bolster stock prices through buybacks and dividend hikes. The
appetite for risk bounced back as well, judging by a near record volume of
merger and acquisition activity.
In spite of the positive fundamentals, the major equity indices remained
range-bound for much of the year with the bellwether S&P 500(R) Index trading
within a narrow 135 point range of 1,137.50 to 1,272.74. Investors were hoping
for a replay of 2004's year-end rally, but it was not to be as a strong November
rally was unable to overcome the prior month's sell-off. As a result, the Dow
Jones Industrial Average Index closed the year with fractional gains of 1.72%,
while the S&P 500(R) Index and Nasdaq(R) 100 Index ended the year with
disappointing 4.91% and 1.90% gains, respectively.
For the first time in seven years, large-cap stocks outperformed small caps as
the Russell 1000(R) Index gained 6.27% compared to 4.55% for the Russell 2000(R)
Index. Mid-cap stocks outperformed both large- and small-cap stocks as the
Russell Midcap(R) Index gained 11.0%. Although value stocks slightly
outperformed their growth counterparts, it was a statistical dead heat between
the two.
For equity investors, the real action in 2005 was in international stocks. The
MSCI EAFE Index gained 10.9% in dollar terms. Attractive valuations in European
stocks and what looked to be a sustainable economic recovery in Japan attracted
investor interest. The double-digit returns in the developed markets paled in
comparison to returns in emerging market stocks. The benchmark for emerging
market stocks, the MSCI EM Index, returned a whopping 30.3% during the year.
This volatile corner of the equity universe was driven by strong returns in
Latin American and Middle Eastern markets, among others.
Stock prices were buffeted by strong crosscurrents throughout the year. Although
long-term interest rates remained low, the specter of the Federal Reserve's
("Fed") interest rate tightening campaign weighed heavily on the market. Despite
the fact that job growth remained healthy and consumers used rising housing
prices as an excuse to turn their houses into ATMs to the tune of approximately
$800 billion, consumer confidence suffered its largest decline in 15 years in
the wake of hurricane Katrina and $70 per barrel oil. Neither the subsequent
strong rebound in consumer confidence as energy prices moderated, nor the four
consecutive quarters of double digit earnings growth was enough to kick stock
prices higher.
The rise in short-term interest rates held stocks back in 2005. During the
course of the year, the Fed increased interest rates eight times, bringing the
closely watched Fed Funds Target Rate to 4.25%. It was widely assumed that
long-term interest rates would follow suit--an expectation that held stocks in
check. Long-term interest rates ended the year little changed. While the yield
on the 30-year Treasury Bond fell nearly 30 basis points to 4.53%, the yield on
the benchmark 10-year Treasury Note ended the year at 4.39%--only 18 basis
points higher than its starting point. A combination of foreign buying, low
inflation and demand from both public and private pensions for long maturity
assets conspired to keep long-term rates low throughout the year.
By year-end, the potent combination of steadily rising short-term interest rates
and static long-term rates gave rise to the dreaded inverted yield curve as the
two-year Treasury Note yielded 4.40%, one basis point higher than the 10-year
Note. Traditionally, an inverted yield curve portends an economic slowdown.
We base our 2006 outlook on two factors--the economy and interest rates. But if
the threat of rising interest rates keeps the market range bound, we believe
opportunities exist in three areas during 2006: energy, technology and health
care. Although energy prices experienced a run-up of historic proportions in
2005, the sector still exhibits favorable supply/demand characteristics. There
is too much demand and not enough supply--a situation that is likely to be in
place for the foreseeable future. Technology's relatively low valuations and the
possibility of an earnings-driven technology replacement cycle may provide
opportunity for the technology sector. And lastly, the defensive nature of
health care stocks will serve investors well should economic growth slow
appreciably.
We appreciate the trust you have placed in our firm by investing with us.
Sincerely,
/s/ Carl G. Verboncoeur
Carl G. Verboncoeur
President
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS
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Many of the Rydex Funds described in this report are benchmarked daily to
leveraged or inverse versions of published indices. To properly evaluate the
performance of these funds, it is essential to understand the effect of
mathematical compounding on their respective returns.
Because of the nonlinear effects of leverage applied over time, it is possible
for a fund to perform in line with its benchmark for several individual periods
in a row, yet seem to trail the benchmark over the entire period. It is also
possible that a fund that performs in-line with its benchmark on a daily basis
may seem to outperform its benchmark over longer periods.
AN EXAMPLE OF COMPOUNDING
For example, consider a hypothetical fund that is designed to produce returns
that correspond to 150% of an index. On the first day of a period, the index
rises from a level of 100 to a level of 106, producing a 6% gain and an
expectation that the fund will rise by 9%. On the same day, the fund's net asset
value ("NAV") increases from $10.00 to $10.90 for a gain of 9.0%-in line with
its benchmark.
On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The
fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund
performed exactly in line with its benchmark, but for the two-day period, the
fund was down 1.8%, while the index was down only 1.0%. Without taking into
account the daily compounding of returns, one would expect the fund to lose 1.5%
and would see the fund as trailing by 0.3% when in fact it had performed
perfectly. This example is summarized in the table below.
INDEX INDEX FUND FUND FUND
LEVEL PERFORMANCE EXPECTATION NAV PERFORMANCE ASSESSMENT
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Start 100 $10.00
Day 1 106 6.0% 9.0% $10.90 9.0% In line
Day 2 99 -6.6% -9.9% $ 9.82 -9.9% In line
Cumulative -1.00% -1.50% -1.80% -0.30%
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As illustrated by this simple example, the effect of leverage can make it
difficult to form expectations or judgments about fund performance given only
the returns of the unleveraged index.
In general, any change in direction in an index will produce compounding that
seems to work against an investor. Were the index to move in the same direction
(either up or down) for two or more periods in a row, the compounding of those
returns would work in an investor's favor, causing the fund to seemingly beat
its benchmark.
As a general rule of thumb, more leverage in a fund will magnify the compounding
effect, while less leverage will generally produce results that are more in line
with expectations. In addition, periods of high volatility in an underlying
index will also cause the effects of compounding to be more pronounced, while
lower volatility will produce a more muted effect.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 3
ABOUT SHAREHOLDERS' FUND EXPENSES (UNAUDITED)
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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: (i) transaction costs,
including sales charges (loads) on purchase payments, reinvested dividends, or
other distributions; redemption fees; and exchange fees; and (ii) ongoing costs,
including management fees, administrative services, and shareholder reports,
among others. These ongoing costs, or operating expenses, are deducted from a
fund's gross income and reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets, which
is known as the expense ratio. The following examples are intended to help 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, 2005 and
ending December 31, 2005.
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."
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you
compare your fund's cost with those of other mutual funds. The table
provides information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid during the
period. The example is useful in making comparisons because the U.S.
Securities and Exchange Commission (the "SEC") requires all mutual funds to
calculate expenses based on the 5% return. You can assess your fund's costs
by comparing this hypothetical example with the hypothetical examples that
appear in shareholder reports of other funds.
The calculations 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 the Fund.These costs may include, but are not limited to, sales
charges (loads), redemption fees, and exchange fees.
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.
4 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (UNAUDITED) (CONTINUED)
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TABLE 1. BASED ON ACTUAL FUND RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ JUNE 30, 2005 DECEMBER 31, 2005 PERIOD*
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Nova Fund 1.63% $1,000.00 $1,068.10 $8.45
Ursa Fund 1.80% 1,000.00 968.00 8.88
OTC Fund 1.58% 1,000.00 1,097.30 8.31
Arktos Fund 1.68% 1,000.00 926.40 8.11
Titan 500 Fund 1.73% 1,000.00 1,081.80 9.03
Velocity 100 Fund 1.72% 1,000.00 1,176.60 9.39
Medius Fund 1.70% 1,000.00 1,098.80 8.94
Inverse Mid-Cap Fund 1.67% 1,000.00 946.60 8.15
Mekros Fund 1.70% 1,000.00 1,067.70 8.81
Inverse Small-Cap Fund 1.68% 1,000.00 955.00 8.23
U.S. Government Bond Fund 1.22% 1,000.00 949.10 5.96
Juno Fund** 4.87% 1,000.00 1,050.00 25.03
Large-Cap Europe Fund 1.70% 1,000.00 1,097.00 8.94
Large-Cap Japan Fund 1.75% 1,000.00 1,392.50 10.50
Long Dynamic Dow 30 Fund 1.73% 1,000.00 1,076.70 9.01
Inverse Dynamic Dow 30 Fund 1.68% 1,000.00 929.80 8.13
Small-Cap Value Fund 1.54% 1,000.00 1,031.70 7.84
Mid-Cap Value Fund 1.52% 1,000.00 1,051.40 7.82
Large-Cap Value Fund 1.56% 1,000.00 1,050.60 8.02
Small-Cap Growth Fund 1.56% 1,000.00 1,050.90 8.02
Mid-Cap Growth Fund 1.58% 1,000.00 1,088.90 8.27
Large-Cap Growth Fund 1.58% 1,000.00 1,047.90 8.11
Strengthening Dollar Fund*** 1.78% 1,000.00 1,031.60 9.07
Weakening Dollar Fund*** 1.76% 1,000.00 974.70 8.71
Core Equity Fund*** 1.67% 1,000.00 1,001.60 8.38
Sector Rotation Fund 1.77% 1,000.00 1,107.40 9.35
U.S. Government Money Market Fund 1.21% 1,000.00 1,012.30 6.10
Banking Fund 1.64% 1,000.00 1,019.50 8.30
Basic Materials Fund 1.65% 1,000.00 1,122.90 8.78
Biotechnology Fund 1.69% 1,000.00 1,180.70 9.24
Commodities Fund*** 1.64% 1,000.00 886.60 7.76
Consumer Products Fund 1.64% 1,000.00 1,001.50 8.23
Electronics Fund 1.65% 1,000.00 1,096.20 8.67
Energy Fund 1.64% 1,000.00 1,146.00 8.82
Energy Services Fund 1.65% 1,000.00 1,252.30 9.32
Financial Services Fund 1.66% 1,000.00 1,060.70 8.58
Health Care Fund 1.64% 1,000.00 1,068.70 8.50
Internet Fund 1.76% 1,000.00 1,133.50 9.41
Leisure Fund 1.63% 1,000.00 991.10 8.14
Precious Metals Fund 1.67% 1,000.00 1,326.50 9.74
Real Estate Fund 1.63% 1,000.00 1,024.10 8.27
Retailing Fund 1.62% 1,000.00 997.50 8.11
Technology Fund 1.68% 1,000.00 1,086.70 8.79
Telecommunications Fund 1.67% 1,000.00 1,065.10 8.65
Transportation Fund 1.67% 1,000.00 1,084.80 8.73
Utilities Fund 1.64% 1,000.00 982.70 8.15
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5
ABOUT SHAREHOLDERS' FUND EXPENSES (UNAUDITED) (CONCLUDED)
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TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ JUNE 30, 2005 DECEMBER 31, 2005 PERIOD*
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Nova Fund 1.63% $1,000.00 $1,016.79 $ 8.27
Ursa Fund 1.80% 1,000.00 1,015.93 9.14
OTC Fund 1.58% 1,000.00 1,017.05 8.02
Arktos Fund 1.68% 1,000.00 1,016.54 8.53
Titan 500 Fund 1.73% 1,000.00 1,016.29 8.78
Velocity 100 Fund 1.72% 1,000.00 1,016.34 8.73
Medius Fund 1.70% 1,000.00 1,016.44 8.63
Inverse Mid-Cap Fund 1.67% 1,000.00 1,016.59 8.48
Mekros Fund 1.70% 1,000.00 1,016.44 8.63
Inverse Small-Cap Fund 1.68% 1,000.00 1,016.54 8.53
U.S. Government Bond Fund 1.22% 1,000.00 1,018.88 6.19
Juno Fund** 4.87% 1,000.00 1,000.35 24.72
Large-Cap Europe Fund 1.70% 1,000.00 1,016.44 8.63
Large-Cap Japan Fund 1.75% 1,000.00 1,016.18 8.88
Long Dynamic Dow 30 Fund 1.73% 1,000.00 1,016.29 8.78
Inverse Dynamic Dow 30 Fund 1.68% 1,000.00 1,016.54 8.53
Small-Cap Value Fund 1.54% 1,000.00 1,017.25 7.82
Mid-Cap Value Fund 1.52% 1,000.00 1,017.35 7.72
Large-Cap Value Fund 1.56% 1,000.00 1,017.15 7.92
Small-Cap Growth Fund 1.56% 1,000.00 1,017.15 7.92
Mid-Cap Growth Fund 1.58% 1,000.00 1,017.05 8.02
Large-Cap Growth Fund 1.58% 1,000.00 1,017.05 8.02
Strengthening Dollar Fund*** 1.78% 1,000.00 1,016.03 9.04
Weakening Dollar Fund*** 1.76% 1,000.00 1,016.13 8.93
Core Equity Fund*** 1.67% 1,000.00 1,016.59 8.48
Sector Rotation Fund 1.77% 1,000.00 1,016.08 8.99
U.S. Government Money Market Fund 1.21% 1,000.00 1,018.93 6.14
Banking Fund 1.64% 1,000.00 1,016.74 8.33
Basic Materials Fund 1.65% 1,000.00 1,016.69 8.38
Biotechnology Fund 1.69% 1,000.00 1,016.49 8.58
Commodities Fund*** 1.64% 1,000.00 1,016.74 8.33
Consumer Products Fund 1.64% 1,000.00 1,016.74 8.33
Electronics Fund 1.65% 1,000.00 1,016.69 8.38
Energy Fund 1.64% 1,000.00 1,016.74 8.33
Energy Services Fund 1.65% 1,000.00 1,016.69 8.38
Financial Services Fund 1.66% 1,000.00 1,016.64 8.43
Health Care Fund 1.64% 1,000.00 1,016.74 8.33
Internet Fund 1.76% 1,000.00 1,016.13 8.93
Leisure Fund 1.63% 1,000.00 1,016.79 8.27
Precious Metals Fund 1.67% 1,000.00 1,016.59 8.48
Real Estate Fund 1.63% 1,000.00 1,016.79 8.27
Retailing Fund 1.62% 1,000.00 1,016.84 8.22
Technology Fund 1.68% 1,000.00 1,016.54 8.53
Telecommunications Fund 1.67% 1,000.00 1,016.59 8.48
Transportation Fund 1.67% 1,000.00 1,016.59 8.48
Utilities Fund 1.64% 1,000.00 1,016.74 8.33
* 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. EXPENSES
SHOWN DO NOT INCLUDE ADDITIONAL FEES CHARGED BY INSURANCE COMPANIES.
** THIS RATIO REPRESENTS GROSS EXPENSES, WHICH INCLUDE INTEREST EXPENSE FROM
SECURITIES SOLD SHORT.
*** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 30, 2005--STRENGTHENING
DOLLAR FUND, WEAKENING DOLLAR FUND, COMMODITIES FUND; NOVEMBER 29,
2005--CORE EQUITY FUND.
+ ANNUALIZED
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED)
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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
daily performance of the S&P 500 Index.
INCEPTION: May 7, 1997
Rydex Nova Fund's relation to the S&P 500 Index, which gained 4.91% in 2005,
helped it earn a positive return in a year that was marked by record energy
prices, the Fed's continual hiking of short-term interest rates, Hurricanes
Katrina and Rita, and the ongoing military action in Iraq. Energy, health
services and industrial services were the strongest sectors within the large-cap
arena. Communications, consumer services and consumer durables were the weakest
sectors.
Rydex Nova Fund returned 3.97% during 2005. For the year, the Fund achieved a
daily correlation of more than 0.99 to its benchmark of 150% of the daily price
performance of the S&P 500 Index. The effects of daily compounding may cause the
longer-term correlation of the Fund to its benchmark to diminish.(1) The effects
of compounding are described briefly on page 3 of this report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE NOVA FUND S&P 500 INDEX
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05/07/97 10,000 10,000
06/30/97 10,970 10,885
09/30/97 11,950 11,701
12/31/97 12,210 12,037
03/31/98 14,190 13,716
06/30/98 14,570 14,169
09/30/98 12,070 12,759
12/31/98 15,880 15,477
03/31/99 16,600 16,248
06/30/99 18,070 17,393
09/30/99 16,182 16,307
12/31/99 19,577 18,733
03/31/00 19,893 19,163
06/30/00 18,575 18,654
09/30/00 18,051 18,473
12/31/00 15,602 17,028
03/31/01 12,592 15,009
06/30/01 13,535 15,887
09/30/01 10,424 13,555
12/31/01 11,923 15,004
03/31/02 11,882 15,045
06/30/02 9,434 13,029
09/30/02 6,909 10,778
12/31/02 7,664 11,688
03/31/03 7,131 11,320
06/30/03 8,788 13,062
09/30/03 9,084 13,408
12/31/03 10,667 15,040
03/31/04 10,978 15,295
06/30/04 11,200 15,558
09/30/04 10,762 15,268
12/31/04 12,227 16,677
03/31/05 11,739 16,319
06/30/05 11,901 16,542
09/30/05 12,489 17,139
12/31/05 12,712 17,496
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
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SINCE
ONE FIVE INCEPTION
YEAR YEAR (05/07/97)
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NOVA FUND 3.97% -4.01% 2.81%
S&P 500 INDEX 4.91% 0.54% 6.68%
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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 7.5% 9.3%
FINANCIALS 15.9% 21.0%
INFORMATION TECHNOLOGY 11.4% 15.4%
HEALTH CARE 9.9% 13.3%
INDUSTRIALS 8.5% 11.3%
CONSUMER DISCRETIONARY 8.1% 10.7%
CONSUMER STAPLES 7.2% 9.4%
ENERGY 6.5% 9.6%
FUTURES CONTRACTS 48.8%
EQUITY INDEX SWAP AGREEMENTS 26.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
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General Electric Co. 2.7%
Exxon Mobil Corp. 2.3%
Citigroup, Inc. 1.8%
Procter & Gamble Co. 1.6%
Pfizer, Inc. 1.5%
Microsoft Corp. 1.3%
Intel Corp. 1.3%
Altria Group, Inc. 1.1%
Cisco Systems, Inc. 0.9%
Amgen, Inc. 0.9%
- -----------------------------------------------------
Top Ten Total 15.4%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
URSA FUND
OBJECTIVE: To provide investment results that will inversely correlate to the
performance of the S&P 500 Index.
INCEPTION: June 9, 1997
In a year that was marked by record energy prices, the Fed's continual hiking of
short-term interest rates, Hurricanes Katrina and Rita, and the ongoing military
action in Iraq, the S&P 500 Index gained 4.91%. Rydex Ursa Fund, which aims to
provide returns that are inverse of the daily price movement of the S&P 500
Index, returned -0.77% for the year.
During that same period, the Fund achieved a daily correlation of more than 0.97
to its benchmark of 100% of the inverse daily price performance of the S&P 500
Index. The effects of daily compounding may cause the longer-term correlation of
the Fund to its benchmark to diminish.(1) The effects of compounding are
described briefly on page 3 of this report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE URSA FUND S&P 500 INDEX
-------- --------- -------------
06/09/97 10,000 10,000
06/30/97 9,786 10,266
09/30/97 9,028 11,035
12/31/97 8,622 11,352
03/31/98 7,618 12,935
06/30/98 7,425 13,362
09/30/98 8,098 12,033
12/31/98 6,731 14,596
03/31/99 6,432 15,323
06/30/99 5,994 16,403
09/30/99 6,465 15,379
12/31/99 5,717 17,667
03/31/00 5,610 18,072
06/30/00 5,856 17,592
09/30/00 6,025 17,422
12/31/00 6,635 16,059
03/31/01 7,593 14,155
06/30/01 7,234 14,983
09/30/01 8,466 12,784
12/31/01 7,629 14,150
03/31/02 7,581 14,189
06/30/02 8,697 12,288
09/30/02 10,237 10,165
12/31/02 9,280 11,023
03/31/03 9,477 10,676
06/30/03 8,177 12,319
09/30/03 7,932 12,645
12/31/03 7,086 14,185
03/31/04 6,927 14,425
06/30/04 6,792 14,673
09/30/04 6,927 14,399
12/31/04 6,363 15,728
03/31/05 6,547 15,390
06/30/05 6,522 15,601
09/30/05 6,350 16,163
12/31/05 6,314 16,501
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (06/09/97)
- --------------------------------------------------------------------------------
URSA FUND -0.77% -0.99% -5.23%
S&P 500 INDEX 4.91% 0.54% 6.02%
- --------------------------------------------------------------------------------
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.]
S&P 500
URSA FUND INDEX
--------- -------
OTHER 9.3%
FINANCIALS 21.0%
INFORMATION TECHNOLOGY 15.4%
HEALTH CARE 13.3%
INDUSTRIALS 11.3%
CONSUMER DISCRETIONARY 10.7%
ENERGY 9.6%
CONSUMER STAPLES 9.4%
FUTURES CONTRACTS SHORT SALES -82.2%
EQUITY INDEX SWAP AGREEMENTS SHORT SALES -16.5%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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.
INCEPTION: May 7, 1997
Investors entered 2005 with worries about decelerating global economic growth,
rising interest rates, roaring oil prices and IT spending growth. The
technology-heavy Nasdaq 100 Index was therefore under great pressure at the
beginning of the year, declining by more than 12% in the first four months.
After a strong November, the index was just 1.9% above zero line.
Although some of the sectors within the index (consumer staples, for example)
outperformed in all four quarters, the index's major components--technology and
consumer discretionary--performed poorly. Rydex OTC Fund returned 1.11% for the
year.
CUMULATIVE FUND PERFORMANCE: MAY 7, 1997 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
NASDAQ 100
DATE OTC FUND INDEX
-------- -------- ----------
05/07/97 10,000 10,000
06/30/97 10,400 10,528
09/30/97 11,760 12,066
12/31/97 10,650 10,896
03/31/98 13,120 13,424
06/30/98 14,360 14,708
09/30/98 14,470 14,797
12/31/98 19,570 20,192
03/31/99 22,630 23,165
06/30/99 24,630 25,259
09/30/99 25,734 26,481
12/31/99 39,399 40,777
03/31/00 46,497 48,366
06/30/00 39,685 41,393
09/30/00 37,486 39,268
12/31/00 24,354 25,753
03/31/01 16,087 17,302
06/30/01 18,700 20,128
09/30/01 11,756 12,849
12/31/01 15,788 17,344
03/31/02 14,476 15,977
06/30/02 10,401 11,563
09/30/02 8,203 9,156
12/31/02 9,654 10,826
03/31/03 9,964 11,203
06/30/03 11,670 13,216
09/30/03 12,513 14,338
12/31/03 14,039 16,144
03/31/04 13,729 15,819
06/30/04 14,455 16,679
09/30/04 13,409 15,537
12/31/04 15,351 17,828
03/31/05 14,007 16,304
06/30/05 14,145 16,425
09/30/05 15,159 17,614
12/31/05 15,521 18,093
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (05/07/97)
- --------------------------------------------------------------------------------
OTC FUND 1.11% -8.62% 5.21%
NASDAQ 100 INDEX 1.90% -6.61% 7.26%
- --------------------------------------------------------------------------------
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 5.9% 6.7%
INFORMATION TECHNOLOGY 56.0% 60.7%
CONSUMER DISCRETIONARY 17.8% 18.1%
HEALTH CARE 14.8% 14.1%
FUTURES CONTRACTS 1.8%
EQUITY INDEX SWAP AGREEMENTS 3.8%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Qualcomm, Inc. 6.0%
Apple Computer, Inc. 6.0%
Microsoft Corp. 5.7%
Intel Corp. 4.9%
Amgen, Inc. 3.7%
Cisco Systems, Inc. 3.7%
eBay, Inc. 3.1%
Dell, Inc. 2.4%
Starbucks Corp. 2.3%
Oracle Corp. 1.9%
- -----------------------------------------------------
Top Ten Total 39.7%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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.
INCEPTION: May 21, 2001
Although some of the sectors within the Nasdaq 100 Index (consumer staples, for
example) outperformed in all four quarters, the index's major
components--technology and consumer discretionary--performed poorly. This hurt
the technology-heavy Nasdaq 100 Index. Rydex Arktos Fund, which seeks to provide
investment returns that correspond to the inverse of the daily performance of
the Nasdaq 100 Index, returned 1.27% for the year. The effects of daily
compounding may cause the longer-term correlation of the Fund to its benchmark
to diminish. The effects of compounding are described briefly on page 3 of this
report.
CUMULATIVE FUND PERFORMANCE: MAY 21, 2001 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE ARKTOS FUND NASDAQ 100 INDEX
-------- ----------- ----------------
05/21/01 10,000 10,000
05/31/01 11,420 8,769
06/30/01 11,132 8,917
07/31/01 11,996 8,202
08/31/01 13,576 7,160
09/30/01 16,868 5,692
10/31/01 13,972 6,649
11/30/01 11,852 7,776
12/31/01 11,792 7,683
01/31/02 11,888 7,552
02/28/02 13,432 6,622
03/31/02 12,436 7,078
04/30/02 14,028 6,222
05/31/02 14,472 5,887
06/30/02 16,440 5,122
07/31/02 17,404 4,687
08/31/02 17,428 4,591
09/30/02 19,478 4,056
10/31/02 16,074 4,821
11/30/02 14,033 5,438
12/31/02 15,783 4,796
01/31/03 15,589 4,789
02/28/03 15,092 4,919
03/31/03 14,797 4,963
04/30/03 13,555 5,389
05/31/03 12,460 5,836
06/30/03 12,387 5,855
07/31/03 11,603 6,221
08/31/03 11,013 6,534
09/30/03 11,264 6,352
10/31/03 10,324 6,901
11/30/03 10,226 6,939
12/31/03 9,885 7,152
01/31/04 9,688 7,274
02/29/04 9,820 7,164
03/31/04 10,000 7,008
04/30/04 10,214 6,827
05/31/04 9,738 7,143
06/30/04 9,401 7,389
07/31/04 10,152 6,823
08/31/04 10,361 6,668
09/30/04 10,025 6,883
10/31/04 9,504 7,243
11/30/04 8,983 7,656
12/31/04 8,716 7,898
01/31/05 9,294 7,404
02/28/05 9,348 7,362
03/31/05 9,553 7,223
04/30/05 9,972 6,922
05/31/05 9,200 7,516
06/30/05 9,528 7,276
07/31/05 8,884 7,820
08/31/05 9,044 7,706
09/30/05 8,962 7,803
10/31/05 9,126 7,694
11/30/05 8,642 8,149
12/31/05 8,827 8,015
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/21/01)
- --------------------------------------------------------------------------------
ARKTOS FUND 1.27% -2.67%
NASDAQ 100 INDEX 1.90% -4.46%
- --------------------------------------------------------------------------------
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.]
NASDAQ 100
ARKTOS FUND INDEX
----------- -----------
OTHER 7.0%
INFORMATION TECHNOLOGY 60.7%
CONSUMER DISCRETIONARY 18.1%
HEALTH CARE 14.1%
FUTURES CONTRACTS SHORT SALES -28.2%
EQUITY INDEX SWAP AGREEMENTS SHORT SALES -71.6%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TITAN 500 FUND
OBJECTIVE: Seeks to provide investment results that will match the performance
of a specific benchmark on a daily basis. The Fund's current benchmark is 200%
of the performance of the S&P 500 Index.
INCEPTION: October 1, 2001
In a year that was marked by record energy prices, the Fed's continual hiking of
short-term interest rates, Hurricanes Katrina and Rita, and the ongoing military
action in Iraq, the S&P 500 Index gained 4.91%. Rydex Titan 500 Fund, which aims
to provide returns that correspond to 200% of the daily price movement of the
S&P 500 Index, returned 3.38% for the year. It achieved a daily correlation of
more than 0.99 to its benchmark of 200% of the daily price performance of the
S&P 500 Index. The effects of daily compounding may cause the longer-term
correlation of the Fund to its benchmark to diminish.(1) The effects of
compounding are described briefly on page 3 of this report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE TITAN 500 FUND S&P 500 INDEX
-------- -------------- -------------
10/01/01 10,000 10,000
10/31/01 10,356 10,214
11/30/01 11,824 10,998
12/31/01 11,948 11,094
01/31/02 11,496 10,932
02/28/02 11,048 10,721
03/31/02 11,724 11,124
04/30/02 10,276 10,450
05/31/02 10,020 10,373
06/30/02 8,432 9,634
07/31/02 7,084 8,883
08/31/02 7,092 8,942
09/30/02 5,577 7,970
10/31/02 6,544 8,671
11/30/02 7,317 9,182
12/31/02 6,451 8,642
01/31/03 6,042 8,416
02/28/03 5,822 8,289
03/31/03 5,866 8,370
04/30/03 6,812 9,059
05/31/03 7,558 9,537
06/30/03 7,698 9,658
07/31/03 7,923 9,829
08/31/03 8,236 10,020
09/30/03 8,007 9,914
10/31/03 8,921 10,475
11/30/03 9,142 10,567
12/31/03 9,996 11,121
01/31/04 10,357 11,325
02/29/04 10,616 11,483
03/31/04 10,241 11,309
04/30/04 9,885 11,132
05/31/04 10,126 11,285
06/30/04 10,464 11,504
07/31/04 9,741 11,123
08/31/04 9,783 11,168
09/30/04 9,936 11,289
10/31/04 10,188 11,462
11/30/04 10,984 11,926
12/31/04 11,685 12,331
01/31/05 11,066 12,031
02/28/05 11,491 12,284
03/31/05 11,031 12,066
04/30/05 10,560 11,838
05/31/05 11,196 12,214
06/30/05 11,167 12,232
07/31/05 11,968 12,686
08/31/05 11,679 12,571
09/30/05 11,811 12,672
10/31/05 11,337 12,461
11/30/05 12,159 12,933
12/31/05 12,080 12,937
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
TITAN 500 FUND 3.38% 4.55%
S&P 500 INDEX 4.91% 6.25%
- --------------------------------------------------------------------------------
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 INDEX
-------------- -------------
OTHER 6.3% 9.3%
FINANCIALS 15.7% 21.0%
INFORMATION TECHNOLOGY 11.1% 15.4%
HEALTH CARE 9.8% 13.3%
INDUSTRIALS 9.0% 10.7%
CONSUMER DISCRETIONARY 8.0% 11.3%
CONSUMER STAPLES 7.1% 9.6%
ENERGY 6.9% 9.4%
FUTURES CONTRACTS 66.1%
EQUITY INDEX SWAP AGREEMENTS 59.8%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
General Electric Co. 2.4%
Exxon Mobil Corp. 2.3%
Citigroup, Inc. 1.6%
Microsoft Corp. 1.6%
Procter & Gamble Co. 1.3%
Bank of America Corp. 1.2%
Johnson & Johnson, Inc. 1.2%
American International Group, Inc. 1.2%
Pfizer, Inc. 1.1%
Altria Group, Inc. 1.0%
- -----------------------------------------------------
Top Ten Total 14.9%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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.
INCEPTION: October 1, 2001
Investors entered 2005 with worries about decelerating global economic growth,
rising interest rates, roaring oil prices, and IT spending growth. All the macro
concerns above came true with different extents throughout the year.
The Nasdaq 100 Index declined by more than 12% in the first four months. After a
strong November, the index was just 1.9% above zero line. For the year, it
returned 1.90%.
Some of the index's components--consumer staples, pharmaceuticals and health
care--performed well during the year. But others--consumer discretionary, for
instance, performed poorly. Technology, which makes up the largest part of the
index, went through a bumpy year and rose slightly. Rydex Velocity 100 Fund
returned -3.03% for the year. It achieved a daily correlation of more than 0.99
to its benchmark of 200% of the daily price performance of the Nasdaq 100 Index.
The effects of daily compounding may cause the longer-term correlation of the
Fund to its benchmark to diminish.(1) The effects of compounding are described
briefly on page 3 of this report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
DATE VELOCITY 100 FUND NASDAQ 100 INDEX
-------- ----------------- ----------------
10/01/01 10,000 10,000
10/31/01 12,912 11,855
11/30/01 17,148 13,864
12/31/01 15,588 13,699
01/31/02 14,860 13,465
02/28/02 11,212 11,807
03/31/02 12,532 12,620
04/30/02 9,540 11,093
05/31/02 8,340 10,496
06/30/02 6,208 9,133
07/31/02 5,040 8,357
08/31/02 4,708 8,186
09/30/02 3,584 7,232
10/31/02 4,984 8,595
11/30/02 6,208 9,695
12/31/02 4,760 8,551
01/31/03 4,676 8,539
02/28/03 4,896 8,771
03/31/03 4,940 8,848
04/30/03 5,764 9,608
05/31/03 6,680 10,405
06/30/03 6,676 10,438
07/31/03 7,432 11,092
08/31/03 8,140 11,650
09/30/03 7,612 11,324
10/31/03 8,920 12,303
11/30/03 8,976 12,371
12/31/03 9,455 12,751
01/31/04 9,738 12,969
02/29/04 9,420 12,772
03/31/04 8,946 12,494
04/30/04 8,459 12,173
05/31/04 9,233 12,736
06/30/04 9,803 13,174
07/31/04 8,280 12,164
08/31/04 7,862 11,889
09/30/04 8,329 12,271
10/31/04 9,166 12,914
11/30/04 10,200 13,650
12/31/04 10,798 14,082
01/31/05 9,442 13,200
02/28/05 9,302 13,125
03/31/05 8,904 12,878
04/30/05 8,119 12,341
05/31/05 9,540 13,400
06/30/05 8,900 12,973
07/31/05 10,232 13,943
08/31/05 9,896 13,739
09/30/05 10,088 13,912
10/31/05 9,737 13,717
11/30/05 10,887 14,528
12/31/05 10,471 14,291
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
VELOCITY 100 FUND -3.03% 1.09%
NASDAQ 100 INDEX 1.90% 9.02%
- --------------------------------------------------------------------------------
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.]
NASDAQ 100
VELOCITY 100 FUND INDEX
----------------- ----------
OTHER 5.5% 7.0%
INFORMATION TECHNOLOGY 48.2% 60.7%
CONSUMER DISCRETIONARY 14.9% 18.1%
HEALTH CARE 11.6% 14.1%
FUTURES CONTRACTS 10.2%
EQUITY INDEX SWAP AGREEMENTS 109.9%
"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. 4.9%
Apple Computer, Inc. 4.8%
Intel Corp. 3.0%
Google, Inc. -- Class A 2.8%
Amgen, Inc. 2.6%
eBay, Inc. 2.6%
Cisco Systems, Inc. 2.2%
Starbucks Corp. 1.8%
Yahoo!, Inc. 1.5%
- -----------------------------------------------------
Top Ten Total 31.7%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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 Index.
INCEPTION: October 1, 2001
In the five previous years, mid-cap stocks outperformed large-cap stocks, and
2005 provided more of the same. The S&P MidCap 400 Index gained 12.56% in 2005,
easily outdistancing larger-cap indices such as the S&P 500 Index. Mid-cap
energy stocks performed well, gaining 52.01%. Sector performance among mid-caps
was strong, with four sectors posting positive double-digit returns. Only the
telecommunications sector struggled, losing 9.94%. Strong earnings growth and a
resilient economy contributed to the performance of mid-caps. Rydex Medius Fund
returned 14.07% for the year. The effects of daily compounding may cause the
longer-term correlation of the Fund to its benchmark to diminish. The effects of
compounding are described briefly on page 3 of this report.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P MIDCAP
DATE MEDIUS FUND 400 INDEX
-------- ----------- ----------
10/01/01 10,000 10,000
10/31/01 10,848 10,633
11/30/01 11,920 11,424
12/31/01 12,667 12,015
01/31/02 12,569 11,952
02/28/02 12,618 11,967
03/31/02 13,876 12,822
04/30/02 13,860 12,763
05/31/02 13,519 12,547
06/30/02 12,017 11,629
07/31/02 10,374 10,502
08/31/02 10,297 10,555
09/30/02 8,973 9,705
10/31/02 9,512 10,125
11/30/02 10,315 10,711
12/31/02 9,571 10,271
01/31/03 9,157 9,971
02/28/03 8,806 9,733
03/31/03 8,823 9,816
04/30/03 9,749 10,528
05/31/03 11,074 11,401
06/30/03 11,241 11,546
07/31/03 11,769 11,956
08/31/03 12,539 12,498
09/30/03 12,297 12,307
10/31/03 13,659 13,237
11/30/03 14,316 13,698
12/31/03 14,589 13,929
01/31/04 15,049 14,231
02/29/04 15,551 14,573
03/31/04 15,651 14,635
04/30/04 14,831 14,155
05/31/04 15,197 14,448
06/30/04 15,704 14,777
07/31/04 14,530 14,087
08/31/04 14,418 14,051
09/30/04 15,063 14,467
10/31/04 15,466 14,698
11/30/04 16,865 15,574
12/31/04 17,820 16,226
01/31/05 17,107 15,811
02/28/05 17,934 16,342
03/31/05 17,652 16,161
04/30/05 16,455 15,533
05/31/05 17,887 16,468
06/30/05 18,499 16,850
07/31/05 19,972 17,735
08/31/05 19,582 17,537
09/30/05 19,747 17,672
10/31/05 18,999 17,292
11/30/05 20,280 18,137
12/31/05 20,327 18,263
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
MEDIUS FUND 14.07% 18.17%
S&P MIDCAP 400 INDEX 12.56% 15.23%
- --------------------------------------------------------------------------------
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 6.3% 6.8%
FINANCIALS 15.4% 18.5%
CONSUMER DISCRETIONARY 14.1% 16.0%
INFORMATION TECHNOLOGY 13.6% 16.3%
INDUSTRIALS 11.4% 12.9%
HEALTH CARE 9.4% 11.7%
ENERGY 7.8% 10.2%
UTILITIES 6.2% 7.4%
FUTURES CONTRACTS 20.1%
EQUITY INDEX SWAP AGREEMENTS 46.1%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Omnicare, Inc. 1.1%
SanDisk Corp. 1.1%
Legg Mason, Inc. 1.0%
Radian Group, Inc. 1.0%
Peabody Energy Corp. 0.9%
Dun & Bradstreet Corp. 0.9%
Wisconsin Energy Corp. 0.9%
Lam Research Corp. 0.9%
Equitable Resources, Inc. 0.9%
SCANA Corp. 0.9%
- -----------------------------------------------------
Top Ten Total 9.6%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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
For the sixth year in a row, mid-cap stocks outperformed large-cap stocks.
Because Rydex Inverse Mid-Cap Fund seeks to provide investment results that
inversely correspond to the daily performance of the S&P MidCap 400 Index,
mid-cap outperformance was not good news for the Fund. The Fund returned -8.16%
for the year. The effects of daily compounding may cause the longer-term
correlation of the Fund to its benchmark to diminish. The effects of compounding
are described briefly on page 3 of this report.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P MIDCAP 400
DATE INVERSE MID-CAP FUND INDEX
-------- -------------------- --------------
05/03/04 10,000 10,000
05/04/04 9,988 10,023
05/05/04 9,922 10,073
05/06/04 10,042 9,955
05/07/04 10,258 9,742
05/08/04 10,258 9,742
05/09/04 10,258 9,742
05/10/04 10,436 9,577
05/11/04 10,282 9,702
05/12/04 10,308 9,677
05/13/04 10,298 9,689
05/14/04 10,338 9,660
05/15/04 10,338 9,660
05/16/04 10,338 9,660
05/17/04 10,450 9,546
05/18/04 10,356 9,633
05/19/04 10,380 9,607
05/20/04 10,378 9,611
05/21/04 10,320 9,660
05/22/04 10,320 9,660
05/23/04 10,320 9,660
05/24/04 10,212 9,760
05/25/04 10,018 9,948
05/26/04 9,962 10,008
05/27/04 9,916 10,063
05/28/04 9,866 10,114
05/29/04 9,866 10,114
05/30/04 9,866 10,114
05/31/04 9,866 10,114
06/01/04 9,822 10,145
06/02/04 9,838 10,145
06/03/04 9,972 10,003
06/04/04 9,894 10,074
06/05/04 9,894 10,074
06/06/04 9,894 10,074
06/07/04 9,738 10,245
06/08/04 9,746 10,228
06/09/04 9,874 10,103
06/10/04 9,830 10,129
06/11/04 9,830 10,129
06/12/04 9,830 10,129
06/13/04 9,830 10,129
06/14/04 9,970 9,985
06/15/04 9,830 10,110
06/16/04 9,832 10,129
06/17/04 9,828 10,122
06/18/04 9,864 10,123
06/19/04 9,864 10,123
06/20/04 9,864 10,123
06/21/04 9,864 10,096
06/22/04 9,798 10,152
06/23/04 9,712 10,243
06/24/04 9,740 10,227
06/25/04 9,686 10,274
06/26/04 9,686 10,274
06/27/04 9,686 10,274
06/28/04 9,746 10,221
06/29/04 9,714 10,251
06/30/04 9,636 10,344
07/01/04 9,760 10,215
07/02/04 9,768 10,193
07/03/04 9,768 10,193
07/04/04 9,768 10,193
07/05/04 9,768 10,193
07/06/04 9,898 10,053
07/07/04 9,880 10,082
07/08/04 10,002 9,960
07/09/04 9,936 10,008
07/10/04 9,936 10,008
07/11/04 9,936 10,008
07/12/04 9,988 9,983
07/13/04 9,978 9,993
07/14/04 10,012 9,960
07/15/04 9,954 10,011
07/16/04 10,012 9,942
07/17/04 10,012 9,942
07/18/04 10,012 9,942
07/19/04 10,020 9,951
07/20/04 9,888 10,069
07/21/04 10,096 9,864
07/22/04 10,104 9,845
07/23/04 10,240 9,730
07/24/04 10,240 9,730
07/25/04 10,240 9,730
07/26/04 10,332 9,645
07/27/04 10,186 9,775
07/28/04 10,240 9,726
07/29/04 10,094 9,853
07/30/04 10,102 9,861
07/31/04 10,102 9,861
08/01/04 10,102 9,861
08/02/04 10,076 9,877
08/03/04 10,204 9,770
08/04/04 10,234 9,737
08/05/04 10,416 9,554
08/06/04 10,600 9,398
08/07/04 10,600 9,398
08/08/04 10,600 9,398
08/09/04 10,588 9,414
08/10/04 10,408 9,566
08/11/04 10,480 9,507
08/12/04 10,630 9,375
08/13/04 10,630 9,368
08/14/04 10,630 9,368
08/15/04 10,630 9,368
08/16/04 10,456 9,523
08/17/04 10,404 9,566
08/18/04 10,252 9,707
08/19/04 10,330 9,642
08/20/04 10,190 9,769
08/21/04 10,190 9,769
08/22/04 10,190 9,769
08/23/04 10,246 9,715
08/24/04 10,234 9,731
08/25/04 10,128 9,821
08/26/04 10,136 9,825
08/27/04 10,082 9,874
08/28/04 10,082 9,874
08/29/04 10,082 9,874
08/30/04 10,200 9,760
08/31/04 10,122 9,835
09/01/04 10,042 9,917
09/02/04 9,952 10,006
09/03/04 10,002 9,959
09/04/04 10,002 9,959
09/05/04 10,002 9,959
09/06/04 10,002 9,959
09/07/04 9,928 10,033
09/08/04 10,024 9,939
09/09/04 9,950 10,010
09/10/04 9,910 10,050
09/11/04 9,910 10,050
09/12/04 9,910 10,050
09/13/04 9,848 10,114
09/14/04 9,870 10,090
09/15/04 9,926 10,036
09/16/04 9,858 10,105
09/17/04 9,864 10,104
09/18/04 9,864 10,104
09/19/04 9,864 10,104
09/20/04 9,906 10,059
09/21/04 9,822 10,142
09/22/04 9,946 10,020
09/23/04 9,970 9,989
09/24/04 9,926 10,044
09/25/04 9,926 10,044
09/26/04 9,926 10,044
09/27/04 10,014 9,946
09/28/04 9,946 10,015
09/29/04 9,906 10,055
09/30/04 9,842 10,126
10/01/04 9,694 10,274
10/02/04 9,694 10,274
10/03/04 9,694 10,274
10/04/04 9,666 10,305
10/05/04 9,694 10,280
10/06/04 9,632 10,346
10/07/04 9,752 10,217
10/08/04 9,824 10,145
10/09/04 9,824 10,145
10/10/04 9,824 10,145
10/11/04 9,812 10,148
10/12/04 9,854 10,116
10/13/04 9,934 10,032
10/14/04 10,002 9,956
10/15/04 9,962 9,996
10/16/04 9,962 9,996
10/17/04 9,962 9,996
10/18/04 9,914 10,045
10/19/04 9,986 9,972
10/20/04 9,938 10,016
10/21/04 9,848 10,113
10/22/04 9,940 10,022
10/23/04 9,940 10,022
10/24/04 9,940 10,022
10/25/04 9,910 10,051
10/26/04 9,826 10,120
10/27/04 9,690 10,277
10/28/04 9,704 10,266
10/29/04 9,688 10,289
10/30/04 9,688 10,289
10/31/04 9,688 10,289
11/01/04 9,688 10,290
11/02/04 9,700 10,277
11/03/04 9,564 10,416
11/04/04 9,428 10,567
11/05/04 9,404 10,595
11/06/04 9,404 10,595
11/07/04 9,404 10,595
11/08/04 9,436 10,558
11/09/04 9,406 10,595
11/10/04 9,384 10,622
11/11/04 9,296 10,724
11/12/04 9,192 10,844
11/13/04 9,192 10,844
11/14/04 9,192 10,844
11/15/04 9,200 10,836
11/16/04 9,258 10,771
11/17/04 9,180 10,860
11/18/04 9,190 10,852
11/19/04 9,298 10,726
11/20/04 9,298 10,726
11/21/04 9,298 10,726
11/22/04 9,224 10,807
11/23/04 9,188 10,852
11/24/04 9,108 10,946
11/25/04 9,108 10,946
11/26/04 9,106 10,954
11/27/04 9,106 10,954
11/28/04 9,106 10,954
11/29/04 9,128 10,931
11/30/04 9,152 10,901
12/01/04 9,032 11,046
12/02/04 9,070 11,001
12/03/04 9,050 11,031
12/04/04 9,050 11,031
12/05/04 9,050 11,031
12/06/04 9,076 11,000
12/07/04 9,200 10,846
12/08/04 9,142 10,913
12/09/04 9,108 10,961
12/10/04 9,098 10,974
12/11/04 9,098 10,974
12/12/04 9,098 10,974
12/13/04 9,032 11,052
12/14/04 8,946 11,156
12/15/04 8,896 11,226
12/16/04 8,950 11,157
12/17/04 8,958 11,154
12/18/04 8,958 11,154
12/19/04 8,958 11,154
12/20/04 8,990 11,103
12/21/04 8,900 11,220
12/22/04 8,866 11,258
12/23/04 8,860 11,271
12/24/04 8,860 11,271
12/25/04 8,860 11,271
12/26/04 8,860 11,271
12/27/04 8,924 11,203
12/28/04 8,816 11,340
12/29/04 8,800 11,351
12/30/04 8,794 11,378
12/31/04 8,806 11,358
01/01/05 8,806 11,358
01/02/05 8,806 11,358
01/03/05 8,950 11,167
01/04/05 9,088 10,994
01/05/05 9,190 10,875
01/06/05 9,150 10,926
01/07/05 9,188 10,870
01/08/05 9,188 10,870
01/09/05 9,188 10,870
01/10/05 9,140 10,932
01/11/05 9,196 10,867
01/12/05 9,176 10,894
01/13/05 9,188 10,874
01/14/05 9,114 10,969
01/15/05 9,114 10,969
01/16/05 9,114 10,969
01/17/05 9,114 10,969
01/18/05 9,030 11,070
01/19/05 9,114 10,970
01/20/05 9,160 10,916
01/21/05 9,206 10,856
01/22/05 9,206 10,856
01/23/05 9,206 10,856
01/24/05 9,260 10,790
01/25/05 9,242 10,813
01/26/05 9,146 10,923
01/27/05 9,120 10,959
01/28/05 9,168 10,908
01/29/05 9,168 10,908
01/30/05 9,168 10,908
01/31/05 9,034 11,068
02/01/05 8,964 11,151
02/02/05 8,920 11,209
02/03/05 8,938 11,187
02/04/05 8,816 11,341
02/05/05 8,816 11,341
02/06/05 8,816 11,341
02/07/05 8,830 11,318
02/08/05 8,806 11,354
02/09/05 8,918 11,205
02/10/05 8,890 11,245
02/11/05 8,798 11,361
02/12/05 8,798 11,361
02/13/05 8,798 11,361
02/14/05 8,798 11,363
02/15/05 8,780 11,387
02/16/05 8,742 11,439
02/17/05 8,808 11,354
02/18/05 8,822 11,341
02/19/05 8,822 11,341
02/20/05 8,822 11,341
02/21/05 8,822 11,341
02/22/05 8,968 11,157
02/23/05 8,916 11,221
02/24/05 8,802 11,362
02/25/05 8,692 11,498
02/26/05 8,692 11,498
02/27/05 8,692 11,498
02/28/05 8,748 11,439
03/01/05 8,670 11,536
03/02/05 8,678 11,530
03/03/05 8,684 11,523
03/04/05 8,592 11,650
03/05/05 8,592 11,650
03/06/05 8,592 11,650
03/07/05 8,548 11,708
03/08/05 8,616 11,617
03/09/05 8,708 11,493
03/10/05 8,726 11,475
03/11/05 8,722 11,473
03/12/05 8,722 11,473
03/13/05 8,722 11,473
03/14/05 8,656 11,559
03/15/05 8,702 11,507
03/16/05 8,778 11,407
03/17/05 8,766 11,431
03/18/05 8,814 11,386
03/19/05 8,814 11,386
03/20/05 8,814 11,386
03/21/05 8,812 11,366
03/22/05 8,866 11,312
03/23/05 8,928 11,229
03/24/05 8,910 11,248
03/25/05 8,910 11,248
03/26/05 8,910 11,248
03/27/05 8,910 11,248
03/28/05 8,896 11,254
03/29/05 9,000 11,129
03/30/05 8,902 11,267
03/31/05 8,874 11,312
04/01/05 8,896 11,275
04/02/05 8,896 11,275
04/03/05 8,896 11,275
04/04/05 8,888 11,291
04/05/05 8,860 11,303
04/06/05 8,854 11,324
04/07/05 8,820 11,376
04/08/05 8,912 11,258
04/09/05 8,912 11,258
04/10/05 8,912 11,258
04/11/05 8,948 11,218
04/12/05 8,906 11,275
04/13/05 9,026 11,124
04/14/05 9,154 10,966
04/15/05 9,316 10,777
04/16/05 9,316 10,777
04/17/05 9,316 10,777
04/18/05 9,260 10,843
04/19/05 9,140 10,980
04/20/05 9,284 10,807
04/21/05 9,122 11,000
04/22/05 9,202 10,900
04/23/05 9,202 10,900
04/24/05 9,202 10,900
04/25/05 9,082 11,040
04/26/05 9,178 10,927
04/27/05 9,174 10,935
04/28/05 9,292 10,795
04/29/05 9,230 10,873
04/30/05 9,230 10,873
05/01/05 9,230 10,873
05/02/05 9,158 10,954
05/03/05 9,190 10,917
05/04/05 9,068 11,065
05/05/05 9,048 11,092
05/06/05 9,024 11,125
05/07/05 9,024 11,125
05/08/05 9,024 11,125
05/09/05 8,974 11,186
05/10/05 9,040 11,108
05/11/05 9,002 11,154
05/12/05 9,128 11,001
05/13/05 9,182 10,937
05/14/05 9,182 10,937
05/15/05 9,182 10,937
05/16/05 9,064 11,081
05/17/05 8,986 11,175
05/18/05 8,844 11,355
05/19/05 8,804 11,405
05/20/05 8,812 11,401
05/21/05 8,812 11,401
05/22/05 8,812 11,401
05/23/05 8,754 11,475
05/24/05 8,764 11,466
05/25/05 8,830 11,378
05/26/05 8,746 11,491
05/27/05 8,716 11,526
05/28/05 8,716 11,526
05/29/05 8,716 11,526
05/30/05 8,716 11,526
05/31/05 8,724 11,527
06/01/05 8,652 11,622
06/02/05 8,616 11,670
06/03/05 8,670 11,607
06/04/05 8,670 11,607
06/05/05 8,670 11,607
06/06/05 8,634 11,652
06/07/05 8,634 11,656
06/08/05 8,672 11,606
06/09/05 8,608 11,697
06/10/05 8,606 11,688
06/11/05 8,606 11,688
06/12/05 8,606 11,688
06/13/05 8,576 11,735
06/14/05 8,544 11,777
06/15/05 8,522 11,812
06/16/05 8,452 11,915
06/17/05 8,440 11,935
06/18/05 8,440 11,935
06/19/05 8,440 11,935
06/20/05 8,466 11,897
06/21/05 8,490 11,859
06/22/05 8,480 11,870
06/23/05 8,562 11,764
06/24/05 8,654 11,645
06/25/05 8,654 11,645
06/26/05 8,654 11,645
06/27/05 8,640 11,665
06/28/05 8,526 11,811
06/29/05 8,508 11,844
06/30/05 8,544 11,795
07/01/05 8,488 11,881
07/02/05 8,488 11,881
07/03/05 8,488 11,881
07/04/05 8,488 11,881
07/05/05 8,406 11,995
07/06/05 8,464 11,919
07/07/05 8,436 11,963
07/08/05 8,336 12,105
07/09/05 8,336 12,105
07/10/05 8,336 12,105
07/11/05 8,266 12,205
07/12/05 8,256 12,223
07/13/05 8,282 12,189
07/14/05 8,308 12,149
07/15/05 8,298 12,169
07/16/05 8,298 12,169
07/17/05 8,298 12,169
07/18/05 8,320 12,140
07/19/05 8,230 12,271
07/20/05 8,186 12,343
07/21/05 8,268 12,222
07/22/05 8,194 12,330
07/23/05 8,194 12,330
07/24/05 8,194 12,330
07/25/05 8,242 12,260
07/26/05 8,216 12,303
07/27/05 8,194 12,333
07/28/05 8,122 12,446
07/29/05 8,146 12,414
07/30/05 8,146 12,414
07/31/05 8,146 12,414
08/01/05 8,142 12,427
08/02/05 8,098 12,495
08/03/05 8,120 12,462
08/04/05 8,196 12,346
08/05/05 8,290 12,212
08/06/05 8,290 12,212
08/07/05 8,290 12,212
08/08/05 8,334 12,150
08/09/05 8,302 12,193
08/10/05 8,296 12,210
08/11/05 8,236 12,298
08/12/05 8,260 12,274
08/13/05 8,260 12,274
08/14/05 8,260 12,274
08/15/05 8,242 12,298
08/16/05 8,356 12,132
08/17/05 8,360 12,129
08/18/05 8,376 12,102
08/19/05 8,364 12,125
08/20/05 8,364 12,125
08/21/05 8,364 12,125
08/22/05 8,338 12,159
08/23/05 8,362 12,129
08/24/05 8,374 12,115
08/25/05 8,344 12,159
08/26/05 8,430 12,045
08/27/05 8,430 12,045
08/28/05 8,430 12,045
08/29/05 8,376 12,127
08/30/05 8,404 12,079
08/31/05 8,272 12,276
09/01/05 8,272 12,276
09/02/05 8,326 12,209
09/03/05 8,326 12,209
09/04/05 8,326 12,209
09/05/05 8,326 12,209
09/06/05 8,228 12,341
09/07/05 8,198 12,398
09/08/05 8,240 12,337
09/09/05 8,176 12,436
09/10/05 8,176 12,436
09/11/05 8,176 12,436
09/12/05 8,178 12,442
09/13/05 8,236 12,353
09/14/05 8,272 12,301
09/15/05 8,272 12,299
09/16/05 8,240 12,358
09/17/05 8,240 12,358
09/18/05 8,240 12,358
09/19/05 8,282 12,290
09/20/05 8,360 12,179
09/21/05 8,468 12,022
09/22/05 8,452 12,049
09/23/05 8,418 12,099
09/24/05 8,418 12,099
09/25/05 8,418 12,099
09/26/05 8,370 12,165
09/27/05 8,384 12,154
09/28/05 8,398 12,134
09/29/05 8,294 12,286
09/30/05 8,240 12,370
10/01/05 8,240 12,370
10/02/05 8,240 12,370
10/03/05 8,190 12,441
10/04/05 8,280 12,312
10/05/05 8,474 12,025
10/06/05 8,550 11,916
10/07/05 8,518 11,968
10/08/05 8,518 11,968
10/09/05 8,518 11,968
10/10/05 8,580 11,880
10/11/05 8,632 11,813
10/12/05 8,746 11,661
10/13/05 8,788 11,611
10/14/05 8,670 11,767
10/15/05 8,670 11,767
10/16/05 8,670 11,767
10/17/05 8,630 11,822
10/18/05 8,738 11,678
10/19/05 8,622 11,838
10/20/05 8,738 11,681
10/21/05 8,664 11,787
10/22/05 8,664 11,787
10/23/05 8,664 11,787
10/24/05 8,498 12,016
10/25/05 8,518 11,989
10/26/05 8,562 11,930
10/27/05 8,714 11,722
10/28/05 8,576 11,916
10/29/05 8,576 11,916
10/30/05 8,576 11,916
10/31/05 8,442 12,104
11/01/05 8,430 12,107
11/02/05 8,298 12,319
11/03/05 8,270 12,361
11/04/05 8,286 12,345
11/05/05 8,286 12,345
11/06/05 8,286 12,345
11/07/05 8,270 12,374
11/08/05 8,330 12,285
11/09/05 8,298 12,338
11/10/05 8,258 12,399
11/11/05 8,232 12,442
11/12/05 8,232 12,442
11/13/05 8,232 12,442
11/14/05 8,228 12,449
11/15/05 8,274 12,382
11/16/05 8,264 12,400
11/17/05 8,150 12,577
11/18/05 8,128 12,608
11/19/05 8,128 12,608
11/20/05 8,128 12,608
11/21/05 8,064 12,715
11/22/05 8,014 12,798
11/23/05 8,002 12,823
11/24/05 8,002 12,823
11/25/05 7,988 12,850
11/26/05 7,988 12,850
11/27/05 7,988 12,850
11/28/05 8,132 12,644
11/29/05 8,102 12,695
11/30/05 8,106 12,696
12/01/05 7,974 12,900
12/02/05 7,978 12,899
12/03/05 7,978 12,899
12/04/05 7,978 12,899
12/05/05 8,012 12,845
12/06/05 8,018 12,842
12/07/05 8,052 12,790
12/08/05 8,030 12,828
12/09/05 7,994 12,889
12/10/05 7,994 12,889
12/11/05 7,994 12,889
12/12/05 7,986 12,900
12/13/05 7,976 12,920
12/14/05 7,942 12,978
12/15/05 7,982 12,916
12/16/05 8,028 12,850
12/17/05 8,028 12,850
12/18/05 8,028 12,850
12/19/05 8,118 12,707
12/20/05 8,092 12,746
12/21/05 8,038 12,837
12/22/05 7,988 12,918
12/23/05 7,966 12,961
12/24/05 7,966 12,961
12/25/05 7,966 12,961
12/26/05 7,966 12,961
12/27/05 8,065 12,802
12/28/05 8,013 12,888
12/29/05 8,040 12,856
12/30/05 8,087 12,784
12/31/05 8,087 12,784
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND -8.16% -11.98%
S&P MIDCAP 400 INDEX 12.56% 15.91%
- --------------------------------------------------------------------------------
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 6.8%
FINANCIALS 18.5%
INFORMATION TECHNOLOGY 16.3%
CONSUMER DISCRETIONARY 16.0%
INDUSTRIALS 12.9%
HEALTH CARE 11.7%
ENERGY 10.2%
UTILITIES 7.4%
FUTURES CONTRACTS SHORT SALES -23.5%
EQUITY INDEX SWAP AGREEMENTS SHORT SALES -78.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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.
INCEPTION: October 1, 2001
Small-cap stocks underperformed both mid-cap and large-cap stocks in a classic
mean reversion from a year ago. The Russell 2000 Index returned 4.55% for 2005
while large and mid-cap indices returned 4.91% and 12.56%, respectively. High
oil prices helped the energy sector outperform with a return of 47.55%. The
industrials (9.90)% and health care (4.85)% sectors modestly outperformed the
index. In the rest of the underperforming sectors, technology, consumer
discretionary and consumer staples had slight negative returns. The Fund's
return was 3.91%, for the year, while achieving a daily correlation of more than
0.99 to its benchmark of 150% of the daily price performance of the Russell 2000
Index. The effects of daily compounding may cause the longer-term correlation of
the Fund to its benchmark to diminish.(1) The effects of compounding are
described briefly on page 3 of this report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE MEKROS FUND RUSSELL 2000 INDEX
-------- ----------- ------------------
10/01/01 10,000 10,000
10/31/01 11,036 10,778
11/30/01 12,112 11,613
12/31/01 12,897 12,330
01/31/02 12,711 12,201
02/28/02 12,214 11,867
03/31/02 13,709 12,821
04/30/02 14,214 12,938
05/31/02 13,067 12,363
06/30/02 12,068 11,750
07/31/02 9,482 9,975
08/31/02 9,433 9,950
09/30/02 8,387 9,235
10/31/02 8,284 9,532
11/30/02 9,079 10,382
12/31/02 8,325 9,804
01/31/03 7,862 9,533
02/28/03 7,419 9,245
03/31/03 7,464 9,364
04/30/03 8,565 10,252
05/31/03 9,977 11,352
06/30/03 10,072 11,567
07/31/03 10,950 12,280
08/31/03 11,650 12,843
09/30/03 11,240 12,606
10/31/03 12,681 13,665
11/30/03 13,281 14,150
12/31/03 13,677 14,437
01/31/04 14,582 15,064
02/29/04 14,784 15,199
03/31/04 14,922 15,341
04/30/04 13,658 14,559
05/31/04 13,948 14,790
06/30/04 14,909 15,413
07/31/04 13,401 14,375
08/31/04 13,263 14,302
09/30/04 14,172 14,973
10/31/04 14,523 15,268
11/30/04 16,395 16,592
12/31/04 17,123 17,083
01/31/05 15,958 16,370
02/28/05 16,421 16,648
03/31/05 15,719 16,171
04/30/05 14,385 15,245
05/31/05 15,805 16,243
06/30/05 16,665 16,869
07/31/05 18,283 17,938
08/31/05 17,678 17,605
09/30/05 17,647 17,661
10/31/05 16,845 17,112
11/30/05 18,028 17,943
12/31/05 17,793 17,861
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
MEKROS FUND 3.91% 14.52%
RUSSELL 2000 INDEX 4.55% 14.63%
- --------------------------------------------------------------------------------
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.]
RUSSELL
MEKROS FUND 2000 INDEX
----------- ----------
OTHER 5.9% 15.1%
FINANCIALS 20.0% 16.0%
INFORMATION TECHNOLOGY 17.5% 16.4%
CONSUMER DISCRETIONARY 13.9% 17.1%
INDUSTRIALS 13.5% 11.9%
HEALTH CARE 12.1% 12.6%
ENERGY 6.1% 5.8%
MATERIALS 4.3% 5.0%
FUTURES CONTRACTS 44.4%
EQUITY INDEX SWAP AGREEMENTS 12.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Charming Shoppes, Inc. 0.4%
Omnivision Technologies, Inc. 0.4%
Taubman Centers, Inc. 0.4%
Walter Industries, Inc. 0.4%
Eagle Materials, Inc. 0.4%
Kennametal, Inc. 0.4%
Alkermes, Inc. 0.4%
Jones Lang LaSalle, Inc. 0.4%
Hologic, Inc. 0.4%
Fremont General Corp. 0.4%
- -----------------------------------------------------
Top Ten Total 4.0%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE SMALL-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 Russell 2000 Index.
INCEPTION: May 3, 2004
After a roller coaster year, the Russell 2000 Index posted only a modest return
of 4.55%, its third straight yearly gain. Small-cap stocks underperformed their
mid and large-cap counterparts for the first time in years. Because Rydex
Inverse Small-Cap Fund seeks to provide investment results that correspond
inversely to the Russell 2000 Index, the Fund posted a loss of 3.07%, as
expected. The effects of daily compounding may cause the longer-term correlation
of the Fund to its benchmark to diminish. The effects of compounding are
described briefly on page 3 of this report.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE INVERSE SMALL-CAP FUND RUSSELL 2000 INDEX
-------- ---------------------- ------------------
05/03/04 10,000 10,000
05/04/04 9,936 10,074
05/05/04 9,928 10,082
05/06/04 10,072 9,960
05/07/04 10,368 9,703
05/08/04 10,368 9,703
05/09/04 10,368 9,703
05/10/04 10,572 9,514
05/11/04 10,344 9,705
05/12/04 10,338 9,712
05/13/04 10,404 9,681
05/14/04 10,480 9,620
05/15/04 10,480 9,620
05/16/04 10,480 9,620
05/17/04 10,616 9,471
05/18/04 10,468 9,599
05/19/04 10,524 9,569
05/20/04 10,514 9,568
05/21/04 10,406 9,657
05/22/04 10,406 9,657
05/23/04 10,406 9,657
05/24/04 10,278 9,762
05/25/04 10,040 10,004
05/26/04 9,982 10,047
05/27/04 9,980 10,062
05/28/04 9,972 10,057
05/29/04 9,972 10,057
05/30/04 9,972 10,057
05/31/04 9,972 10,057
06/01/04 9,876 10,131
06/02/04 9,888 10,151
06/03/04 10,070 9,955
06/04/04 9,974 10,049
06/05/04 9,974 10,049
06/06/04 9,974 10,049
06/07/04 9,778 10,246
06/08/04 9,784 10,229
06/09/04 9,950 10,064
06/10/04 9,928 10,075
06/11/04 9,928 10,075
06/12/04 9,928 10,075
06/13/04 9,928 10,075
06/14/04 10,128 9,874
06/15/04 9,920 10,056
06/16/04 9,898 10,094
06/17/04 9,900 10,086
06/18/04 9,890 10,103
06/19/04 9,890 10,103
06/20/04 9,890 10,103
06/21/04 9,914 10,071
06/22/04 9,848 10,127
06/23/04 9,702 10,274
06/24/04 9,738 10,254
06/25/04 9,574 10,408
06/26/04 9,574 10,408
06/27/04 9,574 10,408
06/28/04 9,634 10,348
06/29/04 9,570 10,415
06/30/04 9,528 10,480
07/01/04 9,666 10,320
07/02/04 9,674 10,326
07/03/04 9,674 10,326
07/04/04 9,674 10,326
07/05/04 9,674 10,326
07/06/04 9,830 10,143
07/07/04 9,842 10,137
07/08/04 10,046 9,937
07/09/04 9,984 9,991
07/10/04 9,984 9,991
07/11/04 9,984 9,991
07/12/04 10,022 9,964
07/13/04 10,010 9,973
07/14/04 10,064 9,921
07/15/04 10,028 9,964
07/16/04 10,154 9,846
07/17/04 10,154 9,846
07/18/04 10,154 9,846
07/19/04 10,142 9,833
07/20/04 9,974 10,000
07/21/04 10,264 9,724
07/22/04 10,296 9,687
07/23/04 10,444 9,558
07/24/04 10,444 9,558
07/25/04 10,444 9,558
07/26/04 10,554 9,457
07/27/04 10,326 9,654
07/28/04 10,386 9,595
07/29/04 10,220 9,749
07/30/04 10,210 9,775
07/31/04 10,210 9,775
08/01/04 10,210 9,775
08/02/04 10,190 9,786
08/03/04 10,348 9,640
08/04/04 10,364 9,623
08/05/04 10,570 9,441
08/06/04 10,818 9,216
08/07/04 10,818 9,216
08/08/04 10,818 9,216
08/09/04 10,848 9,194
08/10/04 10,600 9,397
08/11/04 10,670 9,341
08/12/04 10,856 9,173
08/13/04 10,848 9,179
08/14/04 10,848 9,179
08/15/04 10,848 9,179
08/16/04 10,630 9,368
08/17/04 10,590 9,403
08/18/04 10,356 9,609
08/19/04 10,438 9,535
08/20/04 10,244 9,722
08/21/04 10,244 9,722
08/22/04 10,244 9,722
08/23/04 10,316 9,643
08/24/04 10,292 9,670
08/25/04 10,196 9,762
08/26/04 10,252 9,711
08/27/04 10,166 9,789
08/28/04 10,166 9,789
08/29/04 10,166 9,789
08/30/04 10,296 9,665
08/31/04 10,230 9,725
09/01/04 10,148 9,805
09/02/04 10,012 9,936
09/03/04 10,080 9,873
09/04/04 10,080 9,873
09/05/04 10,080 9,873
09/06/04 10,080 9,873
09/07/04 9,954 9,992
09/08/04 10,044 9,901
09/09/04 9,890 10,051
09/10/04 9,826 10,117
09/11/04 9,826 10,117
09/12/04 9,826 10,117
09/13/04 9,770 10,175
09/14/04 9,806 10,138
09/15/04 9,852 10,095
09/16/04 9,748 10,202
09/17/04 9,772 10,178
09/18/04 9,772 10,178
09/19/04 9,772 10,178
09/20/04 9,808 10,135
09/21/04 9,704 10,245
09/22/04 9,888 10,050
09/23/04 9,888 10,049
09/24/04 9,886 10,052
09/25/04 9,886 10,052
09/26/04 9,886 10,052
09/27/04 10,018 9,916
09/28/04 9,884 10,051
09/29/04 9,790 10,148
09/30/04 9,760 10,181
10/01/04 9,554 10,396
10/02/04 9,554 10,396
10/03/04 9,554 10,396
10/04/04 9,486 10,469
10/05/04 9,514 10,438
10/06/04 9,424 10,534
10/07/04 9,590 10,356
10/08/04 9,706 10,233
10/09/04 9,706 10,233
10/10/04 9,706 10,233
10/11/04 9,672 10,266
10/12/04 9,688 10,252
10/13/04 9,812 10,123
10/14/04 9,892 10,042
10/15/04 9,808 10,123
10/16/04 9,808 10,123
10/17/04 9,808 10,123
10/18/04 9,762 10,169
10/19/04 9,864 10,074
10/20/04 9,806 10,136
10/21/04 9,692 10,252
10/22/04 9,846 10,094
10/23/04 9,846 10,094
10/24/04 9,846 10,094
10/25/04 9,776 10,163
10/26/04 9,686 10,269
10/27/04 9,520 10,441
10/28/04 9,546 10,414
10/29/04 9,576 10,381
10/30/04 9,576 10,381
10/31/04 9,576 10,381
11/01/04 9,524 10,439
11/02/04 9,554 10,411
11/03/04 9,390 10,588
11/04/04 9,280 10,710
11/05/04 9,242 10,748
11/06/04 9,242 10,748
11/07/04 9,242 10,748
11/08/04 9,284 10,710
11/09/04 9,212 10,792
11/10/04 9,164 10,847
11/11/04 9,064 10,966
11/12/04 8,984 11,067
11/13/04 8,984 11,067
11/14/04 8,984 11,067
11/15/04 8,958 11,101
11/16/04 9,038 10,995
11/17/04 8,964 11,085
11/18/04 8,980 11,069
11/19/04 9,102 10,916
11/20/04 9,102 10,916
11/21/04 9,102 10,916
11/22/04 8,980 11,060
11/23/04 8,942 11,114
11/24/04 8,862 11,203
11/25/04 8,862 11,203
11/26/04 8,846 11,234
11/27/04 8,846 11,234
11/28/04 8,846 11,234
11/29/04 8,802 11,294
11/30/04 8,810 11,282
12/01/04 8,666 11,459
12/02/04 8,690 11,438
12/03/04 8,694 11,433
12/04/04 8,694 11,433
12/05/04 8,694 11,433
12/06/04 8,738 11,377
12/07/04 8,922 11,136
12/08/04 8,838 11,237
12/09/04 8,868 11,203
12/10/04 8,826 11,257
12/11/04 8,826 11,257
12/12/04 8,826 11,257
12/13/04 8,744 11,362
12/14/04 8,670 11,461
12/15/04 8,604 11,552
12/16/04 8,688 11,439
12/17/04 8,700 11,437
12/18/04 8,700 11,437
12/19/04 8,700 11,437
12/20/04 8,748 11,365
12/21/04 8,634 11,512
12/22/04 8,606 11,553
12/23/04 8,596 11,569
12/24/04 8,596 11,569
12/25/04 8,596 11,569
12/26/04 8,596 11,569
12/27/04 8,666 11,480
12/28/04 8,528 11,662
12/29/04 8,540 11,646
12/30/04 8,544 11,642
12/31/04 8,564 11,616
01/01/05 8,564 11,616
01/02/05 8,564 11,616
01/03/05 8,708 11,418
01/04/05 8,872 11,206
01/05/05 9,030 11,009
01/06/05 8,994 11,051
01/07/05 9,092 10,934
01/08/05 9,092 10,934
01/09/05 9,092 10,934
01/10/05 9,030 11,014
01/11/05 9,120 10,904
01/12/05 9,094 10,935
01/13/05 9,140 10,880
01/14/05 9,032 11,011
01/15/05 9,032 11,011
01/16/05 9,032 11,011
01/17/05 9,032 11,011
01/18/05 8,922 11,143
01/19/05 9,026 11,020
01/20/05 9,106 10,921
01/21/05 9,126 10,898
01/22/05 9,126 10,898
01/23/05 9,126 10,898
01/24/05 9,226 10,781
01/25/05 9,196 10,816
01/26/05 9,044 10,996
01/27/05 9,036 11,003
01/28/05 9,094 10,935
01/29/05 9,094 10,935
01/30/05 9,094 10,935
01/31/05 8,936 11,131
02/01/05 8,878 11,205
02/02/05 8,824 11,274
02/03/05 8,854 11,227
02/04/05 8,744 11,373
02/05/05 8,744 11,373
02/06/05 8,744 11,373
02/07/05 8,754 11,358
02/08/05 8,728 11,396
02/09/05 8,906 11,165
02/10/05 8,890 11,185
02/11/05 8,778 11,328
02/12/05 8,778 11,328
02/13/05 8,778 11,328
02/14/05 8,774 11,332
02/15/05 8,778 11,331
02/16/05 8,726 11,402
02/17/05 8,832 11,264
02/18/05 8,850 11,247
02/19/05 8,850 11,247
02/20/05 8,850 11,247
02/21/05 8,850 11,247
02/22/05 9,020 11,029
02/23/05 8,984 11,076
02/24/05 8,882 11,202
02/25/05 8,742 11,382
02/26/05 8,742 11,382
02/27/05 8,742 11,382
02/28/05 8,794 11,320
03/01/05 8,730 11,399
03/02/05 8,746 11,379
03/03/05 8,734 11,396
03/04/05 8,642 11,515
03/05/05 8,642 11,515
03/06/05 8,642 11,515
03/07/05 8,654 11,496
03/08/05 8,740 11,391
03/09/05 8,830 11,269
03/10/05 8,886 11,195
03/11/05 8,890 11,196
03/12/05 8,890 11,196
03/13/05 8,890 11,196
03/14/05 8,842 11,258
03/15/05 8,892 11,196
03/16/05 8,944 11,127
03/17/05 8,916 11,173
03/18/05 8,966 11,121
03/19/05 8,966 11,121
03/20/05 8,966 11,121
03/21/05 8,970 11,104
03/22/05 9,020 11,051
03/23/05 9,104 10,935
03/24/05 9,064 10,992
03/25/05 9,064 10,992
03/26/05 9,064 10,992
03/27/05 9,064 10,992
03/28/05 9,064 10,990
03/29/05 9,214 10,808
03/30/05 9,064 10,992
03/31/05 9,066 10,996
04/01/05 9,110 10,933
04/02/05 9,110 10,933
04/03/05 9,110 10,933
04/04/05 9,076 10,973
04/05/05 9,062 10,986
04/06/05 9,038 11,018
04/07/05 8,990 11,082
04/08/05 9,124 10,921
04/09/05 9,124 10,921
04/10/05 9,124 10,921
04/11/05 9,178 10,857
04/12/05 9,090 10,962
04/13/05 9,244 10,776
04/14/05 9,404 10,587
04/15/05 9,586 10,387
04/16/05 9,586 10,387
04/17/05 9,586 10,387
04/18/05 9,514 10,469
04/19/05 9,358 10,641
04/20/05 9,508 10,463
04/21/05 9,284 10,714
04/22/05 9,428 10,545
04/23/05 9,428 10,545
04/24/05 9,428 10,545
04/25/05 9,320 10,668
04/26/05 9,460 10,511
04/27/05 9,468 10,504
04/28/05 9,662 10,288
04/29/05 9,596 10,366
04/30/05 9,596 10,366
05/01/05 9,596 10,366
05/02/05 9,486 10,482
05/03/05 9,506 10,458
05/04/05 9,334 10,650
05/05/05 9,326 10,658
05/06/05 9,316 10,675
05/07/05 9,316 10,675
05/08/05 9,316 10,675
05/09/05 9,216 10,790
05/10/05 9,338 10,649
05/11/05 9,328 10,660
05/12/05 9,466 10,506
05/13/05 9,544 10,419
05/14/05 9,544 10,419
05/15/05 9,544 10,419
05/16/05 9,388 10,593
05/17/05 9,328 10,657
05/18/05 9,138 10,883
05/19/05 9,096 10,929
05/20/05 9,116 10,911
05/21/05 9,116 10,911
05/22/05 9,116 10,911
05/23/05 9,062 10,973
05/24/05 9,062 10,975
05/25/05 9,156 10,858
05/26/05 9,030 11,007
05/27/05 8,996 11,048
05/28/05 8,996 11,048
05/29/05 8,996 11,048
05/30/05 8,996 11,048
05/31/05 9,008 11,044
06/01/05 8,910 11,171
06/02/05 8,888 11,198
06/03/05 8,964 11,110
06/04/05 8,964 11,110
06/05/05 8,964 11,110
06/06/05 8,922 11,157
06/07/05 8,912 11,172
06/08/05 8,964 11,114
06/09/05 8,874 11,218
06/10/05 8,874 11,220
06/11/05 8,874 11,220
06/12/05 8,874 11,220
06/13/05 8,838 11,270
06/14/05 8,760 11,367
06/15/05 8,726 11,418
06/16/05 8,636 11,541
06/17/05 8,630 11,544
06/18/05 8,630 11,544
06/19/05 8,630 11,544
06/20/05 8,664 11,502
06/21/05 8,670 11,488
06/22/05 8,636 11,532
06/23/05 8,764 11,365
06/24/05 8,836 11,298
06/25/05 8,836 11,298
06/26/05 8,836 11,298
06/27/05 8,852 11,261
06/28/05 8,662 11,502
06/29/05 8,650 11,526
06/30/05 8,694 11,471
07/01/05 8,648 11,531
07/02/05 8,648 11,531
07/03/05 8,648 11,531
07/04/05 8,648 11,531
07/05/05 8,508 11,714
07/06/05 8,572 11,627
07/07/05 8,562 11,646
07/08/05 8,392 11,877
07/09/05 8,392 11,877
07/10/05 8,392 11,877
07/11/05 8,270 12,049
07/12/05 8,284 12,032
07/13/05 8,324 11,976
07/14/05 8,382 11,893
07/15/05 8,374 11,906
07/16/05 8,374 11,906
07/17/05 8,374 11,906
07/18/05 8,442 11,814
07/19/05 8,312 11,999
07/20/05 8,204 12,155
07/21/05 8,336 11,968
07/22/05 8,196 12,159
07/23/05 8,196 12,159
07/24/05 8,196 12,159
07/25/05 8,280 12,037
07/26/05 8,238 12,102
07/27/05 8,232 12,109
07/28/05 8,130 12,256
07/29/05 8,174 12,197
07/30/05 8,174 12,197
07/31/05 8,174 12,197
08/01/05 8,140 12,252
08/02/05 8,072 12,355
08/03/05 8,132 12,263
08/04/05 8,268 12,057
08/05/05 8,382 11,895
08/06/05 8,382 11,895
08/07/05 8,382 11,895
08/08/05 8,422 11,839
08/09/05 8,410 11,855
08/10/05 8,420 11,850
08/11/05 8,340 11,963
08/12/05 8,422 11,849
08/13/05 8,422 11,849
08/14/05 8,422 11,849
08/15/05 8,352 11,951
08/16/05 8,492 11,753
08/17/05 8,492 11,757
08/18/05 8,532 11,692
08/19/05 8,518 11,716
08/20/05 8,518 11,716
08/21/05 8,518 11,716
08/22/05 8,458 11,805
08/23/05 8,484 11,770
08/24/05 8,490 11,762
08/25/05 8,454 11,810
08/26/05 8,576 11,648
08/27/05 8,576 11,648
08/28/05 8,576 11,648
08/29/05 8,490 11,768
08/30/05 8,506 11,742
08/31/05 8,344 11,971
09/01/05 8,322 12,006
09/02/05 8,390 11,915
09/03/05 8,390 11,915
09/04/05 8,390 11,915
09/05/05 8,390 11,915
09/06/05 8,248 12,115
09/07/05 8,216 12,167
09/08/05 8,266 12,098
09/09/05 8,212 12,181
09/10/05 8,212 12,181
09/11/05 8,212 12,181
09/12/05 8,178 12,231
09/13/05 8,270 12,095
09/14/05 8,354 11,974
09/15/05 8,368 11,957
09/16/05 8,290 12,076
09/17/05 8,290 12,076
09/18/05 8,290 12,076
09/19/05 8,350 11,987
09/20/05 8,430 11,873
09/21/05 8,568 11,681
09/22/05 8,554 11,703
09/23/05 8,498 11,780
09/24/05 8,498 11,780
09/25/05 8,498 11,780
09/26/05 8,442 11,865
09/27/05 8,456 11,847
09/28/05 8,492 11,796
09/29/05 8,372 11,959
09/30/05 8,344 12,009
10/01/05 8,344 12,009
10/02/05 8,344 12,009
10/03/05 8,304 12,058
10/04/05 8,390 11,938
10/05/05 8,628 11,600
10/06/05 8,702 11,501
10/07/05 8,640 11,589
10/08/05 8,640 11,589
10/09/05 8,640 11,589
10/10/05 8,724 11,475
10/11/05 8,832 11,333
10/12/05 8,956 11,181
10/13/05 8,936 11,212
10/14/05 8,796 11,389
10/15/05 8,796 11,389
10/16/05 8,796 11,389
10/17/05 8,794 11,394
10/18/05 8,906 11,250
10/19/05 8,726 11,482
10/20/05 8,872 11,289
10/21/05 8,802 11,383
10/22/05 8,802 11,383
10/23/05 8,802 11,383
10/24/05 8,610 11,632
10/25/05 8,658 11,563
10/26/05 8,722 11,486
10/27/05 8,918 11,229
10/28/05 8,762 11,433
10/29/05 8,762 11,433
10/30/05 8,762 11,433
10/31/05 8,610 11,636
11/01/05 8,652 11,571
11/02/05 8,464 11,824
11/03/05 8,440 11,856
11/04/05 8,454 11,846
11/05/05 8,454 11,846
11/06/05 8,454 11,846
11/07/05 8,416 11,902
11/08/05 8,480 11,813
11/09/05 8,436 11,877
11/10/05 8,372 11,971
11/11/05 8,352 12,002
11/12/05 8,352 12,002
11/13/05 8,352 12,002
11/14/05 8,384 11,953
11/15/05 8,486 11,815
11/16/05 8,508 11,787
11/17/05 8,346 12,013
11/18/05 8,286 12,104
11/19/05 8,286 12,104
11/20/05 8,286 12,104
11/21/05 8,202 12,226
11/22/05 8,160 12,292
11/23/05 8,156 12,303
11/24/05 8,156 12,303
11/25/05 8,154 12,311
11/26/05 8,154 12,311
11/27/05 8,154 12,311
11/28/05 8,300 12,094
11/29/05 8,274 12,135
11/30/05 8,234 12,201
12/01/05 8,074 12,434
12/02/05 8,070 12,440
12/03/05 8,070 12,440
12/04/05 8,070 12,440
12/05/05 8,116 12,369
12/06/05 8,108 12,387
12/07/05 8,158 12,306
12/08/05 8,134 12,346
12/09/05 8,096 12,410
12/10/05 8,096 12,410
12/11/05 8,096 12,410
12/12/05 8,088 12,424
12/13/05 8,094 12,418
12/14/05 8,076 12,445
12/15/05 8,146 12,342
12/16/05 8,170 12,312
12/17/05 8,170 12,312
12/18/05 8,170 12,312
12/19/05 8,302 12,117
12/20/05 8,296 12,128
12/21/05 8,210 12,254
12/22/05 8,157 12,332
12/23/05 8,135 12,375
12/24/05 8,135 12,375
12/25/05 8,135 12,375
12/26/05 8,135 12,375
12/27/05 8,254 12,197
12/28/05 8,209 12,268
12/29/05 8,235 12,230
12/30/05 8,303 12,145
12/31/05 8,303 12,145
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND -3.07% -10.58%
RUSSELL 2000 INDEX 4.55% 12.39%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RUSSELL 2000 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
INVERSE SMALL-CAP
FUND RUSSELL 2000 INDEX
------------------ ------------------
OTHER 15.1%
CONSUMER DISCRETIONARY 17.1%
INFORMATION TECHNOLOGY 16.4%
FINANCIALS 16.0%
HEALTH CARE 12.6%
INDUSTRIALS 11.9%
ENERGY 5.8%
MATERIALS 5.0%
FUTURES CONTRACTS SHORT SALES -16.5%
EQUITY INDEX SWAP
AGREEMENTS SHORT SALES -82.6%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury
bond with the longest maturity, which is currently 30 years.
INCEPTION: August 18, 1997
The Long Bond yield recorded 4.81% at the start of 2005, fluctuated within a
range of 70 basis points throughout the year and closed at 4.53%. A vigilant
Federal Reserve raised short-term rates to 4.25% from 2.25% during the year,
keeping inflation "well contained". Although economic indicators showed
strength, the long end of the curve responded to the Fed's no inflation message,
restraining yields from moving higher. As short-term rates rose and long
interest rates remained below 5.00%, the yield curve flattened. The Long Bond
remained within a narrow trading range, as foreign investors demonstrated steady
interest in buying Treasury bonds, high energy prices presented new risks for an
economic slowdown and changes in pension rules shifted asset demand into
long-term fixed income assets. An increase in price and a drop in yield resulted
in a 7.71% return for the Rydex U.S. Government Bond Fund. The effects of daily
compounding may cause the longer-term correlation of the Fund to its benchmark
to diminish. The effects of compounding are described briefly on page 3 of this
report.
CUMULATIVE FUND PERFORMANCE: AUGUST 18, 1997 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT PRICE MOVEMENT OF LEHMAN LONG
DATE BOND FUND LONG TREASURY BOND TREASURY BOND INDEX
-------- --------------- ------------------ -------------------
08/18/97 10,000 10,000 10,000
09/30/97 10,177 10,147 10,202
12/31/97 10,985 10,749 10,865
03/31/98 11,022 10,733 11,029
06/30/98 11,626 11,211 11,544
09/30/98 12,797 12,238 12,454
12/31/98 12,397 11,946 12,334
03/31/99 11,211 10,886 11,806
06/30/99 10,632 10,335 11,513
09/30/99 10,407 10,100 11,498
12/31/99 9,859 9,539 11,256
03/31/00 10,833 10,228 12,163
06/30/00 10,812 10,139 12,283
09/30/00 10,955 10,165 12,624
12/31/00 11,850 10,788 13,537
03/31/01 11,803 10,652 13,723
06/30/01 11,370 10,189 13,482
09/30/01 12,093 10,705 14,389
12/31/01 11,860 10,613 14,107
03/31/02 11,307 10,112 13,872
06/30/02 12,131 10,559 14,703
09/30/02 14,257 11,959 16,477
12/31/02 14,068 11,741 16,476
03/31/03 14,144 11,678 16,704
06/30/03 15,066 12,152 17,551
09/30/03 14,359 11,586 17,081
12/31/03 13,978 11,232 16,885
03/31/04 14,900 11,735 17,782
06/30/04 13,671 10,889 16,855
09/30/04 14,836 11,535 17,927
12/31/04 15,155 11,652 18,186
03/31/05 15,399 11,758 18,281
06/30/05 17,199 12,768 19,687
09/30/05 16,175 12,073 19,163
12/31/05 16,324 12,113 19,368
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (08/18/97)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND 7.71% 6.62% 6.03%
PRICE MOVEMENT OF LONG TREASURY BOND 3.96% 2.34% 2.32%
LEHMAN LONG TREASURY BOND INDEX 6.50% 7.43% 8.22%
- --------------------------------------------------------------------------------
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 21.7%
FUTURES CONTRACTS 99.4%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in U.S Government securities and in derivative
instruments; such as futures and options contracts.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 contracts
on a specified debt instrument. The Fund's current benchmark is the inverse of
the daily price movement of the Long Treasury Bond. The Long Treasury Bond is
the U.S. Treasury bond with the longest maturity, which is currently 30 years.
INCEPTION: May 1, 2003
The year 2005 brought range-traded rates and a flattened yield curve. Long Bond
rates would not move higher as Fed action and little concern for inflation
helped stabilize the Treasury market. The lack of a rising interest-rate trend
resulted as the U.S. showed considerable resilience in face of high energy
prices and the disruptions caused by hurricanes. The Long Bond began the year at
4.81 % and closed at 4.53%, resulting in a -5.24% return for the Rydex Juno
Fund. The effects of daily compounding may cause the longer-term correlation of
the Fund to its benchmark to diminish. The effects of compounding are described
briefly on page 3 of this report.
CUMULATIVE FUND PERFORMANCE: MAY 1, 2003 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LEHMAN LONG
PRICE MOVEMENT OF TREASURY
DATE JUNO FUND LONG TREASURY BOND BOND INDEX
-------- --------- --------------------- -------------
05/01/03 10,000 10,000 10,000
05/31/03 9,296 10,635 10,562
06/30/03 9,448 10,337 10,401
07/31/03 10,728 9,145 9,471
08/31/03 10,540 9,372 9,622
09/30/03 9,816 9,856 10,122
10/31/03 10,184 9,492 9,841
11/30/03 10,100 9,489 9,888
12/31/03 9,928 9,555 10,006
01/31/04 9,676 9,721 10,178
02/29/04 9,384 9,894 10,380
03/31/04 9,184 9,983 10,538
04/30/04 9,828 9,276 9,947
05/31/04 9,864 9,201 9,898
06/30/04 9,732 9,263 9,989
07/31/04 9,540 9,397 10,158
08/31/04 9,120 9,765 10,534
09/30/04 9,043 9,813 10,624
10/31/04 8,877 9,957 10,780
11/30/04 9,144 9,647 10,540
12/31/04 8,869 9,912 10,777
01/31/05 8,562 10,255 11,049
02/28/05 8,720 10,059 10,906
03/31/05 8,756 10,003 10,833
04/30/05 8,429 10,355 11,204
05/31/05 8,178 10,638 11,495
06/30/05 8,004 10,861 11,667
07/31/05 8,356 10,408 11,361
08/31/05 8,065 10,751 11,692
09/30/05 8,441 10,270 11,356
10/31/05 8,679 9,996 11,147
11/30/05 8,615 10,069 11,217
12/31/05 8,404 10,304 11,478
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/01/03)
- --------------------------------------------------------------------------------
JUNO FUND -5.24% -6.31%
PRICE MOVEMENT OF LONG TREASURY BOND 3.96% 1.13%
LEHMAN LONG TREASURY BOND INDEX 6.50% 5.30%
- --------------------------------------------------------------------------------
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 -45.5%
FUTURES CONTRACTS SHORT SALES -54.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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.
INCEPTION: October 1, 2001
European markets rose strongly in 2005, but the euro's depreciation versus the
dollar dampened returns. The Dow Jones Stoxx 50 Index returned 24.17% in 2005.
However, after taking into account the euro's depreciation, the index only rose
8.42% in U.S. dollar terms.
Basic materials was the best performing sector in the Dow Jones Stoxx 50 Index
while telecoms underperformed. Rydex Large-Cap Europe Fund rose 6.36% for the
year. The Fund achieved a daily correlation of more than 0.97 to its benchmark
of 125% of the daily price performance of the Dow Jones Stoxx 50 Index for the
year ended December 31, 2005. The effects of compounding and currency exchange
may cause the longer-term correlation of the Fund to its benchmark to
diminish.(1) The effects of compounding are described briefly on page 3 of this
report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP DOW JONES STOXX
DATE EUROPE FUND 50 INDEX
-------- ----------- ---------------
10/01/01 10,000 10,000
10/31/01 10,524 10,690
11/30/01 10,920 11,024
12/31/01 11,204 11,443
01/31/02 10,444 11,068
02/28/02 10,236 10,996
03/31/02 10,808 11,470
04/30/02 10,620 10,918
05/31/02 10,476 10,488
06/30/02 10,052 9,571
07/31/02 8,812 8,565
08/31/02 8,524 8,516
09/30/02 7,151 7,281
10/31/02 7,933 8,061
11/30/02 8,373 8,386
12/31/02 8,027 7,588
01/31/03 7,505 7,056
02/28/03 7,151 6,852
03/31/03 7,011 6,674
04/30/03 8,159 7,406
05/31/03 8,755 7,430
06/30/03 8,932 7,701
07/31/03 8,870 7,965
08/31/03 8,915 8,019
09/30/03 9,109 7,723
10/31/03 9,758 8,219
11/30/03 10,314 8,327
12/31/03 11,485 8,631
01/31/04 11,475 8,751
02/29/04 11,751 8,942
03/31/04 11,174 8,705
04/30/04 10,872 8,884
05/31/04 11,088 8,801
06/30/04 11,199 8,877
07/31/04 10,797 8,759
08/31/04 10,918 8,700
09/30/04 11,452 8,865
10/31/04 11,931 8,945
11/30/04 12,700 9,121
12/31/04 13,340 9,248
01/31/05 12,880 9,398
02/28/05 13,535 9,674
03/31/05 13,098 9,624
04/30/05 12,910 9,510
05/31/05 12,756 9,963
06/30/05 12,933 10,323
07/31/05 13,505 10,674
08/31/05 13,812 10,635
09/30/05 14,117 11,142
10/31/05 13,688 10,943
11/30/05 13,688 11,191
12/31/05 14,188 11,483
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND* 6.36% 8.58%
DOW JONES STOXX 50 INDEX 24.17% 3.31%
- --------------------------------------------------------------------------------
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.
* THE EFFECTS OF COMPOUNDING AND CURRENCY EXCHANGE MAY CAUSE THE LONGER-TERM
CORRELATION OF THE FUND TO ITS BENCHMARK TO DIMINISH.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP DOW JONES
EUROPE FUND STOXX 50 INDEX
----------- --------------
OTHER 15.3% 18.6%
FINANCIALS 23.7% 35.9%
ENERGY 10.6% 16.3%
HEALTH CARE 9.4% 10.0%
TELECOMMUNICATION SERVICES 6.2% 10.1%
CONSUMER, NON-CYCLICAL 9.0%
EQUITY INDEX SWAP AGREEMENTS 60.6%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
BP PLC -- SP ADR 4.3%
HSBC Holdings PLC -- SP ADR 3.5%
Novartis AG -- SP ADR 3.4%
UBS AG 3.2%
GlaxoSmithKline PLC -- SP ADR 3.1%
Total SA -- SP ADR 2.9%
Vodafone Group PLC -- SP ADR 2.6%
Royal Dutch Shell PLC -- SP ADR 2.3%
Banco Santander Central
Hispano SA -- SP ADR 2.1%
Banco Bilbao Vizcaya Argentaria
SA -- SP ADR 2.1%
- -----------------------------------------------------
Top Ten Total 29.5%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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 outperformed their U.S. and European counterparts in 2005, with
the Topix 100 Index gaining 40.07%. However, the yen's depreciation versus the
dollar reduced the index's returns to 21.91% in U.S. dollar terms.
Rydex Large-Cap Japan Fund rose 20.35% during the period. For the year ended
December 31, 2005, the Fund achieved a daily correlation of more than 0.98 to
its benchmark of 125% of the daily price performance of the Topix 100 Index. The
effects of compounding and currency exchange may cause the longer-term
correlation of the Fund to its benchmark to diminish.(1) The effects of
compounding are described briefly on page 3 of this report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP TOPIX 100
DATE JAPAN FUND INDEX
-------- ---------- ----------
10/01/01 10,000 10,000
10/31/01 9,864 10,046
11/30/01 9,760 10,150
12/31/01 8,764 10,006
01/31/02 7,856 9,335
02/28/02 8,432 9,691
03/31/02 9,348 10,552
04/30/02 9,788 10,483
05/31/02 10,344 10,746
06/30/02 9,524 9,752
07/31/02 8,704 9,094
08/31/02 8,556 8,882
09/30/02 7,854 8,671
10/31/02 7,228 8,155
11/30/02 7,537 8,527
12/31/02 7,344 7,981
01/31/03 6,939 7,724
02/28/03 6,959 7,575
03/31/03 6,477 7,237
04/30/03 6,341 7,231
05/31/03 6,786 7,613
06/30/03 7,389 8,207
07/31/03 7,878 8,616
08/31/03 8,762 9,209
09/30/03 9,184 9,252
10/31/03 9,613 9,408
11/30/03 9,324 9,151
12/31/03 10,107 9,536
01/31/04 10,147 9,569
02/29/04 10,191 9,857
03/31/04 11,709 10,580
04/30/04 10,597 10,625
05/31/04 10,380 10,212
06/30/04 10,995 10,511
07/31/04 9,967 10,143
08/31/04 10,131 10,051
09/30/04 9,685 9,803
10/31/04 9,975 9,702
11/30/04 10,412 9,813
12/31/04 11,151 10,289
01/31/05 10,485 10,046
02/28/05 10,734 10,316
03/31/05 10,240 10,310
04/30/05 9,858 9,807
05/31/05 9,645 10,017
06/30/05 9,637 10,253
07/31/05 9,754 10,476
08/31/05 10,770 11,131
09/30/05 11,978 12,545
10/31/05 11,641 12,630
11/30/05 12,095 13,530
12/31/05 13,420 14,412
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND* 20.35% 7.17%
TOPIX 100 INDEX 40.07% 8.98%
- --------------------------------------------------------------------------------
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.
* THE EFFECTS OF COMPOUNDING AND CURRENCY EXCHANGE MAY CAUSE THE LONGER-TERM
CORRELATION OF THE FUND TO ITS BENCHMARK TO DIMINISH.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP
JAPAN FUND TOPIX 100 INDEX
------------- ---------------
OTHER 5.2%
FINANCIAL 26.5%
CONSUMER, CYCLICAL 26.1%
INDUSTRIAL 15.0%
COMMUNICATIONS 9.8%
CONSUMER, NON-CYCLICAL 6.8%
TECHNOLOGY 5.5%
UTILITIES 5.0%
FUTURES CONTRACTS 22.4%
EQUITY INDEX SWAP AGREEMENTS 102.9%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
20 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 was negative for most of the year, but a strong
November rally helped push the index into positive territory by December 31,
ending the period up 1.72%.
Hewlett-Packard (36.5%), Boeing (35.7%), Altria Group (22.3%) and Caterpillar
(18.5%) led the list of gainers. General Motors (-51.5%), Verizon Communications
(-25.6%) and IBM (-16.6%) were the year's big losers. Higher interest rates
increased the cost of leverage and thus hurt the performance of the Fund, which
declined 3.81% during the period. The Fund achieved a daily correlation of over
0.99 to its benchmark of 200% of the daily performance of the Dow Jones
Industrial Average Index. The effects of daily compounding may cause the
longer-term correlation of the Fund to its benchmark to diminish.(1) The effects
of compounding are described briefly on page 3 of this report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DOW JONES
LONG DYNAMIC INDUSTRIAL
DATE DOW 30 FUND AVERAGE INDEX
-------- ------------ --------------
05/03/04 10,000 10,000
05/04/04 10,008 10,003
05/05/04 10,000 9,997
05/06/04 9,856 9,932
05/07/04 9,624 9,812
05/08/04 9,624 9,812
05/09/04 9,624 9,812
05/10/04 9,380 9,688
05/11/04 9,436 9,719
05/12/04 9,496 9,751
05/13/04 9,428 9,717
05/14/04 9,432 9,721
05/15/04 9,432 9,721
05/16/04 9,432 9,721
05/17/04 9,228 9,618
05/18/04 9,348 9,680
05/19/04 9,304 9,657
05/20/04 9,308 9,657
05/21/04 9,360 9,685
05/22/04 9,360 9,685
05/23/04 9,360 9,685
05/24/04 9,340 9,677
05/25/04 9,640 9,832
05/26/04 9,624 9,824
05/27/04 9,804 9,917
05/28/04 9,764 9,900
05/29/04 9,764 9,900
05/30/04 9,764 9,900
05/31/04 9,764 9,900
06/01/04 9,788 9,914
06/02/04 9,908 9,976
06/03/04 9,780 9,911
06/04/04 9,864 9,956
06/05/04 9,864 9,956
06/06/04 9,864 9,956
06/07/04 10,148 10,100
06/08/04 10,228 10,141
06/09/04 10,104 10,079
06/10/04 10,184 10,120
06/11/04 10,184 10,120
06/12/04 10,184 10,120
06/13/04 10,184 10,120
06/14/04 10,048 10,053
06/15/04 10,144 10,098
06/16/04 10,140 10,097
06/17/04 10,132 10,095
06/18/04 10,204 10,133
06/19/04 10,204 10,133
06/20/04 10,204 10,133
06/21/04 10,124 10,089
06/22/04 10,172 10,112
06/23/04 10,332 10,194
06/24/04 10,264 10,161
06/25/04 10,120 10,091
06/26/04 10,120 10,091
06/27/04 10,120 10,091
06/28/04 10,088 10,076
06/29/04 10,196 10,131
06/30/04 10,244 10,153
07/01/04 10,040 10,057
07/02/04 9,936 10,007
07/03/04 9,936 10,007
07/04/04 9,936 10,007
07/05/04 9,936 10,007
07/06/04 9,820 9,945
07/07/04 9,868 9,971
07/08/04 9,728 9,904
07/09/04 9,804 9,944
07/10/04 9,804 9,944
07/11/04 9,804 9,944
07/12/04 9,848 9,969
07/13/04 9,864 9,978
07/14/04 9,784 9,940
07/15/04 9,704 9,896
07/16/04 9,664 9,876
07/17/04 9,664 9,876
07/18/04 9,664 9,876
07/19/04 9,572 9,831
07/20/04 9,676 9,885
07/21/04 9,476 9,786
07/22/04 9,484 9,791
07/23/04 9,316 9,705
07/24/04 9,316 9,705
07/25/04 9,316 9,705
07/26/04 9,316 9,704
07/27/04 9,544 9,824
07/28/04 9,604 9,856
07/29/04 9,636 9,870
07/30/04 9,648 9,881
07/31/04 9,648 9,881
08/01/04 9,648 9,881
08/02/04 9,720 9,919
08/03/04 9,608 9,862
08/04/04 9,624 9,869
08/05/04 9,308 9,710
08/06/04 9,036 9,567
08/07/04 9,036 9,567
08/08/04 9,036 9,567
08/09/04 9,036 9,566
08/10/04 9,272 9,693
08/11/04 9,280 9,698
08/12/04 9,044 9,577
08/13/04 9,064 9,589
08/14/04 9,064 9,589
08/15/04 9,064 9,589
08/16/04 9,300 9,716
08/17/04 9,336 9,733
08/18/04 9,548 9,849
08/19/04 9,464 9,807
08/20/04 9,600 9,875
08/21/04 9,600 9,875
08/22/04 9,600 9,875
08/23/04 9,532 9,839
08/24/04 9,576 9,864
08/25/04 9,736 9,945
08/26/04 9,716 9,937
08/27/04 9,764 9,958
08/28/04 9,764 9,958
08/29/04 9,764 9,958
08/30/04 9,624 9,888
08/31/04 9,712 9,938
09/01/04 9,708 9,936
09/02/04 9,948 10,055
09/03/04 9,888 10,026
09/04/04 9,888 10,026
09/05/04 9,888 10,026
09/06/04 9,888 10,026
09/07/04 10,036 10,107
09/08/04 9,976 10,078
09/09/04 9,928 10,054
09/10/04 9,960 10,078
09/11/04 9,960 10,078
09/12/04 9,960 10,078
09/13/04 9,972 10,087
09/14/04 9,988 10,090
09/15/04 9,808 10,005
09/16/04 9,832 10,018
09/17/04 9,912 10,057
09/18/04 9,912 10,057
09/19/04 9,912 10,057
09/20/04 9,748 9,979
09/21/04 9,820 10,019
09/22/04 9,548 9,886
09/23/04 9,420 9,819
09/24/04 9,432 9,827
09/25/04 9,432 9,827
09/26/04 9,432 9,827
09/27/04 9,320 9,769
09/28/04 9,488 9,856
09/29/04 9,596 9,914
09/30/04 9,488 9,859
10/01/04 9,700 9,969
10/02/04 9,700 9,969
10/03/04 9,700 9,969
10/04/04 9,744 9,995
10/05/04 9,676 9,957
10/06/04 9,796 10,024
10/07/04 9,576 9,912
10/08/04 9,444 9,843
10/09/04 9,444 9,843
10/10/04 9,444 9,843
10/11/04 9,496 9,869
10/12/04 9,480 9,864
10/13/04 9,332 9,791
10/14/04 9,144 9,685
10/15/04 9,204 9,724
10/16/04 9,204 9,724
10/17/04 9,204 9,724
10/18/04 9,248 9,746
10/19/04 9,136 9,689
10/20/04 9,116 9,680
10/21/04 9,080 9,662
10/22/04 8,884 9,556
10/23/04 8,884 9,556
10/24/04 8,884 9,556
10/25/04 8,868 9,549
10/26/04 9,112 9,684
10/27/04 9,324 9,796
10/28/04 9,332 9,801
10/29/04 9,368 9,823
10/30/04 9,368 9,823
10/31/04 9,368 9,823
11/01/04 9,416 9,850
11/02/04 9,380 9,831
11/03/04 9,572 9,932
11/04/04 9,904 10,110
11/05/04 10,048 10,181
11/06/04 10,048 10,181
11/07/04 10,048 10,181
11/08/04 10,060 10,186
11/09/04 10,064 10,186
11/10/04 10,076 10,192
11/11/04 10,240 10,274
11/12/04 10,364 10,344
11/13/04 10,364 10,344
11/14/04 10,364 10,344
11/15/04 10,384 10,356
11/16/04 10,264 10,295
11/17/04 10,424 10,362
11/18/04 10,468 10,384
11/19/04 10,236 10,271
11/20/04 10,236 10,271
11/21/04 10,236 10,271
11/22/04 10,296 10,303
11/23/04 10,304 10,306
11/24/04 10,352 10,307
11/25/04 10,352 10,333
11/26/04 10,356 10,335
11/27/04 10,356 10,335
11/28/04 10,356 10,335
11/29/04 10,264 10,291
11/30/04 10,172 10,245
12/01/04 10,488 10,408
12/02/04 10,476 10,403
12/03/04 10,488 10,410
12/04/04 10,488 10,410
12/05/04 10,488 10,410
12/06/04 10,396 10,365
12/07/04 10,188 10,261
12/08/04 10,292 10,315
12/09/04 10,408 10,373
12/10/04 10,388 10,363
12/11/04 10,388 10,363
12/12/04 10,388 10,363
12/13/04 10,572 10,457
12/14/04 10,652 10,495
12/15/04 10,680 10,510
12/16/04 10,704 10,524
12/17/04 10,600 10,470
12/18/04 10,600 10,470
12/19/04 10,600 10,470
12/20/04 10,612 10,481
12/21/04 10,804 10,577
12/22/04 10,940 10,640
12/23/04 10,968 10,651
12/24/04 10,968 10,651
12/25/04 10,968 10,651
12/26/04 10,968 10,651
12/27/04 10,860 10,601
12/28/04 11,012 10,678
12/29/04 10,960 10,653
12/30/04 10,907 10,624
12/31/04 10,865 10,607
01/01/05 10,865 10,607
01/02/05 10,865 10,607
01/03/05 10,747 10,555
01/04/05 10,554 10,460
01/05/05 10,491 10,429
01/06/05 10,546 10,458
01/07/05 10,504 10,440
01/08/05 10,504 10,440
01/09/05 10,504 10,440
01/10/05 10,538 10,456
01/11/05 10,407 10,393
01/12/05 10,529 10,453
01/13/05 10,303 10,343
01/14/05 10,399 10,394
01/15/05 10,399 10,394
01/16/05 10,399 10,394
01/17/05 10,399 10,394
01/18/05 10,542 10,467
01/19/05 10,366 10,381
01/20/05 10,231 10,314
01/21/05 10,072 10,237
01/22/05 10,072 10,237
01/23/05 10,072 10,237
01/24/05 10,026 10,213
01/25/05 10,202 10,304
01/26/05 10,273 10,341
01/27/05 10,210 10,310
01/28/05 10,126 10,270
01/29/05 10,126 10,270
01/30/05 10,126 10,270
01/31/05 10,248 10,332
02/01/05 10,370 10,393
02/02/05 10,458 10,439
02/03/05 10,458 10,439
02/04/05 10,693 10,560
02/05/05 10,693 10,560
02/06/05 10,693 10,560
02/07/05 10,693 10,560
02/08/05 10,714 10,572
02/09/05 10,605 10,519
02/10/05 10,777 10,603
02/11/05 10,877 10,653
02/12/05 10,877 10,653
02/13/05 10,877 10,653
02/14/05 10,865 10,649
02/15/05 10,953 10,695
02/16/05 10,949 10,697
02/17/05 10,789 10,618
02/18/05 10,844 10,648
02/19/05 10,844 10,648
02/20/05 10,844 10,648
02/21/05 10,844 10,648
02/22/05 10,491 10,476
02/23/05 10,617 10,541
02/24/05 10,764 10,617
02/25/05 10,949 10,709
02/26/05 10,949 10,709
02/27/05 10,949 10,709
02/28/05 10,794 10,634
03/01/05 10,924 10,697
03/02/05 10,890 10,683
03/03/05 10,928 10,704
03/04/05 11,146 10,810
03/05/05 11,146 10,810
03/06/05 11,146 10,810
03/07/05 11,133 10,806
03/08/05 11,083 10,783
03/09/05 10,865 10,677
03/10/05 10,953 10,723
03/11/05 10,810 10,654
03/12/05 10,810 10,654
03/13/05 10,810 10,654
03/14/05 10,865 10,654
03/15/05 10,752 10,625
03/16/05 10,521 10,516
03/17/05 10,508 10,509
03/18/05 10,504 10,512
03/19/05 10,504 10,512
03/20/05 10,504 10,512
03/21/05 10,374 10,449
03/22/05 10,185 10,355
03/23/05 10,151 10,341
03/24/05 10,126 10,328
03/25/05 10,126 10,328
03/26/05 10,126 10,328
03/27/05 10,126 10,328
03/28/05 10,210 10,370
03/29/05 10,047 10,291
03/30/05 10,311 10,426
03/31/05 10,227 10,389
04/01/05 10,030 10,290
04/02/05 10,030 10,290
04/03/05 10,030 10,290
04/04/05 10,063 10,310
04/05/05 10,143 10,346
04/06/05 10,202 10,379
04/07/05 10,319 10,439
04/08/05 10,147 10,355
04/09/05 10,147 10,355
04/10/05 10,147 10,355
04/11/05 10,126 10,342
04/12/05 10,235 10,401
04/13/05 10,026 10,298
04/14/05 9,786 10,174
04/15/05 9,417 9,985
04/16/05 9,417 9,985
04/17/05 9,417 9,985
04/18/05 9,384 9,969
04/19/05 9,488 10,024
04/20/05 9,270 9,912
04/21/05 9,660 10,120
04/22/05 9,543 10,059
04/23/05 9,543 10,059
04/24/05 9,543 10,059
04/25/05 9,702 10,143
04/26/05 9,526 10,053
04/27/05 9,610 10,100
04/28/05 9,371 9,976
04/29/05 9,589 10,097
04/30/05 9,589 10,097
05/01/05 9,589 10,097
05/02/05 9,711 10,156
05/03/05 9,715 10,161
05/04/05 9,954 10,289
05/05/05 9,875 10,245
05/06/05 9,883 10,252
05/07/05 9,883 10,252
05/08/05 9,883 10,252
05/09/05 9,950 10,290
05/10/05 9,749 10,188
05/11/05 9,799 10,215
05/12/05 9,593 10,105
05/13/05 9,501 10,058
05/14/05 9,501 10,058
05/15/05 9,501 10,058
05/16/05 9,711 10,170
05/17/05 9,866 10,253
05/18/05 10,114 10,394
05/19/05 10,168 10,422
05/20/05 10,126 10,401
05/21/05 10,126 10,401
05/22/05 10,126 10,401
05/23/05 10,227 10,452
05/24/05 10,185 10,433
05/25/05 10,093 10,387
05/26/05 10,244 10,466
05/27/05 10,252 10,471
05/28/05 10,252 10,471
05/29/05 10,252 10,471
05/30/05 10,252 10,471
05/31/05 10,105 10,397
06/01/05 10,256 10,482
06/02/05 10,269 10,486
06/03/05 10,089 10,394
06/04/05 10,089 10,394
06/05/05 10,089 10,394
06/06/05 10,093 10,400
06/07/05 10,126 10,417
06/08/05 10,110 10,410
06/09/05 10,160 10,436
06/10/05 10,172 10,446
06/11/05 10,172 10,446
06/12/05 10,172 10,446
06/13/05 10,206 10,464
06/14/05 10,256 10,489
06/15/05 10,286 10,508
06/16/05 10,307 10,520
06/17/05 10,395 10,564
06/18/05 10,395 10,564
06/19/05 10,395 10,564
06/20/05 10,366 10,550
06/21/05 10,345 10,541
06/22/05 10,324 10,529
06/23/05 9,992 10,365
06/24/05 9,757 10,242
06/25/05 9,757 10,242
06/26/05 9,757 10,242
06/27/05 9,740 10,235
06/28/05 9,958 10,349
06/29/05 9,900 10,319
06/30/05 9,707 10,220
07/01/05 9,761 10,251
07/02/05 9,761 10,251
07/03/05 9,761 10,251
07/04/05 9,761 10,251
07/05/05 9,887 10,319
07/06/05 9,707 10,224
07/07/05 9,761 10,256
07/08/05 10,038 10,402
07/09/05 10,038 10,402
07/10/05 10,038 10,402
07/11/05 10,172 10,472
07/12/05 10,160 10,466
07/13/05 10,240 10,510
07/14/05 10,386 10,581
07/15/05 10,399 10,593
07/16/05 10,399 10,593
07/17/05 10,399 10,593
07/18/05 10,273 10,527
07/19/05 10,407 10,598
07/20/05 10,491 10,645
07/21/05 10,370 10,584
07/22/05 10,416 10,607
07/23/05 10,416 10,607
07/24/05 10,416 10,607
07/25/05 10,307 10,553
07/26/05 10,277 10,536
07/27/05 10,386 10,593
07/28/05 10,521 10,665
07/29/05 10,395 10,600
07/30/05 10,395 10,600
07/31/05 10,395 10,600
08/01/05 10,353 10,583
08/02/05 10,470 10,643
08/03/05 10,500 10,659
08/04/05 10,328 10,572
08/05/05 10,223 10,520
08/06/05 10,223 10,520
08/07/05 10,223 10,520
08/08/05 10,181 10,500
08/09/05 10,332 10,579
08/10/05 10,311 10,567
08/11/05 10,487 10,662
08/12/05 10,319 10,576
08/13/05 10,319 10,576
08/14/05 10,319 10,576
08/15/05 10,386 10,611
08/16/05 10,147 10,490
08/17/05 10,231 10,535
08/18/05 10,235 10,539
08/19/05 10,248 10,546
08/20/05 10,248 10,546
08/21/05 10,248 10,546
08/22/05 10,269 10,557
08/23/05 10,168 10,507
08/24/05 10,000 10,422
08/25/05 10,030 10,438
08/26/05 9,925 10,385
08/27/05 9,925 10,385
08/28/05 9,925 10,385
08/29/05 10,051 10,450
08/30/05 9,954 10,401
08/31/05 10,089 10,474
09/01/05 10,047 10,452
09/02/05 10,017 10,440
09/03/05 10,017 10,440
09/04/05 10,017 10,440
09/05/05 10,017 10,440
09/06/05 10,294 10,581
09/07/05 10,374 10,626
09/08/05 10,296 10,588
09/09/05 10,449 10,671
09/10/05 10,449 10,671
09/11/05 10,449 10,671
09/12/05 10,463 10,676
09/13/05 10,310 10,599
09/14/05 10,202 10,546
09/15/05 10,229 10,560
09/16/05 10,382 10,643
09/17/05 10,382 10,643
09/18/05 10,382 10,643
09/19/05 10,220 10,559
09/20/05 10,067 10,483
09/21/05 9,865 10,379
09/22/05 9,950 10,425
09/23/05 9,941 10,423
09/24/05 9,941 10,423
09/25/05 9,941 10,423
09/26/05 9,986 10,447
09/27/05 10,009 10,459
09/28/05 10,040 10,476
09/29/05 10,188 10,556
09/30/05 10,215 10,572
10/01/05 10,215 10,572
10/02/05 10,215 10,572
10/03/05 10,148 10,539
10/04/05 9,968 10,447
10/05/05 9,744 10,330
10/06/05 9,685 10,299
10/07/05 9,694 10,305
10/08/05 9,694 10,305
10/09/05 9,694 10,305
10/10/05 9,587 10,251
10/11/05 9,613 10,266
10/12/05 9,542 10,229
10/13/05 9,537 10,229
10/14/05 9,672 10,300
10/15/05 9,672 10,300
10/16/05 9,672 10,300
10/17/05 9,780 10,361
10/18/05 9,663 10,298
10/19/05 9,905 10,429
10/20/05 9,649 10,298
10/21/05 9,528 10,232
10/22/05 9,528 10,232
10/23/05 9,528 10,232
10/24/05 9,843 10,402
10/25/05 9,829 10,395
10/26/05 9,762 10,362
10/27/05 9,546 10,246
10/28/05 9,861 10,420
10/29/05 9,861 10,420
10/30/05 9,861 10,420
10/31/05 9,932 10,457
11/01/05 9,870 10,424
11/02/05 9,991 10,491
11/03/05 10,094 10,545
11/04/05 10,103 10,553
11/05/05 10,103 10,553
11/06/05 10,103 10,553
11/07/05 10,206 10,609
11/08/05 10,144 10,574
11/09/05 10,153 10,580
11/10/05 10,350 10,683
11/11/05 10,427 10,729
11/12/05 10,427 10,729
11/13/05 10,427 10,729
11/14/05 10,454 10,740
11/15/05 10,427 10,730
11/16/05 10,413 10,722
11/17/05 10,494 10,767
11/18/05 10,588 10,816
11/19/05 10,588 10,816
11/20/05 10,588 10,816
11/21/05 10,692 10,870
11/22/05 10,790 10,925
11/23/05 10,880 10,970
11/24/05 10,880 10,970
11/25/05 10,912 10,986
11/26/05 10,912 10,986
11/27/05 10,912 10,986
11/28/05 10,826 10,945
11/29/05 10,831 10,945
11/30/05 10,674 10,867
12/01/05 10,880 10,974
12/02/05 10,808 10,939
12/03/05 10,808 10,939
12/04/05 10,808 10,939
12/05/05 10,723 10,896
12/06/05 10,764 10,918
12/07/05 10,669 10,872
12/08/05 10,561 10,818
12/09/05 10,602 10,841
12/10/05 10,602 10,841
12/11/05 10,602 10,841
12/12/05 10,584 10,831
12/13/05 10,687 10,887
12/14/05 10,804 10,949
12/15/05 10,799 10,947
12/16/05 10,786 10,941
12/17/05 10,786 10,941
12/18/05 10,786 10,941
12/19/05 10,705 10,901
12/20/05 10,642 10,870
12/21/05 10,696 10,899
12/22/05 10,804 10,957
12/23/05 10,800 10,957
12/24/05 10,800 10,957
12/25/05 10,800 10,957
12/26/05 10,800 10,957
12/27/05 10,587 10,851
12/28/05 10,614 10,869
12/29/05 10,596 10,858
12/30/05 10,451 10,790
12/31/05 10,451 10,790
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND -3.81% 2.69%
DOW JONES INDUSTRIAL AVERAGE INDEX 1.72% 4.68%
- --------------------------------------------------------------------------------
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 GRAPH IN THE PRINTED MATERIAL.]
LONG DYNAMIC DOW JONES INDUSTRIAL
DOW 30 FUND AVERAGE INDEX
------------- --------------------
OTHER 6.4% 8.5%
INDUSTRIALS 19.5% 24.7%
CONSUMER STAPLES 12.8% 16.2%
FINANCIALS 12.1% 15.4%
INFORMATION TECHNOLOGY 9.5% 12.2%
CONSUMER DISCRETIONARY 6.9% 8.8%
HEALTH CARE 6.7% 8.8%
MATERIALS 4.2% 5.4%
FUTURES CONTRACTS 66.6%
EQUITY INDEX SWAP AGREEMENTS 55.4%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
International Business Machines Corp. 4.8%
3M Co. 4.5%
Altria Group, Inc. 4.4%
Boeing Co. 4.1%
American International Group, Inc. 4.0%
Johnson & Johnson, Inc. 3.5%
Procter & Gamble Co. 3.4%
Caterpillar, Inc. 3.4%
Exxon Mobil Corp. 3.3%
United Technologies Corp. 3.3%
- -----------------------------------------------------
Top Ten Total 38.7%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE 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 gained 1.72% in 2005. The index was in a
trading range and negative for most of the year before rising strongly in
November to help push it higher for the year.
Hewlett-Packard (36.5%), Boeing (35.7%), Altria Group (22.3%) and Caterpillar
(18.5%) led the list of gainers. General Motors (-51.5%), Verizon Communications
(-25.6%) and IBM (-16.6%) were the year's big losers. Increased interest rates
helped raise the amount of income the Fund earned and improved its performance.
The Rydex Inverse Dynamic Dow 30 Fund returned 1.63% for the year. During that
same period, it achieved a daily correlation of over 0.99 to its benchmark of
200% of the daily performance of the Dow Jones Industrial Average Index. The
effects of daily compounding may cause the longer-term correlation of the Fund
to its benchmark to diminish.(1) The effects of compounding are described
briefly on page 3 of this report.
(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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DOW JONES
INVERSE DYNAMIC INDUSTRIAL
DATE DOW 30 FUND AVERAGE INDEX
---------- --------------- -------------
05/03/04 10,000 10,000
05/04/04 9,992 10,003
05/05/04 9,996 9,997
05/06/04 10,138 9,932
05/07/04 10,378 9,812
05/08/04 10,378 9,812
05/09/04 10,378 9,812
05/10/04 10,658 9,688
05/11/04 10,586 9,719
05/12/04 10,512 9,751
05/13/04 10,592 9,717
05/14/04 10,590 9,721
05/15/04 10,590 9,721
05/16/04 10,590 9,721
05/17/04 10,812 9,618
05/18/04 10,666 9,680
05/19/04 10,718 9,657
05/20/04 10,714 9,657
05/21/04 10,650 9,685
05/22/04 10,650 9,685
05/23/04 10,650 9,685
05/24/04 10,672 9,677
05/25/04 10,336 9,832
05/26/04 10,348 9,824
05/27/04 10,160 9,917
05/28/04 10,192 9,900
05/29/04 10,192 9,900
05/30/04 10,192 9,900
05/31/04 10,192 9,900
06/01/04 10,164 9,914
06/02/04 10,038 9,976
06/03/04 10,172 9,911
06/04/04 10,076 9,956
06/05/04 10,076 9,956
06/06/04 10,076 9,956
06/07/04 9,790 10,100
06/08/04 9,710 10,141
06/09/04 9,828 10,079
06/10/04 9,748 10,120
06/11/04 9,748 10,120
06/12/04 9,748 10,120
06/13/04 9,748 10,120
06/14/04 9,876 10,053
06/15/04 9,786 10,098
06/16/04 9,790 10,097
06/17/04 9,794 10,095
06/18/04 9,726 10,133
06/19/04 9,726 10,133
06/20/04 9,726 10,133
06/21/04 9,804 10,089
06/22/04 9,758 10,112
06/23/04 9,602 10,194
06/24/04 9,664 10,161
06/25/04 9,800 10,091
06/26/04 9,800 10,091
06/27/04 9,800 10,091
06/28/04 9,828 10,076
06/29/04 9,714 10,131
06/30/04 9,672 10,153
07/01/04 9,860 10,057
07/02/04 9,962 10,007
07/03/04 9,962 10,007
07/04/04 9,962 10,007
07/05/04 9,962 10,007
07/06/04 10,080 9,945
07/07/04 10,030 9,971
07/08/04 10,168 9,904
07/09/04 10,084 9,944
07/10/04 10,084 9,944
07/11/04 10,084 9,944
07/12/04 10,036 9,969
07/13/04 10,018 9,978
07/14/04 10,102 9,940
07/15/04 10,180 9,896
07/16/04 10,224 9,876
07/17/04 10,224 9,876
07/18/04 10,224 9,876
07/19/04 10,320 9,831
07/20/04 10,206 9,885
07/21/04 10,416 9,786
07/22/04 10,410 9,791
07/23/04 10,594 9,705
07/24/04 10,594 9,705
07/25/04 10,594 9,705
07/26/04 10,584 9,704
07/27/04 10,330 9,824
07/28/04 10,264 9,856
07/29/04 10,232 9,870
07/30/04 10,220 9,881
07/31/04 10,220 9,881
08/01/04 10,220 9,881
08/02/04 10,138 9,919
08/03/04 10,266 9,862
08/04/04 10,248 9,869
08/05/04 10,580 9,710
08/06/04 10,894 9,567
08/07/04 10,894 9,567
08/08/04 10,894 9,567
08/09/04 10,890 9,566
08/10/04 10,608 9,693
08/11/04 10,596 9,698
08/12/04 10,860 9,577
08/13/04 10,828 9,589
08/14/04 10,828 9,589
08/15/04 10,828 9,589
08/16/04 10,548 9,716
08/17/04 10,508 9,733
08/18/04 10,262 9,849
08/19/04 10,350 9,807
08/20/04 10,204 9,875
08/21/04 10,204 9,875
08/22/04 10,204 9,875
08/23/04 10,276 9,839
08/24/04 10,232 9,864
08/25/04 10,060 9,945
08/26/04 10,080 9,937
08/27/04 10,032 9,958
08/28/04 10,032 9,958
08/29/04 10,032 9,958
08/30/04 10,176 9,888
08/31/04 10,076 9,938
09/01/04 10,082 9,936
09/02/04 9,838 10,055
09/03/04 9,900 10,026
09/04/04 9,900 10,026
09/05/04 9,900 10,026
09/06/04 9,900 10,026
09/07/04 9,744 10,107
09/08/04 9,798 10,078
09/09/04 9,844 10,054
09/10/04 9,788 10,078
09/11/04 9,788 10,078
09/12/04 9,788 10,078
09/13/04 9,772 10,087
09/14/04 9,760 10,090
09/15/04 9,932 10,005
09/16/04 9,908 10,018
09/17/04 9,830 10,057
09/18/04 9,830 10,057
09/19/04 9,830 10,057
09/20/04 9,986 9,979
09/21/04 9,906 10,019
09/22/04 10,174 9,886
09/23/04 10,308 9,819
09/24/04 10,294 9,827
09/25/04 10,294 9,827
09/26/04 10,294 9,827
09/27/04 10,412 9,769
09/28/04 10,230 9,856
09/29/04 10,116 9,914
09/30/04 10,228 9,859
10/01/04 9,996 9,969
10/02/04 9,996 9,969
10/03/04 9,996 9,969
10/04/04 9,948 9,995
10/05/04 10,024 9,957
10/06/04 9,892 10,024
10/07/04 10,116 9,912
10/08/04 10,260 9,843
10/09/04 10,260 9,843
10/10/04 10,260 9,843
10/11/04 10,202 9,869
10/12/04 10,216 9,864
10/13/04 10,370 9,791
10/14/04 10,592 9,685
10/15/04 10,516 9,724
10/16/04 10,516 9,724
10/17/04 10,516 9,724
10/18/04 10,466 9,746
10/19/04 10,590 9,689
10/20/04 10,612 9,680
10/21/04 10,654 9,662
10/22/04 10,886 9,556
10/23/04 10,886 9,556
10/24/04 10,886 9,556
10/25/04 10,906 9,549
10/26/04 10,602 9,684
10/27/04 10,356 9,796
10/28/04 10,346 9,801
10/29/04 10,302 9,823
10/30/04 10,302 9,823
10/31/04 10,302 9,823
11/01/04 10,248 9,850
11/02/04 10,288 9,831
11/03/04 10,074 9,932
11/04/04 9,714 10,110
11/05/04 9,578 10,181
11/06/04 9,578 10,181
11/07/04 9,578 10,181
11/08/04 9,566 10,186
11/09/04 9,566 10,186
11/10/04 9,552 10,192
11/11/04 9,398 10,274
11/12/04 9,282 10,344
11/13/04 9,282 10,344
11/14/04 9,282 10,344
11/15/04 9,262 10,356
11/16/04 9,372 10,295
11/17/04 9,246 10,362
11/18/04 9,204 10,384
11/19/04 9,406 10,271
11/20/04 9,406 10,271
11/21/04 9,406 10,271
11/22/04 9,350 10,303
11/23/04 9,344 10,306
11/24/04 9,298 10,307
11/25/04 9,298 10,333
11/26/04 9,296 10,335
11/27/04 9,296 10,335
11/28/04 9,296 10,335
11/29/04 9,378 10,291
11/30/04 9,462 10,245
12/01/04 9,172 10,408
12/02/04 9,182 10,403
12/03/04 9,174 10,410
12/04/04 9,174 10,410
12/05/04 9,174 10,410
12/06/04 9,250 10,365
12/07/04 9,432 10,261
12/08/04 9,342 10,315
12/09/04 9,236 10,373
12/10/04 9,254 10,363
12/11/04 9,254 10,363
12/12/04 9,254 10,363
12/13/04 9,088 10,457
12/14/04 9,016 10,495
12/15/04 8,998 10,510
12/16/04 8,982 10,524
12/17/04 9,060 10,470
12/18/04 9,060 10,470
12/19/04 9,060 10,470
12/20/04 9,054 10,481
12/21/04 8,896 10,577
12/22/04 8,786 10,640
12/23/04 8,760 10,651
12/24/04 8,760 10,651
12/25/04 8,760 10,651
12/26/04 8,760 10,651
12/27/04 8,848 10,601
12/28/04 8,726 10,678
12/29/04 8,772 10,653
12/30/04 8,814 10,624
12/31/04 8,853 10,607
01/01/05 8,853 10,607
01/02/05 8,853 10,607
01/03/05 8,950 10,555
01/04/05 9,109 10,460
01/05/05 9,161 10,429
01/06/05 9,116 10,458
01/07/05 9,154 10,440
01/08/05 9,154 10,440
01/09/05 9,154 10,440
01/10/05 9,126 10,456
01/11/05 9,224 10,393
01/12/05 9,128 10,453
01/13/05 9,324 10,343
01/14/05 9,232 10,394
01/15/05 9,232 10,394
01/16/05 9,232 10,394
01/17/05 9,232 10,394
01/18/05 9,105 10,467
01/19/05 9,259 10,381
01/20/05 9,380 10,314
01/21/05 9,521 10,237
01/22/05 9,521 10,237
01/23/05 9,521 10,237
01/24/05 9,560 10,213
01/25/05 9,392 10,304
01/26/05 9,333 10,341
01/27/05 9,390 10,310
01/28/05 9,470 10,270
01/29/05 9,470 10,270
01/30/05 9,470 10,270
01/31/05 9,361 10,332
02/01/05 9,245 10,393
02/02/05 9,165 10,439
02/03/05 9,169 10,439
02/04/05 8,962 10,560
02/05/05 8,962 10,560
02/06/05 8,962 10,560
02/07/05 8,960 10,560
02/08/05 8,935 10,572
02/09/05 9,036 10,519
02/10/05 8,890 10,603
02/11/05 8,804 10,653
02/12/05 8,804 10,653
02/13/05 8,804 10,653
02/14/05 8,814 10,649
02/15/05 8,745 10,695
02/16/05 8,749 10,697
02/17/05 8,872 10,618
02/18/05 8,823 10,648
02/19/05 8,823 10,648
02/20/05 8,823 10,648
02/21/05 8,823 10,648
02/22/05 9,109 10,476
02/23/05 8,995 10,541
02/24/05 8,872 10,617
02/25/05 8,724 10,709
02/26/05 8,724 10,709
02/27/05 8,724 10,709
02/28/05 8,847 10,634
03/01/05 8,739 10,697
03/02/05 8,769 10,683
03/03/05 8,743 10,704
03/04/05 8,567 10,810
03/05/05 8,567 10,810
03/06/05 8,567 10,810
03/07/05 8,575 10,806
03/08/05 8,618 10,783
03/09/05 8,784 10,677
03/10/05 8,714 10,723
03/11/05 8,825 10,654
03/12/05 8,825 10,654
03/13/05 8,825 10,654
03/14/05 8,780 10,654
03/15/05 8,872 10,625
03/16/05 9,062 10,516
03/17/05 9,075 10,509
03/18/05 9,079 10,512
03/19/05 9,079 10,512
03/20/05 9,079 10,512
03/21/05 9,187 10,449
03/22/05 9,353 10,355
03/23/05 9,384 10,341
03/24/05 9,408 10,328
03/25/05 9,408 10,328
03/26/05 9,408 10,328
03/27/05 9,408 10,328
03/28/05 9,333 10,370
03/29/05 9,480 10,291
03/30/05 9,230 10,426
03/31/05 9,300 10,389
04/01/05 9,480 10,290
04/02/05 9,480 10,290
04/03/05 9,480 10,290
04/04/05 9,449 10,310
04/05/05 9,380 10,346
04/06/05 9,324 10,379
04/07/05 9,218 10,439
04/08/05 9,372 10,355
04/09/05 9,372 10,355
04/10/05 9,372 10,355
04/11/05 9,396 10,342
04/12/05 9,292 10,401
04/13/05 9,482 10,298
04/14/05 9,708 10,174
04/15/05 10,076 9,985
04/16/05 10,076 9,985
04/17/05 10,076 9,985
04/18/05 10,113 9,969
04/19/05 10,000 10,024
04/20/05 10,230 9,912
04/21/05 9,798 10,120
04/22/05 9,918 10,059
04/23/05 9,918 10,059
04/24/05 9,918 10,059
04/25/05 9,751 10,143
04/26/05 9,929 10,053
04/27/05 9,841 10,100
04/28/05 10,086 9,976
04/29/05 9,849 10,097
04/30/05 9,849 10,097
05/01/05 9,849 10,097
05/02/05 9,726 10,156
05/03/05 9,722 10,161
05/04/05 9,484 10,289
05/05/05 9,562 10,245
05/06/05 9,556 10,252
05/07/05 9,556 10,252
05/08/05 9,556 10,252
05/09/05 9,488 10,290
05/10/05 9,683 10,188
05/11/05 9,634 10,215
05/12/05 9,839 10,105
05/13/05 9,935 10,058
05/14/05 9,935 10,058
05/15/05 9,935 10,058
05/16/05 9,714 10,170
05/17/05 9,560 10,253
05/18/05 9,302 10,394
05/19/05 9,251 10,422
05/20/05 9,292 10,401
05/21/05 9,292 10,401
05/22/05 9,292 10,401
05/23/05 9,204 10,452
05/24/05 9,240 10,433
05/25/05 9,322 10,387
05/26/05 9,181 10,466
05/27/05 9,177 10,471
05/28/05 9,177 10,471
05/29/05 9,177 10,471
05/30/05 9,177 10,471
05/31/05 9,310 10,397
06/01/05 9,167 10,482
06/02/05 9,156 10,486
06/03/05 9,320 10,394
06/04/05 9,320 10,394
06/05/05 9,320 10,394
06/06/05 9,314 10,400
06/07/05 9,286 10,417
06/08/05 9,298 10,410
06/09/05 9,253 10,436
06/10/05 9,240 10,446
06/11/05 9,240 10,446
06/12/05 9,240 10,446
06/13/05 9,212 10,464
06/14/05 9,169 10,489
06/15/05 9,140 10,508
06/16/05 9,122 10,520
06/17/05 9,048 10,564
06/18/05 9,048 10,564
06/19/05 9,048 10,564
06/20/05 9,075 10,550
06/21/05 9,093 10,541
06/22/05 9,111 10,529
06/23/05 9,402 10,365
06/24/05 9,628 10,242
06/25/05 9,628 10,242
06/26/05 9,628 10,242
06/27/05 9,644 10,235
06/28/05 9,435 10,349
06/29/05 9,492 10,319
06/30/05 9,677 10,220
07/01/05 9,621 10,251
07/02/05 9,621 10,251
07/03/05 9,621 10,251
07/04/05 9,621 10,251
07/05/05 9,499 10,319
07/06/05 9,675 10,224
07/07/05 9,619 10,256
07/08/05 9,349 10,402
07/09/05 9,349 10,402
07/10/05 9,349 10,402
07/11/05 9,226 10,472
07/12/05 9,238 10,466
07/13/05 9,167 10,510
07/14/05 9,042 10,581
07/15/05 9,027 10,593
07/16/05 9,027 10,593
07/17/05 9,027 10,593
07/18/05 9,138 10,527
07/19/05 9,017 10,598
07/20/05 8,941 10,645
07/21/05 9,046 10,584
07/22/05 9,011 10,607
07/23/05 9,011 10,607
07/24/05 9,011 10,607
07/25/05 9,105 10,553
07/26/05 9,134 10,536
07/27/05 9,038 10,593
07/28/05 8,917 10,665
07/29/05 9,032 10,600
07/30/05 9,032 10,600
07/31/05 9,032 10,600
08/01/05 9,066 10,583
08/02/05 8,964 10,643
08/03/05 8,939 10,659
08/04/05 9,089 10,572
08/05/05 9,181 10,520
08/06/05 9,181 10,520
08/07/05 9,181 10,520
08/08/05 9,220 10,500
08/09/05 9,083 10,579
08/10/05 9,105 10,567
08/11/05 8,945 10,662
08/12/05 9,093 10,576
08/13/05 9,093 10,576
08/14/05 9,093 10,576
08/15/05 9,036 10,611
08/16/05 9,245 10,490
08/17/05 9,169 10,535
08/18/05 9,165 10,539
08/19/05 9,154 10,546
08/20/05 9,154 10,546
08/21/05 9,154 10,546
08/22/05 9,138 10,557
08/23/05 9,230 10,507
08/24/05 9,380 10,422
08/25/05 9,355 10,438
08/26/05 9,456 10,385
08/27/05 9,456 10,385
08/28/05 9,456 10,385
08/29/05 9,337 10,450
08/30/05 9,429 10,401
08/31/05 9,302 10,474
09/01/05 9,341 10,452
09/02/05 9,370 10,440
09/03/05 9,370 10,440
09/04/05 9,370 10,440
09/05/05 9,370 10,440
09/06/05 9,118 10,581
09/07/05 9,046 10,626
09/08/05 9,118 10,588
09/09/05 8,982 10,671
09/10/05 8,982 10,671
09/11/05 8,982 10,671
09/12/05 8,974 10,676
09/13/05 9,105 10,599
09/14/05 9,197 10,546
09/15/05 9,177 10,560
09/16/05 9,038 10,643
09/17/05 9,038 10,643
09/18/05 9,038 10,643
09/19/05 9,181 10,559
09/20/05 9,314 10,483
09/21/05 9,503 10,379
09/22/05 9,423 10,425
09/23/05 9,433 10,423
09/24/05 9,433 10,423
09/25/05 9,433 10,423
09/26/05 9,390 10,447
09/27/05 9,374 10,459
09/28/05 9,345 10,476
09/29/05 9,204 10,556
09/30/05 9,183 10,572
10/01/05 9,183 10,572
10/02/05 9,183 10,572
10/03/05 9,243 10,539
10/04/05 9,404 10,447
10/05/05 9,621 10,330
10/06/05 9,681 10,299
10/07/05 9,675 10,305
10/08/05 9,675 10,305
10/09/05 9,675 10,305
10/10/05 9,779 10,251
10/11/05 9,755 10,266
10/12/05 9,835 10,229
10/13/05 9,832 10,229
10/14/05 9,695 10,300
10/15/05 9,695 10,300
10/16/05 9,695 10,300
10/17/05 9,591 10,361
10/18/05 9,703 10,298
10/19/05 9,470 10,429
10/20/05 9,718 10,298
10/21/05 9,839 10,232
10/22/05 9,839 10,232
10/23/05 9,839 10,232
10/24/05 9,513 10,402
10/25/05 9,529 10,395
10/26/05 9,593 10,362
10/27/05 9,812 10,246
10/28/05 9,492 10,420
10/29/05 9,492 10,420
10/30/05 9,492 10,420
10/31/05 9,427 10,457
11/01/05 9,488 10,424
11/02/05 9,370 10,491
11/03/05 9,277 10,545
11/04/05 9,271 10,553
11/05/05 9,271 10,553
11/06/05 9,271 10,553
11/07/05 9,177 10,609
11/08/05 9,238 10,574
11/09/05 9,230 10,580
11/10/05 9,054 10,683
11/11/05 8,980 10,729
11/12/05 8,980 10,729
11/13/05 8,980 10,729
11/14/05 8,964 10,740
11/15/05 8,984 10,730
11/16/05 8,999 10,722
11/17/05 8,927 10,767
11/18/05 8,851 10,816
11/19/05 8,851 10,816
11/20/05 8,851 10,816
11/21/05 8,765 10,870
11/22/05 8,679 10,925
11/23/05 8,612 10,970
11/24/05 8,612 10,970
11/25/05 8,591 10,986
11/26/05 8,591 10,986
11/27/05 8,591 10,986
11/28/05 8,657 10,945
11/29/05 8,671 10,945
11/30/05 8,798 10,867
12/01/05 8,628 10,974
12/02/05 8,689 10,939
12/03/05 8,689 10,939
12/04/05 8,689 10,939
12/05/05 8,759 10,896
12/06/05 8,728 10,918
12/07/05 8,804 10,872
12/08/05 8,894 10,818
12/09/05 8,864 10,841
12/10/05 8,864 10,841
12/11/05 8,864 10,841
12/12/05 8,882 10,831
12/13/05 8,792 10,887
12/14/05 8,694 10,949
12/15/05 8,700 10,947
12/16/05 8,714 10,941
12/17/05 8,714 10,941
12/18/05 8,714 10,941
12/19/05 8,782 10,901
12/20/05 8,835 10,870
12/21/05 8,790 10,899
12/22/05 8,702 10,957
12/23/05 8,710 10,957
12/24/05 8,710 10,957
12/25/05 8,710 10,957
12/26/05 8,710 10,957
12/27/05 8,883 10,851
12/28/05 8,856 10,869
12/29/05 8,877 10,858
12/30/05 8,997 10,790
12/31/05 8,997 10,790
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
INVERSE DYNAMIC DOW 30 FUND 1.63% -6.16%
DOW JONES INDUSTRIAL AVERAGE INDEX 1.72% 4.68%
- --------------------------------------------------------------------------------
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 GRAPH IN THE PRINTED MATERIAL.]
INVERSE DYNAMIC DOW JONES INDUSTRIAL
DOW 30 FUND AVERAGE INDEX
--------------- --------------------
OTHER 8.5%
INDUSTRIALS 24.7%
CONSUMER STAPLES 16.2%
FINANCIALS 15.4%
INFORMATION TECHNOLOGY 12.2%
HEALTH CARE 8.8%
CONSUMER DISCRETIONARY 8.8%
MATERIALS 5.4%
FUTURES CONTRACTS SHORT SALES -34.1%
EQUITY INDEX SWAP AGREEMENTS SHORT SALES -166.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for small-cap value securities. The Fund's current benchmark is the
S&P SmallCap 600/Citigroup Pure Value Index.
INCEPTION: May 3, 2004
For 2005, the S&P Small Cap/Barra Value Index posted its third consecutive
yearly gain. Although value stocks underperformed growth stocks, the index still
managed to gain 6.45% for the year. Rydex Small-Cap Value Fund gained 3.64% for
the period, driven higher in large part by energy, utility and basic materials
companies.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P SMALL CAP S&P SMALL CAP 600/
SMALL-CAP 600/BARRA VALUE CITIGROUP PURE
DATE VALUE FUND INDEX VALUE INDEX
--------- ---------- --------------- -----------------
5/3/2004 10,000 10,000 10,000
5/4/2004 10,072 10,076 10,091
5/5/2004 10,064 10,068 10,066
5/6/2004 9,964 9,968 9,942
5/7/2004 9,708 9,711 9,635
5/8/2004 9,708 9,711 9,635
5/9/2004 9,708 9,711 9,635
5/10/2004 9,536 9,537 9,461
5/11/2004 9,692 9,695 9,608
5/12/2004 9,728 9,731 9,647
5/13/2004 9,664 9,670 9,552
5/14/2004 9,640 9,645 9,492
5/15/2004 9,640 9,645 9,492
5/16/2004 9,640 9,645 9,492
5/17/2004 9,496 9,500 9,330
5/18/2004 9,628 9,637 9,516
5/19/2004 9,604 9,611 9,493
5/20/2004 9,648 9,659 9,552
5/21/2004 9,712 9,724 9,643
5/22/2004 9,712 9,724 9,643
5/23/2004 9,712 9,724 9,643
5/24/2004 9,828 9,842 9,734
5/25/2004 10,060 10,076 9,974
5/26/2004 10,056 10,073 9,967
5/27/2004 10,056 10,074 9,968
5/28/2004 10,052 10,073 9,972
5/29/2004 10,052 10,073 9,972
5/30/2004 10,052 10,073 9,972
5/31/2004 10,052 10,073 9,972
6/1/2004 10,108 10,129 10,052
6/2/2004 10,124 10,145 10,076
6/3/2004 9,960 9,980 9,921
6/4/2004 10,020 10,042 9,976
6/5/2004 10,020 10,042 9,976
6/6/2004 10,020 10,042 9,976
6/7/2004 10,232 10,254 10,205
6/8/2004 10,236 10,259 10,250
6/9/2004 10,108 10,128 10,114
6/10/2004 10,132 10,153 10,156
6/11/2004 10,132 10,153 10,156
6/12/2004 10,132 10,153 10,156
6/13/2004 10,132 10,153 10,156
6/14/2004 9,960 9,981 9,964
6/15/2004 10,124 10,150 10,151
6/16/2004 10,172 10,196 10,208
6/17/2004 10,212 10,237 10,277
6/18/2004 10,244 10,272 10,327
6/19/2004 10,244 10,272 10,327
6/20/2004 10,244 10,272 10,327
6/21/2004 10,216 10,245 10,317
6/22/2004 10,256 10,284 10,354
6/23/2004 10,376 10,408 10,488
6/24/2004 10,344 10,374 10,445
6/25/2004 10,448 10,480 10,607
6/26/2004 10,448 10,480 10,607
6/27/2004 10,448 10,480 10,607
6/28/2004 10,424 10,457 10,597
6/29/2004 10,532 10,561 10,720
6/30/2004 10,596 10,626 10,766
7/1/2004 10,476 10,502 10,635
7/2/2004 10,500 10,529 10,662
7/3/2004 10,500 10,529 10,662
7/4/2004 10,500 10,529 10,662
7/5/2004 10,500 10,529 10,662
7/6/2004 10,356 10,375 10,522
7/7/2004 10,356 10,384 10,521
7/8/2004 10,188 10,215 10,327
7/9/2004 10,224 10,256 10,333
7/10/2004 10,224 10,256 10,333
7/11/2004 10,224 10,256 10,333
7/12/2004 10,216 10,244 10,329
7/13/2004 10,252 10,281 10,365
7/14/2004 10,204 10,228 10,336
7/15/2004 10,248 10,272 10,367
7/16/2004 10,188 10,210 10,306
7/17/2004 10,188 10,210 10,306
7/18/2004 10,188 10,210 10,306
7/19/2004 10,180 10,197 10,302
7/20/2004 10,320 10,341 10,438
7/21/2004 10,088 10,106 10,186
7/22/2004 9,996 10,012 10,042
7/23/2004 9,924 9,943 9,972
7/24/2004 9,924 9,943 9,972
7/25/2004 9,924 9,943 9,972
7/26/2004 9,856 9,871 9,881
7/27/2004 10,016 10,036 10,083
7/28/2004 9,960 9,978 10,078
7/29/2004 10,096 10,114 10,253
7/30/2004 10,100 10,121 10,271
7/31/2004 10,100 10,121 10,271
8/1/2004 10,100 10,121 10,271
8/2/2004 10,140 10,163 10,294
8/3/2004 10,012 10,035 10,175
8/4/2004 10,024 10,045 10,174
8/5/2004 9,852 9,874 9,952
8/6/2004 9,640 9,660 9,743
8/7/2004 9,640 9,660 9,743
8/8/2004 9,640 9,660 9,743
8/9/2004 9,644 9,661 9,733
8/10/2004 9,824 9,843 9,926
8/11/2004 9,808 9,827 9,922
8/12/2004 9,608 9,630 9,731
8/13/2004 9,620 9,642 9,735
8/14/2004 9,620 9,642 9,735
8/15/2004 9,620 9,642 9,735
8/16/2004 9,836 9,860 9,949
8/17/2004 9,856 9,881 9,957
8/18/2004 10,016 10,040 10,090
8/19/2004 9,960 9,985 10,051
8/20/2004 10,136 10,168 10,212
8/21/2004 10,136 10,168 10,212
8/22/2004 10,136 10,168 10,212
8/23/2004 10,032 10,064 10,106
8/24/2004 10,092 10,125 10,142
8/25/2004 10,132 10,167 10,170
8/26/2004 10,116 10,148 10,190
8/27/2004 10,188 10,222 10,250
8/28/2004 10,188 10,222 10,250
8/29/2004 10,188 10,222 10,250
8/30/2004 10,064 10,097 10,156
8/31/2004 10,120 10,153 10,211
9/1/2004 10,192 10,227 10,272
9/2/2004 10,344 10,378 10,425
9/3/2004 10,276 10,314 10,365
9/4/2004 10,276 10,314 10,365
9/5/2004 10,276 10,314 10,365
9/6/2004 10,276 10,314 10,365
9/7/2004 10,408 10,447 10,504
9/8/2004 10,316 10,354 10,411
9/9/2004 10,448 10,485 10,554
9/10/2004 10,492 10,529 10,573
9/11/2004 10,492 10,529 10,573
9/12/2004 10,492 10,529 10,573
9/13/2004 10,536 10,578 10,582
9/14/2004 10,476 10,519 10,543
9/15/2004 10,436 10,476 10,488
9/16/2004 10,548 10,592 10,603
9/17/2004 10,556 10,598 10,589
9/18/2004 10,556 10,598 10,589
9/19/2004 10,556 10,598 10,589
9/20/2004 10,496 10,541 10,507
9/21/2004 10,628 10,671 10,636
9/22/2004 10,444 10,485 10,449
9/23/2004 10,444 10,489 10,449
9/24/2004 10,440 10,487 10,483
9/25/2004 10,440 10,487 10,483
9/26/2004 10,440 10,487 10,483
9/27/2004 10,340 10,389 10,367
9/28/2004 10,452 10,501 10,515
9/29/2004 10,564 10,614 10,619
9/30/2004 10,600 10,653 10,670
10/1/2004 10,828 10,886 10,911
10/2/2004 10,828 10,886 10,911
10/3/2004 10,828 10,886 10,911
10/4/2004 10,888 10,950 10,986
10/5/2004 10,856 10,917 10,938
10/6/2004 10,964 11,027 11,061
10/7/2004 10,756 10,821 10,878
10/8/2004 10,660 10,720 10,786
10/9/2004 10,660 10,720 10,786
10/10/2004 10,660 10,720 10,786
10/11/2004 10,652 10,715 10,777
10/12/2004 10,672 10,735 10,772
10/13/2004 10,520 10,581 10,552
10/14/2004 10,392 10,451 10,395
10/15/2004 10,472 10,536 10,491
10/16/2004 10,472 10,536 10,491
10/17/2004 10,472 10,536 10,491
10/18/2004 10,476 10,544 10,464
10/19/2004 10,384 10,449 10,310
10/20/2004 10,404 10,469 10,316
10/21/2004 10,528 10,598 10,447
10/22/2004 10,348 10,420 10,285
10/23/2004 10,348 10,420 10,285
10/24/2004 10,348 10,420 10,285
10/25/2004 10,420 10,490 10,384
10/26/2004 10,592 10,665 10,566
10/27/2004 10,752 10,826 10,681
10/28/2004 10,700 10,776 10,609
10/29/2004 10,672 10,745 10,585
10/30/2004 10,672 10,745 10,585
10/31/2004 10,672 10,745 10,585
11/1/2004 10,744 10,819 10,653
11/2/2004 10,712 10,786 10,646
11/3/2004 10,888 10,963 10,829
11/4/2004 11,016 11,093 10,983
11/5/2004 11,040 11,120 11,028
11/6/2004 11,040 11,120 11,028
11/7/2004 11,040 11,120 11,028
11/8/2004 10,996 11,076 10,988
11/9/2004 11,076 11,158 11,111
11/10/2004 11,116 11,200 11,157
11/11/2004 11,236 11,322 11,292
11/12/2004 11,332 11,422 11,382
11/13/2004 11,332 11,422 11,382
11/14/2004 11,332 11,422 11,382
11/15/2004 11,360 11,449 11,418
11/16/2004 11,256 11,349 11,333
11/17/2004 11,364 11,459 11,469
11/18/2004 11,356 11,450 11,446
11/19/2004 11,236 11,330 11,365
11/20/2004 11,236 11,330 11,365
11/21/2004 11,236 11,330 11,365
11/22/2004 11,392 11,489 11,549
11/23/2004 11,444 11,542 11,586
11/24/2004 11,544 11,647 11,662
11/25/2004 11,544 11,647 11,662
11/26/2004 11,572 11,677 11,711
11/27/2004 11,572 11,677 11,711
11/28/2004 11,572 11,677 11,711
11/29/2004 11,644 11,751 11,811
11/30/2004 11,616 11,723 11,799
12/1/2004 11,792 11,901 11,938
12/2/2004 11,724 11,830 11,864
12/3/2004 11,708 11,818 11,847
12/4/2004 11,708 11,818 11,847
12/5/2004 11,708 11,818 11,847
12/6/2004 11,652 11,761 11,761
12/7/2004 11,408 11,515 11,495
12/8/2004 11,492 11,601 11,588
12/9/2004 11,484 11,594 11,590
12/10/2004 11,520 11,633 11,646
12/11/2004 11,520 11,633 11,646
12/12/2004 11,520 11,633 11,646
12/13/2004 11,604 11,718 11,736
12/14/2004 11,664 11,782 11,781
12/15/2004 11,772 11,892 11,897
12/16/2004 11,676 11,790 11,842
12/17/2004 11,680 11,798 11,872
12/18/2004 11,680 11,798 11,872
12/19/2004 11,680 11,798 11,872
12/20/2004 11,580 11,702 11,822
12/21/2004 11,724 11,852 12,044
12/22/2004 11,772 11,900 12,069
12/23/2004 11,760 11,890 12,073
12/24/2004 11,760 11,890 12,073
12/25/2004 11,760 11,890 12,073
12/26/2004 11,760 11,890 12,073
12/27/2004 11,640 11,771 11,952
12/28/2004 11,828 11,960 12,161
12/29/2004 11,816 11,949 12,157
12/30/2004 11,803 11,938 12,118
12/31/2004 11,803 11,937 12,133
1/1/2005 11,803 11,937 12,133
1/2/2005 11,803 11,937 12,133
1/3/2005 11,574 11,712 11,905
1/4/2005 11,382 11,516 11,713
1/5/2005 11,181 11,312 11,500
1/6/2005 11,206 11,343 11,519
1/7/2005 11,079 11,215 11,424
1/8/2005 11,079 11,215 11,424
1/9/2005 11,079 11,215 11,424
1/10/2005 11,169 11,306 11,536
1/11/2005 11,054 11,191 11,386
1/12/2005 11,091 11,228 11,414
1/13/2005 11,022 11,158 11,373
1/14/2005 11,206 11,346 11,622
1/15/2005 11,206 11,346 11,622
1/16/2005 11,206 11,346 11,622
1/17/2005 11,206 11,346 11,622
1/18/2005 11,320 11,463 11,773
1/19/2005 11,210 11,358 11,631
1/20/2005 11,116 11,264 11,520
1/21/2005 11,087 11,237 11,493
1/22/2005 11,087 11,237 11,493
1/23/2005 11,087 11,237 11,493
1/24/2005 10,997 11,141 11,396
1/25/2005 11,017 11,166 11,437
1/26/2005 11,206 11,357 11,607
1/27/2005 11,218 11,373 11,638
1/28/2005 11,136 11,295 11,527
1/29/2005 11,136 11,295 11,527
1/30/2005 11,136 11,295 11,527
1/31/2005 11,357 11,520 11,801
2/1/2005 11,443 11,615 11,891
2/2/2005 11,517 11,689 11,987
2/3/2005 11,488 11,660 11,965
2/4/2005 11,627 11,807 12,070
2/5/2005 11,627 11,807 12,070
2/6/2005 11,627 11,807 12,070
2/7/2005 11,644 11,822 12,124
2/8/2005 11,672 11,851 12,165
2/9/2005 11,472 11,649 11,936
2/10/2005 11,500 11,679 11,940
2/11/2005 11,595 11,777 12,045
2/12/2005 11,595 11,777 12,045
2/13/2005 11,595 11,777 12,045
2/14/2005 11,599 11,782 12,081
2/15/2005 11,595 11,776 12,067
2/16/2005 11,676 11,862 12,200
2/17/2005 11,541 11,728 12,070
2/18/2005 11,554 11,740 12,090
2/19/2005 11,554 11,740 12,090
2/20/2005 11,554 11,740 12,090
2/21/2005 11,554 11,740 12,090
2/22/2005 11,337 11,519 11,803
2/23/2005 11,398 11,579 11,876
2/24/2005 11,529 11,717 12,032
2/25/2005 11,725 11,919 12,274
2/26/2005 11,725 11,919 12,274
2/27/2005 11,725 11,919 12,274
2/28/2005 11,685 11,875 12,222
3/1/2005 11,791 11,985 12,336
3/2/2005 11,746 11,939 12,308
3/3/2005 11,787 11,981 12,358
3/4/2005 11,934 12,137 12,564
3/5/2005 11,934 12,137 12,564
3/6/2005 11,934 12,137 12,564
3/7/2005 11,918 12,121 12,534
3/8/2005 11,828 12,030 12,402
3/9/2005 11,693 11,891 12,239
3/10/2005 11,611 11,807 12,113
3/11/2005 11,619 11,823 12,194
3/12/2005 11,619 11,823 12,194
3/13/2005 11,619 11,823 12,194
3/14/2005 11,672 11,876 12,214
3/15/2005 11,631 11,837 12,254
3/16/2005 11,574 11,777 12,197
3/17/2005 11,615 11,821 12,282
3/18/2005 11,578 11,786 12,217
3/19/2005 11,578 11,786 12,217
3/20/2005 11,578 11,786 12,217
3/21/2005 11,558 11,765 12,240
3/22/2005 11,500 11,706 12,211
3/23/2005 11,382 11,585 12,051
3/24/2005 11,435 11,639 12,171
3/25/2005 11,435 11,639 12,171
3/26/2005 11,435 11,639 12,171
3/27/2005 11,435 11,639 12,171
3/28/2005 11,431 11,640 12,111
3/29/2005 11,251 11,453 11,873
3/30/2005 11,443 11,653 12,080
3/31/2005 11,435 11,653 12,087
4/1/2005 11,357 11,575 12,018
4/2/2005 11,357 11,575 12,018
4/3/2005 11,357 11,575 12,018
4/4/2005 11,410 11,626 12,099
4/5/2005 11,406 11,623 12,125
4/6/2005 11,398 11,613 12,123
4/7/2005 11,500 11,717 12,230
4/8/2005 11,349 11,567 12,065
4/9/2005 11,349 11,567 12,065
4/10/2005 11,349 11,567 12,065
4/11/2005 11,283 11,498 12,007
4/12/2005 11,427 11,647 12,152
4/13/2005 11,230 11,444 11,922
4/14/2005 11,034 11,240 11,658
4/15/2005 10,825 11,028 11,421
4/16/2005 10,825 11,028 11,421
4/17/2005 10,825 11,028 11,421
4/18/2005 10,911 11,120 11,545
4/19/2005 11,071 11,281 11,735
4/20/2005 10,858 11,064 11,511
4/21/2005 11,067 11,279 11,717
4/22/2005 10,931 11,146 11,550
4/23/2005 10,931 11,146 11,550
4/24/2005 10,931 11,146 11,550
4/25/2005 11,067 11,283 11,695
4/26/2005 10,936 11,148 11,604
4/27/2005 10,940 11,154 11,543
4/28/2005 10,727 10,938 11,261
4/29/2005 10,801 11,013 11,332
4/30/2005 10,801 11,013 11,332
5/1/2005 10,801 11,013 11,332
5/2/2005 10,919 11,136 11,447
5/3/2005 10,878 11,094 11,399
5/4/2005 11,083 11,304 11,639
5/5/2005 11,042 11,265 11,593
5/6/2005 11,075 11,300 11,649
5/7/2005 11,075 11,300 11,649
5/8/2005 11,075 11,300 11,649
5/9/2005 11,173 11,401 11,766
5/10/2005 11,050 11,275 11,688
5/11/2005 11,083 11,308 11,724
5/12/2005 10,923 11,146 11,500
5/13/2005 10,821 11,041 11,364
5/14/2005 10,821 11,041 11,364
5/15/2005 10,821 11,041 11,364
5/16/2005 11,013 11,242 11,547
5/17/2005 11,067 11,294 11,617
5/18/2005 11,304 11,539 11,906
5/19/2005 11,341 11,575 11,925
5/20/2005 11,324 11,559 11,931
5/21/2005 11,324 11,559 11,931
5/22/2005 11,324 11,559 11,931
5/23/2005 11,386 11,622 12,008
5/24/2005 11,378 11,616 12,001
5/25/2005 11,251 11,488 11,899
5/26/2005 11,410 11,649 12,081
5/27/2005 11,443 11,686 12,141
5/28/2005 11,443 11,686 12,141
5/29/2005 11,443 11,686 12,141
5/30/2005 11,443 11,686 12,141
5/31/2005 11,431 11,673 12,140
6/1/2005 11,578 11,827 12,303
6/2/2005 11,619 11,867 12,345
6/3/2005 11,525 11,774 12,249
6/4/2005 11,525 11,774 12,249
6/5/2005 11,525 11,774 12,249
6/6/2005 11,586 11,837 12,328
6/7/2005 11,644 11,896 12,388
6/8/2005 11,582 11,835 12,331
6/9/2005 11,676 11,931 12,395
6/10/2005 11,672 11,932 12,417
6/11/2005 11,672 11,932 12,417
6/12/2005 11,672 11,932 12,417
6/13/2005 11,721 11,982 12,507
6/14/2005 11,852 12,115 12,642
6/15/2005 11,922 12,188 12,731
6/16/2005 12,012 12,282 12,854
6/17/2005 11,975 12,247 12,813
6/18/2005 11,975 12,247 12,813
6/19/2005 11,975 12,247 12,813
6/20/2005 11,930 12,202 12,800
6/21/2005 11,906 12,176 12,765
6/22/2005 11,942 12,213 12,801
6/23/2005 11,787 12,055 12,550
6/24/2005 11,652 11,919 12,367
6/25/2005 11,652 11,919 12,367
6/26/2005 11,652 11,919 12,367
6/27/2005 11,631 11,896 12,396
6/28/2005 11,865 12,136 12,653
6/29/2005 11,906 12,176 12,730
6/30/2005 11,856 12,132 12,644
7/1/2005 11,914 12,195 12,681
7/2/2005 11,914 12,195 12,681
7/3/2005 11,914 12,195 12,681
7/4/2005 11,914 12,195 12,681
7/5/2005 12,098 12,385 12,872
7/6/2005 11,996 12,279 12,773
7/7/2005 12,016 12,299 12,814
7/8/2005 12,233 12,525 13,052
7/9/2005 12,233 12,525 13,052
7/10/2005 12,233 12,525 13,052
7/11/2005 12,380 12,677 13,241
7/12/2005 12,380 12,679 13,206
7/13/2005 12,331 12,629 13,188
7/14/2005 12,266 12,563 13,067
7/15/2005 12,262 12,559 13,062
7/16/2005 12,262 12,559 13,062
7/17/2005 12,262 12,559 13,062
7/18/2005 12,176 12,470 12,999
7/19/2005 12,364 12,664 13,262
7/20/2005 12,540 12,847 13,449
7/21/2005 12,339 12,641 13,255
7/22/2005 12,528 12,839 13,467
7/23/2005 12,528 12,839 13,467
7/24/2005 12,528 12,839 13,467
7/25/2005 12,413 12,720 13,297
7/26/2005 12,462 12,770 13,423
7/27/2005 12,466 12,776 13,401
7/28/2005 12,593 12,911 13,635
7/29/2005 12,528 12,848 13,556
7/30/2005 12,528 12,848 13,556
7/31/2005 12,528 12,848 13,556
8/1/2005 12,573 12,895 13,606
8/2/2005 12,720 13,045 13,790
8/3/2005 12,634 12,959 13,722
8/4/2005 12,425 12,745 13,457
8/5/2005 12,274 12,590 13,216
8/6/2005 12,274 12,590 13,216
8/7/2005 12,274 12,590 13,216
8/8/2005 12,208 12,525 13,161
8/9/2005 12,225 12,543 13,196
8/10/2005 12,225 12,543 13,266
8/11/2005 12,356 12,676 13,396
8/12/2005 12,208 12,530 13,231
8/13/2005 12,208 12,530 13,231
8/14/2005 12,208 12,530 13,231
8/15/2005 12,278 12,606 13,330
8/16/2005 12,118 12,444 13,126
8/17/2005 12,102 12,427 13,107
8/18/2005 12,045 12,373 13,028
8/19/2005 12,057 12,388 13,075
8/20/2005 12,057 12,388 13,075
8/21/2005 12,057 12,388 13,075
8/22/2005 12,147 12,482 13,210
8/23/2005 12,086 12,419 13,129
8/24/2005 12,061 12,395 13,113
8/25/2005 12,114 12,452 13,196
8/26/2005 11,926 12,259 12,994
8/27/2005 11,926 12,259 12,994
8/28/2005 11,926 12,259 12,994
8/29/2005 12,053 12,390 13,155
8/30/2005 12,016 12,353 13,145
8/31/2005 12,258 12,602 13,499
9/1/2005 12,286 12,632 13,553
9/2/2005 12,208 12,554 13,478
9/3/2005 12,208 12,554 13,478
9/4/2005 12,208 12,554 13,478
9/5/2005 12,208 12,554 13,478
9/6/2005 12,376 12,727 13,717
9/7/2005 12,384 12,736 13,737
9/8/2005 12,325 12,677 13,602
9/9/2005 12,421 12,780 13,766
9/10/2005 12,421 12,780 13,766
9/11/2005 12,421 12,780 13,766
9/12/2005 12,462 12,819 13,792
9/13/2005 12,335 12,691 13,653
9/14/2005 12,243 12,594 13,538
9/15/2005 12,248 12,601 13,569
9/16/2005 12,335 12,694 13,671
9/17/2005 12,335 12,694 13,671
9/18/2005 12,335 12,694 13,671
9/19/2005 12,271 12,631 13,555
9/20/2005 12,134 12,490 13,399
9/21/2005 11,965 12,317 13,211
9/22/2005 11,969 12,320 13,191
9/23/2005 12,033 12,389 13,262
9/24/2005 12,033 12,389 13,262
9/25/2005 12,033 12,389 13,262
9/26/2005 12,115 12,476 13,374
9/27/2005 12,115 12,477 13,391
9/28/2005 12,061 12,419 13,311
9/29/2005 12,230 12,596 13,457
9/30/2005 12,266 12,636 13,497
10/1/2005 12,266 12,636 13,497
10/2/2005 12,266 12,636 13,497
10/3/2005 12,312 12,684 13,540
10/4/2005 12,193 12,561 13,429
10/5/2005 11,855 12,210 13,079
10/6/2005 11,777 12,131 13,060
10/7/2005 11,878 12,239 13,150
10/8/2005 11,878 12,239 13,150
10/9/2005 11,878 12,239 13,150
10/10/2005 11,759 12,118 13,010
10/11/2005 11,622 11,976 12,833
10/12/2005 11,499 11,846 12,673
10/13/2005 11,531 11,882 12,727
10/14/2005 11,682 12,036 12,832
10/15/2005 11,682 12,036 12,832
10/16/2005 11,682 12,036 12,832
10/17/2005 11,668 12,027 12,833
10/18/2005 11,545 11,899 12,746
10/19/2005 11,782 12,146 12,986
10/20/2005 11,549 11,906 12,759
10/21/2005 11,654 12,018 12,809
10/22/2005 11,654 12,018 12,809
10/23/2005 11,654 12,018 12,809
10/24/2005 11,914 12,286 13,064
10/25/2005 11,814 12,186 12,929
10/26/2005 11,727 12,095 12,868
10/27/2005 11,490 11,850 12,656
10/28/2005 11,736 12,105 12,895
10/29/2005 11,736 12,105 12,895
10/30/2005 11,736 12,105 12,895
10/31/2005 11,914 12,289 13,108
11/1/2005 11,883 12,259 13,061
11/2/2005 12,129 12,514 13,308
11/3/2005 12,134 12,519 13,309
11/4/2005 12,125 12,512 13,309
11/5/2005 12,125 12,512 13,309
11/6/2005 12,125 12,512 13,309
11/7/2005 12,193 12,584 13,425
11/8/2005 12,093 12,479 13,296
11/9/2005 12,138 12,527 13,369
11/10/2005 12,225 12,621 13,461
11/11/2005 12,248 12,643 13,458
11/12/2005 12,248 12,643 13,458
11/13/2005 12,248 12,643 13,458
11/14/2005 12,202 12,600 13,396
11/15/2005 12,061 12,453 13,197
11/16/2005 12,042 12,432 13,127
11/17/2005 12,248 12,648 13,328
11/18/2005 12,312 12,717 13,430
11/19/2005 12,312 12,717 13,430
11/20/2005 12,312 12,717 13,430
11/21/2005 12,417 12,829 13,582
11/22/2005 12,462 12,880 13,616
11/23/2005 12,499 12,916 13,695
11/24/2005 12,499 12,916 13,695
11/25/2005 12,499 12,919 13,708
11/26/2005 12,499 12,919 13,708
11/27/2005 12,499 12,919 13,708
11/28/2005 12,284 12,695 13,509
11/29/2005 12,348 12,763 13,568
11/30/2005 12,408 12,824 13,636
12/1/2005 12,622 13,050 13,843
12/2/2005 12,599 13,026 13,836
12/3/2005 12,599 13,026 13,836
12/4/2005 12,599 13,026 13,836
12/5/2005 12,536 12,961 13,796
12/6/2005 12,568 12,995 13,826
12/7/2005 12,476 12,899 13,746
12/8/2005 12,504 12,929 13,760
12/9/2005 12,549 12,979 13,834
12/10/2005 12,549 12,979 13,834
12/11/2005 12,549 12,979 13,834
12/12/2005 12,558 12,988 13,810
12/13/2005 12,558 12,993 13,800
12/14/2005 12,595 13,030 13,802
12/15/2005 12,462 12,897 13,690
12/16/2005 12,376 12,809 13,717
12/17/2005 12,376 12,809 13,717
12/18/2005 12,376 12,809 13,717
12/19/2005 12,230 12,646 13,597
12/20/2005 12,211 12,667 13,580
12/21/2005 12,294 12,772 13,660
12/22/2005 12,299 12,827 13,668
12/23/2005 12,366 12,892 13,745
12/24/2005 12,366 12,892 13,745
12/25/2005 12,366 12,892 13,745
12/26/2005 12,366 12,892 13,745
12/27/2005 12,204 12,718 13,563
12/28/2005 12,294 12,815 13,668
12/29/2005 12,299 12,794 13,675
12/30/2005 12,232 12,706 13,599
12/31/2005 12,232 12,706 13,599
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND 3.64% 12.88%
S&P SMALLCAP 600/BARRA VALUE INDEX 6.45% 15.49%
S&P SMALLCAP 600/CITIGROUP PURE VALUE INDEX 12.09% 20.31%
- --------------------------------------------------------------------------------
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 AND THE S&P SMALLCAP 600/CITIGROUP PURE VALUE INDEX ARE UNMANAGED STOCK
INDICES AND, UNLIKE THE FUND, HAVE NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE THEIR REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
S&P SMALLCAP
600/CITIGROUP
SMALL-CAP PURE VALUE
VALUE FUND INDEX
---------- -------------
OTHER 2.5% 2.8%
CONSUMER DISCRETIONARY 24.4% 24.6%
MATERIALS 19.2% 18.4%
INDUSTRIALS 17.0% 17.0%
UTILITIES 11.3% 11.8%
FINANCIALS 11.1% 11.2%
INFORMATION TECHNOLOGY 9.0% 8.8%
CONSUMER STAPLES 5.0% 5.4%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Startek, Inc. 1.4%
Alliance One International, Inc. 1.3%
Wellman, Inc. 1.3%
Central Vermont Public Service Corp. 1.2%
LandAmerica Financial Group, Inc. 1.2%
A. Schulman, Inc. 1.2%
Schweitzer-Mauduit International, Inc. 1.1%
PEP Boys-Manny Moe & Jack 1.1%
Chesapeake Corp. 1.1%
Kellwood Co. 1.1%
- -----------------------------------------------------
Top Ten Total 12.0%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of the
benchmark for mid-cap value securities. The Fund's current benchmark is the S&P
MidCap 400/Citigroup Pure Value Index.
INCEPTION: May 3, 2004
In the five previous years, mid-cap stocks outperformed large-cap stocks, and
2005 provided more of the same. Sector performance among mid-caps was strong,
with four sectors posting positive double-digit returns. Only the
telecommunications sector struggled, losing 9.94%. Strong earnings growth and a
resilient economy contributed to the performance of mid-caps. Rydex Mid-Cap
Value Fund returned 8.32% for the year.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P MIDCAP S&P MID CAP
MID-CAP 400/BARRA 400/CITIGROUP
DATE VALUE FUND VALUE INDEX PURE VALUE INDEX
---------- ---------- ----------- ----------------
5/3/2004 10,000 10,000 10,000
5/4/2004 10,024 10,029 10,039
5/5/2004 10,044 10,050 10,036
5/6/2004 9,948 9,954 9,954
5/7/2004 9,732 9,736 9,681
5/8/2004 9,732 9,736 9,681
5/9/2004 9,732 9,736 9,681
5/10/2004 9,568 9,570 9,542
5/11/2004 9,668 9,673 9,656
5/12/2004 9,656 9,659 9,647
5/13/2004 9,672 9,679 9,638
5/14/2004 9,672 9,679 9,640
5/15/2004 9,672 9,679 9,640
5/16/2004 9,672 9,679 9,640
5/17/2004 9,564 9,570 9,512
5/18/2004 9,624 9,634 9,609
5/19/2004 9,592 9,604 9,559
5/20/2004 9,616 9,629 9,583
5/21/2004 9,648 9,665 9,610
5/22/2004 9,648 9,665 9,610
5/23/2004 9,648 9,665 9,610
5/24/2004 9,760 9,776 9,694
5/25/2004 9,940 9,959 9,899
5/26/2004 10,008 10,027 9,951
5/27/2004 10,056 10,078 10,046
5/28/2004 10,100 10,124 10,075
5/29/2004 10,100 10,124 10,075
5/30/2004 10,100 10,124 10,075
5/31/2004 10,100 10,124 10,075
6/1/2004 10,120 10,144 10,114
6/2/2004 10,140 10,166 10,154
6/3/2004 10,012 10,036 10,028
6/4/2004 10,080 10,108 10,111
6/5/2004 10,080 10,108 10,111
6/6/2004 10,080 10,108 10,111
6/7/2004 10,240 10,268 10,266
6/8/2004 10,216 10,246 10,257
6/9/2004 10,096 10,126 10,137
6/10/2004 10,124 10,157 10,181
6/11/2004 10,124 10,157 10,181
6/12/2004 10,124 10,157 10,181
6/13/2004 10,124 10,157 10,181
6/14/2004 9,992 10,024 10,033
6/15/2004 10,116 10,146 10,180
6/16/2004 10,132 10,165 10,190
6/17/2004 10,152 10,185 10,232
6/18/2004 10,160 10,193 10,259
6/19/2004 10,160 10,193 10,259
6/20/2004 10,160 10,193 10,259
6/21/2004 10,148 10,178 10,280
6/22/2004 10,196 10,231 10,309
6/23/2004 10,288 10,333 10,404
6/24/2004 10,264 10,314 10,388
6/25/2004 10,304 10,354 10,456
6/26/2004 10,304 10,354 10,456
6/27/2004 10,304 10,354 10,456
6/28/2004 10,260 10,297 10,448
6/29/2004 10,288 10,322 10,453
6/30/2004 10,400 10,439 10,561
7/1/2004 10,268 10,300 10,415
7/2/2004 10,268 10,292 10,440
7/3/2004 10,268 10,292 10,440
7/4/2004 10,268 10,292 10,440
7/5/2004 10,268 10,292 10,440
7/6/2004 10,144 10,156 10,334
7/7/2004 10,164 10,170 10,366
7/8/2004 10,060 10,057 10,236
7/9/2004 10,108 10,107 10,274
7/10/2004 10,108 10,107 10,274
7/11/2004 10,108 10,107 10,274
7/12/2004 10,104 10,101 10,275
7/13/2004 10,120 10,122 10,290
7/14/2004 10,116 10,109 10,308
7/15/2004 10,156 10,153 10,372
7/16/2004 10,104 10,103 10,292
7/17/2004 10,104 10,103 10,292
7/18/2004 10,104 10,103 10,292
7/19/2004 10,120 10,117 10,340
7/20/2004 10,220 10,218 10,483
7/21/2004 10,040 10,018 10,254
7/22/2004 10,008 9,983 10,167
7/23/2004 9,904 9,880 10,069
7/24/2004 9,904 9,880 10,069
7/25/2004 9,904 9,880 10,069
7/26/2004 9,836 9,812 10,005
7/27/2004 9,936 9,914 10,083
7/28/2004 9,900 9,878 10,084
7/29/2004 10,016 9,997 10,185
7/30/2004 10,008 9,986 10,150
7/31/2004 10,008 9,986 10,150
8/1/2004 10,008 9,986 10,150
8/2/2004 10,060 10,037 10,224
8/3/2004 9,964 9,943 10,153
8/4/2004 9,944 9,924 10,161
8/5/2004 9,768 9,745 9,983
8/6/2004 9,632 9,611 9,843
8/7/2004 9,632 9,611 9,843
8/8/2004 9,632 9,611 9,843
8/9/2004 9,648 9,629 9,857
8/10/2004 9,796 9,778 10,034
8/11/2004 9,736 9,717 10,006
8/12/2004 9,604 9,585 9,857
8/13/2004 9,596 9,579 9,838
8/14/2004 9,596 9,579 9,838
8/15/2004 9,596 9,579 9,838
8/16/2004 9,756 9,741 10,009
8/17/2004 9,796 9,780 10,030
8/18/2004 9,916 9,914 10,170
8/19/2004 9,856 9,850 10,088
8/20/2004 9,968 9,965 10,213
8/21/2004 9,968 9,965 10,213
8/22/2004 9,968 9,965 10,213
8/23/2004 9,920 9,919 10,133
8/24/2004 9,940 9,940 10,197
8/25/2004 10,032 10,029 10,244
8/26/2004 10,036 10,036 10,256
8/27/2004 10,080 10,080 10,285
8/28/2004 10,080 10,080 10,285
8/29/2004 10,080 10,080 10,285
8/30/2004 9,960 9,961 10,144
8/31/2004 10,056 10,056 10,258
9/1/2004 10,132 10,134 10,304
9/2/2004 10,208 10,207 10,396
9/3/2004 10,172 10,174 10,357
9/4/2004 10,172 10,174 10,357
9/5/2004 10,172 10,174 10,357
9/6/2004 10,172 10,174 10,357
9/7/2004 10,260 10,262 10,478
9/8/2004 10,128 10,131 10,376
9/9/2004 10,212 10,214 10,461
9/10/2004 10,228 10,231 10,463
9/11/2004 10,228 10,231 10,463
9/12/2004 10,228 10,231 10,463
9/13/2004 10,272 10,279 10,481
9/14/2004 10,240 10,245 10,431
9/15/2004 10,188 10,194 10,401
9/16/2004 10,280 10,289 10,500
9/17/2004 10,296 10,306 10,484
9/18/2004 10,296 10,306 10,484
9/19/2004 10,296 10,306 10,484
9/20/2004 10,244 10,255 10,460
9/21/2004 10,336 10,347 10,509
9/22/2004 10,228 10,240 10,376
9/23/2004 10,192 10,205 10,350
9/24/2004 10,236 10,251 10,388
9/25/2004 10,236 10,251 10,388
9/26/2004 10,236 10,251 10,388
9/27/2004 10,164 10,181 10,300
9/28/2004 10,228 10,244 10,400
9/29/2004 10,244 10,263 10,418
9/30/2004 10,336 10,358 10,492
10/1/2004 10,484 10,510 10,663
10/2/2004 10,484 10,510 10,663
10/3/2004 10,484 10,510 10,663
10/4/2004 10,476 10,505 10,709
10/5/2004 10,460 10,487 10,702
10/6/2004 10,540 10,569 10,767
10/7/2004 10,400 10,428 10,632
10/8/2004 10,332 10,366 10,581
10/9/2004 10,332 10,366 10,581
10/10/2004 10,332 10,366 10,581
10/11/2004 10,324 10,358 10,604
10/12/2004 10,308 10,341 10,622
10/13/2004 10,192 10,225 10,489
10/14/2004 10,128 10,165 10,401
10/15/2004 10,168 10,208 10,474
10/16/2004 10,168 10,208 10,474
10/17/2004 10,168 10,208 10,474
10/18/2004 10,180 10,220 10,476
10/19/2004 10,096 10,136 10,352
10/20/2004 10,116 10,159 10,380
10/21/2004 10,204 10,249 10,434
10/22/2004 10,136 10,183 10,377
10/23/2004 10,136 10,183 10,377
10/24/2004 10,136 10,183 10,377
10/25/2004 10,184 10,232 10,430
10/26/2004 10,280 10,333 10,554
10/27/2004 10,392 10,447 10,665
10/28/2004 10,368 10,425 10,673
10/29/2004 10,384 10,443 10,680
10/30/2004 10,384 10,443 10,680
10/31/2004 10,384 10,443 10,680
11/1/2004 10,412 10,470 10,742
11/2/2004 10,396 10,454 10,710
11/3/2004 10,552 10,612 10,909
11/4/2004 10,712 10,775 11,131
11/5/2004 10,716 10,780 11,158
11/6/2004 10,716 10,780 11,158
11/7/2004 10,716 10,780 11,158
11/8/2004 10,680 10,746 11,165
11/9/2004 10,720 10,788 11,223
11/10/2004 10,748 10,817 11,224
11/11/2004 10,848 10,918 11,347
11/12/2004 10,980 11,053 11,446
11/13/2004 10,980 11,053 11,446
11/14/2004 10,980 11,053 11,446
11/15/2004 10,964 11,039 11,442
11/16/2004 10,908 10,982 11,350
11/17/2004 11,000 11,073 11,402
11/18/2004 11,000 11,076 11,375
11/19/2004 10,892 10,966 11,257
11/20/2004 10,892 10,966 11,257
11/21/2004 10,892 10,966 11,257
11/22/2004 10,996 11,071 11,390
11/23/2004 11,032 11,111 11,462
11/24/2004 11,132 11,211 11,542
11/25/2004 11,132 11,211 11,542
11/26/2004 11,144 11,226 11,569
11/27/2004 11,144 11,226 11,569
11/28/2004 11,144 11,226 11,569
11/29/2004 11,116 11,200 11,559
11/30/2004 11,104 11,185 11,526
12/1/2004 11,216 11,302 11,658
12/2/2004 11,152 11,236 11,598
12/3/2004 11,192 11,277 11,619
12/4/2004 11,192 11,277 11,619
12/5/2004 11,192 11,277 11,619
12/6/2004 11,140 11,225 11,550
12/7/2004 10,992 11,081 11,402
12/8/2004 11,044 11,131 11,471
12/9/2004 11,100 11,188 11,458
12/10/2004 11,136 11,226 11,493
12/11/2004 11,136 11,226 11,493
12/12/2004 11,136 11,226 11,493
12/13/2004 11,220 11,311 11,585
12/14/2004 11,312 11,407 11,641
12/15/2004 11,416 11,513 11,749
12/16/2004 11,348 11,442 11,689
12/17/2004 11,336 11,433 11,681
12/18/2004 11,336 11,433 11,681
12/19/2004 11,336 11,433 11,681
12/20/2004 11,268 11,364 11,639
12/21/2004 11,384 11,483 11,767
12/22/2004 11,420 11,519 11,804
12/23/2004 11,424 11,526 11,796
12/24/2004 11,424 11,526 11,796
12/25/2004 11,424 11,526 11,796
12/26/2004 11,424 11,526 11,796
12/27/2004 11,360 11,461 11,736
12/28/2004 11,484 11,586 11,871
12/29/2004 11,496 11,602 11,862
12/30/2004 11,541 11,649 11,898
12/31/2004 11,520 11,626 11,867
1/1/2005 11,520 11,626 11,867
1/2/2005 11,520 11,626 11,867
1/3/2005 11,337 11,442 11,678
1/4/2005 11,159 11,264 11,528
1/5/2005 11,027 11,131 11,377
1/6/2005 11,069 11,174 11,420
1/7/2005 11,001 11,107 11,345
1/8/2005 11,001 11,107 11,345
1/9/2005 11,001 11,107 11,345
1/10/2005 11,056 11,163 11,383
1/11/2005 10,988 11,095 11,309
1/12/2005 11,014 11,122 11,329
1/13/2005 11,018 11,126 11,313
1/14/2005 11,120 11,229 11,432
1/15/2005 11,120 11,229 11,432
1/16/2005 11,120 11,229 11,432
1/17/2005 11,120 11,229 11,432
1/18/2005 11,222 11,333 11,526
1/19/2005 11,125 11,333 11,437
1/20/2005 11,056 11,167 11,365
1/21/2005 11,001 11,112 11,307
1/22/2005 11,001 11,112 11,307
1/23/2005 11,001 11,112 11,307
1/24/2005 10,942 11,055 11,238
1/25/2005 10,950 11,062 11,227
1/26/2005 11,056 11,169 11,355
1/27/2005 11,069 11,185 11,392
1/28/2005 11,035 11,152 11,345
1/29/2005 11,035 11,152 11,345
1/30/2005 11,035 11,152 11,345
1/31/2005 11,184 11,304 11,546
2/1/2005 11,265 11,387 11,616
2/2/2005 11,324 11,446 11,679
2/3/2005 11,286 11,411 11,655
2/4/2005 11,452 11,579 11,831
2/5/2005 11,452 11,579 11,831
2/6/2005 11,452 11,579 11,831
2/7/2005 11,427 11,554 11,802
2/8/2005 11,486 11,615 11,832
2/9/2005 11,342 11,468 11,705
2/10/2005 11,367 11,499 11,743
2/11/2005 11,461 11,596 11,837
2/12/2005 11,461 11,596 11,837
2/13/2005 11,461 11,596 11,837
2/14/2005 11,478 11,611 11,886
2/15/2005 11,490 11,625 11,880
2/16/2005 11,546 11,685 11,929
2/17/2005 11,461 11,596 11,842
2/18/2005 11,435 11,575 11,808
2/19/2005 11,435 11,575 11,808
2/20/2005 11,435 11,575 11,808
2/21/2005 11,435 11,575 11,808
2/22/2005 11,239 11,377 11,565
2/23/2005 11,295 11,430 11,633
2/24/2005 11,435 11,574 11,737
2/25/2005 11,588 11,736 11,903
2/26/2005 11,588 11,736 11,903
2/27/2005 11,588 11,736 11,903
2/28/2005 11,512 11,658 11,834
3/1/2005 11,631 11,777 11,956
3/2/2005 11,601 11,751 11,894
3/3/2005 11,605 11,752 11,881
3/4/2005 11,754 11,906 12,029
3/5/2005 11,754 11,906 12,029
3/6/2005 11,754 11,906 12,029
3/7/2005 11,818 11,973 12,095
3/8/2005 11,707 11,861 11,987
3/9/2005 11,567 11,719 11,856
3/10/2005 11,567 11,722 11,882
3/11/2005 11,546 11,702 11,878
3/12/2005 11,546 11,702 11,878
3/13/2005 11,546 11,702 11,878
3/14/2005 11,661 11,818 12,009
3/15/2005 11,593 11,749 11,954
3/16/2005 11,503 11,661 11,838
3/17/2005 11,520 11,661 11,887
3/18/2005 11,465 11,621 11,822
3/19/2005 11,465 11,621 11,822
3/20/2005 11,465 11,621 11,822
3/21/2005 11,444 11,600 11,870
3/22/2005 11,380 11,534 11,762
3/23/2005 11,286 11,439 11,687
3/24/2005 11,307 11,465 11,727
3/25/2005 11,307 11,465 11,727
3/26/2005 11,307 11,465 11,727
3/27/2005 11,307 11,465 11,727
3/28/2005 11,324 11,481 11,747
3/29/2005 11,201 11,356 11,605
3/30/2005 11,329 11,487 11,747
3/31/2005 11,380 11,544 11,793
4/1/2005 11,350 11,515 11,769
4/2/2005 11,350 11,515 11,769
4/3/2005 11,350 11,515 11,769
4/4/2005 11,371 11,535 11,793
4/5/2005 11,359 11,522 11,844
4/6/2005 11,359 11,526 11,855
4/7/2005 11,418 11,585 11,919
4/8/2005 11,303 11,471 11,784
4/9/2005 11,303 11,471 11,784
4/10/2005 11,303 11,471 11,784
4/11/2005 11,261 11,428 11,747
4/12/2005 11,354 11,523 11,860
4/13/2005 11,210 11,377 11,699
4/14/2005 11,056 11,222 11,533
4/15/2005 10,861 11,025 11,338
4/16/2005 10,861 11,025 11,338
4/17/2005 10,861 11,025 11,338
4/18/2005 10,908 11,071 11,387
4/19/2005 11,039 11,207 11,531
4/20/2005 10,857 11,021 11,369
4/21/2005 11,031 11,196 11,558
4/22/2005 10,933 11,106 11,475
4/23/2005 10,933 11,106 11,475
4/24/2005 10,933 11,106 11,475
4/25/2005 11,069 11,242 11,612
4/26/2005 10,937 11,116 11,472
4/27/2005 10,967 11,144 11,531
4/28/2005 10,831 11,004 11,403
4/29/2005 10,929 11,111 11,529
4/30/2005 10,929 11,111 11,529
5/1/2005 10,929 11,111 11,529
5/2/2005 11,014 11,196 11,617
5/3/2005 10,963 11,149 11,578
5/4/2005 11,120 11,310 11,749
5/5/2005 11,129 11,321 11,736
5/6/2005 11,163 11,356 11,774
5/7/2005 11,163 11,356 11,774
5/8/2005 11,163 11,356 11,774
5/9/2005 11,222 11,417 11,848
5/10/2005 11,146 11,338 11,783
5/11/2005 11,193 11,386 11,835
5/12/2005 11,027 11,223 11,650
5/13/2005 10,954 11,151 11,536
5/14/2005 10,954 11,151 11,536
5/15/2005 10,954 11,151 11,536
5/16/2005 11,125 11,327 11,717
5/17/2005 11,205 11,410 11,829
5/18/2005 11,376 11,586 11,995
5/19/2005 11,410 11,624 12,015
5/20/2005 11,410 11,627 12,046
5/21/2005 11,410 11,627 12,046
5/22/2005 11,410 11,627 12,046
5/23/2005 11,469 11,688 12,093
5/24/2005 11,461 11,677 12,068
5/25/2005 11,376 11,594 12,002
5/26/2005 11,507 11,727 12,116
5/27/2005 11,533 11,754 12,146
5/28/2005 11,533 11,754 12,146
5/29/2005 11,533 11,754 12,146
5/30/2005 11,533 11,754 12,146
5/31/2005 11,550 11,772 12,170
6/1/2005 11,648 11,873 12,298
6/2/2005 11,682 11,910 12,326
6/3/2005 11,627 11,855 12,279
6/4/2005 11,627 11,855 12,279
6/5/2005 11,627 11,855 12,279
6/6/2005 11,673 11,903 12,322
6/7/2005 11,661 11,892 12,336
6/8/2005 11,618 11,853 12,322
6/9/2005 11,716 11,952 12,393
6/10/2005 11,707 11,945 12,452
6/11/2005 11,707 11,945 12,452
6/12/2005 11,707 11,945 12,452
6/13/2005 11,771 11,986 12,492
6/14/2005 11,822 12,038 12,558
6/15/2005 11,865 12,082 12,590
6/16/2005 11,963 12,184 12,670
6/17/2005 11,992 12,213 12,698
6/18/2005 11,992 12,213 12,698
6/19/2005 11,992 12,213 12,698
6/20/2005 11,954 12,179 12,659
6/21/2005 11,907 12,132 12,634
6/22/2005 11,933 12,158 12,661
6/23/2005 11,839 12,065 12,519
6/24/2005 11,712 11,939 12,395
6/25/2005 11,712 11,939 12,395
6/26/2005 11,712 11,939 12,395
6/27/2005 11,729 11,956 12,399
6/28/2005 11,869 12,099 12,568
6/29/2005 11,903 12,136 12,590
6/30/2005 11,869 12,106 12,575
7/1/2005 11,975 12,214 12,710
7/2/2005 11,975 12,214 12,710
7/3/2005 11,975 12,214 12,710
7/4/2005 11,975 12,214 12,710
7/5/2005 12,082 12,322 12,796
7/6/2005 12,009 12,248 12,715
7/7/2005 12,056 12,298 12,758
7/8/2005 12,192 12,439 12,924
7/9/2005 12,192 12,439 12,924
7/10/2005 12,192 12,439 12,924
7/11/2005 12,299 12,548 13,025
7/12/2005 12,316 12,567 13,037
7/13/2005 12,294 12,543 13,013
7/14/2005 12,239 12,490 12,947
7/15/2005 12,239 12,492 12,966
7/16/2005 12,239 12,492 12,966
7/17/2005 12,239 12,492 12,966
7/18/2005 12,209 12,461 12,942
7/19/2005 12,341 12,597 13,075
7/20/2005 12,418 12,675 13,174
7/21/2005 12,320 12,578 13,048
7/22/2005 12,456 12,716 13,182
7/23/2005 12,456 12,716 13,182
7/24/2005 12,456 12,716 13,182
7/25/2005 12,380 12,637 13,079
7/26/2005 12,448 12,712 13,138
7/27/2005 12,473 12,736 13,179
7/28/2005 12,571 12,838 13,320
7/29/2005 12,520 12,786 13,329
7/30/2005 12,520 12,786 13,329
7/31/2005 12,520 12,786 13,329
8/1/2005 12,520 12,787 13,296
8/2/2005 12,584 12,855 13,397
8/3/2005 12,541 12,812 13,375
8/4/2005 12,414 12,684 13,244
8/5/2005 12,277 12,546 13,065
8/6/2005 12,277 12,546 13,065
8/7/2005 12,277 12,546 13,065
8/8/2005 12,222 12,491 12,959
8/9/2005 12,256 12,524 13,009
8/10/2005 12,260 12,531 12,991
8/11/2005 12,350 12,622 13,092
8/12/2005 12,328 12,602 13,075
8/13/2005 12,328 12,602 13,075
8/14/2005 12,328 12,602 13,075
8/15/2005 12,363 12,639 13,130
8/16/2005 12,192 12,470 12,966
8/17/2005 12,180 12,457 12,971
8/18/2005 12,146 12,421 12,888
8/19/2005 12,175 12,454 12,919
8/20/2005 12,175 12,454 12,919
8/21/2005 12,175 12,454 12,919
8/22/2005 12,222 12,501 12,991
8/23/2005 12,180 12,462 12,943
8/24/2005 12,171 12,449 12,907
8/25/2005 12,235 12,518 13,021
8/26/2005 12,137 12,418 12,887
8/27/2005 12,137 12,418 12,887
8/28/2005 12,137 12,418 12,887
8/29/2005 12,197 12,483 12,963
8/30/2005 12,171 12,456 12,911
8/31/2005 12,354 12,642 13,141
9/1/2005 12,392 12,683 13,189
9/2/2005 12,324 12,613 13,146
9/3/2005 12,324 12,613 13,146
9/4/2005 12,324 12,613 13,146
9/5/2005 12,324 12,613 13,146
9/6/2005 12,431 12,725 13,269
9/7/2005 12,473 12,771 13,300
9/8/2005 12,409 12,706 13,227
9/9/2005 12,516 12,814 13,295
9/10/2005 12,516 12,814 13,295
9/11/2005 12,516 12,814 13,295
9/12/2005 12,503 12,803 13,348
9/13/2005 12,426 12,726 13,224
9/14/2005 12,387 12,684 13,153
9/15/2005 12,405 12,703 13,154
9/16/2005 12,469 12,773 13,222
9/17/2005 12,469 12,773 13,222
9/18/2005 12,469 12,773 13,222
9/19/2005 12,400 12,708 13,065
9/20/2005 12,298 12,608 12,935
9/21/2005 12,144 12,450 12,720
9/22/2005 12,139 12,445 12,730
9/23/2005 12,191 12,500 12,802
9/24/2005 12,191 12,500 12,802
9/25/2005 12,191 12,500 12,802
9/26/2005 12,259 12,572 12,830
9/27/2005 12,242 12,552 12,810
9/28/2005 12,208 12,531 12,784
9/29/2005 12,383 12,705 12,942
9/30/2005 12,435 12,761 12,982
10/1/2005 12,435 12,761 12,982
10/2/2005 12,435 12,761 12,982
10/3/2005 12,512 12,838 13,052
10/4/2005 12,383 12,704 12,927
10/5/2005 12,075 12,391 12,603
10/6/2005 11,955 12,269 12,538
10/7/2005 12,002 12,320 12,575
10/8/2005 12,002 12,320 12,575
10/9/2005 12,002 12,320 12,575
10/10/2005 11,891 12,205 12,435
10/11/2005 11,814 12,126 12,329
10/12/2005 11,656 11,964 12,174
10/13/2005 11,583 11,891 12,140
10/14/2005 11,737 12,050 12,254
10/15/2005 11,737 12,050 12,254
10/16/2005 11,737 12,050 12,254
10/17/2005 11,780 12,098 12,282
10/18/2005 11,635 11,947 12,152
10/19/2005 11,754 12,073 12,260
10/20/2005 11,575 11,886 12,076
10/21/2005 11,682 12,000 12,161
10/22/2005 11,682 12,000 12,161
10/23/2005 11,682 12,000 12,161
10/24/2005 11,934 12,259 12,425
10/25/2005 11,921 12,248 12,353
10/26/2005 11,853 12,176 12,258
10/27/2005 11,690 12,007 12,095
10/28/2005 11,874 12,201 12,302
10/29/2005 11,874 12,201 12,302
10/30/2005 11,874 12,201 12,302
10/31/2005 12,054 12,387 12,505
11/1/2005 12,032 12,366 12,432
11/2/2005 12,238 12,578 12,645
11/3/2005 12,242 12,587 12,635
11/4/2005 12,229 12,575 12,613
11/5/2005 12,229 12,575 12,613
11/6/2005 12,229 12,575 12,613
11/7/2005 12,246 12,593 12,677
11/8/2005 12,152 12,499 12,542
11/9/2005 12,212 12,560 12,609
11/10/2005 12,268 12,616 12,700
11/11/2005 12,328 12,682 12,741
11/12/2005 12,328 12,682 12,741
11/13/2005 12,328 12,682 12,741
11/14/2005 12,340 12,698 12,745
11/15/2005 12,281 12,634 12,658
11/16/2005 12,293 12,650 12,643
11/17/2005 12,435 12,797 12,818
11/18/2005 12,464 12,830 12,913
11/19/2005 12,464 12,830 12,913
11/20/2005 12,464 12,830 12,913
11/21/2005 12,533 12,906 12,991
11/22/2005 12,606 12,981 13,041
11/23/2005 12,636 13,011 13,089
11/24/2005 12,636 13,011 13,089
11/25/2005 12,653 13,031 13,096
11/26/2005 12,653 13,031 13,096
11/27/2005 12,653 13,031 13,096
11/28/2005 12,464 12,839 12,958
11/29/2005 12,533 12,910 13,035
11/30/2005 12,524 12,899 13,010
12/1/2005 12,734 13,118 13,199
12/2/2005 12,725 13,111 13,199
12/3/2005 12,725 13,111 13,199
12/4/2005 12,725 13,111 13,199
12/5/2005 12,674 13,060 13,130
12/6/2005 12,678 13,063 13,141
12/7/2005 12,623 13,006 13,119
12/8/2005 12,665 13,051 13,096
12/9/2005 12,730 13,120 13,218
12/10/2005 12,730 13,120 13,218
12/11/2005 12,730 13,120 13,218
12/12/2005 12,742 13,134 13,184
12/13/2005 12,755 13,148 13,215
12/14/2005 12,798 13,195 13,303
12/15/2005 12,755 13,152 13,231
12/16/2005 12,687 13,083 13,249
12/17/2005 12,687 13,083 13,249
12/18/2005 12,687 13,083 13,249
12/19/2005 12,503 12,934 13,061
12/20/2005 12,516 12,973 13,074
12/21/2005 12,559 13,045 13,121
12/22/2005 12,602 13,113 13,166
12/23/2005 12,641 13,152 13,215
12/24/2005 12,641 13,152 13,215
12/25/2005 12,641 13,152 13,215
12/26/2005 12,641 13,152 13,215
12/27/2005 12,505 13,002 13,067
12/28/2005 12,556 13,080 13,126
12/29/2005 12,563 13,047 13,129
12/30/2005 12,479 12,975 13,043
12/31/2005 12,479 12,975 13,043
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND 8.32% 14.24%
S&P MIDCAP 400/BARRA VALUE INDEX 11.60% 16.96%
S&P MIDCAP 400/CITIGROUP PURE VALUE INDEX 9.91% 17.32%
- --------------------------------------------------------------------------------
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 AND THE S&P MIDCAP 400/CITIGROUP PURE VALUE INDEX ARE UNMANAGED STOCK
INDICES AND, UNLIKE THE FUND, HAVE NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE THEIR REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
S&P MIDCAP
400/CITIGROUP
MID-CAP PURE VALUE
VALUE FUND INDEX
---------- -------------
OTHER 2.3% 4.3%
UTILITIES 25.0% 25.0%
FINANCIALS 17.5% 17.1%
INDUSTRIALS 16.2% 15.1%
CONSUMER DISCRETIONARY 15.2% 15.0%
MATERIALS 11.1% 11.1%
INFORMATION TECHNOLOGY 7.2% 7.4%
CONSUMER STAPLES 5.0% 5.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Northeast Utilities 2.2%
Tecumseh Products Co. -- Class A 2.1%
Furniture Brands International, Inc. 2.0%
NSTAR 2.0%
Universal Corp./Richmond VA 1.9%
Atmel Corp. 1.9%
Pepco Holdings, Inc. 1.9%
Lear Corp. 1.8%
ArvinMeritor, Inc. 1.8%
Alaska Air Group, Inc. 1.7%
- -----------------------------------------------------
Top Ten Total 19.3%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
OBJECTIVE: 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/Citigroup Pure Value Index.
INCEPTION: May 3, 2004
For 2005, the S&P 500/Barra Value Index posted its third consecutive yearly
gain, rising by 6.33%. In the large-cap space, value stocks outperformed growth
stocks, despite poor performances from automakers. Rydex Large-Cap Value Fund
gained 4.19% for the period.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP S&P 500/BARRA S&P 500/CITIGROUP
DATE VALUE FUND VALUE INDEX PURE VALUE INDEX
---------- ---------- ------------- -----------------
5/3/2004 10,000 10,000 10,000
5/4/2004 10,008 10,026 10,048
5/5/2004 10,024 10,045 10,043
5/6/2004 9,928 9,951 9,922
5/7/2004 9,748 9,757 9,654
5/8/2004 9,748 9,757 9,654
5/9/2004 9,748 9,757 9,654
5/10/2004 9,600 9,609 9,517
5/11/2004 9,688 9,696 9,594
5/12/2004 9,744 9,753 9,590
5/13/2004 9,744 9,756 9,625
5/14/2004 9,764 9,776 9,658
5/15/2004 9,764 9,776 9,658
5/16/2004 9,764 9,776 9,658
5/17/2004 9,644 9,656 9,529
5/18/2004 9,716 9,729 9,657
5/19/2004 9,708 9,719 9,622
5/20/2004 9,716 9,728 9,629
5/21/2004 9,760 9,773 9,680
5/22/2004 9,760 9,773 9,680
5/23/2004 9,760 9,773 9,680
5/24/2004 9,804 9,820 9,746
5/25/2004 9,960 9,981 9,947
5/26/2004 9,972 9,992 9,984
5/27/2004 10,004 10,024 10,047
5/28/2004 10,004 10,027 10,049
5/29/2004 10,004 10,027 10,049
5/30/2004 10,004 10,027 10,049
5/31/2004 10,004 10,027 10,049
6/1/2004 10,008 10,030 10,076
6/2/2004 10,052 10,075 10,128
6/3/2004 9,972 9,992 10,029
6/4/2004 10,020 10,045 10,091
6/5/2004 10,020 10,045 10,091
6/6/2004 10,020 10,045 10,091
6/7/2004 10,180 10,206 10,281
6/8/2004 10,180 10,207 10,292
6/9/2004 10,088 10,113 10,191
6/10/2004 10,144 10,173 10,282
6/11/2004 10,144 10,173 10,282
6/12/2004 10,144 10,173 10,282
6/13/2004 10,144 10,173 10,282
6/14/2004 10,028 10,054 10,152
6/15/2004 10,080 10,111 10,276
6/16/2004 10,108 10,139 10,309
6/17/2004 10,112 10,145 10,356
6/18/2004 10,148 10,180 10,430
6/19/2004 10,148 10,180 10,430
6/20/2004 10,148 10,180 10,430
6/21/2004 10,108 10,138 10,423
6/22/2004 10,140 10,172 10,495
6/23/2004 10,224 10,259 10,648
6/24/2004 10,204 10,240 10,604
6/25/2004 10,160 10,209 10,589
6/26/2004 10,160 10,209 10,589
6/27/2004 10,160 10,209 10,589
6/28/2004 10,144 10,184 10,581
6/29/2004 10,156 10,194 10,599
6/30/2004 10,204 10,245 10,666
7/1/2004 10,120 10,154 10,543
7/2/2004 10,104 10,140 10,528
7/3/2004 10,104 10,140 10,528
7/4/2004 10,104 10,140 10,528
7/5/2004 10,104 10,140 10,528
7/6/2004 10,036 10,059 10,480
7/7/2004 10,056 10,085 10,495
7/8/2004 9,976 10,000 10,377
7/9/2004 10,004 10,028 10,429
7/10/2004 10,004 10,028 10,429
7/11/2004 10,004 10,028 10,429
7/12/2004 10,028 10,056 10,453
7/13/2004 10,032 10,060 10,464
7/14/2004 10,012 10,041 10,474
7/15/2004 9,976 9,999 10,468
7/16/2004 9,952 9,974 10,477
7/17/2004 9,952 9,974 10,477
7/18/2004 9,952 9,974 10,477
7/19/2004 9,964 9,986 10,497
7/20/2004 10,024 10,048 10,522
7/21/2004 9,900 9,922 10,371
7/22/2004 9,916 9,937 10,316
7/23/2004 9,868 9,890 10,275
7/24/2004 9,868 9,890 10,275
7/25/2004 9,868 9,890 10,275
7/26/2004 9,856 9,877 10,239
7/27/2004 9,952 9,972 10,329
7/28/2004 9,968 9,988 10,382
7/29/2004 10,028 10,050 10,454
7/30/2004 10,028 10,051 10,487
7/31/2004 10,028 10,051 10,487
8/1/2004 10,028 10,051 10,487
8/2/2004 10,068 10,094 10,520
8/3/2004 10,036 10,060 10,460
8/4/2004 10,008 10,033 10,432
8/5/2004 9,860 9,885 10,250
8/6/2004 9,720 9,743 10,105
8/7/2004 9,720 9,743 10,105
8/8/2004 9,720 9,743 10,105
8/9/2004 9,736 9,759 10,135
8/10/2004 9,852 9,879 10,260
8/11/2004 9,832 9,857 10,230
8/12/2004 9,712 9,733 10,122
8/13/2004 9,716 9,739 10,104
8/14/2004 9,716 9,739 10,104
8/15/2004 9,716 9,739 10,104
8/16/2004 9,872 9,893 10,273
8/17/2004 9,888 9,911 10,287
8/18/2004 10,004 10,026 10,408
8/19/2004 9,976 9,999 10,351
8/20/2004 10,056 10,081 10,411
8/21/2004 10,056 10,081 10,411
8/22/2004 10,056 10,081 10,411
8/23/2004 10,016 10,043 10,360
8/24/2004 10,024 10,049 10,373
8/25/2004 10,100 10,128 10,443
8/26/2004 10,108 10,139 10,462
8/27/2004 10,128 10,161 10,485
8/28/2004 10,128 10,161 10,485
8/29/2004 10,128 10,161 10,485
8/30/2004 10,064 10,096 10,429
8/31/2004 10,128 10,159 10,489
9/1/2004 10,136 10,166 10,512
9/2/2004 10,260 10,276 10,634
9/3/2004 10,236 10,255 10,611
9/4/2004 10,236 10,255 10,611
9/5/2004 10,236 10,255 10,611
9/6/2004 10,236 10,255 10,611
9/7/2004 10,316 10,337 10,716
9/8/2004 10,256 10,275 10,624
9/9/2004 10,276 10,296 10,652
9/10/2004 10,308 10,335 10,651
9/11/2004 10,308 10,335 10,651
9/12/2004 10,308 10,335 10,651
9/13/2004 10,324 10,351 10,685
9/14/2004 10,340 10,366 10,663
9/15/2004 10,276 10,302 10,611
9/16/2004 10,336 10,366 10,689
9/17/2004 10,376 10,406 10,732
9/18/2004 10,376 10,406 10,732
9/19/2004 10,376 10,406 10,732
9/20/2004 10,320 10,351 10,696
9/21/2004 10,412 10,444 10,785
9/22/2004 10,284 10,315 10,680
9/23/2004 10,220 10,253 10,614
9/24/2004 10,260 10,298 10,635
9/25/2004 10,260 10,298 10,635
9/26/2004 10,260 10,298 10,635
9/27/2004 10,188 10,238 10,570
9/28/2004 10,248 10,298 10,673
9/29/2004 10,264 10,316 10,671
9/30/2004 10,300 10,352 10,768
10/1/2004 10,448 10,505 10,899
10/2/2004 10,448 10,505 10,899
10/3/2004 10,448 10,505 10,899
10/4/2004 10,484 10,543 10,941
10/5/2004 10,472 10,533 10,941
10/6/2004 10,560 10,622 11,027
10/7/2004 10,488 10,549 10,921
10/8/2004 10,436 10,500 10,874
10/9/2004 10,436 10,500 10,874
10/10/2004 10,436 10,500 10,874
10/11/2004 10,448 10,509 10,856
10/12/2004 10,424 10,486 10,828
10/13/2004 10,324 10,385 10,666
10/14/2004 10,204 10,268 10,590
10/15/2004 10,248 10,318 10,624
10/16/2004 10,248 10,318 10,624
10/17/2004 10,248 10,318 10,624
10/18/2004 10,272 10,340 10,598
10/19/2004 10,148 10,215 10,442
10/20/2004 10,136 10,206 10,495
10/21/2004 10,156 10,226 10,526
10/22/2004 10,088 10,157 10,492
10/23/2004 10,088 10,157 10,492
10/24/2004 10,088 10,157 10,492
10/25/2004 10,104 10,174 10,528
10/26/2004 10,276 10,348 10,719
10/27/2004 10,360 10,435 10,766
10/28/2004 10,388 10,463 10,786
10/29/2004 10,432 10,508 10,860
10/30/2004 10,432 10,508 10,860
10/31/2004 10,432 10,508 10,860
11/1/2004 10,448 10,527 10,897
11/2/2004 10,440 10,518 10,856
11/3/2004 10,548 10,630 11,003
11/4/2004 10,740 10,823 11,238
11/5/2004 10,764 10,849 11,331
11/6/2004 10,764 10,849 11,331
11/7/2004 10,764 10,849 11,331
11/8/2004 10,740 10,825 11,326
11/9/2004 10,732 10,819 11,346
11/10/2004 10,744 10,832 11,367
11/11/2004 10,836 10,926 11,481
11/12/2004 10,944 11,035 11,610
11/13/2004 10,944 11,035 11,610
11/14/2004 10,944 11,035 11,610
11/15/2004 10,912 11,006 11,590
11/16/2004 10,836 10,929 11,526
11/17/2004 10,896 10,990 11,632
11/18/2004 10,908 11,001 11,649
11/19/2004 10,804 10,899 11,581
11/20/2004 10,804 10,899 11,581
11/21/2004 10,804 10,899 11,581
11/22/2004 10,892 10,990 11,710
11/23/2004 10,924 11,020 11,725
11/24/2004 10,972 11,071 11,821
11/25/2004 10,972 11,071 11,821
11/26/2004 10,992 11,093 11,886
11/27/2004 10,992 11,093 11,886
11/28/2004 10,992 11,093 11,886
11/29/2004 10,952 11,053 11,831
11/30/2004 10,920 11,021 11,787
12/1/2004 11,060 11,163 11,880
12/2/2004 11,004 11,108 11,780
12/3/2004 11,004 11,109 11,820
12/4/2004 11,004 11,109 11,820
12/5/2004 11,004 11,109 11,820
12/6/2004 11,012 11,118 11,808
12/7/2004 10,888 10,993 11,649
12/8/2004 10,928 11,033 11,655
12/9/2004 10,984 11,092 11,695
12/10/2004 10,976 11,086 11,708
12/11/2004 10,976 11,086 11,708
12/12/2004 10,976 11,086 11,708
12/13/2004 11,088 11,199 11,851
12/14/2004 11,120 11,234 11,905
12/15/2004 11,152 11,268 12,013
12/16/2004 11,108 11,227 11,961
12/17/2004 11,056 11,175 11,937
12/18/2004 11,056 11,175 11,937
12/19/2004 11,056 11,175 11,937
12/20/2004 11,044 11,167 11,947
12/21/2004 11,156 11,281 12,057
12/22/2004 11,208 11,333 12,070
12/23/2004 11,208 11,333 12,065
12/24/2004 11,208 11,333 12,065
12/25/2004 11,208 11,333 12,065
12/26/2004 11,208 11,333 12,065
12/27/2004 11,168 11,296 11,988
12/28/2004 11,252 11,378 12,086
12/29/2004 11,260 11,388 12,120
12/30/2004 11,261 11,389 12,124
12/31/2004 11,249 11,380 12,110
1/1/2005 11,249 11,380 12,110
1/2/2005 11,249 11,380 12,110
1/3/2005 11,143 11,273 11,927
1/4/2005 11,013 11,142 11,772
1/5/2005 10,976 11,107 11,639
1/6/2005 11,025 11,158 11,705
1/7/2005 10,993 11,124 11,679
1/8/2005 10,993 11,124 11,679
1/9/2005 10,993 11,124 11,679
1/10/2005 11,017 11,151 11,727
1/11/2005 10,944 11,078 11,658
1/12/2005 10,972 11,108 11,700
1/13/2005 10,895 11,031 11,702
1/14/2005 10,952 11,088 11,790
1/15/2005 10,952 11,088 11,790
1/16/2005 10,952 11,088 11,790
1/17/2005 10,952 11,088 11,790
1/18/2005 11,074 11,213 11,883
1/19/2005 10,960 11,100 11,808
1/20/2005 10,883 11,021 11,687
1/21/2005 10,818 10,955 11,639
1/22/2005 10,818 10,955 11,639
1/23/2005 10,818 10,955 11,639
1/24/2005 10,797 10,935 11,606
1/25/2005 10,814 10,951 11,610
1/26/2005 10,879 11,019 11,720
1/27/2005 10,879 11,018 11,764
1/28/2005 10,850 10,990 11,735
1/29/2005 10,850 10,990 11,735
1/30/2005 10,850 10,990 11,735
1/31/2005 10,960 11,103 11,884
2/1/2005 11,033 11,178 12,003
2/2/2005 11,054 11,202 12,085
2/3/2005 11,033 11,180 12,111
2/4/2005 11,159 11,313 12,254
2/5/2005 11,159 11,313 12,254
2/6/2005 11,159 11,313 12,254
2/7/2005 11,155 11,309 12,203
2/8/2005 11,159 11,312 12,217
2/9/2005 11,086 11,240 12,195
2/10/2005 11,135 11,289 12,250
2/11/2005 11,216 11,375 12,345
2/12/2005 11,216 11,375 12,345
2/13/2005 11,216 11,375 12,345
2/14/2005 11,212 11,372 12,368
2/15/2005 11,245 11,404 12,423
2/16/2005 11,240 11,399 12,493
2/17/2005 11,143 11,303 12,396
2/18/2005 11,135 11,294 12,403
2/19/2005 11,135 11,294 12,403
2/20/2005 11,135 11,294 12,403
2/21/2005 11,135 11,294 12,403
2/22/2005 10,976 11,135 12,177
2/23/2005 11,045 11,206 12,267
2/24/2005 11,119 11,278 12,377
2/25/2005 11,232 11,397 12,553
2/26/2005 11,232 11,397 12,553
2/27/2005 11,232 11,397 12,553
2/28/2005 11,139 11,304 12,465
3/1/2005 11,212 11,380 12,515
3/2/2005 11,204 11,372 12,509
3/3/2005 11,208 11,376 12,595
3/4/2005 11,330 11,501 12,760
3/5/2005 11,330 11,501 12,760
3/6/2005 11,330 11,501 12,760
3/7/2005 11,366 11,539 12,788
3/8/2005 11,314 11,484 12,723
3/9/2005 11,184 11,356 12,566
3/10/2005 11,200 11,370 12,554
3/11/2005 11,123 11,294 12,558
3/12/2005 11,123 11,294 12,558
3/13/2005 11,123 11,294 12,558
3/14/2005 11,208 11,379 12,667
3/15/2005 11,123 11,294 12,576
3/16/2005 11,037 11,208 12,436
3/17/2005 11,054 11,226 12,514
3/18/2005 11,037 11,209 12,479
3/19/2005 11,037 11,209 12,479
3/20/2005 11,037 11,209 12,479
3/21/2005 10,968 11,142 12,496
3/22/2005 10,830 10,998 12,345
3/23/2005 10,826 10,994 12,297
3/24/2005 10,818 10,988 12,321
3/25/2005 10,818 10,988 12,321
3/26/2005 10,818 10,988 12,321
3/27/2005 10,818 10,988 12,321
3/28/2005 10,838 11,010 12,266
3/29/2005 10,761 10,771 12,111
3/30/2005 10,907 11,083 12,288
3/31/2005 10,928 11,103 12,404
4/1/2005 10,858 11,037 12,437
4/2/2005 10,858 11,037 12,437
4/3/2005 10,858 11,037 12,437
4/4/2005 10,883 11,059 12,429
4/5/2005 10,915 11,094 12,460
4/6/2005 10,960 11,142 12,512
4/7/2005 11,013 11,196 12,556
4/8/2005 10,915 11,098 12,429
4/9/2005 10,915 11,098 12,429
4/10/2005 10,915 11,098 12,429
4/11/2005 10,919 11,103 12,448
4/12/2005 10,988 11,174 12,469
4/13/2005 10,846 11,028 12,288
4/14/2005 10,720 10,901 12,115
4/15/2005 10,525 10,703 11,813
4/16/2005 10,525 10,703 11,813
4/17/2005 10,525 10,703 11,813
4/18/2005 10,574 10,753 11,910
4/19/2005 10,647 10,830 12,050
4/20/2005 10,501 10,680 11,892
4/21/2005 10,676 10,858 12,116
4/22/2005 10,619 10,800 12,070
4/23/2005 10,619 10,800 12,070
4/24/2005 10,619 10,800 12,070
4/25/2005 10,716 10,909 12,187
4/26/2005 10,619 10,802 12,042
4/27/2005 10,672 10,858 12,034
4/28/2005 10,562 10,747 11,875
4/29/2005 10,688 10,876 12,015
4/30/2005 10,688 10,876 12,015
5/1/2005 10,688 10,876 12,015
5/2/2005 10,737 10,925 12,103
5/3/2005 10,712 10,903 12,064
5/4/2005 10,879 11,072 12,256
5/5/2005 10,842 11,036 12,205
5/6/2005 10,822 11,016 12,232
5/7/2005 10,822 11,016 12,232
5/8/2005 10,822 11,016 12,232
5/9/2005 10,903 11,101 12,357
5/10/2005 10,777 10,971 12,239
5/11/2005 10,814 11,010 12,260
5/12/2005 10,692 10,886 12,028
5/13/2005 10,619 10,813 11,873
5/14/2005 10,619 10,813 11,873
5/15/2005 10,619 10,813 11,873
5/16/2005 10,732 10,929 11,981
5/17/2005 10,822 11,023 12,114
5/18/2005 10,936 11,142 12,255
5/19/2005 10,984 11,192 12,340
5/20/2005 10,972 11,182 12,360
5/21/2005 10,972 11,182 12,360
5/22/2005 10,972 11,182 12,360
5/23/2005 11,009 11,218 12,392
5/24/2005 11,005 11,216 12,396
5/25/2005 10,968 11,180 12,401
5/26/2005 11,049 11,260 12,503
5/27/2005 11,062 11,277 12,563
5/28/2005 11,062 11,277 12,563
5/29/2005 11,062 11,277 12,563
5/30/2005 11,062 11,277 12,563
5/31/2005 11,005 11,221 12,543
6/1/2005 11,102 11,320 12,676
6/2/2005 11,114 11,333 12,694
6/3/2005 11,062 11,279 12,674
6/4/2005 11,062 11,279 12,674
6/5/2005 11,062 11,279 12,674
6/6/2005 11,074 11,296 12,709
6/7/2005 11,062 11,283 12,717
6/8/2005 11,058 11,277 12,740
6/9/2005 11,110 11,333 12,807
6/10/2005 11,110 11,334 12,842
6/11/2005 11,110 11,334 12,842
6/12/2005 11,110 11,334 12,842
6/13/2005 11,147 11,370 12,907
6/14/2005 11,184 11,411 12,996
6/15/2005 11,216 11,443 13,024
6/16/2005 11,265 11,495 13,078
6/17/2005 11,334 11,567 13,180
6/18/2005 11,334 11,567 13,180
6/19/2005 11,334 11,567 13,180
6/20/2005 11,330 11,562 13,173
6/21/2005 11,318 11,549 13,141
6/22/2005 11,330 11,565 13,160
6/23/2005 11,224 11,457 13,059
6/24/2005 11,155 11,385 12,967
6/25/2005 11,155 11,385 12,967
6/26/2005 11,155 11,385 12,967
6/27/2005 11,135 11,365 12,990
6/28/2005 11,216 11,450 13,110
6/29/2005 11,224 11,459 13,113
6/30/2005 11,155 11,390 13,072
7/1/2005 11,188 11,424 13,191
7/2/2005 11,188 11,424 13,191
7/3/2005 11,188 11,424 13,191
7/4/2005 11,188 11,424 13,191
7/5/2005 11,277 11,518 13,328
7/6/2005 11,192 11,432 13,213
7/7/2005 11,220 11,461 13,284
7/8/2005 11,330 11,574 13,395
7/9/2005 11,330 11,574 13,395
7/10/2005 11,330 11,574 13,395
7/11/2005 11,387 11,635 13,493
7/12/2005 11,407 11,654 13,515
7/13/2005 11,423 11,670 13,509
7/14/2005 11,440 11,690 13,462
7/15/2005 11,460 11,709 13,457
7/16/2005 11,460 11,709 13,457
7/17/2005 11,460 11,709 13,457
7/18/2005 11,383 11,631 13,431
7/19/2005 11,436 11,687 13,547
7/20/2005 11,484 11,739 13,639
7/21/2005 11,395 11,646 13,489
7/22/2005 11,472 11,729 13,640
7/23/2005 11,472 11,729 13,640
7/24/2005 11,472 11,729 13,640
7/25/2005 11,431 11,685 13,602
7/26/2005 11,452 11,706 13,619
7/27/2005 11,501 11,758 13,708
7/28/2005 11,570 11,829 13,842
7/29/2005 11,488 11,749 13,791
7/30/2005 11,488 11,749 13,791
7/31/2005 11,488 11,749 13,791
8/1/2005 11,496 11,758 13,792
8/2/2005 11,570 11,831 13,916
8/3/2005 11,586 11,848 13,924
8/4/2005 11,517 11,780 13,849
8/5/2005 11,403 11,665 13,654
8/6/2005 11,403 11,665 13,654
8/7/2005 11,403 11,665 13,654
8/8/2005 11,375 11,636 13,579
8/9/2005 11,448 11,712 13,650
8/10/2005 11,452 11,716 13,723
8/11/2005 11,529 11,795 13,806
8/12/2005 11,464 11,731 13,752
8/13/2005 11,464 11,731 13,752
8/14/2005 11,464 11,731 13,752
8/15/2005 11,501 11,768 13,774
8/16/2005 11,379 11,643 13,589
8/17/2005 11,387 11,652 13,535
8/18/2005 11,366 11,631 13,506
8/19/2005 11,383 11,650 13,585
8/20/2005 11,383 11,650 13,585
8/21/2005 11,383 11,650 13,585
8/22/2005 11,403 11,672 13,619
8/23/2005 11,362 11,627 13,592
8/24/2005 11,285 11,550 13,583
8/25/2005 11,310 11,577 13,657
8/26/2005 11,236 11,501 13,566
8/27/2005 11,236 11,501 13,566
8/28/2005 11,236 11,501 13,566
8/29/2005 11,293 11,559 13,654
8/30/2005 11,269 11,538 13,679
8/31/2005 11,391 11,661 13,902
9/1/2005 11,419 11,693 14,021
9/2/2005 11,383 11,658 13,956
9/3/2005 11,383 11,658 13,956
9/4/2005 11,383 11,658 13,956
9/5/2005 11,383 11,658 13,956
9/6/2005 11,509 11,787 14,091
9/7/2005 11,537 11,819 14,152
9/8/2005 11,486 11,766 14,076
9/9/2005 11,589 11,871 14,262
9/10/2005 11,589 11,871 14,262
9/11/2005 11,589 11,871 14,262
9/12/2005 11,577 11,860 14,204
9/13/2005 11,494 11,778 14,101
9/14/2005 11,478 11,761 14,126
9/15/2005 11,486 11,769 14,104
9/16/2005 11,601 11,889 14,188
9/17/2005 11,601 11,889 14,188
9/18/2005 11,601 11,889 14,188
9/19/2005 11,531 11,817 14,032
9/20/2005 11,432 11,714 13,863
9/21/2005 11,313 11,591 13,707
9/22/2005 11,346 11,626 13,728
9/23/2005 11,354 11,637 13,803
9/24/2005 11,354 11,637 13,803
9/25/2005 11,354 11,637 13,803
9/26/2005 11,366 11,652 13,756
9/27/2005 11,354 11,636 13,738
9/28/2005 11,371 11,657 13,785
9/29/2005 11,490 11,779 13,883
9/30/2005 11,490 11,782 13,954
10/1/2005 11,490 11,782 13,954
10/2/2005 11,490 11,782 13,954
10/3/2005 11,486 11,777 13,954
10/4/2005 11,358 11,644 13,807
10/5/2005 11,185 11,466 13,521
10/6/2005 11,127 11,407 13,406
10/7/2005 11,173 11,455 13,434
10/8/2005 11,173 11,455 13,434
10/9/2005 11,173 11,455 13,434
10/10/2005 11,070 11,352 13,125
10/11/2005 11,041 11,320 13,046
10/12/2005 10,954 11,232 12,939
10/13/2005 10,925 11,203 12,902
10/14/2005 11,016 11,300 13,016
10/15/2005 11,016 11,300 13,016
10/16/2005 11,016 11,300 13,016
10/17/2005 11,057 11,343 13,129
10/18/2005 10,942 11,221 12,953
10/19/2005 11,094 11,381 13,088
10/20/2005 10,905 11,183 12,929
10/21/2005 10,946 11,229 12,947
10/22/2005 10,946 11,229 12,947
10/23/2005 10,946 11,229 12,947
10/24/2005 11,156 11,445 13,185
10/25/2005 11,140 11,427 13,147
10/26/2005 11,103 11,392 13,116
10/27/2005 10,999 11,287 12,955
10/28/2005 11,197 11,490 13,181
10/29/2005 11,197 11,490 13,181
10/30/2005 11,197 11,490 13,181
10/31/2005 11,280 11,576 13,363
11/1/2005 11,259 11,556 13,337
11/2/2005 11,383 11,684 13,485
11/3/2005 11,404 11,706 13,470
11/4/2005 11,395 11,699 13,492
11/5/2005 11,395 11,699 13,492
11/6/2005 11,395 11,699 13,492
11/7/2005 11,420 11,726 13,543
11/8/2005 11,383 11,689 13,433
11/9/2005 11,412 11,718 13,467
11/10/2005 11,507 11,816 13,549
11/11/2005 11,548 11,859 13,579
11/12/2005 11,548 11,859 13,579
11/13/2005 11,548 11,859 13,579
11/14/2005 11,544 11,856 13,591
11/15/2005 11,469 11,782 13,510
11/16/2005 11,482 11,790 13,528
11/17/2005 11,614 11,927 13,703
11/18/2005 11,659 11,978 13,813
11/19/2005 11,659 11,978 13,813
11/20/2005 11,659 11,978 13,813
11/21/2005 11,713 12,038 13,832
11/22/2005 11,787 12,113 13,865
11/23/2005 11,845 12,174 13,926
11/24/2005 11,845 12,174 13,926
11/25/2005 11,865 12,197 13,940
11/26/2005 11,865 12,197 13,940
11/27/2005 11,865 12,197 13,940
11/28/2005 11,762 12,090 13,841
11/29/2005 11,775 12,106 13,847
11/30/2005 11,684 12,010 13,761
12/1/2005 11,832 12,164 13,934
12/2/2005 11,824 12,156 13,929
12/3/2005 11,824 12,156 13,929
12/4/2005 11,824 12,156 13,929
12/5/2005 11,803 12,137 13,884
12/6/2005 11,816 12,152 13,895
12/7/2005 11,750 12,082 13,824
12/8/2005 11,750 12,081 13,824
12/9/2005 11,791 12,128 13,905
12/10/2005 11,791 12,128 13,905
12/11/2005 11,791 12,128 13,905
12/12/2005 11,791 12,129 13,896
12/13/2005 11,869 12,212 13,974
12/14/2005 11,927 12,269 14,056
12/15/2005 11,886 12,228 14,006
12/16/2005 11,853 12,197 14,001
12/17/2005 11,853 12,197 14,001
12/18/2005 11,853 12,197 14,001
12/19/2005 11,758 12,142 13,879
12/20/2005 11,742 12,152 13,863
12/21/2005 11,791 12,190 13,922
12/22/2005 11,846 12,257 13,985
12/23/2005 11,850 12,263 13,992
12/24/2005 11,850 12,263 13,992
12/25/2005 11,850 12,263 13,992
12/26/2005 11,850 12,263 13,992
12/27/2005 11,766 12,152 13,897
12/28/2005 11,787 12,167 13,921
12/29/2005 11,783 12,146 13,915
12/30/2005 11,720 12,100 13,842
12/31/2005 11,720 12,100 13,842
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND 4.19% 10.01%
S&P 500/BARRA VALUE INDEX 6.33% 12.15%
S&P 500/CITIGROUP PURE VALUE INDEX 14.31% 21.59%
- --------------------------------------------------------------------------------
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 AND
THE S&P 500/CITIGROUP PURE VALUE INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE
THE FUND, HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE THEIR
REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND
REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP S&P 500/CITIGROUP
VALUE FUND PURE VALUE INDEX
---------- -----------------
OTHER 8.6% 8.5%
FINANCIALS 20.6% 20.6%
UTILITIES 18.4% 18.3%
CONSUMER DISCRETIONARY 17.9% 10.7%
MATERIALS 10.3% 17.4%
INDUSTRIALS 9.4% 9.3%
CONSUMER STAPLES 9.5% 9.4%
INFORMATION TECHNOLOGY 5.6% 5.8%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Dillard's, Inc. -- Class A 1.7%
Ryder System, Inc. 1.6%
Ford Motor Co. 1.4%
United States Steel Corp. 1.3%
Dana Corp. 1.3%
ConocoPhillips 1.3%
Supervalu, Inc. 1.2%
Albertson's, Inc. 1.2%
Progress Energy, Inc. 1.1%
UnumProvident Corp. 1.1%
- -----------------------------------------------------
Top Ten Total 13.2%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 25
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for small-cap growth securities. The Fund's current benchmark is the
S&P SmallCap 600/Citigroup Pure Growth Index.
INCEPTION: May 3, 2004
For 2005, the S&P Small Cap/Barra Growth Index posted its third consecutive
yearly gain. Growth stocks, particularly those in the consumer discretionary
sector outperformed value, propelling the index to a gain of 8.97%. Rydex Small
Cap Growth Fund gained 6.20% over the same period.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P SMALL CAP 600/
SMALL-CAP S&P SMALL CAP 600/ CITIGROUP PURE
DATE GROWTH FUND BARRA GROWTH INDEX GROWTH INDEX
---------- ----------- ------------------ ------------------
5/3/2004 10,000 10,000 10,000
5/4/2004 10,056 10,055 9,998
5/5/2004 10,104 10,105 10,022
5/6/2004 9,976 9,975 9,862
5/7/2004 9,748 9,748 9,591
5/8/2004 9,748 9,748 9,591
5/9/2004 9,748 9,748 9,591
5/10/2004 9,560 9,551 9,413
5/11/2004 9,752 9,747 9,575
5/12/2004 9,752 9,747 9,589
5/13/2004 9,720 9,715 9,540
5/14/2004 9,664 9,658 9,525
5/15/2004 9,664 9,658 9,525
5/16/2004 9,664 9,658 9,525
5/17/2004 9,520 9,515 9,423
5/18/2004 9,628 9,623 9,505
5/19/2004 9,616 9,612 9,466
5/20/2004 9,612 9,609 9,460
5/21/2004 9,704 9,703 9,563
5/22/2004 9,704 9,703 9,563
5/23/2004 9,704 9,703 9,563
5/24/2004 9,804 9,801 9,679
5/25/2004 10,060 10,059 9,941
5/26/2004 10,112 10,111 9,960
5/27/2004 10,112 10,105 9,949
5/28/2004 10,096 10,089 9,929
5/29/2004 10,096 10,089 9,929
5/30/2004 10,096 10,089 9,929
5/31/2004 10,096 10,089 9,929
6/1/2004 10,168 10,163 10,017
6/2/2004 10,204 10,200 10,041
6/3/2004 10,028 10,019 9,888
6/4/2004 10,120 10,120 9,967
6/5/2004 10,120 10,120 9,967
6/6/2004 10,120 10,120 9,967
6/7/2004 10,308 10,311 10,164
6/8/2004 10,324 10,328 10,182
6/9/2004 10,204 10,206 10,068
6/10/2004 10,192 10,193 10,069
6/11/2004 10,192 10,193 10,069
6/12/2004 10,192 10,193 10,069
6/13/2004 10,192 10,193 10,069
6/14/2004 10,044 10,047 9,949
6/15/2004 10,224 10,226 10,101
6/16/2004 10,304 10,309 10,161
6/17/2004 10,288 10,291 10,185
6/18/2004 10,284 10,290 10,195
6/19/2004 10,284 10,290 10,195
6/20/2004 10,284 10,290 10,195
6/21/2004 10,268 10,272 10,192
6/22/2004 10,336 10,340 10,240
6/23/2004 10,468 10,466 10,368
6/24/2004 10,460 10,456 10,380
6/25/2004 10,556 10,559 10,468
6/26/2004 10,556 10,559 10,468
6/27/2004 10,556 10,559 10,468
6/28/2004 10,492 10,491 10,416
6/29/2004 10,576 10,573 10,480
6/30/2004 10,648 10,654 10,552
7/1/2004 10,488 10,511 10,447
7/2/2004 10,444 10,471 10,432
7/3/2004 10,444 10,471 10,432
7/4/2004 10,444 10,471 10,432
7/5/2004 10,444 10,471 10,432
7/6/2004 10,272 10,316 10,306
7/7/2004 10,232 10,283 10,280
7/8/2004 10,072 10,124 10,097
7/9/2004 10,100 10,157 10,123
7/10/2004 10,100 10,157 10,123
7/11/2004 10,100 10,157 10,123
7/12/2004 10,036 10,100 10,090
7/13/2004 10,048 10,116 10,114
7/14/2004 9,984 10,056 10,079
7/15/2004 10,040 10,108 10,119
7/16/2004 9,960 10,035 10,043
7/17/2004 9,960 10,035 10,043
7/18/2004 9,960 10,035 10,043
7/19/2004 9,924 10,006 9,956
7/20/2004 10,068 10,142 10,120
7/21/2004 9,820 9,883 9,887
7/22/2004 9,796 9,853 9,857
7/23/2004 9,664 9,721 9,755
7/24/2004 9,664 9,721 9,755
7/25/2004 9,664 9,721 9,755
7/26/2004 9,560 9,614 9,640
7/27/2004 9,748 9,807 9,823
7/28/2004 9,708 9,765 9,816
7/29/2004 9,868 9,932 9,962
7/30/2004 9,924 9,991 9,961
7/31/2004 9,924 9,991 9,961
8/1/2004 9,924 9,991 9,961
8/2/2004 9,920 9,985 9,969
8/3/2004 9,784 9,848 9,844
8/4/2004 9,748 9,811 9,793
8/5/2004 9,556 9,618 9,606
8/6/2004 9,284 9,345 9,352
8/7/2004 9,284 9,345 9,352
8/8/2004 9,284 9,345 9,352
8/9/2004 9,300 9,361 9,334
8/10/2004 9,456 9,522 9,493
8/11/2004 9,440 9,502 9,481
8/12/2004 9,244 9,305 9,303
8/13/2004 9,244 9,306 9,342
8/14/2004 9,244 9,306 9,342
8/15/2004 9,244 9,306 9,342
8/16/2004 9,428 9,492 9,513
8/17/2004 9,464 9,530 9,559
8/18/2004 9,652 9,722 9,713
8/19/2004 9,628 9,696 9,713
8/20/2004 9,772 9,842 9,879
8/21/2004 9,772 9,842 9,879
8/22/2004 9,772 9,842 9,879
8/23/2004 9,720 9,791 9,831
8/24/2004 9,700 9,771 9,804
8/25/2004 9,768 9,838 9,855
8/26/2004 9,732 9,805 9,849
8/27/2004 9,808 9,882 9,929
8/28/2004 9,808 9,882 9,929
8/29/2004 9,808 9,882 9,929
8/30/2004 9,672 9,743 9,816
8/31/2004 9,704 9,779 9,860
9/1/2004 9,820 9,895 9,958
9/2/2004 9,952 10,030 10,109
9/3/2004 9,912 9,995 10,081
9/4/2004 9,912 9,995 10,081
9/5/2004 9,912 9,995 10,081
9/6/2004 9,912 9,995 10,081
9/7/2004 10,024 10,110 10,209
9/8/2004 9,932 10,016 10,103
9/9/2004 10,056 10,146 10,222
9/10/2004 10,140 10,231 10,296
9/11/2004 10,140 10,231 10,296
9/12/2004 10,140 10,231 10,296
9/13/2004 10,216 10,310 10,381
9/14/2004 10,208 10,301 10,361
9/15/2004 10,152 10,244 10,310
9/16/2004 10,232 10,328 10,400
9/17/2004 10,212 10,308 10,411
9/18/2004 10,212 10,308 10,411
9/19/2004 10,212 10,308 10,411
9/20/2004 10,192 10,292 10,406
9/21/2004 10,324 10,423 10,576
9/22/2004 10,104 10,201 10,375
9/23/2004 10,108 10,206 10,373
9/24/2004 10,132 10,231 10,399
9/25/2004 10,132 10,231 10,399
9/26/2004 10,132 10,231 10,399
9/27/2004 9,972 10,068 10,259
9/28/2004 10,108 10,207 10,368
9/29/2004 10,236 10,340 10,499
9/30/2004 10,228 10,330 10,496
10/1/2004 10,416 10,524 10,650
10/2/2004 10,416 10,524 10,650
10/3/2004 10,416 10,524 10,650
10/4/2004 10,484 10,593 10,709
10/5/2004 10,444 10,555 10,673
10/6/2004 10,524 10,636 10,765
10/7/2004 10,384 10,497 10,628
10/8/2004 10,216 10,328 10,496
10/9/2004 10,216 10,328 10,496
10/10/2004 10,216 10,328 10,496
10/11/2004 10,252 10,365 10,522
10/12/2004 10,232 10,343 10,526
10/13/2004 10,132 10,243 10,415
10/14/2004 10,084 10,193 10,374
10/15/2004 10,152 10,264 10,395
10/16/2004 10,152 10,264 10,395
10/17/2004 10,152 10,264 10,395
10/18/2004 10,180 10,295 10,398
10/19/2004 10,132 10,248 10,341
10/20/2004 10,208 10,329 10,415
10/21/2004 10,340 10,462 10,540
10/22/2004 10,212 10,337 10,405
10/23/2004 10,212 10,337 10,405
10/24/2004 10,212 10,337 10,405
10/25/2004 10,264 10,392 10,458
10/26/2004 10,360 10,493 10,600
10/27/2004 10,528 10,665 10,743
10/28/2004 10,480 10,615 10,720
10/29/2004 10,496 10,631 10,716
10/30/2004 10,496 10,631 10,716
10/31/2004 10,496 10,631 10,716
11/1/2004 10,532 10,673 10,768
11/2/2004 10,504 10,644 10,751
11/3/2004 10,700 10,842 10,957
11/4/2004 10,844 10,991 11,091
11/5/2004 10,932 11,084 11,169
11/6/2004 10,932 11,084 11,169
11/7/2004 10,932 11,084 11,169
11/8/2004 10,884 11,032 11,128
11/9/2004 10,932 11,084 11,227
11/10/2004 10,968 11,121 11,288
11/11/2004 11,068 11,221 11,397
11/12/2004 11,164 11,321 11,512
11/13/2004 11,164 11,321 11,512
11/14/2004 11,164 11,321 11,512
11/15/2004 11,176 11,333 11,528
11/16/2004 11,052 11,209 11,402
11/17/2004 11,160 11,317 11,479
11/18/2004 11,140 11,298 11,474
11/19/2004 10,964 11,122 11,292
11/20/2004 10,964 11,122 11,292
11/21/2004 10,964 11,122 11,292
11/22/2004 11,128 11,287 11,471
11/23/2004 11,184 11,347 11,542
11/24/2004 11,260 11,424 11,607
11/25/2004 11,260 11,424 11,607
11/26/2004 11,276 11,440 11,634
11/27/2004 11,276 11,440 11,634
11/28/2004 11,276 11,440 11,634
11/29/2004 11,320 11,486 11,673
11/30/2004 11,312 11,479 11,643
12/1/2004 11,440 11,607 11,775
12/2/2004 11,412 11,580 11,720
12/3/2004 11,392 11,563 11,694
12/4/2004 11,392 11,563 11,694
12/5/2004 11,392 11,563 11,694
12/6/2004 11,328 11,495 11,644
12/7/2004 11,076 11,242 11,416
12/8/2004 11,160 11,328 11,503
12/9/2004 11,132 11,303 11,501
12/10/2004 11,164 11,338 11,563
12/11/2004 11,164 11,338 11,563
12/12/2004 11,164 11,338 11,563
12/13/2004 11,272 11,446 11,667
12/14/2004 11,372 11,549 11,778
12/15/2004 11,432 11,613 11,876
12/16/2004 11,368 11,546 11,837
12/17/2004 11,364 11,543 11,826
12/18/2004 11,364 11,543 11,826
12/19/2004 11,364 11,543 11,826
12/20/2004 11,316 11,495 11,766
12/21/2004 11,460 11,642 11,889
12/22/2004 11,512 11,696 11,986
12/23/2004 11,528 11,716 11,997
12/24/2004 11,528 11,716 11,997
12/25/2004 11,528 11,716 11,997
12/26/2004 11,528 11,716 11,997
12/27/2004 11,400 11,586 11,898
12/28/2004 11,612 11,802 12,101
12/29/2004 11,608 11,797 12,125
12/30/2004 11,598 11,788 12,120
12/31/2004 11,582 11,775 12,070
1/1/2005 11,582 11,775 12,070
1/2/2005 11,582 11,775 12,070
1/3/2005 11,375 11,563 11,839
1/4/2005 11,172 11,357 11,625
1/5/2005 11,010 11,192 11,467
1/6/2005 11,058 11,241 11,547
1/7/2005 10,957 11,143 11,462
1/8/2005 10,957 11,143 11,462
1/9/2005 10,957 11,143 11,462
1/10/2005 11,079 11,268 11,620
1/11/2005 11,014 11,200 11,566
1/12/2005 11,038 11,225 11,596
1/13/2005 11,046 11,237 11,599
1/14/2005 11,139 11,333 11,709
1/15/2005 11,139 11,333 11,709
1/16/2005 11,139 11,333 11,709
1/17/2005 11,139 11,333 11,709
1/18/2005 11,294 11,491 11,867
1/19/2005 11,188 11,388 11,735
1/20/2005 11,119 11,317 11,638
1/21/2005 11,107 11,304 11,614
1/22/2005 11,107 11,304 11,614
1/23/2005 11,107 11,304 11,614
1/24/2005 11,010 11,204 11,484
1/25/2005 11,050 11,249 11,502
1/26/2005 11,249 11,452 11,744
1/27/2005 11,273 11,478 11,747
1/28/2005 11,208 11,415 11,712
1/29/2005 11,208 11,415 11,712
1/30/2005 11,208 11,415 11,712
1/31/2005 11,440 11,653 11,942
2/1/2005 11,533 11,753 12,061
2/2/2005 11,618 11,838 12,143
2/3/2005 11,606 11,824 12,109
2/4/2005 11,756 11,982 12,282
2/5/2005 11,756 11,982 12,282
2/6/2005 11,756 11,982 12,282
2/7/2005 11,728 11,955 12,273
2/8/2005 11,788 12,017 12,302
2/9/2005 11,533 11,758 12,056
2/10/2005 11,586 11,813 12,079
2/11/2005 11,707 11,938 12,177
2/12/2005 11,707 11,938 12,177
2/13/2005 11,707 11,938 12,177
2/14/2005 11,691 11,925 12,176
2/15/2005 11,728 11,959 12,204
2/16/2005 11,788 12,022 12,262
2/17/2005 11,671 11,901 12,143
2/18/2005 11,655 11,888 12,140
2/19/2005 11,655 11,888 12,140
2/20/2005 11,655 11,888 12,140
2/21/2005 11,655 11,888 12,140
2/22/2005 11,411 11,640 11,878
2/23/2005 11,472 11,701 11,972
2/24/2005 11,610 11,844 12,124
2/25/2005 11,784 12,022 12,313
2/26/2005 11,784 12,022 12,313
2/27/2005 11,784 12,022 12,313
2/28/2005 11,724 11,962 12,256
3/1/2005 11,776 12,015 12,333
3/2/2005 11,801 12,043 12,341
3/3/2005 11,797 12,036 12,376
3/4/2005 11,922 12,168 12,491
3/5/2005 11,922 12,168 12,491
3/6/2005 11,922 12,168 12,491
3/7/2005 11,926 12,176 12,476
3/8/2005 11,813 12,057 12,381
3/9/2005 11,667 11,911 12,211
3/10/2005 11,553 11,792 12,095
3/11/2005 11,582 11,826 12,109
3/12/2005 11,582 11,826 12,109
3/13/2005 11,582 11,826 12,109
3/14/2005 11,630 11,873 12,117
3/15/2005 11,578 11,821 12,049
3/16/2005 11,513 11,754 12,004
3/17/2005 11,545 11,790 12,001
3/18/2005 11,521 11,768 11,955
3/19/2005 11,521 11,768 11,955
3/20/2005 11,521 11,768 11,955
3/21/2005 11,492 11,734 11,986
3/22/2005 11,452 11,693 11,930
3/23/2005 11,289 11,525 11,793
3/24/2005 11,334 11,576 11,851
3/25/2005 11,334 11,576 11,851
3/26/2005 11,334 11,576 11,851
3/27/2005 11,334 11,576 11,851
3/28/2005 11,346 11,586 11,927
3/29/2005 11,160 11,396 11,731
3/30/2005 11,338 11,578 11,913
3/31/2005 11,330 11,571 11,884
4/1/2005 11,302 11,546 11,889
4/2/2005 11,302 11,546 11,889
4/3/2005 11,302 11,546 11,889
4/4/2005 11,334 11,580 11,920
4/5/2005 11,358 11,608 11,978
4/6/2005 11,379 11,630 12,002
4/7/2005 11,427 11,681 12,058
4/8/2005 11,261 11,514 11,886
4/9/2005 11,261 11,514 11,886
4/10/2005 11,261 11,514 11,886
4/11/2005 11,229 11,480 11,864
4/12/2005 11,285 11,539 11,929
4/13/2005 11,099 11,350 11,775
4/14/2005 10,892 11,134 11,568
4/15/2005 10,677 10,914 11,378
4/16/2005 10,677 10,914 11,378
4/17/2005 10,677 10,914 11,378
4/18/2005 10,770 11,011 11,463
4/19/2005 10,973 11,219 11,653
4/20/2005 10,811 11,054 11,446
4/21/2005 11,079 11,332 11,732
4/22/2005 10,896 11,147 11,538
4/23/2005 10,896 11,147 11,538
4/24/2005 10,896 11,147 11,538
4/25/2005 11,026 11,280 11,718
4/26/2005 10,839 11,091 11,543
4/27/2005 10,831 11,082 11,549
4/28/2005 10,600 10,842 11,363
4/29/2005 10,665 10,913 11,433
4/30/2005 10,665 10,913 11,433
5/1/2005 10,665 10,913 11,433
5/2/2005 10,827 11,078 11,580
5/3/2005 10,803 11,055 11,586
5/4/2005 10,969 11,225 11,780
5/5/2005 10,997 11,256 11,829
5/6/2005 11,030 11,291 11,847
5/7/2005 11,030 11,291 11,847
5/8/2005 11,030 11,291 11,847
5/9/2005 11,131 11,396 11,957
5/10/2005 10,965 11,225 11,794
5/11/2005 10,989 11,250 11,810
5/12/2005 10,855 11,114 11,665
5/13/2005 10,774 11,029 11,551
5/14/2005 10,774 11,029 11,551
5/15/2005 10,774 11,029 11,551
5/16/2005 10,945 11,204 11,774
5/17/2005 11,026 11,289 11,844
5/18/2005 11,253 11,524 12,094
5/19/2005 11,306 11,577 12,162
5/20/2005 11,265 11,538 12,124
5/21/2005 11,265 11,538 12,124
5/22/2005 11,265 11,538 12,124
5/23/2005 11,342 11,615 12,211
5/24/2005 11,363 11,637 12,230
5/25/2005 11,237 11,510 12,121
5/26/2005 11,387 11,664 12,271
5/27/2005 11,427 11,707 12,293
5/28/2005 11,427 11,707 12,293
5/29/2005 11,427 11,707 12,293
5/30/2005 11,427 11,707 12,293
5/31/2005 11,423 11,703 12,269
6/1/2005 11,525 11,812 12,426
6/2/2005 11,553 11,838 12,471
6/3/2005 11,476 11,761 12,396
6/4/2005 11,476 11,761 12,396
6/5/2005 11,476 11,761 12,396
6/6/2005 11,529 11,815 12,470
6/7/2005 11,537 11,826 12,484
6/8/2005 11,452 11,738 12,377
6/9/2005 11,545 11,835 12,501
6/10/2005 11,513 11,800 12,450
6/11/2005 11,513 11,800 12,450
6/12/2005 11,513 11,800 12,450
6/13/2005 11,557 11,848 12,478
6/14/2005 11,622 11,913 12,569
6/15/2005 11,667 11,962 12,640
6/16/2005 11,784 12,082 12,735
6/17/2005 11,780 12,082 12,729
6/18/2005 11,780 12,082 12,729
6/19/2005 11,780 12,082 12,729
6/20/2005 11,760 12,059 12,707
6/21/2005 11,732 12,032 12,682
6/22/2005 11,764 12,064 12,695
6/23/2005 11,610 11,907 12,539
6/24/2005 11,464 11,759 12,392
6/25/2005 11,464 11,759 12,392
6/26/2005 11,464 11,759 12,392
6/27/2005 11,480 11,773 12,411
6/28/2005 11,659 11,961 12,623
6/29/2005 11,711 12,014 12,645
6/30/2005 11,703 12,008 12,649
7/1/2005 11,772 12,081 12,706
7/2/2005 11,772 12,081 12,706
7/3/2005 11,772 12,081 12,706
7/4/2005 11,772 12,081 12,706
7/5/2005 11,947 12,261 12,911
7/6/2005 11,866 12,176 12,821
7/7/2005 11,922 12,237 12,880
7/8/2005 12,113 12,435 13,107
7/9/2005 12,113 12,435 13,107
7/10/2005 12,113 12,435 13,107
7/11/2005 12,239 12,564 13,260
7/12/2005 12,243 12,569 13,247
7/13/2005 12,162 12,487 13,144
7/14/2005 12,081 12,403 13,091
7/15/2005 12,093 12,419 13,103
7/16/2005 12,093 12,419 13,103
7/17/2005 12,093 12,419 13,103
7/18/2005 12,008 12,329 13,004
7/19/2005 12,194 12,523 13,170
7/20/2005 12,344 12,678 13,305
7/21/2005 12,133 12,463 13,027
7/22/2005 12,312 12,648 13,221
7/23/2005 12,312 12,648 13,221
7/24/2005 12,312 12,648 13,221
7/25/2005 12,218 12,553 13,066
7/26/2005 12,231 12,567 13,097
7/27/2005 12,259 12,594 13,137
7/28/2005 12,458 12,801 13,311
7/29/2005 12,401 12,746 13,260
7/30/2005 12,401 12,746 13,260
7/31/2005 12,401 12,746 13,260
8/1/2005 12,470 12,819 13,328
8/2/2005 12,559 12,908 13,408
8/3/2005 12,498 12,849 13,334
8/4/2005 12,360 12,706 13,201
8/5/2005 12,186 12,531 13,027
8/6/2005 12,186 12,531 13,027
8/7/2005 12,186 12,531 13,027
8/8/2005 12,137 12,480 12,945
8/9/2005 12,149 12,493 12,941
8/10/2005 12,218 12,567 12,951
8/11/2005 12,308 12,659 13,036
8/12/2005 12,218 12,567 12,929
8/13/2005 12,218 12,567 12,929
8/14/2005 12,218 12,567 12,929
8/15/2005 12,275 12,627 13,016
8/16/2005 12,072 12,419 12,821
8/17/2005 12,036 12,383 12,744
8/18/2005 11,999 12,345 12,706
8/19/2005 12,008 12,354 12,699
8/20/2005 12,008 12,354 12,699
8/21/2005 12,008 12,354 12,699
8/22/2005 12,056 12,406 12,759
8/23/2005 12,024 12,375 12,736
8/24/2005 12,008 12,356 12,767
8/25/2005 12,024 12,377 12,767
8/26/2005 11,902 12,251 12,612
8/27/2005 11,902 12,251 12,612
8/28/2005 11,902 12,251 12,612
8/29/2005 12,003 12,359 12,740
8/30/2005 11,991 12,344 12,712
8/31/2005 12,251 12,615 12,969
9/1/2005 12,296 12,659 13,014
9/2/2005 12,174 12,536 12,876
9/3/2005 12,174 12,536 12,876
9/4/2005 12,174 12,536 12,876
9/5/2005 12,174 12,536 12,876
9/6/2005 12,369 12,738 13,081
9/7/2005 12,438 12,812 13,191
9/8/2005 12,363 12,733 13,121
9/9/2005 12,468 12,844 13,230
9/10/2005 12,468 12,844 13,230
9/11/2005 12,468 12,844 13,230
9/17/2005 12,401 12,778 13,048
9/13/2005 12,388 12,764 13,106
9/14/2005 12,292 12,665 13,006
9/15/2005 12,304 12,675 12,992
9/16/2005 12,401 12,778 13,048
9/18/2005 12,401 12,778 13,048
9/18/2005 12,401 12,778 13,048
9/19/2005 12,354 12,731 13,091
9/20/2005 12,208 12,581 12,963
9/21/2005 12,048 12,418 12,767
9/22/2005 12,057 12,427 12,785
9/23/2005 12,149 12,524 12,856
9/24/2005 12,149 12,524 12,856
9/25/2005 12,149 12,524 12,856
9/26/2005 12,279 12,660 12,970
9/27/2005 12,275 12,656 12,957
9/28/2005 12,262 12,644 12,903
9/29/2005 12,388 12,775 12,993
9/30/2005 12,413 12,803 13,029
10/1/2005 12,413 12,803 13,029
10/2/2005 12,413 12,803 13,029
10/3/2005 12,497 12,890 13,066
10/4/2005 12,333 12,724 12,937
10/5/2005 11,998 12,375 12,602
10/6/2005 11,868 12,244 12,519
10/7/2005 11,985 12,365 12,628
10/8/2005 11,985 12,365 12,628
10/9/2005 11,985 12,365 12,628
10/10/2005 11,818 12,193 12,475
10/11/2005 11,734 12,106 12,373
10/12/2005 11,554 11,918 12,176
10/13/2005 11,529 11,897 12,176
10/14/2005 11,738 12,114 12,354
10/15/2005 11,738 12,114 12,354
10/16/2005 11,738 12,114 12,354
10/17/2005 11,793 12,169 12,422
10/18/2005 11,625 11,999 12,271
10/19/2005 11,843 12,222 12,502
10/20/2005 11,633 12,008 12,302
10/21/2005 11,709 12,087 12,400
10/22/2005 11,709 12,087 12,400
10/23/2005 11,709 12,087 12,400
10/24/2005 11,965 12,352 12,663
10/25/2005 11,927 12,317 12,580
10/26/2005 11,826 12,213 12,449
10/27/2005 11,533 11,909 12,100
10/28/2005 11,751 12,135 12,365
10/29/2005 11,751 12,135 12,365
10/30/2005 11,751 12,135 12,365
10/31/2005 11,960 12,354 12,593
11/1/2005 11,927 12,322 12,557
11/2/2005 12,183 12,588 12,832
11/3/2005 12,208 12,612 12,839
11/4/2005 12,170 12,577 12,834
11/5/2005 12,170 12,577 12,834
11/6/2005 12,170 12,577 12,834
11/7/2005 12,195 12,605 12,856
11/8/2005 12,128 12,535 12,773
11/9/2005 12,157 12,563 12,831
11/10/2005 12,208 12,617 12,918
11/11/2005 12,250 12,663 12,934
11/12/2005 12,250 12,663 12,934
11/13/2005 12,250 12,663 12,934
11/14/2005 12,224 12,637 12,951
11/15/2005 12,107 12,516 12,800
11/16/2005 12,111 12,521 12,794
11/17/2005 12,342 12,761 13,029
11/18/2005 12,405 12,829 13,069
11/19/2005 12,405 12,829 13,069
11/20/2005 12,405 12,829 13,069
11/21/2005 12,530 12,962 13,186
11/22/2005 12,635 13,069 13,290
11/23/2005 12,631 13,066 13,272
11/24/2005 12,631 13,066 13,272
11/25/2005 12,656 13,092 13,297
11/26/2005 12,656 13,092 13,297
11/27/2005 12,656 13,092 13,297
11/28/2005 12,405 12,836 13,057
11/29/2005 12,476 12,913 13,111
11/30/2005 12,514 12,951 13,130
12/1/2005 12,740 13,187 13,277
12/2/2005 12,765 13,216 13,303
12/3/2005 12,765 13,216 13,303
12/4/2005 12,765 13,216 13,303
12/5/2005 12,711 13,160 13,282
12/6/2005 12,748 13,198 13,321
12/7/2005 12,635 13,083 13,235
12/8/2005 12,673 13,121 13,304
12/9/2005 12,707 13,156 13,336
12/10/2005 12,707 13,156 13,336
12/11/2005 12,707 13,156 13,336
12/12/2005 12,736 13,188 13,338
12/13/2005 12,744 13,200 13,403
12/14/2005 12,816 13,277 13,491
12/15/2005 12,656 13,111 13,309
12/16/2005 12,598 13,052 13,253
12/17/2005 12,598 13,052 13,253
12/18/2005 12,598 13,052 13,253
12/19/2005 12,388 12,875 13,056
12/20/2005 12,413 12,895 13,080
12/21/2005 12,514 13,036 13,196
12/22/2005 12,527 13,068 13,211
12/23/2005 12,574 13,106 13,266
12/24/2005 12,574 13,106 13,266
12/25/2005 12,574 13,106 13,266
12/26/2005 12,574 13,106 13,266
12/27/2005 12,398 12,895 13,080
12/28/2005 12,471 12,973 13,157
12/29/2005 12,424 12,930 13,109
12/30/2005 12,299 12,832 12,981
12/31/2005 12,299 12,832 12,981
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND 6.20% 13.25%
S&P SMALLCAP 600/BARRA GROWTH INDEX 8.97% 16.17%
S&P SMALLCAP 600/CITIGROUP PURE GROWTH INDEX 7.55% 16.99%
- --------------------------------------------------------------------------------
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 AND THE S&P SMALLCAP 600/CITIGROUP PURE GROWTH INDEX ARE UNMANAGED STOCK
INDICES AND, UNLIKE THE FUND, HAVE NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE THEIR REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
S&P SMALLCAP
600/CITIGROUP
SMALL-CAP PURE GROWTH
GROWTH FUND INDEX
----------- --------------
OTHER 4.1% 4.1%
HEALTH CARE 25.8% 24.8%
CONSUMER DISCRETIONARY 23.3% 24.1%
INFORMATION TECHNOLOGY 19.0% 19.3%
INDUSTRIALS 10.1% 10.1%
ENERGY 9.7% 10.1%
FINANCIALS 7.6% 7.5%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Biolase Technology, Inc. 1.8%
Coinstar, Inc. 1.6%
Websense, Inc. 1.5%
Odyssey HealthCare, Inc. 1.5%
j2 Global Communications, Inc. 1.4%
Portfolio Recovery Associates, Inc. 1.3%
Christopher & Banks Corp. 1.3%
Headwaters, Inc. 1.3%
Fremont General Corp. 1.3%
Ceradyne, Inc. 1.2%
- -----------------------------------------------------
Top Ten Total 14.2%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
26 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for mid-cap growth securities. The Fund's current benchmark is the S&P
MidCap 400/Citigroup Pure Growth Index.
INCEPTION: May 3, 2004
For the sixth year in a row, mid-cap stocks outperformed large-cap stocks.
Sector performance among mid-caps was strong, with four sectors posting positive
double-digit returns. Only the telecommunications sector struggled, losing
9.94%. Strong earnings growth and a resilient economy contributed to the
performance of mid-caps. Rydex Mid-Cap Growth Fund returned 11.46% for the year.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P MIDCAP S&P MID CAP 400/
MID-CAP 400/BARRA GROWTH CITIGROUP PURE
DATE GROWTH FUND INDEX GROWTH INDEX
--------- ----------- ---------------- -----------------
5/3/2004 10,000 10,000 10,000
5/4/2004 10,016 10,018 10,050
5/5/2004 10,092 10,097 10,142
5/6/2004 9,952 9,956 9,966
5/7/2004 9,748 9,748 9,750
5/8/2004 9,748 9,748 9,750
5/9/2004 9,748 9,748 9,750
5/10/2004 9,588 9,584 9,590
5/11/2004 9,732 9,732 9,737
5/12/2004 9,696 9,695 9,701
5/13/2004 9,700 9,700 9,699
5/14/2004 9,640 9,641 9,652
5/15/2004 9,640 9,641 9,652
5/16/2004 9,640 9,641 9,652
5/17/2004 9,524 9,524 9,530
5/18/2004 9,632 9,633 9,622
5/19/2004 9,608 9,611 9,589
5/20/2004 9,592 9,594 9,559
5/21/2004 9,652 9,655 9,624
5/22/2004 9,652 9,655 9,624
5/23/2004 9,652 9,655 9,624
5/24/2004 9,740 9,744 9,740
5/25/2004 9,932 9,938 9,970
5/26/2004 9,980 9,990 10,001
5/27/2004 10,040 10,049 10,086
5/28/2004 10,092 10,103 10,117
5/29/2004 10,092 10,103 10,117
5/30/2004 10,092 10,103 10,117
5/31/2004 10,092 10,103 10,117
6/1/2004 10,136 10,147 10,187
6/2/2004 10,112 10,125 10,167
6/3/2004 9,960 9,971 10,020
6/4/2004 10,024 10,041 10,085
6/5/2004 10,024 10,041 10,085
6/6/2004 10,024 10,041 10,085
6/7/2004 10,204 10,223 10,286
6/8/2004 10,192 10,210 10,267
6/9/2004 10,064 10,080 10,126
6/10/2004 10,080 10,101 10,123
6/11/2004 10,080 10,101 10,123
6/12/2004 10,080 10,101 10,123
6/13/2004 10,080 10,101 10,123
6/14/2004 9,928 9,947 9,964
6/15/2004 10,052 10,075 10,101
6/16/2004 10,072 10,094 10,130
6/17/2004 10,036 10,059 10,109
6/18/2004 10,032 10,053 10,114
6/19/2004 10,032 10,053 10,114
6/20/2004 10,032 10,053 10,114
6/21/2004 9,988 10,014 10,094
6/22/2004 10,048 10,074 10,155
6/23/2004 10,124 10,154 10,272
6/24/2004 10,108 10,141 10,277
6/25/2004 10,156 10,195 10,355
6/26/2004 10,156 10,195 10,355
6/27/2004 10,156 10,195 10,355
6/28/2004 10,108 10,146 10,283
6/29/2004 10,136 10,181 10,310
6/30/2004 10,200 10,249 10,369
7/1/2004 10,080 10,130 10,252
7/2/2004 10,036 10,094 10,204
7/3/2004 10,036 10,094 10,204
7/4/2004 10,036 10,094 10,204
7/5/2004 10,036 10,094 10,204
7/6/2004 9,892 9,951 10,047
7/7/2004 9,940 9,995 10,092
7/8/2004 9,808 9,863 9,924
7/9/2004 9,852 9,910 9,992
7/10/2004 9,852 9,910 9,992
7/11/2004 9,852 9,910 9,992
7/12/2004 9,808 9,866 9,957
7/13/2004 9,808 9,866 9,961
7/14/2004 9,752 9,813 9,909
7/15/2004 9,808 9,872 9,976
7/16/2004 9,708 9,784 9,896
7/17/2004 9,708 9,784 9,896
7/18/2004 9,708 9,784 9,896
7/19/2004 9,716 9,788 9,884
7/20/2004 9,852 9,923 10,019
7/21/2004 9,644 9,713 9,820
7/22/2004 9,644 9,710 9,833
7/23/2004 9,524 9,583 9,702
7/24/2004 9,524 9,583 9,702
7/25/2004 9,524 9,583 9,702
7/26/2004 9,424 9,482 9,633
7/27/2004 9,576 9,639 9,794
7/28/2004 9,516 9,577 9,658
7/29/2004 9,644 9,712 9,825
7/30/2004 9,668 9,739 9,830
7/31/2004 9,668 9,739 9,830
8/1/2004 9,668 9,739 9,830
8/2/2004 9,648 9,718 9,772
8/3/2004 9,532 9,600 9,653
8/4/2004 9,488 9,553 9,588
8/5/2004 9,304 9,366 9,394
8/6/2004 9,132 9,188 9,245
8/7/2004 9,132 9,188 9,245
8/8/2004 9,132 9,188 9,245
8/9/2004 9,148 9,202 9,250
8/10/2004 9,300 9,357 9,413
8/11/2004 9,244 9,300 9,338
8/12/2004 9,112 9,167 9,195
8/13/2004 9,104 9,159 9,208
8/14/2004 9,104 9,159 9,208
8/15/2004 9,104 9,159 9,208
8/16/2004 9,248 9,307 9,353
8/17/2004 9,296 9,356 9,399
8/18/2004 9,440 9,503 9,545
8/19/2004 9,372 9,436 9,487
8/20/2004 9,508 9,577 9,642
8/21/2004 9,508 9,577 9,642
8/22/2004 9,508 9,577 9,642
8/23/2004 9,448 9,514 9,597
8/24/2004 9,456 9,524 9,605
8/25/2004 9,548 9,616 9,711
8/26/2004 9,548 9,617 9,720
8/27/2004 9,600 9,670 9,772
8/28/2004 9,600 9,670 9,772
8/29/2004 9,600 9,670 9,772
8/30/2004 9,492 9,562 9,643
8/31/2004 9,548 9,618 9,708
9/1/2004 9,632 9,702 9,831
9/2/2004 9,732 9,807 9,942
9/3/2004 9,680 9,747 9,883
9/4/2004 9,680 9,747 9,883
9/5/2004 9,680 9,747 9,883
9/6/2004 9,680 9,747 9,883
9/7/2004 9,732 9,808 9,954
9/8/2004 9,676 9,751 9,880
9/9/2004 9,728 9,809 9,912
9/10/2004 9,792 9,874 9,986
9/11/2004 9,792 9,874 9,986
9/12/2004 9,792 9,874 9,986
9/13/2004 9,868 9,952 10,084
9/14/2004 9,848 9,938 10,074
9/15/2004 9,792 9,881 10,006
9/16/2004 9,836 9,925 10,074
9/17/2004 9,812 9,905 10,049
9/18/2004 9,812 9,905 10,049
9/19/2004 9,812 9,905 10,049
9/20/2004 9,772 9,865 9,988
9/21/2004 9,848 9,940 10,080
9/22/2004 9,708 9,803 9,957
9/23/2004 9,680 9,775 9,934
9/24/2004 9,704 9,839 10,003
9/25/2004 9,704 9,839 10,003
9/26/2004 9,704 9,839 10,003
9/27/2004 9,580 9,713 9,876
9/28/2004 9,652 9,789 9,954
9/29/2004 9,712 9,850 10,008
9/30/2004 9,756 9,898 10,036
10/1/2004 9,892 10,041 10,177
10/2/2004 9,892 10,041 10,177
10/3/2004 9,892 10,041 10,177
10/4/2004 9,960 10,110 10,207
10/5/2004 9,924 10,076 10,201
10/6/2004 9,972 10,125 10,262
10/7/2004 9,856 10,008 10,133
10/8/2004 9,776 9,928 10,051
10/9/2004 9,776 9,928 10,051
10/10/2004 9,776 9,928 10,051
10/11/2004 9,788 9,941 10,069
10/12/2004 9,740 9,894 10,027
10/13/2004 9,688 9,841 9,949
10/14/2004 9,592 9,751 9,860
10/15/2004 9,628 9,786 9,874
10/16/2004 9,628 9,786 9,874
10/17/2004 9,628 9,786 9,874
10/18/2004 9,712 9,873 9,945
10/19/2004 9,648 9,810 9,862
10/20/2004 9,716 9,878 9,933
10/21/2004 9,816 9,981 10,013
10/22/2004 9,696 9,864 9,907
10/23/2004 9,696 9,864 9,907
10/24/2004 9,696 9,864 9,907
10/25/2004 9,704 9,874 9,923
10/26/2004 9,740 9,911 10,003
10/27/2004 9,936 10,111 10,180
10/28/2004 9,936 10,111 10,180
10/29/2004 9,960 10,138 10,187
10/30/2004 9,960 10,138 10,187
10/31/2004 9,960 10,138 10,187
11/1/2004 9,936 10,113 10,176
11/2/2004 9,924 10,104 10,185
11/3/2004 10,044 10,224 10,289
11/4/2004 10,176 10,362 10,433
11/5/2004 10,224 10,413 10,478
11/6/2004 10,224 10,413 10,478
11/7/2004 10,224 10,413 10,478
11/8/2004 10,184 10,372 10,459
11/9/2004 10,216 10,405 10,485
11/10/2004 10,240 10,430 10,512
11/11/2004 10,340 10,533 10,630
11/12/2004 10,440 10,639 10,779
11/13/2004 10,440 10,639 10,779
11/14/2004 10,440 10,639 10,779
11/15/2004 10,440 10,637 10,799
11/16/2004 10,364 10,563 10,725
11/17/2004 10,448 10,650 10,811
11/18/2004 10,428 10,632 10,801
11/19/2004 10,288 10,489 10,639
11/20/2004 10,288 10,489 10,639
11/21/2004 10,288 10,489 10,639
11/22/2004 10,340 10,547 10,685
11/23/2004 10,388 10,595 10,770
11/24/2004 10,472 10,683 10,889
11/25/2004 10,472 10,683 10,889
11/26/2004 10,472 10,685 10,895
11/27/2004 10,472 10,685 10,895
11/28/2004 10,472 10,685 10,895
11/29/2004 10,452 10,665 10,850
11/30/2004 10,408 10,620 10,801
12/1/2004 10,576 10,791 11,005
12/2/2004 10,552 10,768 10,972
12/3/2004 10,568 10,788 10,990
12/4/2004 10,568 10,788 10,990
12/5/2004 10,568 10,788 10,990
12/6/2004 10,556 10,776 10,986
12/7/2004 10,396 10,613 10,826
12/8/2004 10,476 10,696 10,906
12/9/2004 10,516 10,734 10,990
12/10/2004 10,504 10,725 11,010
12/11/2004 10,504 10,725 11,010
12/12/2004 10,504 10,725 11,010
12/13/2004 10,572 10,796 11,071
12/14/2004 10,680 10,906 11,207
12/15/2004 10,712 10,941 11,284
12/16/2004 10,652 10,875 11,218
12/17/2004 10,648 10,876 11,238
12/18/2004 10,648 10,876 11,238
12/19/2004 10,648 10,876 11,238
12/20/2004 10,616 10,844 11,168
12/21/2004 10,728 10,960 11,276
12/22/2004 10,764 10,997 11,343
12/23/2004 10,784 11,016 11,370
12/24/2004 10,784 11,016 11,370
12/25/2004 10,784 11,016 11,370
12/26/2004 10,784 11,016 11,370
12/27/2004 10,712 10,946 11,279
12/28/2004 10,856 11,095 11,445
12/29/2004 10,864 11,101 11,455
12/30/2004 10,872 11,109 11,473
12/31/2004 10,852 11,091 11,442
1/1/2005 10,852 11,091 11,442
1/2/2005 10,852 11,091 11,442
1/3/2005 10,660 10,895 11,269
1/4/2005 10,496 10,726 11,065
1/5/2005 10,392 10,621 10,968
1/6/2005 10,440 10,680 11,049
1/7/2005 10,396 10,634 10,987
1/8/2005 10,396 10,634 10,987
1/9/2005 10,396 10,634 10,987
1/10/2005 10,460 10,703 11,079
1/11/2005 10,400 10,639 11,020
1/12/2005 10,424 10,668 11,047
1/13/2005 10,384 10,623 11,009
1/14/2005 10,464 10,710 11,077
1/15/2005 10,464 10,710 11,077
1/16/2005 10,464 10,710 11,077
1/17/2005 10,464 10,710 11,077
1/18/2005 10,560 10,808 11,172
1/19/2005 10,460 10,705 11,059
1/20/2005 10,420 10,667 10,971
1/21/2005 10,356 10,602 10,878
1/22/2005 10,356 10,602 10,878
1/23/2005 10,356 10,602 10,878
1/24/2005 10,284 10,528 10,792
1/25/2005 10,320 10,564 10,840
1/26/2005 10,428 10,679 10,965
1/27/2005 10,480 10,734 11,013
1/28/2005 10,412 10,665 10,949
1/29/2005 10,412 10,665 10,949
1/30/2005 10,412 10,665 10,949
1/31/2005 10,576 10,832 11,132
2/1/2005 10,656 10,916 11,218
2/2/2005 10,708 10,972 11,272
2/3/2005 10,700 10,963 11,258
2/4/2005 10,836 11,103 11,427
2/5/2005 10,836 11,103 11,427
2/6/2005 10,836 11,103 11,427
2/7/2005 10,812 11,082 11,418
2/8/2005 10,824 11,094 11,443
2/9/2005 10,676 10,943 11,271
2/10/2005 10,720 10,992 11,319
2/11/2005 10,852 11,127 11,432
2/12/2005 10,852 11,127 11,432
2/13/2005 10,852 11,127 11,432
2/14/2005 10,844 11,117 11,411
2/15/2005 10,872 11,150 11,415
2/16/2005 10,916 11,194 11,448
2/17/2005 10,836 11,113 11,399
2/18/2005 10,828 11,108 11,384
2/19/2005 10,828 11,108 11,384
2/20/2005 10,828 11,108 11,384
2/21/2005 10,828 11,108 11,384
2/22/2005 10,664 10,938 11,197
2/23/2005 10,736 11,011 11,297
2/24/2005 10,868 11,149 11,470
2/25/2005 10,976 11,262 11,624
2/26/2005 10,976 11,262 11,624
2/27/2005 10,976 11,262 11,624
2/28/2005 10,932 11,221 11,549
3/1/2005 11,008 11,296 11,650
3/2/2005 11,020 11,309 11,667
3/3/2005 11,004 11,295 11,626
3/4/2005 11,096 11,394 11,764
3/5/2005 11,096 11,394 11,764
3/6/2005 11,096 11,394 11,764
3/7/2005 11,144 11,443 11,803
3/8/2005 11,076 11,374 11,679
3/9/2005 10,972 11,267 11,536
3/10/2005 10,936 11,229 11,479
3/11/2005 10,948 11,244 11,479
3/12/2005 10,948 11,244 11,479
3/13/2005 10,948 11,244 11,479
3/14/2005 11,004 11,301 11,541
3/15/2005 10,968 11,266 11,513
3/16/2005 10,860 11,154 11,436
3/17/2005 10,892 11,186 11,427
3/18/2005 10,852 11,151 11,402
3/19/2005 10,852 11,151 11,402
3/20/2005 10,852 11,151 11,402
3/21/2005 10,832 11,131 11,401
3/22/2005 10,792 11,087 11,379
3/23/2005 10,724 11,017 11,332
3/24/2005 10,732 11,029 11,347
3/25/2005 10,732 11,029 11,347
3/26/2005 10,732 11,029 11,347
3/27/2005 10,732 11,029 11,347
3/28/2005 10,728 11,028 11,368
3/29/2005 10,608 10,902 11,250
3/30/2005 10,748 11,049 11,398
3/31/2005 10,776 11,081 11,437
4/1/2005 10,736 11,037 11,401
4/2/2005 10,736 11,037 11,401
4/3/2005 10,736 11,037 11,401
4/4/2005 10,744 11,047 11,436
4/5/2005 10,780 11,084 11,498
4/6/2005 10,816 11,122 11,515
4/7/2005 10,856 11,166 11,551
4/8/2005 10,740 11,045 11,420
4/9/2005 10,740 11,045 11,420
4/10/2005 10,740 11,045 11,420
4/11/2005 10,704 11,008 11,380
4/12/2005 10,720 11,027 11,415
4/13/2005 10,572 10,873 11,252
4/14/2005 10,412 10,710 11,086
4/15/2005 10,236 10,530 10,866
4/16/2005 10,236 10,530 10,866
4/17/2005 10,236 10,530 10,866
4/18/2005 10,320 10,616 10,974
4/19/2005 10,452 10,753 11,105
4/20/2005 10,296 10,592 10,923
4/21/2005 10,496 10,804 11,136
4/22/2005 10,388 10,694 11,016
4/23/2005 10,388 10,694 11,016
4/24/2005 10,388 10,694 11,016
4/25/2005 10,528 10,838 11,162
4/26/2005 10,428 10,738 11,035
4/27/2005 10,416 10,726 11,029
4/28/2005 10,280 10,586 10,833
4/29/2005 10,324 10,635 10,872
4/30/2005 10,324 10,635 10,872
5/1/2005 10,324 10,635 10,872
5/2/2005 10,400 10,712 10,958
5/3/2005 10,372 10,684 10,905
5/4/2005 10,504 10,820 11,026
5/5/2005 10,544 10,863 11,067
5/6/2005 10,572 10,894 11,059
5/7/2005 10,572 10,894 11,059
5/8/2005 10,572 10,894 11,059
5/9/2005 10,628 10,955 11,137
5/10/2005 10,556 10,878 11,063
5/11/2005 10,596 10,922 11,089
5/12/2005 10,456 10,779 10,943
5/13/2005 10,400 10,723 10,896
5/14/2005 10,400 10,723 10,896
5/15/2005 10,400 10,723 10,896
5/16/2005 10,512 10,837 11,031
5/17/2005 10,608 10,940 11,135
5/18/2005 10,784 11,123 11,350
5/19/2005 10,844 11,186 11,422
5/20/2005 10,832 11,176 11,406
5/21/2005 10,832 11,176 11,406
5/22/2005 10,832 11,176 11,406
5/23/2005 10,912 11,261 11,508
5/24/2005 10,908 11,255 11,506
5/25/2005 10,816 11,161 11,404
5/26/2005 10,904 11,254 11,567
5/27/2005 10,944 11,296 11,615
5/28/2005 10,944 11,296 11,615
5/29/2005 10,944 11,296 11,615
5/30/2005 10,944 11,296 11,615
5/31/2005 10,928 11,283 11,627
6/1/2005 11,012 11,371 11,710
6/2/2005 11,072 11,430 11,806
6/3/2005 11,000 11,360 11,713
6/4/2005 11,000 11,360 11,713
6/5/2005 11,000 11,360 11,713
6/6/2005 11,040 11,401 11,783
6/7/2005 11,056 11,420 11,850
6/8/2005 11,000 11,359 11,764
6/9/2005 11,080 11,443 11,884
6/10/2005 11,064 11,430 11,849
6/11/2005 11,064 11,430 11,849
6/12/2005 11,064 11,430 11,849
6/13/2005 11,116 11,484 11,900
6/14/2005 11,148 11,516 11,946
6/15/2005 11,172 11,543 11,968
6/16/2005 11,272 11,647 12,073
6/17/2005 11,280 11,658 12,081
6/18/2005 11,280 11,658 12,081
6/19/2005 11,280 11,658 12,081
6/20/2005 11,240 11,616 12,019
6/21/2005 11,212 11,588 11,974
6/22/2005 11,208 11,584 11,975
6/23/2005 11,092 11,465 11,809
6/24/2005 10,984 11,354 11,668
6/25/2005 10,984 11,354 11,668
6/26/2005 10,984 11,354 11,668
6/27/2005 11,004 11,376 11,731
6/28/2005 11,144 11,525 11,904
6/29/2005 11,172 11,553 11,928
6/30/2005 11,108 11,487 11,868
7/1/2005 11,168 11,552 11,936
7/2/2005 11,168 11,552 11,936
7/3/2005 11,168 11,552 11,936
7/4/2005 11,168 11,552 11,936
7/5/2005 11,284 11,672 12,052
7/6/2005 11,208 11,593 11,958
7/7/2005 11,244 11,632 12,010
7/8/2005 11,384 11,775 12,130
7/9/2005 11,384 11,775 12,130
7/10/2005 11,384 11,775 12,130
7/11/2005 11,468 11,866 12,256
7/12/2005 11,488 11,884 12,283
7/13/2005 11,444 11,841 12,245
7/14/2005 11,416 11,988 12,200
7/15/2005 11,448 11,847 12,258
7/16/2005 11,448 11,847 12,258
7/17/2005 11,448 11,847 12,258
7/18/2005 11,420 11,821 12,240
7/19/2005 11,544 11,948 12,362
7/20/2005 11,604 12,013 12,410
7/21/2005 11,468 11,871 12,243
7/22/2005 11,544 11,953 12,336
7/23/2005 11,544 11,953 12,336
7/24/2005 11,544 11,953 12,336
7/25/2005 11,484 11,890 12,259
7/26/2005 11,492 11,905 12,283
7/27/2005 11,528 11,940 12,343
7/28/2005 11,644 12,064 12,420
7/29/2005 11,628 12,049 12,367
7/30/2005 11,628 12,049 12,367
7/31/2005 11,628 12,049 12,367
8/1/2005 11,652 12,073 12,415
8/2/2005 11,716 12,139 12,466
8/3/2005 11,692 12,117 12,414
8/4/2005 11,592 12,011 12,290
8/5/2005 11,464 11,881 12,153
8/6/2005 11,464 11,881 12,153
8/7/2005 11,464 11,881 12,153
8/8/2005 11,396 11,812 12,063
8/9/2005 11,448 11,865 12,104
8/10/2005 11,472 11,890 12,115
8/11/2005 11,552 11,976 12,199
8/12/2005 11,524 11,948 12,151
8/13/2005 11,524 11,948 12,151
8/14/2005 11,524 11,948 12,151
8/15/2005 11,536 11,961 12,159
8/16/2005 11,380 11,798 11,965
8/17/2005 11,384 11,804 11,957
8/18/2005 11,364 11,784 11,935
8/19/2005 11,376 11,798 11,916
8/20/2005 11,376 11,798 11,916
8/21/2005 11,376 11,798 11,916
8/22/2005 11,400 11,821 11,903
8/23/2005 11,376 11,799 11,881
8/24/2005 11,356 11,784 11,901
8/25/2005 11,380 11,806 11,931
8/26/2005 11,256 11,681 11,787
8/27/2005 11,256 11,681 11,787
8/28/2005 11,256 11,681 11,787
8/29/2005 11,348 11,776 11,875
8/30/2005 11,280 11,711 11,801
8/31/2005 11,472 11,917 12,003
9/1/2005 11,436 11,879 11,935
9/2/2005 11,372 11,815 11,870
9/3/2005 11,372 11,815 11,870
9/4/2005 11,372 11,815 11,870
9/5/2005 11,372 11,815 11,870
9/6/2005 11,516 11,966 12,014
9/7/2005 11,580 12,033 12,092
9/8/2005 11,524 11,975 12,014
9/9/2005 11,608 12,066 12,134
9/10/2005 11,608 12,066 12,134
9/11/2005 11,608 12,066 12,134
9/12/2005 11,628 12,085 12,161
9/13/2005 11,532 11,988 12,074
9/14/2005 11,476 11,927 12,027
9/15/2005 11,456 11,906 12,027
9/16/2005 11,500 11,956 12,040
9/17/2005 11,500 11,956 12,040
9/18/2005 11,500 11,956 12,040
9/19/2005 11,432 11,884 11,933
9/20/2005 11,316 11,765 11,792
9/21/2005 11,168 11,610 11,647
9/22/2005 11,216 11,664 11,739
9/23/2005 11,260 11,709 11,776
9/24/2005 11,260 11,709 11,776
9/25/2005 11,260 11,709 11,776
9/26/2005 11,320 11,771 11,867
9/27/2005 11,312 11,767 11,861
9/28/2005 11,300 11,747 11,848
9/29/2005 11,420 11,879 11,962
9/30/2005 11,524 11,989 12,050
10/1/2005 11,524 11,989 12,050
10/2/2005 11,524 11,989 12,050
10/3/2005 11,584 12,054 12,115
10/4/2005 11,464 11,930 11,838
10/5/2005 11,212 11,667 11,591
10/6/2005 11,116 11,568 11,536
10/7/2005 11,168 11,621 11,547
10/8/2005 11,168 11,621 11,547
10/9/2005 11,168 11,621 11,547
10/10/2005 11,108 11,558 11,466
10/11/2005 11,052 11,502 11,406
10/12/2005 10,916 11,360 11,265
10/13/2005 10,888 11,330 11,254
10/14/2005 11,032 11,484 11,374
10/15/2005 11,032 11,484 11,374
10/16/2005 11,032 11,484 11,374
10/17/2005 11,088 11,545 11,418
10/18/2005 10,956 11,408 11,303
10/19/2005 11,140 11,597 11,499
10/20/2005 11,012 11,466 11,349
10/21/2005 11,108 11,566 11,451
10/22/2005 11,108 11,566 11,451
10/23/2005 11,108 11,566 11,451
10/24/2005 11,296 11,767 11,642
10/25/2005 11,260 11,726 11,603
10/26/2005 11,212 11,679 11,569
10/27/2005 10,980 11,436 11,373
10/28/2005 11,164 11,631 11,571
10/29/2005 11,164 11,631 11,571
10/30/2005 11,164 11,631 11,571
10/31/2005 11,344 11,820 11,769
11/1/2005 11,368 11,844 11,805
11/2/2005 11,568 12,056 12,022
11/3/2005 11,636 12,127 12,100
11/4/2005 11,616 12,108 12,090
11/5/2005 11,616 12,108 12,090
11/6/2005 11,616 12,108 12,090
11/7/2005 11,652 12,145 12,302
11/8/2005 11,572 12,062 12,201
11/9/2005 11,612 12,107 12,239
11/10/2005 11,676 12,173 12,337
11/11/2005 11,696 12,195 12,375
11/12/2005 11,696 12,195 12,375
11/13/2005 11,696 12,195 12,375
11/14/2005 11,692 12,194 12,359
11/15/2005 11,628 12,126 12,233
11/16/2005 11,644 12,144 12,292
11/17/2005 11,836 12,347 12,517
11/18/2005 11,864 12,377 12,512
11/19/2005 11,864 12,377 12,512
11/20/2005 11,864 12,377 12,512
11/21/2005 11,992 12,512 12,623
11/22/2005 12,076 12,601 12,739
11/23/2005 12,096 12,621 12,762
11/24/2005 12,096 12,621 12,762
11/25/2005 12,128 12,656 12,801
11/26/2005 12,128 12,656 12,801
11/27/2005 12,128 12,656 12,801
11/28/2005 11,916 12,437 12,596
11/29/2005 11,948 12,470 12,613
11/30/2005 11,960 12,482 12,600
12/1/2005 12,140 12,671 12,756
12/2/2005 12,140 12,676 12,783
12/3/2005 12,140 12,676 12,783
12/4/2005 12,140 12,676 12,783
12/5/2005 12,088 12,619 12,722
12/6/2005 12,080 12,612 12,717
12/7/2005 12,032 12,564 12,673
12/8/2005 12,060 12,595 12,708
12/9/2005 12,108 12,648 12,781
12/10/2005 12,108 12,648 12,781
12/11/2005 12,108 12,648 12,781
12/12/2005 12,116 12,658 12,775
12/13/2005 12,140 12,683 12,773
12/14/2005 12,204 12,751 12,870
12/15/2005 12,124 12,671 12,780
12/16/2005 12,064 12,608 12,788
12/17/2005 12,064 12,608 12,788
12/18/2005 12,064 12,608 12,788
12/19/2005 11,912 12,471 12,634
12/20/2005 11,948 12,511 12,676
12/21/2005 12,052 12,617 12,787
12/22/2005 12,160 12,710 12,899
12/23/2005 12,224 12,757 12,969
12/24/2005 12,224 12,757 12,969
12/25/2005 12,224 12,757 12,969
12/26/2005 12,224 12,757 12,969
12/27/2005 12,108 12,589 12,846
12/28/2005 12,192 12,683 12,938
12/29/2005 12,168 12,651 12,912
12/30/2005 12,096 12,579 12,839
12/31/2005 12,096 12,579 12,839
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND 11.46% 12.12%
S&P MIDCAP 400/BARRA GROWTH INDEX 13.42% 14.79%
S&P MIDCAP 400/CITIGROUP PURE GROWTH INDEX 12.21% 16.21%
- --------------------------------------------------------------------------------
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 AND THE S&P MIDCAP 400/CITIGROUP PURE GROWTH INDEX ARE UNMANAGED STOCK
INDICES AND, UNLIKE THE FUND, HAVE NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE THEIR REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
S&P MIDCAP
MID-CAP 400/CITIGROUP
GROWTH FUND PURE GROWTH INDEX
--------------- ------------------
OTHER 0.8% 0.8%
CONSUMER DISCRETIONARY 28.9% 28.9%
INFORMATION TECHNOLOGY 19.8% 20.3%
HEALTH CARE 19.1% 19.1%
INDUSTRIALS 14.1% 13.8%
ENERGY 8.8% 9.1%
FINANCIALS 8.1% 8.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Chico's FAS, Inc. 2.4%
Par Pharmaceutical Cos., Inc. 2.2%
Aeropostale, Inc. 2.1%
Cognizant Technology Solutions
Corp. -- Class A 1.9%
JetBlue Airways Corp. 1.9%
Corporate Executive Board Co. 1.9%
Airtran Holdings, Inc. 1.9%
Western Digital Corp. 1.8%
Sepracor, Inc. 1.8%
Cytyc Corp. 1.7%
- -----------------------------------------------------
Top Ten Total 19.6%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 27
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for large-cap growth securities. The Fund's current benchmark is the
S&P 500/Citigroup Pure Growth Index.
INCEPTION: May 3, 2004
For 2005, the S&P 500/Barra Growth Index barely managed to gain ground. In the
large-cap arena, unlike with mid and small-cap companies, growth stocks
underperformed value, and the index only managed a gain of 3.46%. Rydex
Large-Cap Growth Fund gained 1.77% over the same period.
CUMULATIVE FUND PERFORMANCE: MAY 3, 2004 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP S&P 500/BARRA S&P 500/CITIGROUP
DATE GROWTH FUND GROWTH INDEX PURE GROWTH INDEX
--------- ----------- ------------- -----------------
5/3/2004 10,000 10,000 10,000
5/4/2004 10,004 10,011 9,977
5/5/2004 10,024 10,030 10,052
5/6/2004 9,984 9,992 9,951
5/7/2004 9,908 9,914 9,808
5/8/2004 9,908 9,914 9,808
5/9/2004 9,908 9,914 9,808
5/10/2004 9,852 9,857 9,675
5/11/2004 9,916 9,923 9,793
5/12/2004 9,896 9,904 9,783
5/13/2004 9,880 9,887 9,813
5/14/2004 9,848 9,855 9,815
5/15/2004 9,848 9,855 9,815
5/16/2004 9,848 9,855 9,815
5/17/2004 9,760 9,770 9,702
5/18/2004 9,820 9,829 9,785
5/19/2004 9,784 9,792 9,753
5/20/2004 9,788 9,793 9,742
5/21/2004 9,816 9,826 9,812
5/22/2004 9,816 9,826 9,812
5/23/2004 9,816 9,826 9,812
5/24/2004 9,800 9,811 9,848
5/25/2004 9,956 9,966 10,047
5/26/2004 9,980 9,992 10,046
5/27/2004 10,064 10,077 10,118
5/28/2004 10,048 10,063 10,129
5/29/2004 10,048 10,063 10,129
5/30/2004 10,048 10,063 10,129
5/31/2004 10,048 10,063 10,129
6/1/2004 10,056 10,070 10,150
6/2/2004 10,084 10,099 10,166
6/3/2004 10,016 10,032 10,076
6/4/2004 10,068 10,085 10,132
6/5/2004 10,068 10,085 10,132
6/6/2004 10,068 10,085 10,132
6/7/2004 10,228 10,246 10,321
6/8/2004 10,260 10,279 10,328
6/9/2004 10,164 10,180 10,183
6/10/2004 10,192 10,213 10,200
6/11/2004 10,192 10,213 10,200
6/12/2004 10,192 10,213 10,200
6/13/2004 10,192 10,213 10,200
6/14/2004 10,116 10,137 10,091
6/15/2004 10,180 10,200 10,147
6/16/2004 10,180 10,201 10,165
6/17/2004 10,148 10,167 10,120
6/18/2004 10,164 10,185 10,114
6/19/2004 10,164 10,185 10,114
6/20/2004 10,164 10,185 10,114
6/21/2004 10,116 10,143 10,061
6/22/2004 10,160 10,183 10,107
6/23/2004 10,240 10,269 10,194
6/24/2004 10,200 10,231 10,175
6/25/2004 10,124 10,151 10,212
6/26/2004 10,124 10,151 10,212
6/27/2004 10,124 10,151 10,212
6/28/2004 10,128 10,160 10,146
6/29/2004 10,168 10,201 10,150
6/30/2004 10,200 10,235 10,216
7/1/2004 10,080 10,114 10,090
7/2/2004 10,032 10,065 10,056
7/3/2004 10,032 10,065 10,056
7/4/2004 10,032 10,065 10,056
7/5/2004 10,032 10,065 10,056
7/6/2004 9,944 9,981 9,952
7/7/2004 9,960 9,998 9,982
7/8/2004 9,884 9,919 9,856
7/9/2004 9,920 9,958 9,863
7/10/2004 9,920 9,958 9,863
7/11/2004 9,920 9,958 9,863
7/12/2004 9,920 9,959 9,865
7/13/2004 9,928 9,970 9,880
7/14/2004 9,880 9,924 9,869
7/15/2004 9,836 9,881 9,870
7/16/2004 9,764 9,811 9,770
7/17/2004 9,764 9,811 9,770
7/18/2004 9,764 9,811 9,770
7/19/2004 9,740 9,789 9,740
7/20/2004 9,820 9,867 9,829
7/21/2004 9,680 9,729 9,682
7/22/2004 9,720 9,768 9,689
7/23/2004 9,576 9,624 9,586
7/24/2004 9,576 9,624 9,586
7/25/2004 9,576 9,624 9,586
7/26/2004 9,548 9,598 9,542
7/27/2004 9,644 9,697 9,617
7/28/2004 9,644 9,696 9,574
7/29/2004 9,676 9,729 9,644
7/30/2004 9,696 9,752 9,681
7/31/2004 9,696 9,752 9,681
8/1/2004 9,696 9,752 9,681
8/2/2004 9,740 9,797 9,686
8/3/2004 9,652 9,706 9,602
8/4/2004 9,664 9,718 9,542
8/5/2004 9,484 9,544 9,366
8/6/2004 9,324 9,386 9,184
8/7/2004 9,324 9,386 9,184
8/8/2004 9,324 9,386 9,184
8/9/2004 9,332 9,393 9,209
8/10/2004 9,456 9,522 9,366
8/11/2004 9,432 9,496 9,347
8/12/2004 9,332 9,395 9,244
8/13/2004 9,352 9,419 9,267
8/14/2004 9,352 9,419 9,267
8/15/2004 9,352 9,419 9,267
8/16/2004 9,460 9,527 9,403
8/17/2004 9,484 9,554 9,423
8/18/2004 9,612 9,684 9,550
8/19/2004 9,572 9,641 9,519
8/20/2004 9,616 9,688 9,592
8/21/2004 9,616 9,688 9,592
8/22/2004 9,616 9,688 9,592
8/23/2004 9,616 9,679 9,567
8/24/2004 9,620 9,682 9,561
8/25/2004 9,696 9,763 9,625
8/26/2004 9,688 9,754 9,629
8/27/2004 9,716 9,783 9,657
8/28/2004 9,716 9,783 9,657
8/29/2004 9,716 9,783 9,657
8/30/2004 9,628 9,694 9,558
8/31/2004 9,656 9,723 9,602
9/1/2004 9,684 9,753 9,661
9/2/2004 9,796 9,866 9,797
9/3/2004 9,732 9,803 9,779
9/4/2004 9,732 9,803 9,779
9/5/2004 9,732 9,803 9,779
9/6/2004 9,732 9,803 9,779
9/7/2004 9,776 9,860 9,856
9/8/2004 9,752 9,835 9,818
9/9/2004 9,764 9,852 9,824
9/10/2004 9,820 9,914 9,895
9/11/2004 9,820 9,914 9,895
9/12/2004 9,820 9,914 9,895
9/13/2004 9,840 9,938 9,945
9/14/2004 9,868 9,967 9,993
9/15/2004 9,792 9,889 9,924
9/16/2004 9,784 9,882 9,963
9/17/2004 9,832 9,933 10,020
9/18/2004 9,832 9,933 10,020
9/19/2004 9,832 9,933 10,020
9/20/2004 9,772 9,874 9,976
9/21/2004 9,804 9,909 10,063
9/22/2004 9,656 9,754 9,924
9/23/2004 9,628 9,727 9,896
9/24/2004 9,628 9,713 9,931
9/25/2004 9,628 9,713 9,931
9/26/2004 9,628 9,713 9,931
9/27/2004 9,572 9,655 9,869
9/28/2004 9,632 9,716 9,910
9/29/2004 9,700 9,786 9,975
9/30/2004 9,660 9,746 9,994
10/1/2004 9,804 9,898 10,134
10/2/2004 9,804 9,898 10,134
10/3/2004 9,804 9,898 10,134
10/4/2004 9,836 9,929 10,156
10/5/2004 9,832 9,926 10,138
10/6/2004 9,884 9,980 10,196
10/7/2004 9,756 9,849 10,092
10/8/2004 9,652 9,745 9,988
10/9/2004 9,652 9,745 9,988
10/10/2004 9,652 9,745 9,988
10/11/2004 9,680 9,777 10,000
10/12/2004 9,660 9,753 9,976
10/13/2004 9,612 9,708 9,912
10/14/2004 9,544 9,639 9,849
10/15/2004 9,580 9,678 9,884
10/16/2004 9,580 9,678 9,884
10/17/2004 9,580 9,678 9,884
10/18/2004 9,664 9,760 9,963
10/19/2004 9,596 9,691 9,840
10/20/2004 9,612 9,709 9,829
10/21/2004 9,644 9,741 9,884
10/22/2004 9,520 9,616 9,821
10/23/2004 9,520 9,616 9,821
10/24/2004 9,520 9,616 9,821
10/25/2004 9,484 9,582 9,810
10/26/2004 9,604 9,703 9,975
10/27/2004 9,772 9,876 10,142
10/28/2004 9,788 9,892 10,118
10/29/2004 9,792 9,897 10,148
10/30/2004 9,792 9,897 10,148
10/31/2004 9,792 9,897 10,148
11/1/2004 9,780 9,883 10,135
11/2/2004 9,788 9,893 10,156
11/3/2004 9,908 10,014 10,281
11/4/2004 10,048 10,156 10,428
11/5/2004 10,100 10,211 10,515
11/6/2004 10,100 10,211 10,515
11/7/2004 10,100 10,211 10,515
11/8/2004 10,100 10,213 10,494
11/9/2004 10,100 10,214 10,487
11/10/2004 10,072 10,183 10,509
11/11/2004 10,164 10,280 10,611
11/12/2004 10,248 10,367 10,701
11/13/2004 10,248 10,367 10,701
11/14/2004 10,248 10,367 10,701
11/15/2004 10,272 10,392 10,715
11/16/2004 10,200 10,318 10,623
11/17/2004 10,260 10,377 10,690
11/18/2004 10,276 10,396 10,709
11/19/2004 10,140 10,260 10,587
11/20/2004 10,140 10,260 10,587
11/21/2004 10,140 10,260 10,587
11/22/2004 10,172 10,294 10,653
11/23/2004 10,136 10,259 10,659
11/24/2004 10,172 10,296 10,737
11/25/2004 10,172 10,296 10,737
11/26/2004 10,168 10,294 10,758
11/27/2004 10,168 10,294 10,758
11/28/2004 10,168 10,294 10,758
11/29/2004 10,140 10,263 10,718
11/30/2004 10,084 10,210 10,703
12/1/2004 10,264 10,392 10,858
12/2/2004 10,296 10,428 10,855
12/3/2004 10,308 10,442 10,864
12/4/2004 10,308 10,442 10,864
12/5/2004 10,308 10,442 10,864
12/6/2004 10,284 10,417 10,879
12/7/2004 10,172 10,305 10,756
12/8/2004 10,240 10,374 10,837
12/9/2004 10,296 10,432 10,935
12/10/2004 10,280 10,415 10,945
12/11/2004 10,280 10,415 10,945
12/12/2004 10,280 10,415 10,945
12/13/2004 10,360 10,498 11,014
12/14/2004 10,408 10,548 11,070
12/15/2004 10,416 10,558 11,082
12/16/2004 10,416 10,555 11,004
12/17/2004 10,304 10,444 10,937
12/18/2004 10,304 10,444 10,937
12/19/2004 10,304 10,444 10,937
12/20/2004 10,320 10,460 10,924
12/21/2004 10,404 10,543 10,996
12/22/2004 10,432 10,573 11,022
12/23/2004 10,440 10,583 10,998
12/24/2004 10,440 10,583 10,998
12/25/2004 10,440 10,583 10,998
12/26/2004 10,440 10,583 10,998
12/27/2004 10,384 10,527 10,936
12/28/2004 10,456 10,601 11,062
12/29/2004 10,448 10,594 11,095
12/30/2004 10,447 10,595 11,109
12/31/2004 10,426 10,575 11,110
1/1/2005 10,426 10,575 11,110
1/2/2005 10,426 10,575 11,110
1/3/2005 10,358 10,503 10,975
1/4/2005 10,236 10,382 10,822
1/5/2005 10,196 10,341 10,776
1/6/2005 10,224 10,371 10,780
1/7/2005 10,224 10,373 10,757
1/8/2005 10,224 10,373 10,757
1/9/2005 10,224 10,373 10,757
1/10/2005 10,268 10,420 10,814
1/11/2005 10,212 10,362 10,793
1/12/2005 10,268 10,419 10,850
1/13/2005 10,159 10,311 10,784
1/14/2005 10,228 10,382 10,872
1/15/2005 10,228 10,382 10,872
1/16/2005 10,228 10,382 10,872
1/17/2005 10,228 10,382 10,872
1/18/2005 10,309 10,465 10,977
1/19/2005 10,216 10,374 10,880
1/20/2005 10,131 10,286 10,751
1/21/2005 10,062 10,216 10,677
1/22/2005 10,062 10,216 10,677
1/23/2005 10,062 10,216 10,677
1/24/2005 10,009 10,164 10,622
1/25/2005 10,074 10,230 10,650
1/26/2005 10,111 10,266 10,716
1/27/2005 10,119 10,278 10,756
1/28/2005 10,090 10,249 10,714
1/29/2005 10,090 10,249 10,714
1/30/2005 10,090 10,249 10,714
1/31/2005 10,155 10,317 10,815
2/1/2005 10,224 10,389 10,935
2/2/2005 10,268 10,436 10,962
2/3/2005 10,240 10,405 10,929
2/4/2005 10,341 10,511 11,025
2/5/2005 10,341 10,511 11,025
2/6/2005 10,341 10,511 11,025
2/7/2005 10,321 10,492 11,003
2/8/2005 10,333 10,504 10,979
2/9/2005 10,228 10,397 10,848
2/10/2005 10,268 10,439 10,888
2/11/2005 10,333 10,509 10,985
2/12/2005 10,333 10,509 10,985
2/13/2005 10,333 10,509 10,985
2/14/2005 10,353 10,529 10,984
2/15/2005 10,394 10,571 11,037
2/16/2005 10,402 10,581 11,058
2/17/2005 10,325 10,504 10,941
2/18/2005 10,345 10,527 10,961
2/19/2005 10,345 10,527 10,961
2/20/2005 10,345 10,527 10,961
2/21/2005 10,345 10,527 10,961
2/22/2005 10,192 10,370 10,819
2/23/2005 10,240 10,422 10,853
2/24/2005 10,341 10,526 10,957
2/25/2005 10,422 10,614 11,085
2/26/2005 10,422 10,614 11,085
2/27/2005 10,422 10,614 11,085
2/28/2005 10,374 10,565 11,055
3/1/2005 10,422 10,613 11,088
3/2/2005 10,430 10,622 11,109
3/3/2005 10,434 10,626 11,145
3/4/2005 10,515 10,713 11,261
3/5/2005 10,515 10,713 11,261
3/6/2005 10,515 10,713 11,261
3/7/2005 10,536 10,735 11,291
3/8/2005 10,487 10,685 11,207
3/9/2005 10,394 10,589 11,089
3/10/2005 10,418 10,616 11,070
3/11/2005 10,333 10,531 10,987
3/12/2005 10,333 10,531 10,987
3/13/2005 10,333 10,531 10,987
3/14/2005 10,370 10,571 11,024
3/15/2005 10,293 10,491 10,935
3/16/2005 10,208 10,404 10,838
3/17/2005 10,228 10,424 10,851
3/18/2005 10,232 10,430 10,856
3/19/2005 10,232 10,430 10,856
3/20/2005 10,232 10,430 10,856
3/21/2005 10,192 10,391 10,834
3/22/2005 10,119 10,314 10,758
3/23/2005 10,135 10,332 10,752
3/24/2005 10,119 10,318 10,771
3/25/2005 10,119 10,318 10,771
3/26/2005 10,119 10,318 10,771
3/27/2005 10,119 10,318 10,771
3/28/2005 10,147 10,348 10,780
3/29/2005 10,070 10,421 10,695
3/30/2005 10,208 10,412 10,829
3/31/2005 10,175 10,379 10,828
4/1/2005 10,102 10,306 10,785
4/2/2005 10,102 10,306 10,785
4/3/2005 10,102 10,306 10,785
4/4/2005 10,139 10,343 10,834
4/5/2005 10,196 10,405 10,871
4/6/2005 10,200 10,411 10,876
4/7/2005 10,272 10,486 10,928
4/8/2005 10,192 10,403 10,806
4/9/2005 10,192 10,403 10,806
4/10/2005 10,192 10,403 10,806
4/11/2005 10,183 10,398 10,800
4/12/2005 10,232 10,449 10,866
4/13/2005 10,127 10,341 10,697
4/14/2005 10,042 10,254 10,588
4/15/2005 9,888 10,098 10,385
4/16/2005 9,888 10,098 10,385
4/17/2005 9,888 10,098 10,385
4/18/2005 9,896 10,110 10,413
4/19/2005 9,945 10,157 10,498
4/20/2005 9,819 10,030 10,342
4/21/2005 10,042 10,260 10,532
4/22/2005 9,961 10,176 10,428
4/23/2005 9,961 10,176 10,428
4/24/2005 9,961 10,176 10,428
4/25/2005 10,038 10,258 10,547
4/26/2005 9,953 10,168 10,455
4/27/2005 9,981 10,200 10,510
4/28/2005 9,859 10,078 10,384
4/29/2005 9,973 10,197 10,477
4/30/2005 9,973 10,197 10,477
5/1/2005 9,973 10,197 10,477
5/2/2005 10,021 10,245 10,535
5/3/2005 10,021 10,249 10,515
5/4/2005 10,119 10,349 10,643
5/5/2005 10,102 10,330 10,620
5/6/2005 10,098 10,328 10,616
5/7/2005 10,098 10,328 10,616
5/8/2005 10,098 10,328 10,616
5/9/2005 10,147 10,380 10,683
5/10/2005 10,050 10,280 10,564
5/11/2005 10,106 10,341 10,620
5/12/2005 10,021 10,252 10,501
5/13/2005 9,997 10,230 10,475
5/14/2005 9,997 10,230 10,475
5/15/2005 9,997 10,230 10,475
5/16/2005 10,090 10,328 10,623
5/17/2005 10,147 10,386 10,710
5/18/2005 10,244 10,486 10,843
5/19/2005 10,293 10,537 10,903
5/20/2005 10,268 10,514 10,891
5/21/2005 10,268 10,514 10,891
5/22/2005 10,268 10,514 10,891
5/23/2005 10,313 10,562 10,953
5/24/2005 10,317 10,567 10,962
5/25/2005 10,281 10,530 10,913
5/26/2005 10,341 10,592 10,996
5/27/2005 10,345 10,599 11,041
5/28/2005 10,345 10,599 11,041
5/29/2005 10,345 10,599 11,041
5/30/2005 10,345 10,599 11,041
5/31/2005 10,272 10,523 10,988
6/1/2005 10,374 10,627 11,101
6/2/2005 10,394 10,651 11,132
6/3/2005 10,301 10,556 11,079
6/4/2005 10,301 10,556 11,079
6/5/2005 10,301 10,556 11,079
6/6/2005 10,313 10,571 11,128
6/7/2005 10,317 10,576 11,120
6/8/2005 10,285 10,540 11,085
6/9/2005 10,337 10,598 11,190
6/10/2005 10,289 10,547 11,126
6/11/2005 10,289 10,547 11,126
6/12/2005 10,289 10,547 11,126
6/13/2005 10,309 10,567 11,198
6/14/2005 10,321 10,583 11,276
6/15/2005 10,341 10,601 11,296
6/16/2005 10,366 10,630 11,351
6/17/2005 10,402 10,669 11,404
6/18/2005 10,402 10,669 11,404
6/19/2005 10,402 10,669 11,404
6/20/2005 10,394 10,658 11,406
6/21/2005 10,362 10,626 11,361
6/22/2005 10,349 10,616 11,347
6/23/2005 10,228 10,490 11,264
6/24/2005 10,135 10,395 11,176
6/25/2005 10,135 10,395 11,176
6/26/2005 10,135 10,395 11,176
6/27/2005 10,135 10,398 11,194
6/28/2005 10,248 10,515 11,301
6/29/2005 10,212 10,479 11,272
6/30/2005 10,127 10,393 11,268
7/1/2005 10,155 10,418 11,297
7/2/2005 10,155 10,418 11,297
7/3/2005 10,155 10,418 11,297
7/4/2005 10,155 10,418 11,297
7/5/2005 10,248 10,517 11,439
7/6/2005 10,159 10,425 11,351
7/7/2005 10,183 10,451 11,418
7/8/2005 10,321 10,593 11,521
7/9/2005 10,321 10,593 11,521
7/10/2005 10,321 10,593 11,521
7/11/2005 10,394 10,670 11,593
7/12/2005 10,426 10,702 11,625
7/13/2005 10,430 10,708 11,603
7/14/2005 10,471 10,747 11,583
7/15/2005 10,475 10,754 11,609
7/16/2005 10,475 10,754 11,609
7/17/2005 10,475 10,754 11,609
7/18/2005 10,430 10,707 11,554
7/19/2005 10,519 10,801 11,633
7/20/2005 10,572 10,857 11,683
7/21/2005 10,515 10,800 11,579
7/22/2005 10,556 10,841 11,684
7/23/2005 10,556 10,841 11,684
7/24/2005 10,556 10,841 11,684
7/25/2005 10,515 10,800 11,624
7/26/2005 10,532 10,818 11,663
7/27/2005 10,584 10,871 11,706
7/28/2005 10,641 10,934 11,780
7/29/2005 10,552 10,840 11,684
7/30/2005 10,552 10,840 11,684
7/31/2005 10,552 10,840 11,684
8/1/2005 10,564 10,853 11,714
8/2/2005 10,645 10,939 11,773
8/3/2005 10,649 10,945 11,762
8/4/2005 10,552 10,846 11,683
8/5/2005 10,495 10,787 11,576
8/6/2005 10,495 10,787 11,576
8/7/2005 10,495 10,787 11,576
8/8/2005 10,467 10,762 11,560
8/9/2005 10,540 10,832 11,624
8/10/2005 10,503 10,798 11,612
8/11/2005 10,584 10,881 11,704
8/12/2005 10,511 10,809 11,671
8/13/2005 10,511 10,809 11,671
8/14/2005 10,511 10,809 11,671
8/15/2005 10,540 10,839 11,699
8/16/2005 10,406 10,699 11,551
8/17/2005 10,418 10,712 11,556
8/18/2005 10,418 10,712 11,537
8/19/2005 10,410 10,708 11,534
8/20/2005 10,410 10,708 11,534
8/21/2005 10,410 10,708 11,534
8/22/2005 10,426 10,723 11,528
8/23/2005 10,394 10,691 11,508
8/24/2005 10,329 10,624 11,488
8/25/2005 10,349 10,648 11,517
8/26/2005 10,293 10,590 11,433
8/27/2005 10,293 10,590 11,433
8/28/2005 10,293 10,590 11,433
8/29/2005 10,366 10,666 11,500
8/30/2005 10,321 10,621 11,472
8/31/2005 10,418 10,723 11,624
9/1/2005 10,410 10,715 11,629
9/2/2005 10,378 10,685 11,564
9/3/2005 10,378 10,685 11,564
9/4/2005 10,378 10,685 11,564
9/5/2005 10,378 10,685 11,564
9/6/2005 10,528 10,838 11,710
9/7/2005 10,552 10,865 11,751
9/8/2005 10,520 10,831 11,699
9/9/2005 10,593 10,907 11,799
9/10/2005 10,593 10,907 11,799
9/11/2005 10,593 10,907 11,799
9/12/2005 10,589 10,902 11,811
9/13/2005 10,507 10,819 11,709
9/14/2005 10,451 10,763 11,667
9/15/2005 10,455 10,767 11,676
9/16/2005 10,520 10,835 11,727
9/17/2005 10,520 10,835 11,727
9/18/2005 10,520 10,835 11,727
9/19/2005 10,467 10,781 11,655
9/20/2005 10,394 10,706 11,541
9/21/2005 10,317 10,624 11,448
9/22/2005 10,365 10,675 11,529
9/23/2005 10,365 10,676 11,539
9/24/2005 10,365 10,676 11,539
9/25/2005 10,365 10,676 11,539
9/26/2005 10,357 10,668 11,543
9/27/2005 10,369 10,684 11,563
9/28/2005 10,373 10,690 11,563
9/29/2005 10,451 10,768 11,640
9/30/2005 10,467 10,786 11,661
10/1/2005 10,467 10,786 11,661
10/2/2005 10,467 10,786 11,661
10/3/2005 10,430 10,752 11,661
10/4/2005 10,345 10,663 11,535
10/5/2005 10,203 10,516 11,321
10/6/2005 10,170 10,485 11,242
10/7/2005 10,203 10,519 11,297
10/8/2005 10,203 10,519 11,297
10/9/2005 10,203 10,519 11,297
10/10/2005 10,150 10,463 11,223
10/11/2005 10,138 10,451 11,204
10/12/2005 10,097 10,409 11,116
10/13/2005 10,109 10,422 11,104
10/14/2005 10,187 10,504 11,227
10/15/2005 10,187 10,504 11,227
10/16/2005 10,187 10,504 11,227
10/17/2005 10,207 10,526 11,281
10/18/2005 10,114 10,429 11,154
10/19/2005 10,272 10,594 11,306
10/20/2005 10,142 10,461 11,128
10/21/2005 10,130 10,449 11,175
10/22/2005 10,130 10,449 11,175
10/23/2005 10,130 10,449 11,175
10/24/2005 10,272 10,599 11,334
10/25/2005 10,239 10,564 11,268
10/26/2005 10,183 10,506 11,190
10/27/2005 10,065 10,385 11,058
10/28/2005 10,215 10,543 11,268
10/29/2005 10,215 10,543 11,268
10/30/2005 10,215 10,543 11,268
10/31/2005 10,284 10,615 11,394
11/1/2005 10,223 10,557 11,380
11/2/2005 10,317 10,654 11,517
11/3/2005 10,394 10,734 11,550
11/4/2005 10,402 10,743 11,549
11/5/2005 10,402 10,743 11,549
11/6/2005 10,402 10,743 11,549
11/7/2005 10,422 10,767 11,567
11/8/2005 10,394 10,737 11,485
11/9/2005 10,402 10,748 11,491
11/10/2005 10,495 10,843 11,630
11/11/2005 10,520 10,870 11,647
11/12/2005 10,520 10,870 11,647
11/13/2005 10,520 10,870 11,647
11/14/2005 10,503 10,857 11,622
11/15/2005 10,491 10,844 11,599
11/16/2005 10,528 10,881 11,634
11/17/2005 10,601 10,959 11,782
11/18/2005 10,649 11,011 11,803
11/19/2005 10,649 11,011 11,803
11/20/2005 10,649 11,011 11,803
11/21/2005 10,710 11,072 11,900
11/22/2005 10,751 11,117 11,974
11/23/2005 10,771 11,139 11,990
11/24/2005 10,771 11,139 11,990
11/25/2005 10,796 11,165 12,007
11/26/2005 10,796 11,165 12,007
11/27/2005 10,796 11,165 12,007
11/28/2005 10,710 11,076 11,865
11/29/2005 10,698 11,065 11,883
11/30/2005 10,654 11,021 11,839
12/1/2005 10,775 11,146 11,997
12/2/2005 10,788 11,162 12,037
12/3/2005 10,788 11,162 12,037
12/4/2005 10,788 11,162 12,037
12/5/2005 10,755 11,127 12,015
12/6/2005 10,767 11,142 12,046
12/7/2005 10,727 11,099 11,986
12/8/2005 10,702 11,075 11,991
12/9/2005 10,719 11,094 12,029
12/10/2005 10,719 11,094 12,029
12/11/2005 10,719 11,094 12,029
12/12/2005 10,739 11,113 12,069
12/13/2005 10,779 11,161 12,110
12/14/2005 10,820 11,203 12,173
12/15/2005 10,828 11,212 12,141
12/16/2005 10,792 11,177 12,117
12/17/2005 10,792 11,177 12,117
12/18/2005 10,792 11,177 12,117
12/19/2005 10,702 11,096 12,011
12/20/2005 10,714 11,082 12,022
12/21/2005 10,743 11,103 12,057
12/22/2005 10,785 11,139 12,104
12/23/2005 10,785 11,147 12,108
12/24/2005 10,785 11,147 12,108
12/25/2005 10,785 11,147 12,108
12/26/2005 10,785 11,147 12,108
12/27/2005 10,677 11,035 11,985
12/28/2005 10,710 11,054 12,026
12/29/2005 10,669 11,008 11,978
12/30/2005 10,611 10,941 11,916
12/31/2005 10,611 10,941 11,916
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/03/04)
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND 1.77% 3.63%
S&P 500/BARRA GROWTH INDEX 3.46% 5.56%
S&P 500/CITIGROUP PURE GROWTH INDEX 7.26% 11.12%
- --------------------------------------------------------------------------------
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
AND THE S&P 500/CITIGROUP PURE GROWTH INDEX ARE UNMANAGED STOCK INDICES AND,
UNLIKE THE FUND, HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE
THEIR REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL
AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
S&P
500/CITIGROUP
LARGE-CAP PURE GROWTH
GROWTH FUND INDEX
----------- --------------
OTHER 5.5% 5.5%
CONSUMER DISCRETIONARY 29.1% 29.1%
HEALTH CARE 26.2% 26.3%
INFORMATION TECHNOLOGY 13.5% 13.4%
FINANCIALS 8.9% 8.9%
ENERGY 8.3% 8.6%
CONSUMER STAPLES 8.3% 8.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
XTO Energy, Inc. 1.7%
International Game Technology, Inc. 1.7%
Amazon.com, Inc. 1.6%
Nvidia Corp. 1.5%
Express Scripts, Inc. 1.4%
eBay, Inc. 1.4%
Devon Energy Corp. 1.3%
AutoZone, Inc. 1.3%
UnitedHealth Group, Inc. 1.3%
Forest Laboratories, Inc. 1.3%
- -----------------------------------------------------
Top Ten Total 14.5%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
28 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
STRENGTHENING DOLLAR 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 U.S. Dollar Index.
INCEPTION: September 30, 2005
The U.S. dollar strengthened against most other major currencies during the
fourth quarter of 2005. The U.S. dollar benefited from two interest rate hikes
during the quarter. The Federal Reserve raised the Fed Funds rate by 0.50%
during the quarter to 4.25% by the end of the year. However, the U.S. dollar
gave up some of its gains in December due to a number of factors: the European
Central Bank raised rates by 0.25% to 2.25%, the Tankan survey showed that
business confidence in Japan was at its highest level in more than a year and
the U.S. trade deficit unexpectedly widened to a record level. Rydex
Strengthening Dollar Fund returned 3.16% for the period. The effects of daily
compounding may cause the longer-term correlation of the Fund to its benchmark
to diminish. The effects of compounding are described briefly on page 3 of this
report.
CUMULATIVE FUND PERFORMANCE: SEPTEMBER 30, 2005 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
STRENGTHENING U.S. DOLLAR
DATE DOLLAR FUND INDEX
---------- ------------- -----------
09/30/05 10,000 10,000
10/01/05 10,000 10,000
10/02/05 10,000 10,000
10/03/05 10,000 10,068
10/04/05 9,980 10,065
10/05/05 9,964 10,051
10/06/05 9,672 9,904
10/07/05 9,772 9,961
10/08/05 9,772 9,961
10/09/05 9,772 9,961
10/10/05 9,836 9,993
10/11/05 9,944 10,050
10/12/05 9,888 10,012
10/13/05 9,920 10,032
10/14/05 9,828 9,993
10/15/05 9,828 9,993
10/16/05 9,828 9,993
10/17/05 9,956 10,031
10/18/05 10,028 10,086
10/19/05 9,964 10,053
10/20/05 9,940 10,029
10/21/05 10,060 10,088
10/22/05 10,060 10,088
10/23/05 10,060 10,088
10/24/05 9,992 10,066
10/25/05 9,820 9,969
10/26/05 9,900 9,997
10/27/05 9,784 9,953
10/28/05 9,888 10,008
10/29/05 9,888 10,008
10/30/05 9,888 10,008
10/31/05 10,000 10,061
11/01/05 9,992 10,063
11/02/05 9,940 10,022
11/03/05 10,088 10,103
11/04/05 10,292 10,194
11/05/05 10,292 10,194
11/06/05 10,292 10,194
11/07/05 10,308 10,198
11/08/05 10,304 10,207
11/09/05 10,356 10,221
11/10/05 10,472 10,286
11/11/05 10,412 10,275
11/12/05 10,412 10,275
11/13/05 10,412 10,275
11/14/05 10,464 10,292
11/15/05 10,440 10,287
11/16/05 10,556 10,314
11/17/05 10,444 10,264
11/18/05 10,440 10,269
11/19/05 10,440 10,269
11/20/05 10,440 10,269
11/21/05 10,480 10,280
11/22/05 10,336 10,221
11/23/05 10,316 10,207
11/24/05 10,316 10,232
11/25/05 10,480 10,282
11/26/05 10,480 10,282
11/27/05 10,480 10,282
11/28/05 10,268 10,163
11/29/05 10,380 10,235
11/30/05 10,360 10,229
12/01/05 10,436 10,257
12/02/05 10,440 10,269
12/03/05 10,440 10,269
12/04/05 10,440 10,269
12/05/05 10,340 10,219
12/06/05 10,352 10,214
12/07/05 10,452 10,265
12/08/05 10,288 10,194
12/09/05 10,300 10,193
12/10/05 10,300 10,193
12/11/05 10,300 10,193
12/12/05 10,092 10,089
12/13/05 10,120 10,096
12/14/05 9,992 10,035
12/15/05 10,020 10,056
12/16/05 9,964 10,021
12/17/05 9,964 10,021
12/18/05 9,964 10,021
12/19/05 10,000 10,039
12/20/05 10,224 10,141
12/21/05 10,268 10,159
12/22/05 10,219 10,134
12/23/05 10,195 10,141
12/24/05 10,195 10,141
12/25/05 10,195 10,141
12/26/05 10,195 10,141
12/27/05 10,291 10,187
12/28/05 10,324 10,189
12/29/05 10,299 10,177
12/30/05 10,316 10,173
12/31/05 10,316 10,173
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(09/30/05)
- --------------------------------------------------------------------------------
STRENGTHENING DOLLAR FUND 3.16%
U.S. DOLLAR INDEX 1.73%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE U.S DOLLAR INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
STRENGTHENING
DOLLAR FUND U.S. DOLLAR INDEX
------------- -----------------
OTHER 7.8%
EURO 57.6%
JAPANESE YEN 13.6%
BRITISH POUND 11.9%
CANADIAN DOLLAR 9.1%
EQUITY INDEX SWAP AGREEMENTS 200.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 29
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
WEAKENING DOLLAR 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 U.S Dollar Index.
INCEPTION: September 30, 2005
The U.S. dollar rose against most other major currencies during the fourth
quarter. The Federal Reserve continued to raise short-term interest rates. The
Fed raised rates twice during the quarter to 4.25%. However, the U.S. dollar
weakened in December as the European Central Bank raised their short term
interest rates by 25 basis points to 2.25%, Japanese business confidence rose to
its highest level in more than a year and the U.S. trade deficit unexpectedly
widened to a record level. Rydex Weakening Dollar Fund returned -2.53% for the
period. The effects of daily compounding may cause the longer-term correlation
of the Fund to its benchmark to diminish. The effects of compounding are
described briefly on page 3 of this report.
CUMULATIVE FUND PERFORMANCE: SEPTEMBER 30, 2005 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE WEAKENING DOLLAR FUND U.S. DOLLAR INDEX
---------- --------------------- -----------------
09/30/05 10,000 10,000
10/01/05 10,000 10,000
10/02/05 10,000 10,000
10/03/05 10,000 10,068
10/04/05 10,020 10,065
10/05/05 10,040 10,051
10/06/05 10,328 9,904
10/07/05 10,228 9,961
10/08/05 10,228 9,961
10/09/05 10,228 9,961
10/10/05 10,160 9,993
10/11/05 10,048 10,050
10/12/05 10,104 10,012
10/13/05 10,072 10,032
10/14/05 10,168 9,993
10/15/05 10,168 9,993
10/16/05 10,168 9,993
10/17/05 10,044 10,031
10/18/05 9,972 10,086
10/19/05 10,040 10,053
10/20/05 10,064 10,029
10/21/05 9,944 10,088
10/22/05 9,944 10,088
10/23/05 9,944 10,088
10/24/05 10,012 10,066
10/25/05 10,188 9,969
10/26/05 10,104 9,997
10/27/05 10,224 9,953
10/28/05 10,124 10,008
10/29/05 10,124 10,008
10/30/05 10,124 10,008
10/31/05 10,008 10,061
11/01/05 10,020 10,063
11/02/05 10,072 10,022
11/03/05 9,920 10,103
11/04/05 9,728 10,194
11/05/05 9,728 10,194
11/06/05 9,728 10,194
11/07/05 9,716 10,198
11/08/05 9,720 10,207
11/09/05 9,672 10,221
11/10/05 9,564 10,286
11/11/05 9,620 10,275
11/12/05 9,620 10,275
11/13/05 9,620 10,275
11/14/05 9,572 10,292
11/15/05 9,600 10,287
11/16/05 9,504 10,314
11/17/05 9,604 10,264
11/18/05 9,612 10,269
11/19/05 9,612 10,269
11/20/05 9,612 10,269
11/21/05 9,576 10,280
11/22/05 9,708 10,221
11/23/05 9,732 10,207
11/24/05 9,732 10,232
11/25/05 9,580 10,282
11/26/05 9,580 10,282
11/27/05 9,580 10,282
11/28/05 9,776 10,163
11/29/05 9,664 10,235
11/30/05 9,688 10,229
12/01/05 9,616 10,257
12/02/05 9,616 10,269
12/03/05 9,616 10,269
12/04/05 9,616 10,269
12/05/05 9,708 10,219
12/06/05 9,700 10,214
12/07/05 9,608 10,265
12/08/05 9,760 10,194
12/09/05 9,756 10,193
12/10/05 9,756 10,193
12/11/05 9,756 10,193
12/12/05 9,952 10,089
12/13/05 9,924 10,096
12/14/05 10,052 10,035
12/15/05 10,020 10,056
12/16/05 10,084 10,021
12/17/05 10,084 10,021
12/18/05 10,084 10,021
12/19/05 10,048 10,039
12/20/05 9,824 10,141
12/21/05 9,784 10,159
12/22/05 9,827 10,134
12/23/05 9,855 10,141
12/24/05 9,855 10,141
12/25/05 9,855 10,141
12/26/05 9,855 10,141
12/27/05 9,767 10,187
12/28/05 9,731 10,189
12/29/05 9,755 10,177
12/30/05 9,747 10,173
12/31/05 9,747 10,173
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(09/30/05)
- --------------------------------------------------------------------------------
WEAKENING DOLLAR FUND -2.53%
U.S. DOLLAR INDEX 1.73%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE U.S. DOLLAR INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
WEAKENING DOLLAR FUND U.S. DOLLAR INDEX
--------------------- -----------------
OTHER 7.8%
EURO 57.6%
JAPANESE YEN 13.6%
BRITISH POUND 11.9%
CANADIAN DOLLAR 9.1%
FUTURES CONTRACTS SHORT SALES -3.1%
EQUITY INDEX SWAP AGREEMENTS SHORT SALES -195.6%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
30 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
CORE EQUITY FUND
OBJECTIVE: To provide long-term capital appreciation.
INCEPTION: November 29, 2005
Rydex Core Equity Fund was launched on November 29, 2005. Therefore, performance
discussed in this commentary is since inception rather than for 2005. The fund
provides an alternative to cap-weighted total market exposure by allocating to
the three size groups (large, mid, and small) in generally equal portions. From
November 29, 2005 to December 31, 2005, the Russell 3000 Index returned -0.38%.
Performance among large-cap stocks was weak with the Russell Top 200 returning
- -0.94%. However, positive performance from mid- and small-cap stocks offset
these results. The Russell MidCap and Russell 2000 indices rose 0.85% and 0.08%,
respectively. Since the fund is underweighted in large-cap stocks relative to
the Russell 3000, it outperformed this benchmark. Additionally, the fund uses a
quantitative selection strategy that seeks stocks with superior growth prospects
but has attractive valuations. This stock selection strategy benefited
performance and added return in addition to the fund's size allocation policy.
CUMULATIVE FUND PERFORMANCE: NOVEMBER 29, 2005 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CORE EQUITY RUSSELL 3000
DATE FUND INDEX
----------- ----------- ------------
11/29/2005 10,000 10,000
11/30/2005 9,996 9,953
12/1/2005 10,156 10,081
12/2/2005 10,164 10,085
12/3/2005 10,164 10,085
12/4/2005 10,164 10,085
12/5/2005 10,140 10,058
12/6/2005 10,140 10,071
12/7/2005 10,080 10,021
12/8/2005 10,096 10,019
12/9/2005 10,128 10,048
12/10/2005 10,128 10,048
12/11/2005 10,128 10,048
12/12/2005 10,140 10,058
12/13/2005 10,160 10,106
12/14/2005 10,196 10,145
12/15/2005 10,144 10,124
12/16/2005 10,104 10,096
12/17/2005 10,104 10,096
12/18/2005 10,104 10,096
12/19/2005 10,000 10,025
12/20/2005 10,016 10,025
12/21/2005 10,072 10,060
12/22/2005 10,132 10,107
12/23/2005 10,148 10,117
12/24/2005 10,148 10,117
12/25/2005 10,148 10,117
12/26/2005 10,148 10,117
12/27/2005 10,044 10,018
12/28/2005 10,088 10,039
12/29/2005 10,076 10,011
12/30/2005 10,016 9,961
12/31/2005 10,016 9,961
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(11/29/05)
- --------------------------------------------------------------------------------
CORE EQUITY FUND 0.16%
RUSSELL 3000 INDEX -0.38%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RUSSELL 3000 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
CORE
EQUITY
FUND
------------
OTHER 9.48%
FINANCIALS 20.76%
INFORMATION TECHNOLOGY 16.35%
CONSUMER DISCRETIONARY 14.23%
HEALTH CARE 12.76%
INDUSTRIALS 11.60%
ENERGY 7.40%
CONSUMER STAPLES 5.34%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
General Electric Co. 1.2%
Exxon Mobil Corp. 1.1%
Citigroup, Inc. 1.1%
Bank of America Corp. 0.8%
Pfizer, Inc. 0.8%
Altria Group, Inc. 0.7%
Microsoft Corp. 0.7%
Intel Corp. 0.7%
Procter & Gamble Co. 0.5%
Amgen, Inc. 0.5%
- -----------------------------------------------------
Top Ten Total 8.1%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 31
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
OBJECTIVE: Seeks long-term capital appreciation.
INCEPTION: May 1, 2002
In 2005, industry momentum gained favor and Rydex Sector Rotation Fund returned
13.62%, easily outpacing the S&P 500's 4.91% return. At a sector level, the fund
did well with overweights in energy, utilities, materials and industrials and
large underweights in consumer discretionary, technology and telecommunications.
At the more granular industry level, overweights in energy equipment & services,
construction & engineering, and construction materials were beneficial to
performance, as were underweights in the pharmaceuticals, media and industrial
conglomerates industries, which struggled in 2005. The fund's style qualities
transformed during the course of the year as the fund moved from mid-cap value
to large-cap growth exposures.
CUMULATIVE FUND PERFORMANCE: MAY 1, 2002 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE SECTOR ROTATION FUND S&P 500 INDEX
-------- -------------------- -------------
05/01/02 10,000 10,000
05/31/02 9,860 9,838
06/30/02 9,400 9,137
07/31/02 8,520 8,425
08/31/02 8,410 8,481
09/30/02 7,740 7,559
10/31/02 7,830 8,224
11/30/02 8,240 8,708
12/31/02 7,760 8,197
01/31/03 7,520 7,982
02/28/03 7,410 7,862
03/31/03 7,550 7,939
04/30/03 7,990 8,592
05/31/03 8,710 9,045
06/30/03 8,660 9,160
07/31/03 8,940 9,322
08/31/03 9,390 9,504
09/30/03 9,140 9,403
10/31/03 9,870 9,935
11/30/03 9,960 10,022
12/31/03 10,080 10,548
01/31/04 10,410 10,741
02/29/04 10,590 10,891
03/31/04 10,370 10,726
04/30/04 9,700 10,558
05/31/04 9,820 10,703
06/30/04 10,130 10,911
07/31/04 9,660 10,550
08/31/04 9,570 10,593
09/30/04 9,990 10,707
10/31/04 10,200 10,871
11/30/04 10,790 11,311
12/31/04 11,160 11,696
01/31/05 10,720 11,411
02/28/05 11,260 11,651
03/31/05 11,030 11,444
04/30/05 10,580 11,227
05/31/05 11,060 11,585
06/30/05 11,450 11,601
07/31/05 12,010 12,032
08/31/05 12,130 11,923
09/30/05 12,700 12,019
10/31/05 12,120 11,819
11/30/05 12,500 12,266
12/31/05 12,690 12,270
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/01/02)
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND 13.62% 6.71%
S&P 500 INDEX 4.91% 5.73%
- --------------------------------------------------------------------------------
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.]
SECTOR
ROTATION
FUND
---------
INDUSTRIALS 32.78%
INFORMATION TECHNOLOGY 18.00%
HEALTH CARE 15.78%
ENERGY 14.91%
MATERIALS 8.06%
FINANCIALS 7.71%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Google, Inc. -- Class A 5.6%
Yahoo!, Inc. 3.6%
Southwest Airlines Co. 1.6%
Ryanair Holdings PLC -- SP ADR 1.4%
Genentech, Inc. 1.3%
W.W. Grainger, Inc. 1.3%
Amgen, Inc. 1.3%
Fluor Corp. 1.3%
Fastenal Co. 1.2%
VeriSign, Inc. 1.2%
- -----------------------------------------------------
Top Ten Total 19.8%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
32 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
OBJECTIVE: To provide security of principal, high current income and liquidity
by investing in securities issued by the U.S. Government, its agencies or
instrumentalities.
INCEPTION: May 7, 1997
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (05/07/97)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND 2.00% 1.09% 2.27%
- --------------------------------------------------------------------------------
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
U.S.
GOVERNMENT
MONEY MARKET
FUND
------------
REPURCHASE AGREEMENTS 37.5%
FREDDIE MAC - FADN 26.8%
FEDERAL HOME LOAN BANK - FADN 13.5%
FEDERAL FARM CREDIT BANK - FADN 13.4%
FARMER MAC - FADN 8.1%
FADN - Federal Agency Discount Notes
The Fund invests principally in U.S. Government securities.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 33
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (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 saving-and-loan institutions.
INCEPTION: May 2, 2001
The eight quarter-point increases in the Fed funds rates during 2005 did not
fuel growth in the banking sector. Rydex Banking Fund, down 2.77%,
underperformed the S&P 500 Index for the first time in five years. Diversified
banks led the outperformers in this sector while regional banks and thrifts &
mortgage finance struggled throughout the year. 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, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P 500
DATE BANKING FUND S&P 500 INDEX FINANCIALS INDEX*
-------- ------------ ------------- ----------------
05/02/01 10,000 10,000 10,000
05/31/01 10,448 9,923 10,225
06/30/01 10,464 9,682 10,213
07/31/01 10,636 9,587 10,034
08/31/01 10,204 8,986 9,408
09/30/01 9,676 8,261 8,840
10/31/01 9,124 8,418 8,661
11/30/01 9,812 9,064 9,265
12/31/01 10,084 9,143 9,452
01/31/02 10,216 9,010 9,284
02/28/02 10,248 8,836 9,136
03/31/02 10,984 9,169 9,732
04/30/02 11,344 8,613 9,459
05/31/02 11,548 8,549 9,428
06/30/02 11,148 7,940 8,964
07/31/02 10,508 7,321 8,239
08/31/02 10,840 7,369 8,392
09/30/02 9,604 6,568 7,397
10/31/02 10,017 7,147 8,047
11/30/02 10,178 7,567 8,363
12/31/02 10,005 7,123 7,899
01/31/03 10,021 6,936 7,750
02/28/03 9,897 6,832 7,496
03/31/03 9,604 6,898 7,451
04/30/03 10,410 7,467 8,349
05/31/03 11,128 7,860 8,773
06/30/03 11,096 7,960 8,779
07/31/03 11,561 8,101 9,158
08/31/03 11,561 8,259 9,051
09/30/03 11,559 8,171 9,094
10/31/03 12,654 8,633 9,696
11/30/03 12,974 8,709 9,653
12/31/03 13,181 9,166 10,105
01/31/04 13,436 9,334 10,403
02/29/04 13,830 9,464 10,665
03/31/04 13,603 9,321 10,538
04/30/04 12,929 9,175 10,027
05/31/04 13,590 9,300 10,198
06/30/04 13,566 9,481 10,227
07/31/04 13,526 9,168 9,990
08/31/04 13,984 9,205 10,312
09/30/04 14,069 9,304 10,203
10/31/04 14,298 9,446 10,225
11/30/04 14,731 9,829 10,509
12/31/04 15,123 10,163 10,937
01/31/05 14,531 9,915 10,684
02/28/05 14,335 10,124 10,602
03/31/05 13,940 9,945 10,176
04/30/05 13,648 9,756 10,158
05/31/05 14,085 10,067 10,421
06/30/05 14,423 10,081 10,547
07/31/05 14,765 10,456 10,685
08/31/05 14,431 10,360 10,470
09/30/05 14,051 10,444 10,554
10/31/05 14,244 10,270 10,869
11/30/05 14,769 10,659 11,332
12/31/05 14,705 10,662 11,345
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
BANKING FUND -2.77% 8.62%
S&P 500 INDEX 4.91% 1.38%
S&P 500 FINANCIALS INDEX 6.50% 5.14%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
FINANCIALS INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS.
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS
AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
BANKING FUND
DIVERSIFIED FINANCIAL SERVICES 5%
COMMERCIAL BANKS 68%
THRIFTS & MORTGAGE FINANCE 27%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Bank of America Corp. 5.0%
J.P. Morgan Chase & Co. 5.0%
Wells Fargo & Co. 4.4%
Wachovia Corp. 3.8%
U.S. Bancorp 3.0%
Freddie Mac 2.8%
Fannie Mae 2.8%
Washington Mutual, Inc. 2.6%
SunTrust Banks, Inc. 2.2%
Golden West Financial Corp. 1.9%
- -----------------------------------------------------
Top Ten Total 33.5%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
34 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the
mining, manufacture or sale of basic materials, such as lumber, steel, iron,
aluminum, concrete, chemicals and other basic building and manufacturing
materials.
INCEPTION: May 2, 2001
Basic materials kept pace with the S&P 500 Index during the period. Key trends
continued during the period--such as the resilient growth in the U.S. economy,
which weathered the storm of Hurricane Katrina, and overseas demand for products
helped boost this sector. High energy prices and damage from Katrina helped push
the sector behind the S&P 500 Index by more than 7.00%. However, strong demand
for raw materials (in part due to the hurricane rebuilding efforts) and signs of
smaller-than expected economic fallout sparked a rally in the sector that
carried through to year end. Construction materials and metals companies led the
gainers, with these industries advancing 28.02% and 20.67% respectively. Rydex
Basic Materials Fund returned 4.04% during the period.
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P 500
BASIC MATERIALS MATERIALS
DATE FUND S&P 500 INDEX INDEX*
-------- --------------- ------------- ---------
05/02/01 10,000 10,000 10,000
05/31/01 10,304 9,923 10,249
06/30/01 9,840 9,682 9,800
07/31/01 9,788 9,587 9,813
08/31/01 9,764 8,986 9,700
09/30/01 8,668 8,261 8,603
10/31/01 8,868 8,418 8,807
11/30/01 9,820 9,064 9,829
12/31/01 9,684 9,143 9,583
01/31/02 9,804 9,010 9,763
02/28/02 10,316 8,836 10,248
03/31/02 10,672 9,169 10,585
04/30/02 10,108 8,613 10,075
05/31/02 10,520 8,549 10,540
06/30/02 10,256 7,940 10,304
07/31/02 9,020 7,321 9,143
08/31/02 9,000 7,369 9,078
09/30/02 7,800 6,568 7,891
10/31/02 8,016 7,147 8,286
11/30/02 8,802 7,567 9,255
12/31/02 8,450 7,123 8,844
01/31/03 7,960 6,936 8,403
02/28/03 7,668 6,832 8,153
03/31/03 7,539 6,898 8,150
04/30/03 8,137 7,467 8,899
05/31/03 8,554 7,860 9,149
06/30/03 8,606 7,960 9,210
07/31/03 9,079 8,101 9,932
08/31/03 9,420 8,259 10,217
09/30/03 9,098 8,171 9,733
10/31/03 9,936 8,633 10,619
11/30/03 10,161 8,709 10,838
12/31/03 11,108 9,166 11,919
01/31/04 10,735 9,334 11,345
02/29/04 11,244 9,464 11,897
03/31/04 11,184 9,321 11,647
04/30/04 10,710 9,175 11,084
05/31/04 10,943 9,300 11,321
06/30/04 11,709 9,481 11,876
07/31/04 11,372 9,168 11,614
08/31/04 11,553 9,205 11,796
09/30/04 12,168 9,304 12,230
10/31/04 11,967 9,446 12,130
11/30/04 13,195 9,829 13,045
12/31/04 13,421 10,163 13,205
01/31/05 12,998 9,915 12,793
02/28/05 13,960 10,124 13,762
03/31/05 13,487 9,945 13,372
04/30/05 12,328 9,756 12,431
05/31/05 12,443 10,067 12,284
06/30/05 12,435 10,081 12,039
07/31/05 13,434 10,456 12,681
08/31/05 12,912 10,360 12,129
09/30/05 13,107 10,444 12,201
10/31/05 12,836 10,270 12,260
11/30/05 13,673 10,659 13,127
12/31/05 13,963 10,662 13,489
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND 4.04% 7.42%
S&P 500 INDEX 4.91% 1.38%
S&P 500 MATERIALS INDEX 4.69% 9.21%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
MATERIALS INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS.
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS
AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
BASIC MATERIALS FUND
OTHER 1%
CHEMICALS 46%
METALS & MINING 25%
CONTAINERS & PACKAGING 13%
PAPER & FOREST PRODUCTS 10%
CONSTRUCTION MATERIALS 5%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
E.I. Du Pont de Nemours & Co. 3.6%
Dow Chemical Co. 3.6%
Alcoa, Inc. 3.0%
Monsanto Co. 2.7%
Newmont Mining Corp. 2.7%
Praxair, Inc. 2.3%
International Paper Co. 2.3%
Weyerhaeuser Co. 2.1%
Phelps Dodge Corp. 2.1%
Air Products & Chemicals, Inc. 2.0%
- -----------------------------------------------------
Top Ten Total 26.4%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 35
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the biotechnology industry, including companies involved in research
and development, genetic or biological engineering and in the design,
manufacture or sale of related biotechnology products or services.
INCEPTION: May 2, 2001
Stellar performance of large-cap stocks led Rydex Biotechnology Fund to gain
10.67% for the year. Sector heavyweights Amgen, Genentech, Gilead Sciences and
Genzyme Corp. had a combined performance north of 40%. One notable exception is
the Biogen Idec, which was hurt by withdrawal of the multiple sclerosis drug
Tysabri. More companies are in late stage trials and will be launching new
products.
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P 500
BIOTECHNOLOGY HEALTH CARE S&P 500
DATE FUND INDEX* INDEX
-------- ------------- ------------- ---------
05/02/01 10,000 10,000 10,000
05/31/01 10,564 9,923 10,161
06/30/01 10,828 9,682 9,688
07/31/01 9,588 9,587 10,201
08/31/01 9,664 8,986 9,820
09/30/01 8,304 8,261 9,962
10/31/01 9,588 8,418 9,905
11/30/01 10,448 9,064 10,373
12/31/01 9,868 9,143 10,035
01/31/02 8,432 9,010 9,932
02/28/02 8,060 8,836 9,957
03/31/02 8,332 9,169 9,971
04/30/02 7,072 8,613 9,347
05/31/02 6,348 8,549 9,153
06/30/02 5,604 7,940 8,307
07/31/02 5,676 7,321 8,126
08/31/02 5,424 7,369 8,213
09/30/02 5,196 6,568 7,679
10/31/02 5,666 7,147 8,130
11/30/02 6,063 7,567 8,336
12/31/02 5,393 7,123 8,031
01/31/03 5,244 6,936 7,991
02/28/03 5,124 6,832 7,836
03/31/03 5,401 6,898 8,099
04/30/03 5,971 7,467 8,374
05/31/03 7,010 7,860 8,514
06/30/03 6,813 7,960 8,875
07/31/03 7,423 8,101 8,739
08/31/03 7,303 8,259 8,402
09/30/03 7,287 8,171 8,428
10/31/03 7,283 8,633 8,484
11/30/03 7,371 8,709 8,607
12/31/03 7,664 9,166 9,100
01/31/04 8,037 9,334 9,348
02/29/04 8,077 9,464 9,412
03/31/04 7,953 9,321 9,019
04/30/04 8,041 9,175 9,295
05/31/04 7,833 9,300 9,262
06/30/04 7,800 9,481 9,230
07/31/04 7,006 9,168 8,730
08/31/04 7,038 9,205 8,866
09/30/04 7,367 9,304 8,700
10/31/04 7,086 9,446 8,507
11/30/04 7,367 9,829 8,637
12/31/04 7,748 10,163 9,121
01/31/05 7,339 9,915 8,826
02/28/05 7,046 10,124 9,082
03/31/05 6,741 9,945 9,029
04/30/05 6,878 9,756 9,332
05/31/05 7,182 10,067 9,407
06/30/05 7,263 10,081 9,367
07/31/05 7,969 10,456 9,580
08/31/05 8,226 10,360 9,526
09/30/05 8,258 10,444 9,467
10/31/05 8,073 10,270 9,181
11/30/05 8,467 10,659 9,252
12/31/05 8,575 10,662 9,564
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND 10.67% -3.24%
S&P 500 INDEX 4.91% 1.38%
S&P 500 HEALTH CARE INDEX 6.46% 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 AND THE S&P 500
HEALTH CARE INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE 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.]
BIOTECHNOLOGY FUND
BIOTECHNOLOGY 100%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Genentech, Inc. 10.8%
Amgen, Inc. 10.7%
Gilead Sciences, Inc. 5.5%
Genzyme Corp. 4.6%
Biogen Idec, Inc. 4.2%
Celgene Corp. 3.8%
Medimmune, Inc. 3.2%
Chiron Corp. 3.1%
Applera Corp. -
Applied Biosystems Group 2.5%
Amylin Pharmaceuticals, Inc. 2.4%
- -----------------------------------------------------
Top Ten Total 50.8%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
36 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
COMMODITIES FUND
OBJECTIVE: Seeks long-term capital appreciation through an investment in
commodity-linked instruments and seeks 100% (but at all times at least 80%)
exposure to the performance of the commodities market.
INCEPTION: September 30, 2005
Commodity prices fell sharply in the final quarter of 2005. Oil hit its yearly
high at the end of August after hurricane Katrina damaged oil rigs and severely
curtailed oil production in the Gulf of Mexico. Oil prices fell in October after
oil production was rebounding stronger than expected in the Gulf of Mexico and
hurricane Rita left major oil refineries untouched near Houston. Energy prices
rallied into early December as a cold winter was forecast across the nation.
Rydex Commodities Fund returned -11.34% for the year.
CUMULATIVE FUND PERFORMANCE: SEPTEMBER 30, 2005 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
GOLDMAN
SACHS
COMMODITIES S&P 500 COMMODITY
DATE FUND INDEX INDEX
-------- ------------ ------- ---------
09/30/05 10,000 10,000 9,998
10/01/05 10,000 10,000 9,998
10/02/05 10,000 10,000 9,998
10/03/05 10,000 9,983 9,946
10/04/05 9,856 9,884 9,814
10/05/05 9,724 9,741 9,692
10/06/05 9,496 9,701 9,432
10/07/05 9,500 9,737 9,453
10/08/05 9,500 9,737 9,453
10/09/05 9,500 9,737 9,453
10/10/05 9,504 9,667 9,422
10/11/05 9,700 9,648 9,631
10/12/05 9,716 9,591 9,672
10/13/05 9,560 9,584 9,523
10/14/05 9,472 9,663 9,432
10/15/05 9,472 9,663 9,432
10/16/05 9,472 9,663 9,432
10/17/05 9,668 9,692 9,651
10/18/05 9,468 9,594 9,451
10/19/05 9,380 9,739 9,363
10/20/05 9,176 9,593 9,161
10/21/05 9,220 9,607 9,184
10/22/05 9,220 9,607 9,184
10/23/05 9,220 9,607 9,184
10/24/05 9,108 9,769 9,125
10/25/05 9,520 9,746 9,494
10/26/05 9,328 9,704 9,298
10/27/05 9,284 9,604 9,273
10/28/05 9,252 9,763 9,219
10/29/05 9,252 9,763 9,219
10/30/05 9,252 9,763 9,219
10/31/05 8,992 9,833 8,966
11/01/05 8,964 9,799 8,928
11/02/05 8,876 9,898 8,874
11/03/05 9,092 9,943 9,074
11/04/05 8,976 9,945 8,948
11/05/05 8,976 9,945 8,948
11/06/05 8,976 9,945 8,948
11/07/05 8,904 9,967 8,891
11/08/05 8,912 9,938 8,894
11/09/05 8,840 9,955 8,838
11/10/05 8,688 10,041 8,680
11/11/05 8,716 10,072 8,695
11/12/05 8,716 10,072 8,695
11/13/05 8,716 10,072 8,695
11/14/05 8,752 10,064 8,709
11/15/05 8,640 10,027 8,618
11/16/05 8,768 10,047 8,770
11/17/05 8,648 10,141 8,635
11/18/05 8,596 10,187 8,567
11/19/05 8,596 10,187 8,567
11/20/05 8,596 10,187 8,567
11/21/05 8,628 10,241 8,590
11/22/05 8,732 10,294 8,700
11/23/05 8,652 10,330 8,647
11/24/05 8,652 10,330 8,647
11/25/05 8,644 10,352 8,655
11/26/05 8,644 10,352 8,655
11/27/05 8,644 10,352 8,655
11/28/05 8,520 10,265 8,524
11/29/05 8,464 10,267 8,451
11/30/05 8,648 10,205 8,621
12/01/05 8,800 10,329 8,819
12/02/05 9,028 10,333 9,003
12/03/05 9,028 10,333 9,003
12/04/05 9,028 10,333 9,003
12/05/05 9,056 10,309 9,045
12/06/05 9,032 10,322 8,993
12/07/05 9,004 10,272 8,954
12/08/05 9,284 10,261 9,237
12/09/05 9,060 10,290 9,061
12/10/05 9,060 10,290 9,061
12/11/05 9,060 10,290 9,061
12/12/05 9,288 10,299 9,277
12/13/05 9,368 10,357 9,381
12/14/05 9,260 10,401 9,267
12/15/05 9,084 10,387 9,093
12/16/05 8,896 10,357 8,905
12/17/05 8,896 10,357 8,905
12/18/05 8,896 10,357 8,905
12/19/05 8,876 10,297 8,858
12/20/05 8,860 10,295 8,868
12/21/05 8,948 10,321 8,936
12/22/05 8,793 10,367 8,798
12/23/05 8,701 10,373 8,733
12/24/05 8,701 10,373 8,733
12/25/05 8,701 10,373 8,733
12/26/05 8,701 10,373 8,733
12/27/05 8,545 10,274 8,563
12/28/05 8,773 10,289 8,764
12/29/05 8,769 10,259 8,773
12/30/05 8,866 10,209 8,868
12/31/05 8,866 10,209 8,868
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(09/30/05)
- --------------------------------------------------------------------------------
COMMODITIES FUND -11.34%
S&P 500 INDEX 2.09%
GOLDMAN SACHS COMMODITY INDEX -11.32%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE GOLDMAN
SACHS COMMODITY INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE THEIR REPORTED RETURNS.
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS
AND CAPITAL GAINS.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
COMMODITIES FUND
----------------
FUTURES CONTRACTS 5.4%
COMMODITY INDEX SWAP AGREEMENTS 94.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
The Fund invests principally in derivative instruments; such as commodity index
swap agreements, futures contracts, and options on index futures.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 37
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
manufacturing finished goods and services both domestically and internationally.
INCEPTION: May 29, 2001
In a reversal from the previous year, Rydex Consumer Products Fund had a return
of -0.40% and underperformed the S&P 500 Index. Higher energy prices affect
consumer spending and the costs of raw materials and transportation for the
suppliers. Food & staple retailing stocks returned 7.4% in the fund. Tobacco
stocks, helped by favorable court rulings, had the best return of 25.6%. Stocks
in the food products industry and personal products industry had returns of
- -5.4% and -6.3%, respectively. Makers of tissue paper, cleaning products and
batteries in the household products industry eked out a small gain of 1.2% while
beverages had no fizz and were flat for the year with a return of 0.4%.
CUMULATIVE FUND PERFORMANCE: MAY 29, 2001 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P 500
CONSUMER CONSUMER
DATE PRODUCTS FUND S&P 500 INDEX STAPLES INDEX*
---------- ------------- ------------- --------------
05/29/01 10,000 10,000 10,000
05/31/01 9,860 9,908 9,973
06/30/01 9,604 9,667 9,645
07/31/01 9,664 9,571 9,713
08/31/01 9,968 8,972 10,106
09/30/01 9,716 8,248 9,899
10/31/01 9,752 8,405 9,837
11/30/01 10,044 9,050 10,050
12/31/01 10,128 9,129 10,100
01/31/02 10,216 8,996 10,206
02/28/02 10,624 8,822 10,612
03/31/02 10,984 9,154 10,960
04/30/02 11,108 8,599 11,163
05/31/02 11,208 8,536 11,255
06/30/02 10,596 7,928 10,568
07/31/02 10,124 7,310 10,079
08/31/02 10,268 7,358 10,176
09/30/02 9,446 6,558 9,413
10/31/02 9,911 7,135 9,735
11/30/02 9,919 7,555 9,441
12/31/02 9,763 7,111 9,463
01/31/03 9,418 6,925 9,115
02/28/03 9,162 6,821 8,851
03/31/03 9,202 6,887 8,799
04/30/03 9,747 7,455 9,053
05/31/03 10,464 7,847 9,479
06/30/03 10,608 7,948 9,549
07/31/03 10,632 8,088 9,482
08/31/03 10,841 8,245 9,664
09/30/03 10,913 8,158 9,618
10/31/03 11,358 8,619 10,082
11/30/03 11,682 8,695 10,167
12/31/03 11,897 9,151 10,336
01/31/04 12,111 9,319 10,345
02/29/04 12,568 9,449 10,931
03/31/04 12,641 9,306 10,868
04/30/04 12,856 9,160 10,989
05/31/04 12,747 9,286 10,842
06/30/04 13,058 9,466 10,866
07/31/04 12,180 9,153 10,327
08/31/04 12,386 9,190 10,520
09/30/04 12,056 9,290 10,209
10/31/04 12,203 9,432 10,269
11/30/04 12,890 9,813 10,563
12/31/04 13,479 10,147 10,960
01/31/05 13,598 9,900 11,079
02/28/05 13,643 10,108 11,090
03/31/05 13,496 9,929 10,977
04/30/05 13,123 9,741 10,861
05/31/05 13,479 10,051 11,082
06/30/05 13,406 10,065 10,849
07/31/05 13,802 10,439 11,169
08/31/05 13,606 10,344 10,995
09/30/05 13,702 10,428 11,121
10/31/05 13,337 10,254 11,073
11/30/05 13,371 10,642 11,152
12/31/05 13,426 10,645 11,107
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/29/01)
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND -0.40% 6.63%
S&P 500 INDEX 4.91% 1.37%
S&P 500 CONSUMER STAPLES INDEX 3.58% 4.51%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
CONSUMER STAPLES INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE THEIR REPORTED RETURNS.
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS
AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
CONSUMER PRODUCTS FUND
FOOD PRODUCTS 35%
BEVERAGES 21%
HOUSEHOLD PRODUCTS 15%
FOOD & STAPLES RETAILING 13%
TOBACCO 11%
PERSONAL PRODUCTS 5%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------------
Altria Group, Inc. 6.3%
Procter & Gamble Co. 5.9%
PepsiCo, Inc. 5.0%
Coca-Cola Co. 4.9%
Kraft Foods, Inc. -- Class A 3.5%
Anheuser-Busch Cos., Inc. 2.9%
Kimberly-Clark Corp. 2.7%
Colgate-Palmolive Co. 2.6%
Sysco Corp. 2.2%
Kellogg Co. 2.1%
- -----------------------------------------------------
Top Ten Total 38.1%
- -----------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
38 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
ELECTRONICS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the electronics sector, including semiconductor manufacturers and
distributors, and makers and vendors of other electronic components and devices.
INCEPTION: August 3, 2001
The electronics industry clearly showed its high volatility and high systematic
risk. It proved again it is a highly-leveraged industry with strong sensitivity
to market sentiment. The year 2005 started with concerns on slowing economic and
CAPEX spending. Thus, the industry lost more 10% in the first months. When
complacency came back, proxied by a lower VIX, this industry strongly rebounded.
By October, when the market tanked, the industry dropped by around 7% and then
it recovered strongly during the year-end rally. Rydex Electronics Fund returned
3.87% for the year.
CUMULATIVE FUND PERFORMANCE: AUGUST 3, 2001 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P 500
INFORMATION
ELECTRONICS TECHNOLOGY
DATE FUND S&P 500 INDEX INDEX*
-------- ----------- ------------- -----------
08/03/01 10,000 10,000 10,000
08/31/01 8,824 9,347 8,437
09/30/01 6,068 8,592 6,777
10/31/01 7,312 8,756 7,954
11/30/01 8,432 9,427 9,310
12/31/01 8,256 9,510 9,128
01/31/02 8,504 9,371 9,253
02/28/02 7,568 9,190 7,954
03/31/02 8,696 9,536 8,446
04/30/02 7,864 8,958 7,399
05/31/02 7,308 8,892 7,113
06/30/02 5,900 8,258 6,247
07/31/02 5,164 7,615 5,726
08/31/02 4,688 7,665 5,654
09/30/02 3,643 6,832 4,662
10/31/02 4,482 7,433 5,701
11/30/02 5,674 7,870 6,660
12/31/02 4,276 7,408 5,698
01/31/03 4,043 7,214 5,602
02/28/03 4,319 7,106 5,737
03/31/03 4,147 7,175 5,667
04/30/03 4,676 7,766 6,178
05/31/03 5,484 8,175 6,695
06/30/03 5,244 8,279 6,690
07/31/03 5,764 8,425 7,060
08/31/03 6,753 8,589 7,461
09/30/03 6,125 8,498 7,410
10/31/03 7,222 8,979 8,013
11/30/03 7,627 9,058 8,137
12/31/03 7,261 9,533 8,351
01/31/04 7,450 9,708 8,641
02/29/04 7,166 9,843 8,357
03/31/04 6,908 9,694 8,133
04/30/04 6,035 9,542 7,753
05/31/04 6,685 9,673 8,135
06/30/04 6,534 9,861 8,358
07/31/04 5,433 9,535 7,727
08/31/04 4,848 9,574 7,310
09/30/04 4,998 9,677 7,522
10/31/04 5,338 9,825 7,916
11/30/04 5,480 10,223 8,295
12/31/04 5,665 10,570 8,529
01/31/05 5,132 10,313 8,081
02/28/05 5,553 10,530 8,079
03/31/05 5,205 10,343 7,892
04/30/05 4,835 10,147 7,580
05/31/05 5,424 10,470 8,162
06/30/05 5,368 10,485 8,018
07/31/05 5,953 10,875 8,488
08/31/05 5,867 10,776 8,462
09/30/05 5,833 10,863 8,484
10/31/05 5,403 10,682 8,297
11/30/05 6,065 11,086 8,822
12/31/05 5,884 11,090 8,562
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (08/03/01)
- --------------------------------------------------------------------------------
ELECTRONICS FUND 3.87% -11.33%
S&P 500 INDEX 4.91% 2.37%
S&P 500 INFORMATION TECHNOLOGY INDEX 0.99% -3.06%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
INFORMATION TECHNOLOGY INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND,
HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED
RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
ELECTRONICS FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
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. 10.7%
Texas Instruments, Inc. 6.0%
Applied Materials, Inc. 4.8%
Advanced Micro Devices, Inc. 3.3%
Broadcom Corp. -- Class A 3.1%
Analog Devices, Inc. 3.1%
Linear Technology Corp. 2.8%
Maxim Integrated Products, Inc. 2.7%
KLA-Tencor Corp. 2.7%
National Semiconductor Corp. 2.6%
- ---------------------------------------------
Top Ten Total 41.8%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 39
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
ENERGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies involved in the
energy field, including the exploration, production and development of oil, gas,
coal and alternative sources of energy.
INCEPTION: May 29, 2001
Surging crude oil prices, which were in the $70 range in late August, propelled
this sector to strong annual returns in 2005. Rydex Energy Fund gained 38.54%
for the year. Strong demand and constrained supply pushed energy prices higher
in 2005, as in the previous year. Economic expansion in the U.S. and Japan--as
well as the emergence of the economies of China and India--has kept demand for
crude strong. At the same time, supply has been less elastic. Hurricanes Katrina
and Rita did substantial damage to U.S. oil production in the Gulf of Mexico.
The Mineral Management Service estimates that output from this region is about
half the pre-hurricane level. Political unrest in producing nations including
Iraq, Venezuela and Nigeria also cast a pall over supply. The global "supply
cushion" is estimated to be only one to two million barrels a day, with Saudi
Arabia being the sole provider of this margin of safety. In summary, strong
demand and uncertain supply produced higher crude prices and higher profits for
oil producers in 2005.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: MAY 29, 2001 - DECEMBER 31, 2005
S&P 500 ENERGY
DATE ENERGY FUND S&P 500 INDEX INDEX*
-------- ----------- ------------- --------------
05/29/01 10,000 10,000 10,000
05/31/01 9,984 9,908 10,045
06/30/01 9,188 9,667 9,362
07/31/01 9,040 9,571 9,207
08/31/01 8,796 8,972 8,848
09/30/01 8,088 8,248 8,248
10/31/01 8,324 8,405 8,508
11/30/01 7,984 9,050 8,151
12/31/01 8,440 9,129 8,580
01/31/02 8,052 8,996 8,417
02/28/02 8,304 8,822 8,748
03/31/02 9,060 9,154 9,329
04/30/02 8,768 8,599 8,853
05/31/02 8,376 8,536 8,861
06/30/02 8,104 7,928 8,835
07/31/02 7,072 7,310 7,709
08/31/02 7,200 7,358 7,674
09/30/02 6,648 6,558 7,010
10/31/02 6,980 7,135 7,210
11/30/02 7,180 7,555 7,439
12/31/02 7,300 7,111 7,436
01/31/03 7,040 6,925 7,244
02/28/03 7,140 6,821 7,352
03/31/03 7,052 6,887 7,436
04/30/03 7,120 7,455 7,399
05/31/03 7,972 7,847 8,000
06/30/03 7,900 7,948 7,911
07/31/03 7,504 8,088 7,712
08/31/03 7,916 8,245 8,149
09/30/03 7,748 8,158 7,945
10/31/03 7,876 8,619 8,009
11/30/03 7,980 8,695 7,998
12/31/03 8,980 9,151 9,102
01/31/04 9,100 9,319 9,215
02/29/04 9,576 9,449 9,585
03/31/04 9,556 9,306 9,520
04/30/04 9,752 9,160 9,677
05/31/04 9,616 9,286 9,687
06/30/04 10,252 9,466 10,185
07/31/04 10,536 9,153 10,523
08/31/04 10,300 9,190 10,378
09/30/04 11,290 9,290 11,246
10/31/04 11,330 9,432 11,316
11/30/04 12,294 9,813 11,963
12/31/04 11,878 10,147 11,721
01/31/05 12,210 9,900 12,039
02/28/05 13,935 10,108 14,240
03/31/05 13,679 9,929 13,720
04/30/05 12,874 9,741 12,991
05/31/05 13,279 10,051 13,168
06/30/05 14,359 10,065 13,929
07/31/05 15,432 10,439 14,725
08/31/05 16,328 10,344 15,476
09/30/05 17,270 10,428 16,404
10/31/05 15,847 10,254 14,863
11/30/05 16,099 10,642 15,063
12/31/05 16,456 10,645 15,136
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/29/01)
- --------------------------------------------------------------------------------
ENERGY FUND 38.54% 11.46%
S&P 500 INDEX 4.91% 1.37%
S&P 500 ENERGY INDEX 31.37% 11.88%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
ENERGY INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE 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)
ENERGY FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Oil, Gas & Consumable Fuels 71%
Energy Equipment & Services 29%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ---------------------------------------------
Exxon Mobil Corp. 6.4%
BP PLC -- SP ADR 5.0%
Total SA -- SP ADR 4.3%
Royal Dutch Shell PLC -- SP ADR 3.8%
Chevron Corp. 3.7%
ConocoPhillips 2.9%
Schlumberger Ltd. 2.7%
Burlington Resources, Inc. 2.1%
Repsol YPF SA -- SP ADR 2.0%
Halliburton Co. 2.0%
- ---------------------------------------------
Top Ten Total 34.9%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
40 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the energy services field, including those that provide services and
equipment in the areas of oil, coal and gas exploration and production.
INCEPTION: May 2, 2001
High crude oil prices, fueled by a combination of strong demand and constrained
supply, produced rich profits for oil producers in 2005. In an effort to expand
production, these producers increased their spending with the oilfield services
companies that provide drilling rigs and associated products and services. This
produced a 48.30% gain for Rydex Energy Services Fund in 2005. Energy services
firms benefited not only from an increase in the number of drilling rigs in
service, but also from significant increases in day rates for those rigs. These
firms were front and center in the oil producers' efforts to increase global oil
supply.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2005
S&P 500
DATE ENERGY SERVICES FUND S&P 500 INDEX ENERGY INDEX*
-------- -------------------- ------------- -------------
05/02/01 10,000 10,000 10,000
05/31/01 10,376 9,923 10,409
06/30/01 8,272 9,682 9,702
07/31/01 7,620 9,587 9,541
08/31/01 6,660 8,986 9,168
09/30/01 5,700 8,261 8,547
10/31/01 6,772 8,418 8,817
11/30/01 6,584 9,064 8,447
12/31/01 7,096 9,143 8,892
01/31/02 6,836 9,010 8,722
02/28/02 7,112 8,836 9,066
03/31/02 7,844 9,169 9,668
04/30/02 7,976 8,613 9,174
05/31/02 7,776 8,549 9,182
06/30/02 6,864 7,940 9,156
07/31/02 5,940 7,321 7,989
08/31/02 6,060 7,369 7,952
09/30/02 5,571 6,568 7,264
10/31/02 5,944 7,147 7,472
11/30/02 6,296 7,567 7,709
12/31/02 6,239 7,123 7,706
01/31/03 5,953 6,936 7,506
02/28/03 6,278 6,832 7,619
03/31/03 5,983 6,898 7,705
04/30/03 6,048 7,467 7,668
05/31/03 7,029 7,860 8,290
06/30/03 6,690 7,960 8,198
07/31/03 6,083 8,101 7,991
08/31/03 6,513 8,259 8,444
09/30/03 6,122 8,171 8,233
10/31/03 6,083 8,633 8,300
11/30/03 6,027 8,709 8,288
12/31/03 6,764 9,166 9,432
01/31/04 7,198 9,334 9,550
02/29/04 7,641 9,464 9,933
03/31/04 7,411 9,321 9,866
04/30/04 7,402 9,175 10,028
05/31/04 7,111 9,300 10,038
06/30/04 7,753 9,481 10,555
07/31/04 8,044 9,168 10,905
08/31/04 7,914 9,205 10,754
09/30/04 8,782 9,304 11,654
10/31/04 8,556 9,446 11,726
11/30/04 9,198 9,829 12,397
12/31/04 9,046 10,163 12,146
01/31/05 9,415 9,915 12,476
02/28/05 10,444 10,124 14,757
03/31/05 10,235 9,945 14,218
04/30/05 9,415 9,756 13,462
05/31/05 9,827 10,067 13,646
06/30/05 10,713 10,081 14,434
07/31/05 11,958 10,456 15,260
08/31/05 12,674 10,360 16,038
09/30/05 13,151 10,444 16,999
10/31/05 12,387 10,270 15,402
11/30/05 13,060 10,659 15,610
12/31/05 13,416 10,662 15,685
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND 48.30% 6.50%
S&P 500 INDEX 4.91% 1.38%
S&P 500 ENERGY INDEX 31.37% 12.67%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
ENERGY INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE 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)
ENERGY SERVICES FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
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. 9.1%
Halliburton Co. 6.7%
Transocean, Inc. 6.2%
Baker Hughes, Inc. 5.6%
Weatherford International Ltd. 4.3%
Nabors Industries Ltd. 4.2%
BJ Services Co. 4.1%
Diamond Offshore Drilling, Inc. 3.9%
National Oilwell Varco, Inc. 3.9%
Noble Corp. 3.8%
- ---------------------------------------------
Top Ten Total 51.8%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 41
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies involved in the
financial services sector.
INCEPTION: July 20, 2001
Eight quarter-point increases in the Fed funds rates during 2005 made it
difficult for the financial services sector, which underperformed the S&P 500's
4.91% return. Rydex Financial Services Fund finished the year up 3.38%. For the
second year in a row, banks were the worst performing industry group in the
sector. Insurance, diversified financials, and real estate all had strong years.
The diversified financials were driven up by the outstanding year in investment
banking & brokerage while REITs--although cooling since 2004--remained a popular
investment due to their high dividends. Underperformers included regional banks
and thrifts & mortgage finance, which struggled throughout the year.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: JULY 20, 2001 - DECEMBER 31, 2005
S&P 500
FINANCIALS
DATE FINANCIAL SERVICES FUND S&P 500 INDEX INDEX*
-------- ----------------------- ------------- ----------
07/20/01 10,000 10,000 10,000
07/31/01 10,108 10,005 10,088
08/31/01 9,496 9,378 9,458
09/30/01 8,992 8,621 8,887
10/31/01 8,680 8,785 8,708
11/30/01 9,280 9,459 9,315
12/31/01 9,560 9,542 9,503
01/31/02 9,480 9,403 9,334
02/28/02 9,460 9,222 9,185
03/31/02 10,064 9,568 9,784
04/30/02 9,980 8,988 9,510
05/31/02 9,984 8,922 9,478
06/30/02 9,500 8,286 9,012
07/31/02 8,628 7,640 8,284
08/31/02 8,808 7,691 8,437
09/30/02 7,678 6,855 7,436
10/31/02 8,097 7,458 8,090
11/30/02 8,406 7,897 8,408
12/31/02 8,117 7,433 7,942
01/31/03 7,988 7,239 7,792
02/28/03 7,775 7,130 7,536
03/31/03 7,682 7,199 7,492
04/30/03 8,486 7,792 8,394
05/31/03 8,993 8,203 8,820
06/30/03 9,005 8,307 8,826
07/31/03 9,403 8,454 9,207
08/31/03 9,355 8,619 9,100
09/30/03 9,370 8,527 9,143
10/31/03 9,993 9,010 9,748
11/30/03 10,106 9,089 9,705
12/31/03 10,464 9,565 10,160
01/31/04 10,855 9,741 10,459
02/29/04 11,209 9,876 10,722
03/31/04 11,064 9,727 10,594
04/30/04 10,541 9,575 10,081
05/31/04 10,839 9,706 10,253
06/30/04 10,891 9,895 10,282
07/31/04 10,589 9,567 10,044
08/31/04 10,955 9,606 10,367
09/30/04 11,065 9,710 10,258
10/31/04 11,267 9,858 10,280
11/30/04 11,787 10,257 10,566
12/31/04 12,255 10,606 10,996
01/31/05 11,739 10,348 10,741
02/28/05 11,800 10,566 10,659
03/31/05 11,424 10,379 10,231
04/30/05 11,215 10,182 10,213
05/31/05 11,602 10,506 10,477
06/30/05 11,945 10,521 10,604
07/31/05 12,405 10,912 10,742
08/31/05 12,106 10,812 10,526
09/30/05 12,142 10,900 10,611
10/31/05 12,151 10,718 10,927
11/30/05 12,678 11,123 11,393
12/31/05 12,669 11,127 11,406
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (07/20/01)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND 3.38% 5.46%
S&P 500 INDEX 4.91% 2.43%
S&p 500 FINANCIALS INDEX 6.50% 5.44%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
FINANCIALS INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE 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)
FINANCIAL SERVICES FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Commercial Banks 25%
Insurance 24%
Real Estate 17%
Capital Markets 14%
Thrifts & Mortgage Finance 9%
Diversified Financial Services 6%
Consumer Finance 5%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ---------------------------------------------
American International Group, Inc. 1.9%
Citigroup, Inc. 1.7%
Bank of America Corp. 1.4%
Wachovia Corp. 1.3%
Capital One Financial Corp. 1.2%
J.P. Morgan Chase & Co. 1.2%
Freddie Mac 1.2%
Fannie Mae 1.1%
Goldman Sachs Group, Inc. 1.0%
Bank of New York Co., Inc. 1.0%
- ---------------------------------------------
Top Ten Total 13.0%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
42 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
HEALTH CARE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the health care industry.
INCEPTION: June 19, 2001
Two of the industries had substantial gains and two others were flat. The
overall return for the fund was 10.64% for 2005. Health care providers &
services was the best performing subsector with a return of 39.4%. "Big is
better" is the biotechnology story and the major companies like Amgen,
Genentech, Gilead Sciences and Genzyme Corp. boosted the performance of this
segment to 20.1%. Lingering litigation and generic competition plagued the
pharmaceuticals and led to a slight loss of 1.6%. Health care equipment and
supplies had a positive performance of 2.1%.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: JUNE 19, 2001 - DECEMBER 31, 2005
S&P 500
HEALTH CARE
DATE HEALTH CARE FUND S&P 500 INDEX INDEX*
-------- ---------------- ------------- -----------
06/19/01 10,000 10,000 10,000
06/30/01 9,552 10,100 9,363
07/31/01 9,852 10,000 9,858
08/31/01 9,516 9,374 9,491
09/30/01 9,480 8,617 9,628
10/31/01 9,436 8,781 9,573
11/30/01 9,796 9,455 10,024
12/31/01 9,528 9,538 9,698
01/31/02 9,356 9,399 9,598
02/28/02 9,360 9,218 9,622
03/31/02 9,416 9,564 9,637
04/30/02 8,848 8,984 9,033
05/31/02 8,740 8,918 8,846
06/30/02 7,856 8,283 8,028
07/31/02 7,640 7,637 7,854
08/31/02 7,736 7,687 7,937
09/30/02 7,273 6,852 7,421
10/31/02 7,538 7,455 7,857
11/30/02 7,674 7,894 8,056
12/31/02 7,498 7,430 7,761
01/31/03 7,510 7,235 7,723
02/28/03 7,342 7,127 7,573
03/31/03 7,526 7,196 7,827
04/30/03 7,943 7,789 8,093
05/31/03 8,488 8,199 8,229
06/30/03 8,688 8,304 8,577
07/31/03 9,017 8,450 8,446
08/31/03 8,944 8,615 8,119
09/30/03 8,964 8,523 8,145
10/31/03 9,205 9,006 8,199
11/30/03 9,433 9,085 8,318
12/31/03 9,730 9,561 8,794
01/31/04 10,103 9,737 9,034
02/29/04 10,167 9,872 9,096
03/31/04 10,010 9,723 8,716
04/30/04 10,131 9,571 8,983
05/31/04 10,095 9,702 8,951
06/30/04 10,167 9,891 8,920
07/31/04 9,501 9,563 8,437
08/31/04 9,598 9,602 8,568
09/30/04 9,662 9,706 8,408
10/31/04 9,438 9,854 8,221
11/30/04 9,751 10,253 8,347
12/31/04 10,335 10,602 8,815
01/31/05 10,047 10,343 8,530
02/28/05 10,271 10,561 8,777
03/31/05 10,177 10,374 8,726
04/30/05 10,409 10,177 9,019
05/31/05 10,644 10,501 9,092
06/30/05 10,701 10,516 9,053
07/31/05 11,038 10,907 9,258
08/31/05 11,107 10,808 9,206
09/30/05 11,091 10,895 9,149
10/31/05 10,827 10,713 8,873
11/30/05 11,172 11,119 8,941
12/31/05 11,436 11,122 9,243
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (06/19/01)
- --------------------------------------------------------------------------------
HEALTH CARE FUND 10.64% 3.00%
S&P 500 INDEX 4.91% 2.37%
S&P 500 HEALTH CARE INDEX 6.46% -0.30%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
HEALTH CARE INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS.
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS
AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
HEALTH CARE FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
PHARMACEUTICALS 33%
HEALTH CARE PROVIDERS & SERVICES 28%
HEALTH CARE EQUIPMENT & SUPPLIES 23%
BIOTECHNOLOGY 16%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ---------------------------------------------
Johnson & Johnson, Inc. 6.1%
Pfizer, Inc. 5.8%
Genentech, Inc. 3.7%
Amgen, Inc. 3.7%
UnitedHealth Group, Inc. 3.6%
Merck & Co., Inc. 3.0%
Medtronic, Inc. 2.9%
Eli Lilly & Co. 2.8%
Abbott Laboratories 2.7%
Wyeth 2.6%
- ---------------------------------------------
Top Ten Total 36.9%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 43
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
INTERNET FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that provide
products or services designed for or related to the Internet.
INCEPTION: May 24, 2001
For the first time in three years, Internet companies failed to outpaced the S&P
500 Index. Internet systems software companies (including Symantec, McAfee and
Check Point Software) had disappointing years, as did most Internet retailers
and Internet equipment makers, such as Cisco, Sun and Research In Motion. The
Internet software & services industry, which is dominated by Google and Yahoo,
drove the performance in the fund. Generally, improved company fundamentals
helped the industry. Rydex Internet Fund lost 1.38% for the year. Its modified
cap weight strategy (less emphasis of the large-cap names) placed less emphasis
on the large-cap Internet winners.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: MAY 24, 2001 - DECEMBER 31, 2005
S&P 500
INFORMATION
TECHNOLOGY
DATE INTERNET FUND S&P 500 INDEX INDEX*
-------- ------------- ------------- -----------
05/24/01 10,000 10,000 10,000
05/31/01 8,716 9,715 9,002
06/30/01 8,232 9,479 9,105
07/31/01 7,292 9,385 8,564
08/31/01 5,840 8,798 7,482
09/30/01 4,544 8,087 6,010
10/31/01 5,236 8,241 7,055
11/30/01 6,360 8,874 8,257
12/31/01 6,304 8,951 8,096
01/31/02 5,976 8,821 8,207
02/28/02 4,804 8,651 7,055
03/31/02 5,216 8,976 7,491
04/30/02 4,336 8,432 6,562
05/31/02 4,172 8,370 6,308
06/30/02 3,608 7,773 5,540
07/31/02 3,132 7,167 5,078
08/31/02 3,196 7,215 5,015
09/30/02 2,780 6,430 4,134
10/31/02 3,440 6,996 5,056
11/30/02 4,288 7,408 5,907
12/31/02 3,572 6,973 5,054
01/31/03 3,540 6,790 4,968
02/28/03 3,484 6,689 5,088
03/31/03 3,512 6,753 5,026
04/30/03 3,880 7,310 5,479
05/31/03 4,544 7,695 5,938
06/30/03 4,620 7,793 5,933
07/31/03 4,764 7,930 6,262
08/31/03 5,036 8,085 6,617
09/30/03 4,912 7,999 6,572
10/31/03 5,384 8,452 7,106
11/30/03 5,524 8,526 7,216
12/31/03 5,872 8,973 7,406
01/31/04 6,284 9,138 7,664
02/29/04 6,176 9,265 7,412
03/31/04 6,144 9,125 7,213
04/30/04 5,788 8,982 6,876
05/31/04 6,196 9,105 7,215
06/30/04 6,464 9,282 7,413
07/31/04 5,764 8,975 6,853
08/31/04 5,468 9,011 6,483
09/30/04 5,788 9,109 6,671
10/31/04 6,144 9,248 7,020
11/30/04 6,604 9,622 7,357
12/31/04 6,804 9,950 7,564
01/31/05 6,156 9,707 7,168
02/28/05 5,780 9,911 7,166
03/31/05 5,740 9,736 6,999
04/30/05 5,516 9,551 6,722
05/31/05 6,180 9,855 7,239
06/30/05 5,920 9,869 7,112
07/31/05 6,264 10,236 7,528
08/31/05 6,204 10,143 7,505
09/30/05 6,442 10,225 7,524
10/31/05 6,405 10,055 7,358
11/30/05 6,715 10,435 7,824
12/31/05 6,710 10,438 7,593
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/24/01)
- --------------------------------------------------------------------------------
INTERNET FUND -1.38% -8.30%
S&P 500 INDEX 4.91% 0.94%
S&P 500 INFORMATION TECHNOLOGY INDEX 0.99% -5.42%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
INFORMATION TECHNOLOGY INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND,
HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED
RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
INTERNET FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
OTHER 16%
DIVERSIFIED TELECOMMUNICATION SERVICES 25%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 23%
CAPITAL MARKETS 17%
COMMERCIAL SERVICES & SUPPLIES 13%
IT SERVICES 6%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ---------------------------------------------
Google, Inc. -- Class A 7.6%
Cisco Systems, Inc. 7.6%
Time Warner, Inc. 6.4%
Qualcomm, Inc. 6.1%
Yahoo!, Inc. 6.0%
eBay, Inc. 5.9%
Amazon.com, Inc. 3.4%
Symantec Corp. 3.0%
Sun Microsystems, Inc. 2.9%
Qwest Communications
International, Inc. 2.8%
- ---------------------------------------------
Top Ten Total 51.7%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
44 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
LEISURE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies in the leisure
and entertainment businesses.
INCEPTION: May 22, 2001
For the first time in four years, the leisure industry failed to outperform the
S&P 500 Index. Rydex Leisure Fund fell 4.87% for the year. Both media and
leisure equipment products experienced very difficult years. Some of last years'
big winners--for example, casinos & gaming as well as home entertainment
software--became losers this year. In fact, the only positive performers were
restaurants, leisure facilities and the hotel resorts & cruise line industry.
CUMULATIVE FUND PERFORMANCE: MAY 22, 2001 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P 500 CONSUMER
DISCRETIONARY
DATE LEISURE FUND S&P 500 INDEX INDEX*
-------- ------------ ------------- ----------------
05/22/01 10,000 10,000 10,000
05/31/01 9,528 9,595 9,536
06/30/01 9,488 9,362 9,388
07/31/01 8,792 9,270 9,415
08/31/01 7,872 8,689 8,414
09/30/01 6,136 7,988 7,346
10/31/01 6,368 8,140 7,513
11/30/01 6,980 8,764 8,530
12/31/01 7,236 8,841 8,734
01/31/02 7,504 8,712 8,656
02/28/02 7,424 8,544 8,760
03/31/02 7,828 8,865 8,917
04/30/02 8,060 8,328 8,553
05/31/02 8,020 8,267 8,533
06/30/02 7,608 7,678 7,842
07/31/02 7,000 7,079 6,919
08/31/02 6,876 7,126 7,096
09/30/02 6,292 6,351 6,482
10/31/02 6,312 6,910 6,900
11/30/02 6,572 7,317 7,234
12/31/02 6,168 6,887 6,599
01/31/03 5,908 6,707 6,382
02/28/03 5,676 6,606 6,324
03/31/03 5,912 6,670 6,494
04/30/03 6,272 7,220 7,244
05/31/03 6,688 7,600 7,609
06/30/03 6,952 7,697 7,717
07/31/03 7,180 7,833 7,882
08/31/03 7,380 7,985 8,272
09/30/03 7,320 7,901 7,875
10/31/03 7,908 8,348 8,576
11/30/03 8,124 8,421 8,648
12/31/03 8,320 8,863 8,980
01/31/04 8,580 9,025 8,907
02/29/04 9,004 9,151 9,087
03/31/04 9,148 9,013 9,073
04/30/04 8,796 8,871 8,928
05/31/04 8,708 8,993 8,987
06/30/04 8,836 9,168 9,029
07/31/04 8,500 8,864 8,668
08/31/04 8,392 8,900 8,653
09/30/04 8,812 8,997 8,903
10/31/04 8,990 9,134 9,263
11/30/04 9,615 9,504 9,629
12/31/04 10,305 9,827 10,071
01/31/05 10,111 9,588 9,650
02/28/05 10,106 9,789 9,600
03/31/05 10,131 9,616 9,477
04/30/05 9,591 9,434 8,862
05/31/05 10,033 9,734 9,376
06/30/05 9,891 9,748 9,363
07/31/05 10,098 10,110 9,885
08/31/05 9,729 10,018 9,538
09/30/05 9,504 10,099 9,259
10/31/05 9,384 9,931 9,072
11/30/05 9,839 10,306 9,416
12/31/05 9,804 10,310 9,330
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/22/01)
- --------------------------------------------------------------------------------
LEISURE FUND -4.87% -0.43%
S&P 500 INDEX 4.91% 0.66%
S&P 500 CONSUMER DISCRETIONARY INDEX -6.37% -0.55%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
CONSUMER DISCRETIONARY INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND,
HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE THEIR REPORTED
RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
LEISURE FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
HOTELS, RESTAURANTS & LEISURE 61%
MEDIA 23%
LEISURE EQUIPMENT & PRODUCTS 11%
SOFTWARE 5%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -------------------------------------------------
Time Warner, Inc. 5.3%
The Walt Disney Co. 4.3%
Viacom, Inc. Class B 4.1%
McDonald's Corp. 4.0%
Carnival Corp. 3.8%
News Corp. -- Class A 3.6%
Starbucks Corp. 3.2%
Marriott International, Inc. -- Class A 2.6%
Las Vegas Sands Corp. 2.5%
Yum! Brands, Inc. 2.4%
- -------------------------------------------------
Top Ten Total 35.8%
- -------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 45
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND
OBJECTIVE: To provide capital appreciation by investing in U.S. and foreign
companies that are involved in the precious metals sector, including
exploration, mining, production and development, and other precious
metals-related services.
INCEPTION: May 29, 1997
Precious metals stocks continued to exhibit weakness into the early spring of
2005. However, the sector regained its footing as investors looked to gold (and
companies associated with gold and precious metals mining) as a safe haven.
After falling nearly 15% in the first four months of the year, precious metals
stocks rallied as the XAU gained 30.55% by year-end. Rydex Precious Metals
Fund's methodology caused the fund to be underweighted in larger-cap stocks like
Barrick Gold and overweighted in small-cap stocks relative to the XAU. This led
to the fund's underperformance relative to the XAU, which consists of 12
precious metals mining companies. For the year, Rydex Precious Metals Fund
gained 20.89%.
CUMULATIVE FUND PERFORMANCE: MAY 29, 1997 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P 500
MATERIALS
DATE PRECIOUS METALS FUND S&P 500 INDEX INDEX*
-------- -------------------- ------------- ---------
05/29/97 10,000 10,000 10,000
06/30/97 8,870 10,500 10,368
09/30/97 9,990 11,287 10,774
12/31/97 7,020 11,611 9,790
03/31/98 7,650 13,230 10,810
06/30/98 6,610 13,667 10,407
09/30/98 6,730 12,308 8,772
12/31/98 5,810 14,929 9,009
03/31/99 5,240 15,673 9,077
06/30/99 5,740 16,777 10,894
09/30/99 6,499 15,730 9,953
12/31/99 5,602 18,070 11,078
03/31/00 4,611 18,485 9,667
06/30/00 4,797 17,994 8,177
09/30/00 4,323 17,819 7,495
12/31/00 4,446 16,425 9,114
03/31/01 4,333 14,478 8,547
06/30/01 4,890 15,325 9,414
09/30/01 5,179 13,076 8,265
12/31/01 5,024 14,473 9,206
03/31/02 6,603 14,513 10,169
06/30/02 6,819 12,568 9,899
09/30/02 6,541 10,397 7,581
12/31/02 7,314 11,274 8,497
03/31/03 6,272 10,919 7,830
06/30/03 7,139 12,600 8,848
09/30/03 8,202 12,933 9,350
12/31/03 10,306 14,508 11,450
03/31/04 10,255 14,754 11,189
06/30/04 8,129 15,008 11,409
09/30/04 9,532 14,728 11,749
12/31/04 8,841 16,087 12,686
03/31/05 8,243 15,741 12,846
06/30/05 8,057 15,957 11,566
09/30/05 9,553 16,532 11,721
12/31/05 10,688 16,877 12,958
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE FIVE INCEPTION
YEAR YEAR (05/29/97)
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND 20.89% 19.17% 0.78%
S&P 500 INDEX 4.91% 0.54% 6.28%
S&P 500 MATERIALS INDEX 4.69% 9.89% 5.40%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THe S&P 500
MATERIALS INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE 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)
PRECIOUS METALS FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
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 9.7%
Placer Dome, Inc. 6.8%
Barrick Gold Corp. 6.4%
Goldcorp, Inc. 6.1%
AngloGold Ashanti Ltd. -- SP ADR 5.4%
Gold Fields Ltd. -- SP ADR 4.6%
Glamis Gold Ltd. 4.1%
Harmony Gold Mining Co. Ltd. --
SP ADR 3.7%
Agnico-Eagle Mines Ltd. 3.4%
- ---------------------------------------------
Top Ten Total 64.1%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
46 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
REAL ESTATE FUND
OBJECTIVE: Seeks to provide capital appreciation by investing in companies that
are involved in the real estate industry including real estate investment trusts
("REITS").
INCEPTION: October 1, 2001
Since 1999, the REIT industry has easily outperformed the broader markets. REITs
outperformed again in 2005 with the S&P REIT Index gaining 5.93% versus 4.91%
for the S&P 500 Index. REITs have historically provided less volatility than the
broader markets; however, volatility increased in 2005 with REITs experiencing
greater price swings than the S&P 500. In fact, REIT volatility was double that
of the broader markets. REITs shook off rising interest rate fears at the
beginning of the year and benefited from steady and resilient economic growth.
Rydex Real Estate Fund gained 7.15% in 2005.
CUMULATIVE FUND PERFORMANCE: OCTOBER 1, 2001 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
S&P REIT
COMPOSITE
DATE REAL ESTATE FUND S&P 500 INDEX INDEX*
-------- ---------------- ------------- ---------
10/01/01 10,000 10,000 10,000
10/31/01 9,708 10,214 9,691
11/30/01 10,208 10,998 10,168
12/31/01 10,409 11,094 10,312
01/31/02 10,284 10,932 10,295
02/28/02 10,401 10,721 10,453
03/31/02 10,975 11,124 11,005
04/30/02 10,979 10,450 11,041
05/31/02 11,100 10,373 11,123
06/30/02 11,338 9,634 11,350
07/31/02 10,757 8,883 10,736
08/31/02 10,733 8,942 10,666
09/30/02 10,276 7,970 10,161
10/31/02 9,782 8,671 9,633
11/30/02 10,231 9,182 10,034
12/31/02 10,293 8,642 10,028
01/31/03 9,963 8,416 9,693
02/28/03 10,062 8,289 9,749
03/31/03 10,215 8,370 9,876
04/30/03 10,623 9,059 10,264
05/31/03 11,122 9,537 10,815
06/30/03 11,332 9,658 11,046
07/31/03 11,914 9,829 11,583
08/31/03 11,910 10,020 11,588
09/30/03 12,280 9,914 11,895
10/31/03 12,490 10,475 12,053
11/30/03 13,019 10,567 12,498
12/31/03 13,413 11,121 12,783
01/31/04 13,923 11,325 13,296
02/29/04 14,149 11,483 13,489
03/31/04 14,956 11,309 14,184
04/30/04 12,796 11,132 12,037
05/31/04 13,683 11,285 12,855
06/30/04 14,118 11,504 13,164
07/31/04 14,118 11,123 13,147
08/31/04 15,204 11,168 14,163
09/30/04 15,198 11,289 14,065
10/31/04 15,922 11,462 14,785
11/30/04 16,610 11,926 15,342
12/31/04 17,375 12,331 15,951
01/31/05 15,995 12,031 14,547
02/28/05 16,361 12,284 14,948
03/31/05 16,004 12,066 14,588
04/30/05 16,722 11,838 15,367
05/31/05 17,298 12,214 15,843
06/30/05 18,180 12,232 16,515
07/31/05 19,231 12,686 17,646
08/31/05 18,477 12,571 16,903
09/30/05 18,488 12,672 16,908
10/31/05 18,021 12,461 16,486
11/30/05 18,724 12,933 17,093
12/31/05 18,617 12,937 16,896
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (10/01/01)
- --------------------------------------------------------------------------------
REAL ESTATE FUND 7.15% 15.75%
S&P 500 INDEX 4.91% 6.25%
S&P REIT COMPOSITE INDEX 11.59% 20.35%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P
REIT COMPOSITE INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE 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)
REAL ESTATE FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
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. 2.6%
Equity Residential 2.1%
General Growth Properties, Inc. 2.1%
Equity Office Properties Trust 2.0%
Vornado Realty Trust 2.0%
Prologis 1.9%
Archstone-Smith Trust 1.8%
Boston Properties, Inc. 1.8%
Public Storage, Inc. 1.7%
Host Marriott Corp. 1.7%
- ---------------------------------------------
Top Ten Total 19.7%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 47
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
RETAILING FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
merchandising finished goods and services, including department stores,
restaurant franchises, mail-order operations and other companies involved in
selling products to consumers.
INCEPTION: July 23, 2001
Consumer confidence indices, while volatile, finished the year very close to
their starting point and retail sales growth remained positive for most of the
year. Rydex Retailing Fund, up 5.48%, slightly overperformed the S&P 500 Index.
Department stores, apparel retailers and catalog retail led the gainers.
Home-furnishing retail, Internet retail and food and staples retailers all
experienced negative returns. The fund's overweighted position in smaller-cap
stocks and the specialty retail segment helped the fund outperform the S&P 500
Index.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: JULY 23, 2001 - DECEMBER 31, 2005
S&P 500
CONSUMER
DISCRETIONARY
DATE RETAILING FUND S&P 500 INDEX INDEX*
-------- -------------- ------------- -------------
07/23/01 10,000 10,000 10,000
07/31/01 10,224 10,171 10,306
08/31/01 9,400 9,534 9,211
09/30/01 8,412 8,764 8,042
10/31/01 8,628 8,932 8,225
11/30/01 9,892 9,617 9,337
12/31/01 10,260 9,701 9,561
01/31/02 10,420 9,559 9,476
02/28/02 10,408 9,375 9,589
03/31/02 10,480 9,728 9,762
04/30/02 10,300 9,138 9,364
05/31/02 10,112 9,070 9,341
06/30/02 9,520 8,424 8,584
07/31/02 8,344 7,768 7,574
08/31/02 8,600 7,819 7,769
09/30/02 7,833 6,969 7,096
10/31/02 8,436 7,582 7,553
11/30/02 8,780 8,029 7,919
12/31/02 8,012 7,557 7,224
01/31/03 7,696 7,359 6,986
02/28/03 7,538 7,249 6,923
03/31/03 7,783 7,319 7,109
04/30/03 8,598 7,922 7,930
05/31/03 8,992 8,339 8,330
06/30/03 9,316 8,446 8,448
07/31/03 9,798 8,594 8,629
08/31/03 10,624 8,762 9,055
09/30/03 9,958 8,669 8,621
10/31/03 10,979 9,159 9,388
11/30/03 11,146 9,240 9,468
12/31/03 10,838 9,725 9,831
01/31/04 10,775 9,903 9,750
02/29/04 11,409 10,041 9,947
03/31/04 11,434 9,889 9,932
04/30/04 11,004 9,734 9,773
05/31/04 11,179 9,868 9,838
06/30/04 11,317 10,060 9,884
07/31/04 10,658 9,727 9,488
08/31/04 10,412 9,766 9,473
09/30/04 10,639 9,872 9,747
10/31/04 10,939 10,022 10,141
11/30/04 11,529 10,428 10,541
12/31/04 11,928 10,783 11,025
01/31/05 11,637 10,520 10,564
02/28/05 11,771 10,741 10,510
03/31/05 12,075 10,551 10,374
04/30/05 11,243 10,351 9,701
05/31/05 12,223 10,680 10,264
06/30/05 12,613 10,696 10,249
07/31/05 13,297 11,093 10,821
08/31/05 12,375 10,992 10,442
09/30/05 11,867 11,081 10,136
10/31/05 11,940 10,896 9,931
11/30/05 12,653 11,309 10,308
12/31/05 12,581 11,312 10,214
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (07/23/01)
- --------------------------------------------------------------------------------
RETAILING FUND 5.48% 5.31%
S&P 500 INDEX 4.91% 2.82%
S&P 500 CONSUMER DISCRETIONARY INDEX -6.37% 1.46%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
CONSUMER DISCRETIONARY INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND,
HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE THEIR REPORTED
RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
RETAILING FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
OTHER 2%
SPECIALTY RETAIL 57%
MULTILINE RETAIL 17%
FOOD & STAPLES RETAILING 15%
INTERNET & CATALOG RETAIL 9%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ---------------------------------------------
Wal-Mart Stores, Inc. 6.3%
Home Depot, Inc. 4.2%
eBay, Inc. 3.5%
Lowe's Cos., Inc. 3.2%
Target Corp. 3.1%
Walgreen Co. 2.9%
Costco Wholesale Corp. 2.4%
Best Buy Co., Inc. 2.0%
Amazon.com, Inc. 2.0%
CVS Corp. 1.9%
- ---------------------------------------------
Top Ten Total 31.5%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
48 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the technology sector, including computer software and service
companies, semiconductor manufacturers, networking and telecommunications
equipment manufacturers, PC hardware and peripherals companies.
INCEPTION: May 2, 2001
The best two industries in the technology sector were Internet software and IT
services. Due to rising broadband usage and high levels of innovations and
product enhancements, Internet software still had room to grow. IT services
continued to benefit from outsourcing to low-unit cost labor supply in India,
though it became more cyclical recently. Rydex Technology Fund returned 3.11%
for the year.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2005
S&P 500
INFORMATION
TECHNOLOGY
DATE TECHNOLOGY FUND S&P 500 INDEX INDEX*
-------- --------------- ------------- -----------
05/02/01 10,000 10,000 10,000
05/31/01 8,972 9,923 9,007
06/30/01 8,896 9,682 9,111
07/31/01 8,220 9,587 8,569
08/31/01 7,112 8,986 7,487
09/30/01 5,640 8,261 6,014
10/31/01 6,524 8,418 7,059
11/30/01 7,596 9,064 8,262
12/31/01 7,444 9,143 8,100
01/31/02 7,408 9,010 8,211
02/28/02 6,432 8,836 7,058
03/31/02 6,820 9,169 7,495
04/30/02 6,032 8,613 6,566
05/31/02 5,776 8,549 6,312
06/30/02 4,992 7,940 5,543
07/31/02 4,500 7,321 5,081
08/31/02 4,480 7,369 5,018
09/30/02 3,651 6,568 4,137
10/31/02 4,524 7,147 5,059
11/30/02 5,419 7,567 5,910
12/31/02 4,533 7,123 5,056
01/31/03 4,482 6,936 4,971
02/28/03 4,542 6,832 5,091
03/31/03 4,496 6,898 5,029
04/30/03 4,962 7,467 5,482
05/31/03 5,707 7,860 5,941
06/30/03 5,725 7,960 5,937
07/31/03 6,127 8,101 6,265
08/31/03 6,785 8,259 6,621
09/30/03 6,506 8,171 6,576
10/31/03 7,170 8,633 7,110
11/30/03 7,307 8,709 7,220
12/31/03 7,312 9,166 7,410
01/31/04 7,705 9,334 7,668
02/29/04 7,524 9,464 7,416
03/31/04 7,391 9,321 7,217
04/30/04 6,855 9,175 6,880
05/31/04 7,239 9,300 7,219
06/30/04 7,361 9,481 7,417
07/31/04 6,580 9,168 6,857
08/31/04 6,207 9,205 6,487
09/30/04 6,454 9,304 6,675
10/31/04 6,821 9,446 7,024
11/30/04 7,183 9,829 7,361
12/31/04 7,396 10,163 7,569
01/31/05 6,920 9,915 7,171
02/28/05 6,969 10,124 7,170
03/31/05 6,794 9,945 7,003
04/30/05 6,514 9,756 6,726
05/31/05 7,139 10,067 7,243
06/30/05 7,018 10,081 7,115
07/31/05 7,462 10,456 7,532
08/31/05 7,374 10,360 7,509
09/30/05 7,468 10,444 7,528
10/31/05 7,380 10,270 7,363
11/30/05 7,747 10,659 7,829
12/31/05 7,626 10,662 7,597
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
TECHNOLOGY FUND 3.11% -5.64%
S&P 500 INDEX 4.91% 1.38%
S&P 500 INFORMATION TECHNOLOGY INDEX 0.99% -5.34%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
INFORMATION TECHNOLOGY INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND,
HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED
RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
TECHNOLOGY FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
OTHER 1%
SOFTWARE 23%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 20%
COMPUTERS & PERIPHERALS 17%
COMMUNICATIONS EQUIPMENT 15%
IT SERVICES 11%
ELECTRONIC EQUIPMENT & INSTRUMENTS 7%
INTERNET SOFTWARE & SERVICES 6%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ---------------------------------------------
Microsoft Corp. 6.9%
Intel Corp. 4.4%
International Business Machines Corp. 3.9%
Cisco Systems, Inc. 3.3%
Google, Inc. -- Class A 2.9%
Hewlett-Packard Co. 2.7%
Qualcomm, Inc. 2.4%
Dell, Inc. 2.4%
Apple Computer, Inc. 2.3%
Oracle Corp. 2.3%
- ---------------------------------------------
Top Ten Total 33.5%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 49
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the
development, manufacture or sale of communications services or communications
equipment.
INCEPTION: July 27, 2001
Telecom had a tough year in 2005. When the market was in the difficult first
four months, the sector broke the usually strong correlation with the utilities
sector as a defensive play. It was among the worst performing sectors in the
first three quarters. When a rally occurred, it picked up the correlation with
the utilities sector but failed to make up the loss to beat the overall market
in the last quarter. Rydex Telecommunications Fund returned 1.16% for the year.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: JULY 27, 2001 - DECEMBER 31, 2005
S&P 500
TELECOMMUNICATIONS TELECOMMUNICATION
DATE FUND S&P 500 INDEX SERVICES INDEX*
-------- ------------------ ------------- -----------------
07/27/01 10,000 10,000 10,000
07/31/01 9,960 10,045 9,837
08/31/01 8,932 9,416 8,924
09/30/01 8,804 8,656 9,430
10/31/01 8,524 8,821 8,154
11/30/01 9,092 9,498 8,301
12/31/01 9,024 9,581 8,440
01/31/02 8,180 9,441 7,753
02/28/02 7,292 9,259 7,253
03/31/02 7,216 9,607 7,097
04/30/02 6,076 9,025 5,965
05/31/02 5,936 8,958 6,182
06/30/02 5,176 8,320 5,406
07/31/02 4,576 7,672 4,703
08/31/02 4,668 7,722 4,620
09/30/02 3,948 6,883 3,966
10/31/02 5,148 7,489 5,230
11/30/02 6,188 7,929 5,858
12/31/02 5,452 7,464 5,411
01/31/03 5,420 7,268 5,033
02/28/03 5,184 7,159 4,612
03/31/03 5,096 7,228 4,595
04/30/03 5,588 7,824 5,008
05/31/03 6,188 8,236 5,344
06/30/03 6,216 8,341 5,535
07/31/03 6,232 8,488 5,196
08/31/03 6,488 8,654 5,196
09/30/03 6,512 8,562 4,976
10/31/03 6,992 9,046 5,200
11/30/03 7,068 9,126 5,135
12/31/03 7,288 9,604 5,589
01/31/04 8,072 9,781 5,795
02/29/04 8,220 9,917 5,910
03/31/04 7,936 9,767 5,821
04/30/04 7,372 9,614 5,788
05/31/04 7,444 9,746 5,550
06/30/04 7,720 9,935 5,718
07/31/04 7,204 9,606 5,897
08/31/04 7,120 9,645 5,964
09/30/04 7,392 9,750 6,034
10/31/04 7,676 9,899 6,088
11/30/04 8,072 10,299 6,329
12/31/04 8,212 10,650 6,482
01/31/05 7,640 10,390 5,989
02/28/05 7,588 10,609 6,028
03/31/05 7,376 10,421 5,924
04/30/05 7,284 10,223 5,932
05/31/05 7,700 10,548 6,003
06/30/05 7,800 10,563 6,080
07/31/05 8,256 10,956 6,270
08/31/05 8,232 10,856 6,052
09/30/05 8,405 10,944 5,960
10/31/05 8,135 10,762 5,836
11/30/05 8,453 11,169 6,123
12/31/05 8,308 11,173 5,895
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (07/27/01)
- --------------------------------------------------------------------------------
TELECOMMUNICATONS FUND 1.16% -4.10%
S&P 500 INDEX 4.91% 2.53%
S&P 500 TELECOMMUNICATONS SERVICES INDEX -5.34% -8.37%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
TELECOMMUNICATIONS SERVICES INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE
FUND, HAVE NO MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE THEIR
REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND
REINVESTED DIVIDENDS AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
TELECOMMUNICATIONS FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
COMMUNICATIONS EQUIPMENT 55%
WIRELESS TELECOMMUNICATION SERVICES 22%
DIVERSIFIED TELECOMMUNICATION SERVICES 18%
MACHINERY 5%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- ---------------------------------------------
Cisco Systems, Inc. 6.0%
Vodafone Group PLC -- SP ADR 5.8%
Nokia OYJ -- SP ADR 5.2%
AT&T, Inc. 5.2%
Verizon Communications, Inc. 4.9%
Sprint Nextel Corp. 4.7%
Qualcomm, Inc. 4.6%
Motorola, Inc. 4.3%
Telefonaktiebolaget LM Ericsson --
SP ADR 3.9%
BellSouth Corp. 3.6%
- ---------------------------------------------
Top Ten Total 48.2%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
50 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TRANSPORTATION FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
providing transportation services or companies engaged in the design,
manufacture, distribution or sale of transportation equipment.
INCEPTION: June 11, 2001
Railroad and marine stocks did particularly well during 2005, rising 32.80% and
25.64% respectively. Strong demand for rail and water-based shipping services
helped drive these industries higher. In fact, demand for commercial
transportation services outstripped available rail capacity, allowing railroad
companies to increase rates. Airline stocks suffered through much of the year
before rallying in the fall. A fifth year of heavy losses wore down the industry
further with Delta and Northwest Airlines announcing bankruptcy filings in
September. However, signs of improving pricing power and a potential reduction
in competition (fewer airlines) bolstered these stocks and led to a rally in
airlines, which in turn assisted in the turnaround performance of the
transportation industry in the fourth quarter of 2005. The transportation
industry outperformed the S&P 500 Index in 2005. Rydex Transportation Fund was
up 8.48% for the year.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: JUNE 11, 2001 - DECEMBER 31, 2005
S&P 500
INDUSTRIALS
DATE TRANSPORTATION FUND S&P 500 INDEX INDEX*
-------- ------------------- ------------- -----------
06/11/01 10,000 10,000 10,000
06/30/01 10,008 9,766 9,810
07/31/01 10,184 9,670 9,473
08/31/01 9,760 9,064 9,056
09/30/01 8,112 8,332 7,934
10/31/01 8,392 8,491 8,091
11/30/01 9,448 9,143 8,838
12/31/01 9,760 9,223 9,224
01/31/02 10,312 9,088 8,735
02/28/02 10,412 8,913 8,937
03/31/02 10,584 9,248 9,071
04/30/02 9,704 8,687 8,221
05/31/02 9,820 8,623 8,233
06/30/02 9,748 8,009 7,750
07/31/02 8,652 7,385 7,418
08/31/02 8,404 7,433 7,248
09/30/02 8,004 6,625 6,366
10/31/02 8,484 7,209 6,607
11/30/02 8,780 7,633 7,018
12/31/02 8,620 7,184 6,681
01/31/03 7,940 6,996 6,355
02/28/03 7,608 6,891 6,239
03/31/03 7,860 6,958 6,315
04/30/03 8,704 7,531 6,984
05/31/03 8,972 7,928 7,166
06/30/03 8,904 8,029 7,280
07/31/03 9,316 8,171 7,488
08/31/03 9,568 8,330 7,794
09/30/03 9,508 8,242 7,576
10/31/03 10,204 8,708 8,000
11/30/03 10,200 8,785 8,109
12/31/03 10,388 9,245 8,668
01/31/04 9,900 9,415 8,761
02/29/04 9,888 9,546 8,664
03/31/04 9,936 9,402 8,544
04/30/04 10,004 9,254 8,528
05/31/04 10,220 9,381 8,719
06/30/04 11,000 9,564 9,225
07/31/04 10,444 9,247 9,030
08/31/04 10,440 9,285 8,998
09/30/04 10,838 9,385 9,180
10/31/04 11,700 9,528 9,278
11/30/04 12,337 9,914 9,807
12/31/04 12,776 10,251 10,050
01/31/05 11,927 10,001 9,778
02/28/05 12,102 10,212 9,821
03/31/05 11,931 10,031 9,846
04/30/05 11,005 9,841 9,545
05/31/05 11,663 10,154 9,757
06/30/05 11,289 10,168 9,473
07/31/05 12,224 10,547 9,786
08/31/05 11,793 10,450 9,548
09/30/05 12,140 10,535 9,655
10/31/05 12,616 10,359 9,544
11/30/05 13,605 10,751 10,074
12/31/05 13,860 10,755 10,086
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (06/11/01)
- --------------------------------------------------------------------------------
TRANSPORTATION FUND 8.48% 7.43%
S&P 500 INDEX 4.91% 1.61%
S&P 500 INDUSTRIALS INDEX 2.32% 2.00%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
INDUSTRIALS INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE 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)
TRANSPORTATION FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
OTHER 4%
ROAD & RAIL 48%
AIR FREIGHT & LOGISTICS 31%
AIRLINES 17%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -----------------------------------------------
United Parcel Service, Inc. -- Class B 9.5%
FedEx Corp. 8.0%
Burlington Northern Santa Fe Corp. 7.4%
Union Pacific Corp. 6.4%
Norfolk Southern Corp. 6.1%
Southwest Airlines Co. 5.0%
CSX Corp. 4.6%
Expeditors International
Washington, Inc. 3.9%
CH Robinson Worldwide, Inc. 3.6%
AMR Corp. 3.6%
- -----------------------------------------------
Top Ten Total 58.1%
- -----------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 51
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
UTILITIES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that operate
public utiltities.
INCEPTION: May 2, 2001
Despite a correction in the fourth quarter, Rydex Utilities Fund turned in a
solid 10.56% gain during 2005. During the first three quarters, the sector
appeared to be riding on the coattails of 2004, benefiting from investors'
appetite for its relatively high dividend yield (taxed at a favorable 15%
federal rate), as well as some merger activity. The fourth quarter performance
may signify a shift in investor focus to some of the challenges in the sector.
These include rich valuations, higher and increasing interest rate costs for
this capital-intensive sector, hurricane damage to facilities in the Gulf
states, rising fuel costs and a maze of regulatory issues.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
CUMULATIVE FUND PERFORMANCE: MAY 2, 2001 - DECEMBER 31, 2005
S&P 500
UTILITIES
DATE UTILITIES FUND S&P 500 INDEX INDEX*
-------- -------------- ------------- ---------
05/02/01 10,000 10,000 10,000
05/31/01 9,904 9,923 9,888
06/30/01 9,124 9,682 9,084
07/31/01 8,672 9,587 8,656
08/31/01 8,460 8,986 8,382
09/30/01 7,548 8,261 7,395
10/31/01 7,500 8,418 7,360
11/30/01 7,072 9,064 6,932
12/31/01 7,292 9,143 7,091
01/31/02 6,736 9,010 6,669
02/28/02 6,528 8,836 6,491
03/31/02 7,276 9,169 7,263
04/30/02 7,144 8,613 7,118
05/31/02 6,516 8,549 6,454
06/30/02 6,032 7,940 5,975
07/31/02 5,156 7,321 5,130
08/31/02 5,336 7,369 5,288
09/30/02 4,674 6,568 4,589
10/31/02 4,646 7,147 4,490
11/30/02 4,778 7,567 4,581
12/31/02 4,898 7,123 4,752
01/31/03 4,774 6,936 4,593
02/28/03 4,562 6,832 4,349
03/31/03 4,798 6,898 4,549
04/30/03 5,254 7,467 4,934
05/31/03 5,803 7,860 5,419
06/30/03 5,791 7,960 5,466
07/31/03 5,475 8,101 5,093
08/31/03 5,563 8,259 5,165
09/30/03 5,785 8,171 5,383
10/31/03 5,867 8,633 5,427
11/30/03 5,896 8,709 5,407
12/31/03 6,142 9,166 5,754
01/31/04 6,257 9,334 5,861
02/29/04 6,339 9,464 5,949
03/31/04 6,368 9,321 5,993
04/30/04 6,175 9,175 5,759
05/31/04 6,270 9,300 5,786
06/30/04 6,376 9,481 5,857
07/31/04 6,331 9,168 5,940
08/31/04 6,549 9,205 6,155
09/30/04 6,607 9,304 6,193
10/31/04 6,761 9,446 6,480
11/30/04 7,048 9,829 6,724
12/31/04 7,206 10,163 6,882
01/31/05 7,268 9,915 7,014
02/28/05 7,397 10,124 7,132
03/31/05 7,426 9,945 7,188
04/30/05 7,488 9,756 7,398
05/31/05 7,717 10,067 7,383
06/30/05 8,107 10,081 7,788
07/31/05 8,307 10,456 7,948
08/31/05 8,328 10,360 7,984
09/30/05 8,585 10,444 8,284
10/31/05 8,000 10,270 7,751
11/30/05 7,933 10,659 7,698
12/31/05 7,967 10,662 7,760
* DATA POINTS FOR THE LINE GRAPH DO NOT REFLECT THE REINVESTMENT OF
DIVIDENDS ON SECURITIES IN THE INDEX.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (05/02/01)
- --------------------------------------------------------------------------------
UTILITIES FUND 10.56% -4.75%
S&P 500 INDEX 4.91% 1.38%
S&P 500 UTILITIES INDEX 16.83% -1.52%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX AND THE S&P 500
UTILITIES INDEX ARE UNMANAGED STOCK INDICES AND, UNLIKE THE FUND, HAVE NO
MANAGEMENT FEES OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS.
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS
AND CAPITAL GAINS.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
UTILITIES FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
OTHER 1%
ELECTRIC UTILITIES 38%
MULTI-UTILITIES 35%
GAS UTILITIES 14%
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 12%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
Ten Largest Holdings (% of Total Net Assets)
- ---------------------------------------------
Exelon Corp. 3.5%
Dominion Resources, Inc./VA, 3.0%
Duke Energy Corp. 3.0%
Southern Co. 2.9%
TXU Corp. 2.8%
FirstEnergy Corp. 2.4%
Public Service Enterprise Group, Inc. 2.3%
FPL Group, Inc. 2.3%
Edison International 2.2%
PG&E Corp. 2.2%
- ---------------------------------------------
Top Ten Total 26.6%
- ---------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
52 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 75.1%
FINANCIALS 15.9%
BANKS 4.3%
Bank of America Corp.+ 26,510 $ 1,223,436
Wachovia Corp. 21,310 1,126,447
SunTrust Banks, Inc. 8,610 626,464
U.S. Bancorp 17,850 533,536
Wells Fargo & Co. 8,420 529,029
North Fork Bancorporation, Inc. 18,740 512,726
AmSouth Bancorp+ 18,020 472,304
Comerica, Inc. 8,100 459,756
Marshall & Ilsley Corp. 3,570 153,653
KeyCorp+ 1,120 36,882
-------------
TOTAL BANKS 5,674,233
-------------
INSURANCE 4.0%
American International Group, Inc. 16,890 1,152,405
Prudential Financial, Inc. 9,770 715,066
St. Paul Travelers Cos., Inc. 14,240 636,101
Hartford Financial Services
Group, Inc. 7,240 621,844
Chubb Corp.+ 5,760 562,464
Principal Financial Group, Inc. 10,570 501,335
UnumProvident Corp.+ 20,167 458,799
SAFECO Corp. 8,110 458,215
Genworth Financial, Inc. -- Class A 3,220 111,348
Aon Corp. 2,210 79,449
Loews Corp. 400 37,940
-------------
TOTAL INSURANCE 5,334,966
-------------
DIVERSIFIED FINANCIALS 2.4%
Citigroup, Inc. 49,580 2,406,117
J.P. Morgan Chase & Co. 20,420 810,470
Moody's Corp. 150 9,213
-------------
TOTAL DIVERSIFIED FINANCIALS 3,225,800
-------------
CAPITAL MARKETS 2.4%
Lehman Brothers Holdings, Inc.+ 5,510 706,217
Goldman Sachs Group, Inc. 5,250 670,477
Charles Schwab Corp. 35,080 514,623
Franklin Resources, Inc. 5,420 509,534
E*Trade Financial Corp.*+ 23,380 487,707
Merrill Lynch & Co., Inc. 2,190 148,329
Morgan Stanley 2,420 137,311
-------------
TOTAL CAPITAL MARKETS 3,174,198
-------------
THRIFTS & MORTGAGE FINANCE 1.2%
Washington Mutual, Inc.+ 18,350 798,225
Sovereign Bancorp, Inc.+ 21,650 468,073
Golden West Financial Corp. 5,550 366,300
Fannie Mae 120 5,857
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,638,455
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONSUMER FINANCE 1.0%
American Express Co. 12,510 $ 643,765
SLM Corp.+ 10,800 594,972
Capital One Financial Corp. 518 44,755
-------------
TOTAL CONSUMER FINANCE 1,283,492
-------------
REAL ESTATE 0.6%
Plum Creek Timber Co.,
Inc. (REIT) 12,290 443,054
Vornado Realty Trust 3,350 279,625
-------------
TOTAL REAL ESTATE 722,679
-------------
TOTAL FINANCIALS 21,053,823
-------------
INFORMATION TECHNOLOGY 11.4%
COMPUTERS & PERIPHERALS 2.8%
Dell, Inc.* 29,210 876,008
Hewlett-Packard Co. 30,540 874,360
International Business Machines
Corp.+ 9,470 778,434
Apple Computer, Inc.* 9,610 690,863
NCR Corp.*+ 13,360 453,438
-------------
TOTAL COMPUTERS & PERIPHERALS 3,673,103
-------------
SOFTWARE 2.7%
Microsoft Corp. 66,150 1,729,822
Autodesk, Inc. 11,170 479,752
Compuware Corp.* 47,360 424,819
Computer Associates
International, Inc.+ 13,730 387,049
Novell, Inc.* 31,029 273,986
Parametric Technology Corp.* 24,460 149,206
Oracle Corp.* 9,060 110,623
-------------
TOTAL SOFTWARE 3,555,257
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.4%
Intel Corp. 68,330 1,705,516
Nvidia Corp.* 12,580 459,925
Novellus Systems, Inc.*+ 16,141 389,321
LSI Logic Corp.* 46,197 369,576
Texas Instruments, Inc. 7,360 236,035
Freescale Semiconductor,
Inc. -- Class B* 940 23,660
National Semiconductor Corp.+ 500 12,990
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 3,197,023
-------------
COMMUNICATIONS EQUIPMENT 2.0%
Cisco Systems, Inc.* 72,840 1,247,021
Corning, Inc.* 31,710 623,418
Motorola, Inc. 25,446 574,825
Qualcomm, Inc. 5,310 228,755
-------------
TOTAL COMMUNICATIONS EQUIPMENT 2,674,019
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 53
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
IT CONSULTING & SERVICES 0.8%
Affiliated Computer Services,
Inc. -- Class A* 8,020 $ 474,623
Fiserv, Inc.*+ 10,780 466,451
First Data Corp. 1,670 71,827
Electronic Data Systems Corp. 2,080 50,003
Computer Sciences Corp.* 150 7,596
-------------
TOTAL IT CONSULTING & SERVICES 1,070,500
-------------
INTERNET SOFTWARE & SERVICES 0.3%
Yahoo!, Inc.*+ 10,970 429,805
-------------
TOTAL INTERNET SOFTWARE & SERVICES 429,805
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Jabil Circuit, Inc.* 9,230 342,341
Agilent Technologies, Inc.* 390 12,983
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 355,324
-------------
OFFICE ELECTRONICS 0.1%
Xerox Corp.* 8,380 122,767
-------------
TOTAL OFFICE ELECTRONICS 122,767
-------------
TOTAL INFORMATION TECHNOLOGY 15,077,798
-------------
HEALTH CARE 9.9%
PHARMACEUTICALS 4.8%
Pfizer, Inc. 82,240 1,917,837
Johnson & Johnson, Inc. 20,020 1,203,202
Abbott Laboratories 23,920 943,166
Merck & Co., Inc. 28,700 912,947
King Pharmaceuticals, Inc.* 27,198 460,190
Watson Pharmaceuticals, Inc.*+ 13,180 428,482
Bristol-Myers Squibb Co. 9,640 221,527
Eli Lilly & Co. 2,240 126,762
Wyeth 2,350 108,264
-------------
TOTAL PHARMACEUTICALS 6,322,377
-------------
HEALTH CARE PROVIDERS & SERVICES 2.4%
WellPoint, Inc.* 11,160 890,456
Aetna, Inc.+ 5,860 552,657
Express Scripts, Inc.* 5,850 490,230
Coventry Health Care, Inc.* 8,200 467,072
UnitedHealth Group, Inc. 5,070 315,050
HCA, Inc. 4,470 225,735
McKesson Corp. 3,580 184,692
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 3,125,892
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.6%
Stryker Corp. 11,130 494,506
Hospira, Inc.* 10,400 444,912
Baxter International, Inc. 10,150 382,147
Waters Corp.* 9,747 368,437
Medtronic, Inc. 3,686 212,203
Becton, Dickinson & Co. 3,180 191,054
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,093,259
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
BIOTECHNOLOGY 1.1%
Amgen, Inc.*+ 15,810 $ 1,246,777
Applera Corp. -- Applied
Biosystems Group+ 9,750 258,960
-------------
TOTAL BIOTECHNOLOGY 1,505,737
-------------
TOTAL HEALTH CARE 13,047,265
-------------
INDUSTRIALS 8.5%
INDUSTRIAL CONGLOMERATES 3.3%
General Electric Co. 100,900 3,536,545
Tyco International Ltd.+ 24,740 713,996
3M Co. 1,540 119,350
-------------
TOTAL INDUSTRIAL CONGLOMERATES 4,369,891
-------------
AEROSPACE & DEFENSE 1.7%
Lockheed Martin Corp.+ 9,408 598,631
Raytheon Co. 14,120 566,918
Boeing Co. 5,557 390,324
General Dynamics Corp. 2,410 274,860
Rockwell Collins, Inc. 5,730 266,273
United Technologies Corp. 1,680 93,929
L-3 Communications Holdings, Inc. 380 28,253
-------------
TOTAL AEROSPACE & DEFENSE 2,219,188
-------------
MACHINERY 1.1%
Cummins, Inc. 4,860 436,088
Navistar International Corp.* 14,400 412,128
Caterpillar, Inc. 5,560 321,201
Eaton Corp. 2,340 156,990
ITT Industries, Inc.+ 680 69,918
-------------
TOTAL MACHINERY 1,396,325
-------------
AIR FREIGHT & COURIERS 0.8%
United Parcel Service,
Inc. -- Class B 13,340 1,002,501
Ryder System, Inc. 100 4,102
-------------
TOTAL AIR FREIGHT & COURIERS 1,006,603
-------------
COMMERCIAL SERVICES & SUPPLIES 0.5%
Robert Half International, Inc. 11,820 447,860
R.R. Donnelley & Sons Co. 8,000 273,680
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 721,540
-------------
ROAD & RAIL 0.5%
Norfolk Southern Corp. 12,770 572,479
Burlington Northern Santa
Fe Corp. 1,270 89,941
-------------
TOTAL ROAD & RAIL 662,420
-------------
ELECTRICAL EQUIPMENT 0.4%
Rockwell Automation, Inc. 7,710 456,124
American Power Conversion
Corp. 360 7,920
-------------
TOTAL ELECTRICAL EQUIPMENT 464,044
-------------
54 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
BUILDING PRODUCTS 0.1%
Masco Corp.+ 3,550 $ 107,175
American Standard Cos., Inc. 1,760 70,312
-------------
TOTAL BUILDING PRODUCTS 177,487
-------------
AIRLINES 0.1%
Southwest Airlines Co.+ 6,060 99,566
-------------
TOTAL AIRLINES 99,566
-------------
CONSTRUCTION & ENGINEERING 0.0%
Fluor Corp. 750 57,945
-------------
TOTAL CONSTRUCTION & ENGINEERING 57,945
-------------
TRADING COMPANIES & DISTRIBUTORS 0.0%
W.W. Grainger, Inc. 650 46,215
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 46,215
-------------
TOTAL INDUSTRIALS 11,221,224
-------------
CONSUMER DISCRETIONARY 8.1%
MEDIA 2.5%
The Walt Disney Co. 33,040 791,969
McGraw-Hill Cos., Inc. 10,840 559,669
Gannett Co., Inc. 8,900 539,073
Tribune Co.+ 12,920 390,959
Time Warner, Inc. 19,970 348,277
News Corp. -- Class A 17,410 270,725
Omnicom Group, Inc. 2,190 186,435
Comcast Corp. -- Class A*+ 5,860 152,126
Viacom, Inc. -- Class B* 2,360 76,936
-------------
TOTAL MEDIA 3,316,169
-------------
SPECIALTY RETAIL 1.6%
Tiffany & Co.+ 10,930 418,510
RadioShack Corp. 18,210 382,956
Home Depot, Inc.+ 9,410 380,917
AutoZone, Inc.*+ 4,010 367,917
Sherwin-Williams Co. 6,690 303,860
Office Depot, Inc.* 2,860 89,804
The Gap, Inc.+ 4,990 88,024
Lowe's Cos., Inc. 1,250 83,325
AutoNation, Inc.* 3,070 66,711
-------------
TOTAL SPECIALTY RETAIL 2,182,024
-------------
HOTELS, RESTAURANTS & LEISURE 1.1%
McDonald's Corp. 20,933 705,861
Darden Restaurants, Inc.+ 12,200 474,336
Yum! Brands, Inc. 6,740 315,971
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,496,168
-------------
MULTILINE RETAIL 0.9%
Federated Department Stores, Inc. 8,380 555,846
Nordstrom, Inc. 12,800 478,720
Target Corp. 988 54,310
J.C. Penney Holding Co., Inc. 790 43,924
-------------
TOTAL MULTILINE RETAIL 1,132,800
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HOUSEHOLD DURABLES 0.6%
KB Home 6,139 $ 446,060
Pulte Homes, Inc. 4,350 171,216
Fortune Brands, Inc. 1,480 115,469
-------------
TOTAL HOUSEHOLD DURABLES 732,745
-------------
INTERNET & CATALOG RETAIL 0.4%
eBay, Inc.*+ 9,780 422,985
Amazon.com, Inc.*+ 2,620 123,533
-------------
TOTAL INTERNET & CATALOG RETAIL 546,518
-------------
TEXTILES & APPAREL 0.3%
Reebok International Ltd. 6,970 405,863
-------------
TOTAL TEXTILES & APPAREL 405,863
-------------
AUTOMOBILES 0.3%
Ford Motor Co.+ 45,150 348,558
-------------
TOTAL AUTOMOBILES 348,558
-------------
LEISURE EQUIPMENT & PRODUCTS 0.1%
Brunswick Corp. 4,110 167,113
Hasbro, Inc.+ 840 16,951
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 184,064
-------------
AUTO COMPONENTS 0.1%
Goodyear Tire & Rubber Co.*+ 9,940 172,757
-------------
TOTAL AUTO COMPONENTS 172,757
-------------
COMMERCIAL SERVICES & SUPPLIES 0.1%
H&R Block, Inc. 6,430 157,857
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 157,857
-------------
DISTRIBUTORS 0.1%
Genuine Parts Co. 1,520 66,758
-------------
TOTAL DISTRIBUTORS 66,758
-------------
TOTAL CONSUMER DISCRETIONARY 10,742,281
-------------
CONSUMER STAPLES 7.2%
FOOD & DRUG RETAILING 1.8%
Wal-Mart Stores, Inc. 13,440 628,992
CVS Corp. 21,620 571,200
Safeway, Inc.+ 20,550 486,213
Supervalu, Inc. 13,263 430,782
Whole Foods Market, Inc. 1,180 91,320
Costco Wholesale Corp.+ 1,710 84,594
Albertson's, Inc.+ 3,600 76,860
Walgreen Co.+ 660 29,212
-------------
TOTAL FOOD & DRUG RETAILING 2,399,173
-------------
HOUSEHOLD PRODUCTS 1.8%
Procter & Gamble Co. 37,033 2,143,470
Kimberly-Clark Corp. 2,890 172,388
-------------
TOTAL HOUSEHOLD PRODUCTS 2,315,858
-------------
BEVERAGES 1.6%
Coca-Cola Co. 18,670 752,588
PepsiCo, Inc. 8,090 477,957
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 55
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Constellation Brands, Inc. -- Class A* 17,801 $ 466,920
Coca-Cola Enterprises, Inc. 21,850 418,865
-------------
TOTAL BEVERAGES 2,116,330
-------------
TOBACCO 1.1%
Altria Group, Inc. 19,890 1,486,181
-------------
TOTAL TOBACCO 1,486,181
-------------
FOOD PRODUCTS 0.8%
General Mills, Inc. 11,130 548,932
Tyson Foods, Inc. -- Class A 26,670 456,057
Archer-Daniels-Midland Co.+ 2,370 58,444
-------------
TOTAL FOOD PRODUCTS 1,063,433
-------------
PERSONAL PRODUCTS 0.1%
Avon Products, Inc.+ 5,150 147,032
-------------
TOTAL PERSONAL PRODUCTS 147,032
-------------
TOTAL CONSUMER STAPLES 9,528,007
-------------
ENERGY 6.5%
OIL & GAS 5.7%
Exxon Mobil Corp. 53,490 3,004,533
ConocoPhillips+ 17,920 1,042,586
Chevron Corp. 13,020 739,146
Valero Energy Corp.+ 13,010 671,316
Occidental Petroleum Corp.+ 8,250 659,010
Burlington Resources, Inc.+ 6,170 531,854
Kerr-McGee Corp.+ 5,390 489,736
Marathon Oil Corp. 3,390 206,688
Sunoco, Inc.+ 1,150 90,137
EOG Resources, Inc.+ 1,220 89,511
-------------
TOTAL OIL & GAS 7,524,517
-------------
ENERGY EQUIPMENT & SERVICES 0.8%
Rowan Cos., Inc. 11,720 417,701
Transocean, Inc.* 5,750 400,717
Schlumberger Ltd.+ 2,620 254,533
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,072,951
-------------
TOTAL ENERGY 8,597,468
-------------
UTILITIES 3.0%
ELECTRIC UTILITIES 1.7%
TXU Corp. 11,900 597,261
Edison International 11,470 500,207
American Electric Power Co., Inc. 13,010 482,541
Entergy Corp. 4,253 291,968
Allegheny Energy, Inc.*+ 8,560 270,924
-------------
TOTAL ELECTRIC UTILITIES 2,142,901
-------------
MULTI-UTILITIES 1.3%
Duke Energy Corp.+ 23,147 635,385
CenterPoint Energy, Inc.+ 33,325 428,226
TECO Energy, Inc. 23,442 402,734
KeySpan Corp.+ 6,260 223,419
PG&E Corp. 980 36,378
-------------
TOTAL MULTI-UTILITIES 1,726,142
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
GAS UTILITIES 0.0%
Nicor, Inc.+ 680 $ 26,731
-------------
TOTAL GAS UTILITIES 26,731
-------------
TOTAL UTILITIES 3,895,774
-------------
MATERIALS 2.3%
CHEMICALS 1.2%
Dow Chemical Co. 15,410 675,266
Ashland, Inc.+ 7,526 435,755
Eastman Chemical Co. 7,940 409,625
-------------
TOTAL CHEMICALS 1,520,646
-------------
METALS & MINING 0.6%
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 8,830 475,054
Phelps Dodge Corp. 2,060 296,372
-------------
TOTAL METALS & MINING 771,426
-------------
PAPER & FOREST PRODUCTS 0.3%
Weyerhaeuser Co. 5,840 387,426
Louisiana-Pacific Corp.+ 2,260 62,082
-------------
TOTAL PAPER & FOREST PRODUCTS 449,508
-------------
CONTAINERS & PACKAGING 0.1%
Temple-Inland, Inc. 3,990 178,951
-------------
TOTAL CONTAINERS & PACKAGING 178,951
-------------
CONSTRUCTION MATERIALS 0.1%
Vulcan Materials Co. 890 60,298
-------------
TOTAL CONSTRUCTION MATERIALS 60,298
-------------
TOTAL MATERIALS 2,980,829
-------------
TELECOMMUNICATION SERVICES 2.3%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.7%
AT&T, Inc.+ 33,377 817,403
CenturyTel, Inc.+ 13,317 441,592
Citizens Communications Co.+ 34,760 425,115
Verizon Communications, Inc.+ 11,570 348,488
BellSouth Corp.+ 5,030 136,313
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 2,168,911
-------------
WIRELESS TELECOMMUNICATION SERVICES 0.6%
Sprint Nextel Corp. 34,700 810,592
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 810,592
-------------
TOTAL TELECOMMUNICATION SERVICES 2,979,503
-------------
TOTAL COMMON STOCKS
(Cost $89,957,202) 99,123,972
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 19.9%
Repurchase Agreement (Note 5)
3.45% due 01/03/06++ $ 2,901,432 2,901,432
3.40% due 01/03/06 5,725,021 5,725,021
3.39% due 01/03/06 5,892,883 5,892,883
3.30% due 01/03/06 5,892,883 5,892,883
2.90% due 01/03/06 5,892,883 5,892,883
-------------
56 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
NOVA FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $26,305,102) $ 26,305,102
-------------
SECURITIES LENDING COLLATERAL 8.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) $ 10,543,447 10,543,447
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $10,543,447) 10,543,447
-------------
TOTAL INVESTMENTS 103.0%
(Cost $126,805,751) $ 135,972,521
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (3.0)% $ (3,954,429)
=============
NET ASSETS - 100.0% $ 132,018,092
- -------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $64,428,263) 1,029 $ (1,020,715)
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
March 2006 S&P 500 Index Swap,
Maturing 03/29/06**
(Notional Market Value
$34,585,981) 27,707 $ (246,378)
=============
* NON-INCOME PRODUCING SECURITY.
** PRICE RETURN BASED ON S&P 500 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
REIT -- REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 57
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
URSA FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 24.5%
Farmer Mac*
4.11% due 02/16/06 $ 2,000,000 $ 1,989,953
Federal Farm Credit Bank*
4.15% due 01/20/06 2,000,000 1,996,081
Federal Home Loan Bank*
4.09% due 01/09/06 2,000,000 1,998,637
Freddie Mac*
4.19% due 01/30/06 2,000,000 1,993,715
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $7,978,386) 7,978,386
-------------
REPURCHASE AGREEMENTS 71.3%
Repurchase Agreement (Note 5)
3.45% due 01/03/06+ 541,822 541,822
3.40% due 01/03/06 5,534,131 5,534,131
3.39% due 01/03/06 5,696,394 5,696,394
3.30% due 01/03/06 5,696,394 5,696,394
2.90% due 01/03/06 5,696,394 5,696,394
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $23,165,135) 23,165,135
-------------
TOTAL INVESTMENTS 95.8%
(Cost $31,143,521) $ 31,143,521
=============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 4.2% $ 1,361,872
=============
NET ASSETS - 100.0% $ 32,505,393
- -------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2006 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $26,735,538) 427 $ 503,981
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT SOLD SHORT
March 2006 S&P 500 Index Swap,
Maturing 03/29/06**
(Notional Market Value $5,375,188) 4,306 $ 33,430
=============
* 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 500 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
58 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 94.5%
INFORMATION TECHNOLOGY 56.0%
SOFTWARE 17.0%
Microsoft Corp. 225,335 $ 5,892,511
Oracle Corp.* 156,163 1,906,750
BEA Systems, Inc.* 173,440 1,630,336
Check Point Software
Technologies Ltd.*+ 72,893 1,465,149
Symantec Corp.* 83,123 1,454,653
Adobe Systems, Inc. 34,491 1,274,787
Autodesk, Inc. 25,216 1,083,027
Electronic Arts, Inc.*+ 19,594 1,024,962
Intuit, Inc.*+ 11,720 624,676
Citrix Systems, Inc.* 20,344 585,500
Mercury Interactive Corp.* 18,330 509,391
-------------
TOTAL SOFTWARE 17,451,742
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 12.8%
Intel Corp. 199,151 4,970,809
Lam Research Corp.*+ 41,551 1,482,540
Novellus Systems, Inc.*+ 57,470 1,386,176
Maxim Integrated Products, Inc.+ 34,828 1,262,167
Marvell Technology Group Ltd.* 20,710 1,161,624
Broadcom Corp. -- Class A* 23,080 1,088,222
Microchip Technology, Inc. 21,036 676,307
Linear Technology Corp. 9,840 354,929
Intersil Corp. -- Class A 9,740 242,331
Altera Corp.* 12,160 225,325
Xilinx, Inc.+ 8,230 207,478
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 13,057,908
-------------
COMMUNICATIONS EQUIPMENT 11.8%
Qualcomm, Inc. 143,186 6,168,453
Cisco Systems, Inc.* 220,165 3,769,225
Research In Motion, Ltd.*+ 16,651 1,099,132
Juniper Networks, Inc.*+ 31,594 704,546
JDS Uniphase Corp.* 80,060 188,942
Telefonaktiebolaget LM
Ericsson -- SP ADR+ 4,750 163,400
-------------
TOTAL COMMUNICATIONS EQUIPMENT 12,093,698
-------------
COMPUTERS & PERIPHERALS 9.9%
Apple Computer, Inc.* 85,226 6,126,897
Dell, Inc.* 81,795 2,453,032
Sandisk Corp.*+ 14,783 928,668
QLogic Corp.* 19,252 625,883
-------------
TOTAL COMPUTERS & PERIPHERALS 10,134,480
-------------
IT CONSULTING & SERVICES 2.2%
Fiserv, Inc.*+ 26,409 1,142,717
Paychex, Inc.+ 18,730 713,988
Cognizant Technology Solutions
Corp.* 8,642 435,125
-------------
TOTAL IT CONSULTING & SERVICES 2,291,830
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES 1.4%
Yahoo!, Inc.*+ 24,330 $ 953,250
VeriSign, Inc.*+ 21,135 463,279
-------------
TOTAL INTERNET SOFTWARE & SERVICES 1,416,529
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.9%
Flextronics International Ltd.*+ 41,411 432,331
CDW Corp.+ 5,963 343,290
Sanmina-SCI Corp.*+ 29,610 126,138
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 901,759
-------------
TOTAL INFORMATION TECHNOLOGY 57,347,946
-------------
CONSUMER DISCRETIONARY 17.8%
MEDIA 5.0%
Comcast Corp. -- Class A*+ 65,213 1,692,930
EchoStar Communications Corp.*+ 43,914 1,193,143
Sirius Satellite Radio, Inc.*+ 87,811 588,334
Lamar Advertising Co.* 10,408 480,225
NTL, Inc.*+ 6,613 450,213
Pixar*+ 7,370 388,546
Liberty Global, Inc. -- Class A* 13,570 305,325
-------------
TOTAL MEDIA 5,098,716
-------------
INTERNET & CATALOG RETAIL 4.6%
eBay, Inc.*+ 72,351 3,129,181
Amazon.com, Inc.*+ 18,088 852,849
IAC/InterActiveCorp*+ 25,632 725,642
-------------
TOTAL INTERNET & CATALOG RETAIL 4,707,672
-------------
HOTELS, RESTAURANTS & LEISURE 2.7%
Starbucks Corp.* 79,796 2,394,678
Wynn Resorts Ltd.*+ 6,380 349,943
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 2,744,621
-------------
SPECIALTY RETAIL 2.3%
Staples, Inc. 47,071 1,068,982
Bed Bath & Beyond, Inc.* 23,300 842,295
Ross Stores, Inc. 12,068 348,765
Petsmart, Inc.+ 4,630 118,806
-------------
TOTAL SPECIALTY RETAIL 2,378,848
-------------
MULTILINE RETAIL 1.6%
Sears Holdings Corp.*+ 14,648 1,692,283
-------------
TOTAL MULTILINE RETAIL 1,692,283
-------------
COMMERCIAL SERVICES & SUPPLIES 1.1%
Apollo Group, Inc. -- Class A*+ 12,354 746,923
Career Education Corp.*+ 10,535 355,240
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,102,163
-------------
HOUSEHOLD DURABLES 0.5%
Garmin Ltd.+ 8,199 544,004
-------------
TOTAL HOUSEHOLD DURABLES 544,004
-------------
TOTAL CONSUMER DISCRETIONARY 18,268,307
-------------
HEALTH CARE 14.8%
BIOTECHNOLOGY 10.4%
Amgen, Inc.*+ 47,973 3,783,151
Gilead Sciences, Inc.*+ 31,707 1,668,740
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 59
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Genzyme Corp.* 22,994 $ 1,627,515
Biogen Idec, Inc.*+ 25,056 1,135,789
Celgene Corp.*+ 12,038 780,062
Chiron Corp.* 16,276 723,631
Invitrogen Corp.*+ 7,410 493,802
Medimmune, Inc.* 13,150 460,513
-------------
TOTAL BIOTECHNOLOGY 10,673,203
-------------
PHARMACEUTICALS 1.8%
Teva Pharmaceutical Industries
Ltd. -- SP ADR+ 35,036 1,506,898
Sepracor, Inc.*+ 7,601 392,212
-------------
TOTAL PHARMACEUTICALS 1,899,110
-------------
HEALTH CARE PROVIDERS & SERVICES 1.4%
Express Scripts, Inc.* 9,688 811,854
Patterson Cos., Inc.*+ 10,118 337,941
Lincare Holdings, Inc.* 6,080 254,813
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,404,608
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.2%
Biomet, Inc.+ 23,918 874,681
DENTSPLY International, Inc. 5,723 307,268
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,181,949
-------------
TOTAL HEALTH CARE 15,158,870
-------------
INDUSTRIALS 3.1%
AIR FREIGHT & COURIERS 0.9%
Expeditors International
Washington, Inc.+ 7,729 521,785
CH Robinson Worldwide, Inc. 11,551 427,733
-------------
TOTAL AIR FREIGHT & COURIERS 949,518
-------------
MACHINERY 0.9%
Paccar, Inc.+ 13,700 948,451
-------------
TOTAL MACHINERY 948,451
-------------
COMMERCIAL SERVICES & SUPPLIES 0.6%
Cintas Corp. 14,376 592,004
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 592,004
-------------
TRADING COMPANIES & DISTRIBUTORS 0.4%
Fastenal Co.+ 10,724 420,274
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 420,274
-------------
ELECTRICAL EQUIPMENT 0.3%
American Power Conversion Corp. 13,928 306,416
-------------
TOTAL ELECTRICAL EQUIPMENT 306,416
-------------
TOTAL INDUSTRIALS 3,216,663
-------------
CONSUMER STAPLES 1.6%
FOOD & DRUG RETAILING 1.6%
Costco Wholesale Corp.+ 16,893 835,697
Whole Foods Market, Inc.+ 9,932 768,637
-------------
TOTAL FOOD & DRUG RETAILING 1,604,334
-------------
TOTAL CONSUMER STAPLES 1,604,334
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 0.7%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.7%
MCI, Inc. 25,768 $ 508,403
Level 3 Communications, Inc.*+ 54,447 156,263
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 664,666
-------------
TOTAL TELECOMMUNICATION SERVICES 664,666
-------------
MATERIALS 0.5%
CONTAINERS & PACKAGING 0.3%
Smurfit-Stone Container Corp.*+ 19,440 275,465
-------------
TOTAL CONTAINERS & PACKAGING 275,465
-------------
CHEMICALS 0.2%
Sigma-Aldrich Corp.+ 3,920 248,097
-------------
TOTAL CHEMICALS 248,097
-------------
TOTAL MATERIALS 523,562
-------------
TOTAL COMMON STOCKS
(Cost $69,577,443) 96,784,348
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 4.8%
Repurchase Agreement (Note 5)
3.45% due 01/03/06++ $ 322,848 322,848
3.40% due 01/03/06 1,125,701 1,125,701
3.39% due 01/03/06 1,158,708 1,158,708
3.30% due 01/03/06 1,158,708 1,158,708
2.90% due 01/03/06 1,158,708 1,158,708
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $4,924,673) 4,924,673
-------------
SECURITIES LENDING COLLATERAL 18.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 18,877,210 18,877,210
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $18,877,210) 18,877,210
-------------
TOTAL INVESTMENTS 117.7%
(Cost $93,379,326) $ 120,586,231
=============
LIABILITIES IN EXCESS
OF OTHER ASSETS - (17.7)% $ (18,099,188)
=============
NET ASSETS - 100.0% $ 102,487,043
- --------------------------------------------------------------------------------
60 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $1,822,150) 55 $ (42,447)
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
March 2006 Nasdaq 100 Index
Swap, Maturing 03/29/06**
(Notional Market Value $3,885,582) 2,362 $ (44,703)
=============
* NON-INCOME PRODUCING SECURITY.
** 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, 2005 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
ADR -- AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 61
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
ARKTOS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 35.5%
Farmer Mac*
4.21% due 02/03/06 $ 1,000,000 $ 996,375
Federal Farm Credit Bank*
4.15% due 01/20/06 2,000,000 1,996,080
Federal Home Loan Bank*
4.09% due 01/09/06 2,000,000 1,998,637
Freddie Mac*
4.19% due 01/30/06 2,000,000 1,993,715
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $6,984,807) 6,984,807
-------------
REPURCHASE AGREEMENTS 66.3%
Repurchase Agreement (Note 5)
3.45% due 01/03/06+ 798,380 798,380
3.40% due 01/03/06+ 3,552,115 3,552,115
3.39% due 01/03/06 2,889,759 2,889,759
3.30% due 01/03/06 2,889,759 2,889,759
2.90% due 01/03/06 2,889,759 2,889,759
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $13,019,772) 13,019,772
-------------
TOTAL INVESTMENTS 101.8%
(Cost $20,004,579) $ 20,004,579
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (1.8)% $ (356,252)
=============
NET ASSETS - 100.0% $ 19,648,327
- -------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2006 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $5,532,710) 167 $ 134,755
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT
March 2006 Nasdaq 100 Index
Swap, Maturing 03/14/06**
(Notional Market Value $7,228,443) 4,394 $ 230,460
March 2006 Nasdaq 100 Index
Swap, Maturing 03/29/06**
(Notional Market Value $6,849,035) 4,163 95,418
-------------
(TOTAL NOTIONAL MARKET
VALUE $14,077,478) $ 325,878
=============
* 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 EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
62 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 73.9%
FINANCIALS 15.7%
BANKS 4.2%
Bank of America Corp.+ 6,695 $ 308,974
Wells Fargo & Co. 2,790 175,296
Wachovia Corp. 2,590 136,908
U.S. Bancorp 3,027 90,477
SunTrust Banks, Inc. 599 43,583
BB&T Corp.+ 899 37,677
Fifth Third Bancorp+ 920 34,702
National City Corp.+ 920 30,884
PNC Financial Services Group, Inc. 490 30,297
Regions Financial Corp.+ 759 25,928
KeyCorp+ 680 22,392
North Fork Bancorporation, Inc. 789 21,587
Comerica, Inc. 280 15,893
Marshall & Ilsley Corp. 354 15,236
AmSouth Bancorp+ 576 15,097
M&T Bank Corp. 130 14,177
Synovus Financial Corp. 520 14,045
Zions Bancorporation 170 12,845
Compass Bancshares, Inc. 210 10,141
Huntington Bancshares, Inc. 380 9,025
First Horizon National Corp. 210 8,072
-------------
TOTAL BANKS 1,073,236
-------------
INSURANCE 3.7%
American International Group, Inc. 4,328 295,299
MetLife, Inc.+ 1,262 61,838
Prudential Financial, Inc. 838 61,333
Allstate Corp. 1,080 58,396
St. Paul Travelers Cos., Inc. 1,148 51,281
Hartford Financial Services Group, Inc. 500 42,945
Progressive Corp.+ 330 38,537
AFLAC, Inc. 828 38,436
Chubb Corp.+ 331 32,322
ACE Ltd. 545 29,125
Marsh & McLennan Cos., Inc.+ 910 28,902
Principal Financial Group, Inc. 475 22,529
Loews Corp. 230 21,815
Genworth Financial, Inc. -- Class A 630 21,785
XL Capital Ltd. 290 19,540
Aon Corp. 530 19,054
Lincoln National Corp.+ 290 15,379
Ambac Financial Group, Inc.+ 180 13,871
MBIA, Inc. 220 13,235
Cincinnati Financial Corp. 289 12,913
Jefferson-Pilot Corp. 220 12,525
SAFECO Corp. 210 11,865
UnumProvident Corp.+ 499 11,352
Torchmark Corp. 170 9,452
-------------
TOTAL INSURANCE 943,729
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS 2.7%
Citigroup, Inc. 8,430 $ 409,108
J.P. Morgan Chase & Co. 5,830 231,393
Moody's Corp. 410 25,182
CIT Group, Inc. 330 17,087
-------------
TOTAL DIVERSIFIED FINANCIALS 682,770
-------------
CAPITAL MARKETS 2.4%
Merrill Lynch & Co., Inc. 1,530 103,627
Morgan Stanley 1,800 102,132
Goldman Sachs Group, Inc. 750 95,782
Lehman Brothers Holdings, Inc.+ 450 57,676
Bank of New York Co., Inc. 1,280 40,768
State Street Corp. 550 30,492
Charles Schwab Corp. 1,720 25,232
Mellon Financial Corp. 698 23,907
Franklin Resources, Inc. 250 23,503
Bear Stearns Cos., Inc. 190 21,951
Ameriprise Financial, Inc. 410 16,810
Northern Trust Corp. 314 16,271
T. Rowe Price Group, Inc. 220 15,847
E*Trade Financial Corp.*+ 680 14,185
Janus Capital Group, Inc. 360 6,707
Federated Investors, Inc. -- Class B 140 5,186
-------------
TOTAL CAPITAL MARKETS 600,076
-------------
THRIFTS & MORTGAGE FINANCE 1.2%
Fannie Mae 1,607 78,438
Freddie Mac 1,152 75,283
Washington Mutual, Inc.+ 1,639 71,296
Countrywide Financial Corp. 999 34,156
Golden West Financial Corp. 416 27,456
Sovereign Bancorp, Inc. 600 12,972
MGIC Investment Corp.+ 150 9,873
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 309,474
-------------
CONSUMER FINANCE 1.0%
American Express Co. 2,068 106,419
MBNA Corp. 2,092 56,798
Capital One Financial Corp. 505 43,632
SLM Corp.+ 697 38,398
-------------
TOTAL CONSUMER FINANCE 245,247
-------------
REAL ESTATE 0.5%
Simon Property Group, Inc. 315 24,138
Equity Office Properties Trust+ 676 20,503
ProLogis 410 19,155
Equity Residential 485 18,973
Vornado Realty Trust 200 16,694
Archstone-Smith Trust 350 14,662
Plum Creek Timber Co., Inc. (REIT) 310 11,176
Public Storage, Inc. 140 9,481
Apartment Investment &
Management Co. -- Class A+ 160 6,059
-------------
TOTAL REAL ESTATE 140,841
-------------
TOTAL FINANCIALS 3,995,373
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 63
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
INFORMATION TECHNOLOGY 11.1%
COMPUTERS & PERIPHERALS 2.7%
International Business Machines
Corp.+ 2,630 $ 216,186
Hewlett-Packard Co. 4,774 136,680
Dell, Inc.* 3,920 117,561
Apple Computer, Inc.* 1,400 100,646
EMC Corp./MA* 3,980 54,208
Sun Microsystems, Inc.* 5,689 23,837
Network Appliance, Inc.*+ 620 16,740
NCR Corp.*+ 308 10,453
Lexmark International, Inc.*+ 190 8,518
QLogic Corp.* 130 4,226
Gateway, Inc.* 440 1,104
-------------
TOTAL COMPUTERS & PERIPHERALS 690,159
-------------
SOFTWARE 2.6%
Microsoft Corp. 15,247 398,709
Oracle Corp.* 6,270 76,557
Adobe Systems, Inc. 1,000 36,960
Symantec Corp.* 1,800 31,500
Electronic Arts, Inc.*+ 500 26,155
Computer Associates International,
Inc.+ 757 21,340
Autodesk, Inc. 380 16,321
Intuit, Inc.*+ 290 15,457
Siebel Systems, Inc. 879 9,300
Citrix Systems, Inc.*+ 290 8,346
BMC Software, Inc.* 360 7,376
Compuware Corp.* 650 5,830
Novell, Inc.* 641 5,660
Mercury Interactive Corp.* 140 3,891
Parametric Technology Corp.* 449 2,739
-------------
TOTAL SOFTWARE 666,141
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.4%
Intel Corp. 10,050 250,848
Texas Instruments, Inc. 2,697 86,493
Applied Materials, Inc. 2,697 48,384
Broadcom Corp. -- Class A* 480 22,632
Analog Devices, Inc. 610 21,881
Advanced Micro Devices, Inc.*+ 666 20,380
Maxim Integrated Products, Inc. 550 19,932
Linear Technology Corp. 510 18,396
Freescale Semiconductor, Inc. --
Class B* 677 17,040
KLA-Tencor Corp.+ 330 16,279
National Semiconductor Corp. 570 14,809
Xilinx, Inc.+ 580 14,622
Micron Technology, Inc.*+ 1,030 13,709
Altera Corp.* 600 11,118
Nvidia Corp.* 290 10,602
Novellus Systems, Inc.*+ 220 5,306
LSI Logic Corp.*+ 649 5,192
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Teradyne, Inc.* 330 $ 4,808
PMC - Sierra, Inc.*+ 310 2,390
Applied Micro Circuits Corp.* 500 1,285
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 606,106
-------------
COMMUNICATIONS EQUIPMENT 2.0%
Cisco Systems, Inc.* 10,240 175,309
Qualcomm, Inc. 2,741 118,082
Motorola, Inc. 4,152 93,794
Corning, Inc.* 2,545 50,035
Lucent Technologies, Inc.*+ 7,412 19,716
Scientific-Atlanta, Inc. 260 11,198
Comverse Technology, Inc.*+ 340 9,041
Tellabs, Inc.* 748 8,153
Avaya, Inc.* 700 7,469
JDS Uniphase Corp.*+ 2,752 6,495
ADC Telecommunications, Inc.* 186 4,155
Andrew Corp.* 270 2,897
Ciena Corp.* 960 2,851
=============
TOTAL COMMUNICATIONS EQUIPMENT 509,195
-------------
IT CONSULTING & SERVICES 0.8%
First Data Corp. 1,270 54,623
Automatic Data Processing, Inc. 960 44,054
Paychex, Inc. 560 21,347
Electronic Data Systems Corp. 872 20,963
Computer Sciences Corp.* 310 15,698
Fiserv, Inc.*+ 310 13,414
Affiliated Computer Services, Inc. --
Class A* 210 12,428
Sabre Holdings Corp. 220 5,304
Convergys Corp.* 230 3,645
Unisys Corp.* 566 3,300
-------------
TOTAL IT CONSULTING & SERVICES 194,776
-------------
INTERNET SOFTWARE & SERVICES 0.3%
Yahoo!, Inc.*+ 2,104 82,435
-------------
TOTAL INTERNET SOFTWARE & SERVICES 82,435
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.2%
Agilent Technologies, Inc.* 690 22,970
Jabil Circuit, Inc.* 290 10,756
Molex, Inc.+ 240 6,228
Solectron Corp.* 1,520 5,563
Symbol Technologies, Inc. 423 5,423
Tektronix, Inc. 140 3,949
Sanmina-SCI Corp.* 880 3,749
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 58,638
-------------
OFFICE ELECTRONICS 0.1%
Xerox Corp.* 1,598 23,411
-------------
TOTAL OFFICE ELECTRONICS 23,411
-------------
TOTAL INFORMATION TECHNOLOGY 2,830,861
-------------
64 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HEALTH CARE 9.8%
PHARMACEUTICALS 4.7%
Johnson & Johnson, Inc. 4,958 $ 297,976
Pfizer, Inc. 12,278 286,323
Merck & Co., Inc. 3,644 115,916
Eli Lilly & Co. 1,894 107,181
Wyeth 2,237 103,058
Abbott Laboratories 2,581 101,769
Bristol-Myers Squibb Co. 3,262 74,961
Schering-Plough Corp. 2,460 51,291
Allergan, Inc.+ 220 23,751
Forest Laboratories, Inc.* 560 22,781
Mylan Laboratories, Inc. 360 7,185
King Pharmaceuticals, Inc.* 399 6,751
Watson Pharmaceuticals, Inc.*+ 170 5,527
-------------
TOTAL PHARMACEUTICALS 1,204,470
-------------
HEALTH CARE PROVIDERS & SERVICES 2.4%
UnitedHealth Group, Inc. 2,270 141,058
WellPoint, Inc.* 1,100 87,769
Cardinal Health, Inc. 707 48,606
Aetna, Inc. 480 45,269
Caremark Rx, Inc.* 749 38,791
HCA, Inc. 710 35,855
Medco Health Solutions, Inc.* 510 28,458
McKesson Corp. 510 26,311
CIGNA Corp.+ 210 23,457
Express Scripts, Inc.* 240 20,112
Coventry Health Care, Inc.* 270 15,379
Humana, Inc.* 266 14,452
Quest Diagnostics, Inc. 280 14,414
AmerisourceBergen Corp.+ 340 14,076
Laboratory Corporation of America
Holdings*+ 220 11,847
IMS Health, Inc. 390 9,719
Health Management Associates,
Inc. -- Class A+ 410 9,003
Patterson Cos., Inc.*+ 230 7,682
Tenet Healthcare Corp.*+ 779 5,967
Manor Care, Inc. 130 5,170
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 603,395
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.6%
Medtronic, Inc. 2,022 116,407
Baxter International, Inc. 1,039 39,118
Guidant Corp. 550 35,613
St. Jude Medical, Inc.* 610 30,622
Zimmer Holdings, Inc.* 410 27,651
Becton, Dickinson & Co. 416 24,993
Boston Scientific Corp.*+ 980 24,000
Stryker Corp. 486 21,593
Biomet, Inc.+ 420 15,359
Fisher Scientific International, Inc.*+ 200 12,372
Hospira, Inc.* 270 11,551
C.R. Bard, Inc. 170 11,206
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Thermo Electron Corp.* 270 $ 8,135
Waters Corp.* 180 6,804
Bausch & Lomb, Inc. 90 6,111
Millipore Corp.* 90 5,944
PerkinElmer, Inc. 220 5,183
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 402,662
-------------
BIOTECHNOLOGY 1.1%
Amgen, Inc.*+ 2,056 162,136
Gilead Sciences, Inc.* 760 39,999
Genzyme Corp.* 430 30,435
Biogen Idec, Inc.*+ 575 26,065
Medimmune, Inc.* 410 14,358
Applera Corp. -- Applied
Biosystems Group+ 310 8,234
Chiron Corp.*+ 180 8,003
-------------
TOTAL BIOTECHNOLOGY 289,230
-------------
TOTAL HEALTH CARE 2,499,757
-------------
INDUSTRIALS 8.4%
INDUSTRIAL CONGLOMERATES 3.3%
General Electric Co. 17,614 617,371
3M Co. 1,270 98,425
Tyco International Ltd.+ 3,348 96,623
Textron, Inc. 220 16,935
-------------
TOTAL INDUSTRIAL CONGLOMERATES 829,354
-------------
AEROSPACE & DEFENSE 1.7%
United Technologies Corp. 1,700 95,047
Boeing Co. 1,350 94,824
Honeywell International, Inc. 1,400 52,150
General Dynamics Corp. 343 39,119
Lockheed Martin Corp. 600 38,178
Northrop Grumman Corp.+ 590 35,465
Raytheon Co. 740 29,711
L-3 Communications Holdings, Inc.+ 199 14,796
Rockwell Collins, Inc. 288 13,383
Goodrich Corp. 198 8,138
-------------
TOTAL AEROSPACE & DEFENSE 420,811
-------------
MACHINERY 1.0%
Caterpillar, Inc. 1,135 65,569
Illinois Tool Works, Inc. 340 29,917
Deere & Co. 400 27,244
Danaher Corp. 400 22,312
Ingersoll-Rand Co. -- Class A 547 22,082
Paccar, Inc.+ 280 19,384
Eaton Corp. 247 16,571
ITT Industries, Inc.+ 150 15,423
Dover Corp. 340 13,767
Parker Hannifin Corp. 200 13,192
Cummins, Inc. 80 7,178
Pall Corp. 210 5,641
Navistar International Corp.* 100 2,862
-------------
TOTAL MACHINERY 261,142
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 65
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
AIR FREIGHT & COURIERS 0.8%
United Parcel Service, Inc. --
Class B 1,839 $ 138,201
FedEx Corp.+ 504 52,109
Ryder System, Inc. 110 4,512
-------------
TOTAL AIR FREIGHT & COURIERS 194,822
-------------
COMMERCIAL SERVICES & SUPPLIES 0.5%
Cendant Corp. 1,710 29,498
Waste Management, Inc. 920 27,922
Pitney Bowes, Inc. 380 16,055
R.R. Donnelley & Sons Co. 356 12,179
Robert Half International, Inc. 279 10,571
Avery Dennison Corp. 180 9,949
Cintas Corp. 230 9,471
Monster Worldwide, Inc.*+ 210 8,572
Equifax, Inc. 220 8,364
Allied Waste Industries, Inc.* 360 3,146
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 135,727
-------------
ROAD & RAIL 0.5%
Burlington Northern Santa Fe Corp. 620 43,909
Union Pacific Corp. 440 35,424
Norfolk Southern Corp. 682 30,574
CSX Corp. 360 18,277
-------------
TOTAL ROAD & RAIL 128,184
-------------
ELECTRICAL EQUIPMENT 0.3%
Emerson Electric Co. 680 50,796
Rockwell Automation, Inc. 300 17,748
Cooper Industries Ltd. -- Class A 150 10,950
American Power Conversion Corp. 293 6,446
-------------
TOTAL ELECTRICAL EQUIPMENT 85,940
-------------
BUILDING PRODUCTS 0.1%
Masco Corp.+ 710 21,435
American Standard Cos., Inc. 300 11,985
-------------
TOTAL BUILDING PRODUCTS 33,420
-------------
AIRLINES 0.1%
Southwest Airlines Co.+ 1,165 19,141
-------------
TOTAL AIRLINES 19,141
-------------
CONSTRUCTION & ENGINEERING 0.1%
Fluor Corp. 137 10,585
-------------
TOTAL CONSTRUCTION & ENGINEERING 10,585
-------------
TRADING COMPANIES & DISTRIBUTORS 0.0%
W.W. Grainger, Inc. 130 9,243
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 9,243
-------------
TOTAL INDUSTRIALS 2,128,369
-------------
CONSUMER DISCRETIONARY 8.0%
MEDIA 2.5%
Time Warner, Inc. 7,770 135,509
Comcast Corp. -- Class A*+ 3,620 93,975
Viacom, Inc. -- Class B* 2,580 84,108
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
The Walt Disney Co. 3,210 $ 76,944
News Corp. -- Class A 4,050 62,977
McGraw-Hill Cos., Inc. 620 32,011
Clear Channel Communications, Inc. 900 28,305
Omnicom Group, Inc. 300 25,539
Gannett Co., Inc. 400 24,228
Tribune Co.+ 440 13,314
Univision Communications, Inc. --
Class A* 370 10,874
Knight-Ridder, Inc. 120 7,596
Interpublic Group of Cos., Inc.*+ 717 6,919
EW Scripps Co. -- Class A 140 6,723
New York Times Co. -- Class A+ 240 6,348
Meredith Corp. 70 3,664
Dow Jones & Co., Inc. 100 3,549
-------------
TOTAL MEDIA 622,583
-------------
SPECIALTY RETAIL 1.6%
Home Depot, Inc. 3,540 143,299
Lowe's Cos., Inc. 1,303 86,858
Best Buy Co., Inc.+ 680 29,566
Staples, Inc. 1,220 27,706
TJX Cos., Inc. 770 17,887
Bed Bath & Beyond, Inc.* 490 17,714
The Gap, Inc.+ 960 16,934
Office Depot, Inc.* 510 16,014
Limited Brands, Inc. 580 12,963
Tiffany & Co.+ 243 9,305
Sherwin-Williams Co. 190 8,630
AutoZone, Inc.*+ 89 8,166
AutoNation, Inc.* 297 6,454
Circuit City Stores, Inc.+ 260 5,873
RadioShack Corp. 220 4,627
OfficeMax, Inc. 120 3,043
-------------
TOTAL SPECIALTY RETAIL 415,039
-------------
HOTELS, RESTAURANTS & LEISURE 1.1%
McDonald's Corp. 2,097 70,711
Starbucks Corp.* 1,280 38,413
Carnival Corp.+ 717 38,338
Starwood Hotels & Resorts
Worldwide, Inc.+ 370 23,628
Harrah's Entertainment, Inc. 310 22,100
Yum! Brands, Inc. 470 22,033
Marriott International, Inc. --
Class A 270 18,082
International Game Technology,
Inc.+ 560 17,237
Hilton Hotels Corp. 550 13,260
Wendy's International, Inc. 190 10,499
Darden Restaurants, Inc. 220 8,554
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 282,855
-------------
66 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
MULTILINE RETAIL 0.8%
Target Corp. 1,460 $ 80,256
Federated Department Stores, Inc. 447 29,650
Kohl's Corp.* 566 27,508
J.C. Penney Holding Co., Inc. 390 21,684
Sears Holdings Corp.*+ 170 19,640
Nordstrom, Inc. 360 13,464
Dollar General Corp. 530 10,107
Family Dollar Stores, Inc. 260 6,445
Dillard's, Inc. -- Class A 100 2,482
Big Lots, Inc.* 190 2,282
-------------
TOTAL MULTILINE RETAIL 213,518
-------------
HOUSEHOLD DURABLES 0.6%
Fortune Brands, Inc. 240 18,725
D.R. Horton, Inc.+ 450 16,078
Centex Corp. 210 15,013
Pulte Homes, Inc. 361 14,209
Lennar Corp. -- Class A+ 230 14,034
Black & Decker Corp.+ 130 11,305
Newell Rubbermaid, Inc.+ 460 10,939
KB Home+ 130 9,446
Whirlpool Corp. 110 9,213
Leggett & Platt, Inc. 310 7,118
Stanley Works+ 120 5,765
Snap-On, Inc. 100 3,756
Maytag Corp. 130 2,447
-------------
TOTAL HOUSEHOLD DURABLES 138,048
-------------
INTERNET & CATALOG RETAIL 0.4%
eBay, Inc.*+ 1,901 82,218
Amazon.com, Inc.*+ 510 24,047
-------------
TOTAL INTERNET & CATALOG RETAIL 106,265
-------------
TEXTILES & APPAREL 0.3%
Nike, Inc. -- Class B 320 27,773
Coach, Inc.* 630 21,004
VF Corp. 150 8,301
Liz Claiborne, Inc.+ 179 6,412
Jones Apparel Group, Inc. 190 5,837
Reebok International Ltd. 90 5,240
-------------
TOTAL TEXTILES & APPAREL 74,567
-------------
AUTOMOBILES 0.3%
Ford Motor Co.+ 3,096 23,901
Harley-Davidson, Inc.+ 460 23,685
General Motors Corp.+ 944 18,333
-------------
TOTAL AUTOMOBILES 65,919
-------------
LEISURE EQUIPMENT & PRODUCTS 0.1%
Eastman Kodak Co. 476 11,138
Mattel, Inc. 669 10,584
Brunswick Corp. 158 6,424
Hasbro, Inc.+ 300 6,054
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 34,200
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
AUTO COMPONENTS 0.1%
Johnson Controls, Inc. 322 $ 23,477
Goodyear Tire & Rubber Co.*+ 290 5,040
Dana Corp. 250 1,795
Cooper Tire & Rubber Co. 100 1,532
Visteon Corp.* 210 1,315
-------------
TOTAL AUTO COMPONENTS 33,159
-------------
COMMERCIAL SERVICES & SUPPLIES 0.1%
Apollo Group, Inc. -- Class A*+ 240 14,510
H&R Block, Inc. 552 13,552
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 28,062
-------------
DISTRIBUTORS 0.1%
Genuine Parts Co. 287 12,605
-------------
TOTAL DISTRIBUTORS 12,605
-------------
TOTAL CONSUMER DISCRETIONARY 2,026,820
-------------
CONSUMER STAPLES 7.1%
FOOD & DRUG RETAILING 1.8%
Wal-Mart Stores, Inc. 4,165 194,922
Walgreen Co.+ 1,690 74,799
Costco Wholesale Corp.+ 790 39,081
CVS Corp. 1,359 35,905
Sysco Corp.+ 1,030 31,982
Kroger Co.*+ 1,213 22,901
Whole Foods Market, Inc. 230 17,800
Safeway, Inc.+ 750 17,745
Albertson's, Inc.+ 610 13,024
Supervalu, Inc. 229 7,438
-------------
TOTAL FOOD & DRUG RETAILING 455,597
-------------
HOUSEHOLD PRODUCTS 1.7%
Procter & Gamble Co. 5,590 323,549
Colgate-Palmolive Co. 860 47,171
Kimberly-Clark Corp. 780 46,527
Clorox Co.+ 250 14,223
-------------
TOTAL HOUSEHOLD PRODUCTS 431,470
-------------
BEVERAGES 1.6%
PepsiCo, Inc. 2,758 162,943
Coca-Cola Co. 3,451 139,110
Anheuser-Busch Cos., Inc.+ 1,288 55,332
Brown-Forman Corp. -- Class B 140 9,705
Coca-Cola Enterprises, Inc. 500 9,585
Constellation Brands, Inc. --
Class A* 330 8,656
Pepsi Bottling Group, Inc.+ 230 6,580
Molson Coors Brewing Co. --
Class B+ 90 6,029
-------------
TOTAL BEVERAGES 397,940
-------------
TOBACCO 1.1%
Altria Group, Inc. 3,472 259,428
Reynolds American, Inc.+ 140 13,346
UST, Inc.+ 270 11,024
-------------
TOTAL TOBACCO 283,798
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 67
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
FOOD PRODUCTS 0.8%
General Mills, Inc. 590 $ 29,099
Archer-Daniels-Midland Co.+ 1,089 26,855
Sara Lee Corp. 1,270 24,003
WM Wrigley Jr Co. 300 19,947
H.J. Heinz Co. 560 18,883
Kellogg Co. 430 18,585
ConAgra Foods, Inc.+ 856 17,360
Hershey Co. 300 16,575
Campbell Soup Co. 313 9,318
Tyson Foods, Inc. -- Class A 424 7,250
McCormick & Co., Inc. 220 6,802
-------------
TOTAL FOOD PRODUCTS 194,677
-------------
PERSONAL PRODUCTS 0.1%
Avon Products, Inc.+ 760 21,698
Alberto-Culver Co. -- Class B 130 5,947
-------------
TOTAL PERSONAL PRODUCTS 27,645
-------------
TOTAL CONSUMER STAPLES 1,791,127
-------------
ENERGY 6.9%
OIL & GAS 5.6%
Exxon Mobil Corp. 10,370 582,483
Chevron Corp. 3,736 212,093
ConocoPhillips+ 2,306 134,163
Burlington Resources, Inc.+ 628 54,134
Occidental Petroleum Corp.+ 670 53,520
Valero Energy Corp.+ 1,034 53,354
Devon Energy Corp. 740 46,280
Anadarko Petroleum Corp. 404 38,279
Apache Corp. 546 37,412
Marathon Oil Corp. 608 37,070
EOG Resources, Inc. 400 29,348
XTO Energy, Inc. 613 26,935
Williams Cos., Inc.+ 950 22,011
Sunoco, Inc. 230 18,027
Kerr-McGee Corp.+ 186 16,900
Kinder Morgan, Inc. 180 16,551
Amerada Hess Corp.+ 130 16,487
Murphy Oil Corp.+ 280 15,117
El Paso Corp.+ 1,100 13,376
-------------
TOTAL OIL & GAS 1,423,540
-------------
ENERGY EQUIPMENT & SERVICES 1.3%
Schlumberger Ltd.+ 982 95,401
Halliburton Co. 850 52,666
Transocean, Inc.* 550 38,329
Baker Hughes, Inc.+ 570 34,645
Weatherford International Ltd.*+ 584 21,141
BJ Services Co. 540 19,802
Nabors Industries Ltd.*+ 260 19,695
National-Oilwell Varco, Inc.* 290 18,183
Noble Corp. 230 16,224
Rowan Cos., Inc. 178 6,344
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 322,430
-------------
TOTAL ENERGY 1,745,970
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
UTILITIES 2.5%
ELECTRIC UTILITIES 1.3%
Exelon Corp.+ 1,110 $ 58,985
Southern Co.+ 1,240 42,817
TXU Corp. 796 39,951
FPL Group, Inc. 656 27,263
FirstEnergy Corp. 550 26,945
American Electric Power Co., Inc. 660 24,479
Entergy Corp. 355 24,371
Edison International 536 23,375
Progress Energy, Inc.+ 423 18,578
PPL Corp. 628 18,463
Cinergy Corp. 330 14,012
Allegheny Energy, Inc.*+ 270 8,546
Pinnacle West Capital Corp.+ 160 6,616
-------------
TOTAL ELECTRIC UTILITIES 334,401
-------------
MULTI-UTILITIES 1.2%
Dominion Resources, Inc./VA+ 576 44,467
Duke Energy Corp.+ 1,552 42,602
Public Service Enterprise Group,
Inc.+ 424 27,547
PG&E Corp.+ 570 21,158
Sempra Energy 430 19,281
Consolidated Edison, Inc.+ 414 19,181
Ameren Corp.+ 340 17,422
Constellation Energy Group, Inc. 300 17,280
AES Corp.*+ 1,090 17,255
DTE Energy Co. 300 12,957
Xcel Energy, Inc.+ 666 12,294
KeySpan Corp.+ 290 10,350
NiSource, Inc.+ 446 9,304
CenterPoint Energy, Inc.+ 520 6,682
TECO Energy, Inc. 350 6,013
CMS Energy Corp.*+ 370 5,369
Dynegy, Inc. -- Class A* 500 2,420
-------------
TOTAL MULTI-UTILITIES 291,582
-------------
GAS UTILITIES 0.0%
Nicor, Inc.+ 69 2,713
Peoples Energy Corp.+ 60 2,104
-------------
TOTAL GAS UTILITIES 4,817
-------------
TOTAL UTILITIES 630,800
-------------
TELECOMMUNICATION SERVICES 2.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.6%
AT&T, Inc.+ 6,510 159,430
Verizon Communications, Inc.+ 4,612 138,913
BellSouth Corp.+ 3,046 82,547
Qwest Communications
International, Inc.* 2,569 14,515
CenturyTel, Inc.+ 220 7,295
Citizens Communications Co.+ 560 6,849
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 409,549
-------------
68 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
TITAN 500 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES 0.6%
Sprint Nextel Corp. 4,917 $ 114,861
Alltel Corp. 645 40,699
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 155,560
-------------
TOTAL TELECOMMUNICATION SERVICES 565,109
-------------
MATERIALS 2.2%
CHEMICALS 1.2%
Dow Chemical Co. 1,613 70,682
E.I. du Pont de Nemours and Co. 1,530 65,025
Monsanto Co.+ 450 34,888
Praxair, Inc. 540 28,598
Air Products & Chemicals, Inc. 373 22,078
PPG Industries, Inc. 280 16,212
Rohm & Haas Co. 240 11,621
Ecolab, Inc. 310 11,244
Eastman Chemical Co. 140 7,222
Sigma-Aldrich Corp.+ 110 6,962
Ashland, Inc.+ 120 6,948
Engelhard Corp. 200 6,030
International Flavors & Fragrances,
Inc. 130 4,355
Hercules, Inc.* 190 2,147
-------------
TOTAL CHEMICALS 294,012
-------------
METALS & MINING 0.6%
Alcoa, Inc. 1,454 42,995
Newmont Mining Corp.+ 737 39,356
Phelps Dodge Corp. 170 24,458
Nucor Corp. 260 17,347
Freeport-McMoRan Copper & Gold,
Inc. -- Class B 308 16,571
United States Steel Corp.+ 190 9,133
Allegheny Technologies, Inc.+ 140 5,051
-------------
TOTAL METALS & MINING 154,911
-------------
PAPER & FOREST PRODUCTS 0.3%
International Paper Co. 818 27,493
Weyerhaeuser Co. 410 27,199
MeadWestvaco Corp. 300 8,409
Louisiana-Pacific Corp.+ 180 4,945
-------------
TOTAL PAPER & FOREST PRODUCTS 68,046
-------------
CONTAINERS & PACKAGING 0.1%
Temple-Inland, Inc. 190 8,522
Sealed Air Corp.* 138 7,751
Ball Corp. 170 6,752
Pactiv Corp.* 240 5,280
Bemis Co.+ 180 5,017
-------------
TOTAL CONTAINERS & PACKAGING 33,322
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONSTRUCTION MATERIALS 0.0%
Vulcan Materials Co. 170 $ 11,518
-------------
TOTAL CONSTRUCTION MATERIALS 11,518
-------------
TOTAL MATERIALS 561,809
-------------
TOTAL COMMON STOCKS
(Cost $16,773,790) 18,775,995
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 21.5%
Repurchase Agreement (Note 5)
3.45% due 01/03/06++ $ 300,050 300,050
3.40% due 01/03/06 1,260,968 1,260,968
3.39% due 01/03/06 1,297,941 1,297,941
3.30% due 01/03/06 1,297,941 1,297,941
2.90% due 01/03/06 1,297,941 1,297,941
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $5,454,841) 5,454,841
-------------
SECURITIES LENDING COLLATERAL 8.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,130,166 2,130,166
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,130,166) 2,130,166
-------------
TOTAL INVESTMENTS 103.8%
(Cost $24,358,797) $ 26,361,002
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (3.8)% $ (963,693)
=============
NET ASSETS - 100.0% $ 25,397,309
- -------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $16,780,150) 268 $ (265,027)
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
March 2006 S&P 500 Index
Swap, Maturing 03/29/06**
(Notional Market Value
$15,189,480) 12,168 $ (118,939)
=============
* NON-INCOME PRODUCING SECURITY.
** PRICE RETURN BASED ON S&P 500 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
REIT -- REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 69
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
VELOCITY 100 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 80.2%
INFORMATION TECHNOLOGY 48.2%
SOFTWARE 13.5%
Microsoft Corp. 93,120 $ 2,435,088
Oracle Corp.* 54,600 666,666
Symantec Corp.* 28,750 503,125
Adobe Systems, Inc. 12,310 454,978
Electronic Arts, Inc.*+ 7,700 402,787
Intuit, Inc.*+ 5,670 302,211
Autodesk, Inc. 6,120 262,854
Siebel Systems, Inc.+ 15,490 163,884
Citrix Systems, Inc.* 5,330 153,397
Cadence Design Systems, Inc.*+ 7,430 125,716
Check Point Software
Technologies Ltd.*+ 6,130 123,213
Red Hat, Inc.*+ 4,350 118,494
BEA Systems, Inc.* 10,400 97,760
Activision, Inc.*+ 6,110 83,951
Mercury Interactive Corp.* 2,340 65,029
-------------
TOTAL SOFTWARE 5,959,153
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 10.3%
Intel Corp. 53,660 1,339,354
Maxim Integrated Products, Inc.+ 11,680 423,283
Marvell Technology Group Ltd.* 6,900 387,021
Applied Materials, Inc.+ 20,980 376,381
Linear Technology Corp. 10,330 372,603
Broadcom Corp. -- Class A* 6,760 318,734
KLA-Tencor Corp.+ 5,980 294,993
Xilinx, Inc.+ 11,680 294,453
Altera Corp.* 12,930 239,593
Nvidia Corp.* 4,200 153,552
Microchip Technology, Inc. 4,440 142,746
Lam Research Corp.*+ 3,570 127,378
ATI Technologies, Inc.*+ 6,180 104,998
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 4,575,089
-------------
COMMUNICATIONS EQUIPMENT 9.2%
Qualcomm, Inc. 50,410 2,171,663
Cisco Systems, Inc.* 55,780 954,953
Research In Motion, Ltd.*+ 4,860 320,809
Juniper Networks, Inc.*+ 9,430 210,289
Comverse Technology, Inc.*+ 5,220 138,800
JDS Uniphase Corp.*+ 48,090 113,492
Telefonaktiebolaget LM Ericsson --
SP ADR+ 3,260 112,144
Tellabs, Inc.* 6,390 69,651
-------------
TOTAL COMMUNICATIONS EQUIPMENT 4,091,801
-------------
COMPUTERS & PERIPHERALS 7.9%
Apple Computer, Inc.* 29,880 2,148,073
Dell, Inc.* 22,010 660,080
Sandisk Corp.*+ 4,290 269,498
Network Appliance, Inc.*+ 9,720 262,440
Sun Microsystems, Inc.* 37,130 155,575
-------------
TOTAL COMPUTERS & PERIPHERALS 3,495,666
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES 4.7%
Google, Inc. -- Class A*+ 3,040 $ 1,261,174
Yahoo!, Inc.*+ 17,340 679,381
VeriSign, Inc.*+ 6,140 134,589
-------------
TOTAL INTERNET SOFTWARE & SERVICES 2,075,144
-------------
IT CONSULTING & SERVICES 2.0%
Paychex, Inc.+ 9,140 348,417
Fiserv, Inc.*+ 5,870 253,995
Cognizant Technology Solutions
Corp.* 3,420 172,197
CheckFree Corp.* 2,160 99,144
-------------
TOTAL IT CONSULTING & SERVICES 873,753
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.6%
Flextronics International Ltd.*+ 15,820 165,161
CDW Corp. 2,110 121,472
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 286,633
-------------
TOTAL INFORMATION TECHNOLOGY 21,357,239
-------------
CONSUMER DISCRETIONARY 14.9%
INTERNET & CATALOG RETAIL 4.3%
eBay, Inc.*+ 26,510 1,146,557
Amazon.com, Inc.*+ 7,000 330,050
IAC/InterActiveCorp*+ 8,490 240,352
Expedia, Inc.*+ 8,560 205,098
-------------
TOTAL INTERNET & CATALOG RETAIL 1,922,057
-------------
MEDIA 4.1%
Comcast Corp. -- Class A*+ 24,250 629,530
Sirius Satellite Radio, Inc.*+ 36,650 245,555
NTL, Inc.*+ 2,360 160,669
Pixar*+ 3,040 160,269
XM Satellite Radio Holdings, Inc.*+ 5,720 156,042
EchoStar Communications Corp.*+ 5,550 150,793
Liberty Global, Inc. -- Class A* 6,140 138,150
Lamar Advertising Co.* 2,200 101,508
Discovery Holding Co. -- Class A*+ 5,950 90,142
-------------
TOTAL MEDIA 1,832,658
-------------
HOTELS, RESTAURANTS & LEISURE 2.2%
Starbucks Corp.* 27,170 815,372
Wynn Resorts Ltd.*+ 2,760 151,386
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 966,758
-------------
SPECIALTY RETAIL 2.2%
Bed Bath & Beyond, Inc.* 10,150 366,922
Staples, Inc. 12,490 283,648
Urban Outfitters, Inc.* 4,310 109,086
Ross Stores, Inc. 3,620 104,618
Petsmart, Inc.+ 3,610 92,633
-------------
TOTAL SPECIALTY RETAIL 956,907
-------------
MULTILINE RETAIL 1.1%
Sears Holdings Corp.*+ 4,280 494,468
-------------
TOTAL MULTILINE RETAIL 494,468
-------------
COMMERCIAL SERVICES & SUPPLIES 0.6%
Apollo Group, Inc. -- Class A*+ 4,530 273,884
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 273,884
-------------
70 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
VELOCITY 100 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HOUSEHOLD DURABLES 0.4%
Garmin Ltd.+ 2,540 $ 168,529
-------------
TOTAL HOUSEHOLD DURABLES 168,529
-------------
TOTAL CONSUMER DISCRETIONARY 6,615,261
-------------
HEALTH CARE 11.6%
BIOTECHNOLOGY 8.1%
Amgen, Inc.*+ 14,620 1,152,933
Gilead Sciences, Inc.* 11,460 603,140
Genzyme Corp.* 8,230 582,519
Biogen Idec, Inc.*+ 9,380 425,195
Chiron Corp.* 6,700 297,882
Celgene Corp.*+ 4,270 276,696
Medimmune, Inc.* 6,690 234,284
-------------
TOTAL BIOTECHNOLOGY 3,572,649
-------------
PHARMACEUTICALS 1.5%
Teva Pharmaceutical Industries
Ltd. -- SP ADR+ 12,300 529,023
Sepracor, Inc.*+ 2,620 135,192
-------------
TOTAL PHARMACEUTICALS 664,215
-------------
HEALTH CARE PROVIDERS & SERVICES 1.1%
Express Scripts, Inc.* 3,300 276,540
Patterson Cos., Inc.*+ 3,360 112,224
Lincare Holdings, Inc.* 2,380 99,746
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 488,510
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.9%
Biomet, Inc.+ 8,530 311,942
DENTSPLY International, Inc. 1,920 103,085
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 415,027
-------------
TOTAL HEALTH CARE 5,140,401
-------------
INDUSTRIALS 2.9%
COMMERCIAL SERVICES & SUPPLIES 0.8%
Cintas Corp. 5,120 210,841
Monster Worldwide, Inc.*+ 3,140 128,175
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 339,016
-------------
AIR FREIGHT & COURIERS 0.8%
Expeditors International
Washington, Inc.+ 2,660 179,577
CH Robinson Worldwide, Inc. 4,300 159,229
-------------
TOTAL AIR FREIGHT & COURIERS 338,806
-------------
MACHINERY 0.8%
Paccar, Inc.+ 4,820 333,689
-------------
TOTAL MACHINERY 333,689
-------------
TRADING COMPANIES & DISTRIBUTORS 0.3%
Fastenal Co.+ 3,670 143,827
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 143,827
-------------
ELECTRICAL EQUIPMENT 0.2%
American Power Conversion Corp. 4,990 109,780
-------------
TOTAL ELECTRICAL EQUIPMENT 109,780
-------------
TOTAL INDUSTRIALS 1,265,118
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONSUMER STAPLES 1.3%
FOOD & DRUG RETAILING 1.3%
Costco Wholesale Corp.+ 6,320 $ 312,651
Whole Foods Market, Inc.+ 3,380 261,578
-------------
TOTAL FOOD & DRUG RETAILING 574,229
-------------
TOTAL CONSUMER STAPLES 574,229
-------------
TELECOMMUNICATION SERVICES 0.8%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.4%
MCI, Inc. 9,080 179,148
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 179,148
-------------
WIRELESS TELECOMMUNICATION SERVICES 0.4%
NII Holdings, Inc. -- Class B*+ 3,670 160,306
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 160,306
-------------
TOTAL TELECOMMUNICATION SERVICES 339,454
-------------
ENERGY 0.3%
ENERGY EQUIPMENT & SERVICES 0.3%
Patterson-UTI Energy, Inc. 4,360 143,662
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 143,662
-------------
TOTAL ENERGY 143,662
-------------
MATERIALS 0.2%
CHEMICALS 0.2%
Sigma-Aldrich Corp.+ 1,640 103,796
-------------
TOTAL CHEMICALS 103,796
-------------
TOTAL MATERIALS 103,796
-------------
TOTAL COMMON STOCKS
(Cost $30,281,687) 35,539,160
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 24.8%
Repurchase Agreement (Note 5)
3.45% due 01/03/06++ $ 2,391,026 2,391,026
3.40% due 01/03/06 5,112,973 5,112,973
3.39% due 01/03/06 1,167,361 1,167,361
3.30% due 01/03/06 1,167,361 1,167,361
2.90% due 01/03/06 1,167,361 1,167,361
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $11,006,082) 11,006,082
-------------
SECURITIES LENDING COLLATERAL 16.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 7,258,246 7,258,246
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $7,258,246) 7,258,246
-------------
TOTAL INVESTMENTS 121.4%
(Cost $48,546,015) $ 53,803,488
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (21.4)% $ (9,490,923)
=============
NET ASSETS - 100.0% $ 44,312,565
- -------------------------------------------------------------------------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 71
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
VELOCITY 100 FUND
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $4,538,810) 137 $ (41,243)
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENTS
March 2006 Nasdaq 100 Index
Swap, Maturing 03/14/06**
(Notional Market
Value $27,538,589) 16,739 $ (807,258)
March 2006 Nasdaq 100 Index
Swap, Maturing 03/29/06**
(Notional Market
Value $21,157,964) 12,860 (231,817)
-------------
(TOTAL NOTIONAL MARKET
VALUE $48,696,553) $ (1,039,075)
=============
* NON-INCOME PRODUCING SECURITY.
** 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, 2005 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
ADR -- AMERICAN DEPOSITORY RECEIPT.
72 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 84.1%
FINANCIALS 15.4%
INSURANCE 3.7%
HCC Insurance Holdings, Inc.+ 13,740 $ 407,803
First American Corp.+ 8,430 381,879
Fidelity National Financial, Inc. 8,370 307,932
Horace Mann Educators Corp. 15,590 295,587
W.R. Berkley Corp. 5,650 269,053
Ohio Casualty Corp. 4,740 134,237
Old Republic International Corp. 3,070 80,618
-------------
TOTAL INSURANCE 1,877,109
-------------
REAL ESTATE 3.4%
Liberty Property Trust+ 9,380 401,933
Rayonier, Inc.+ 10,030 399,695
Highwoods Properties, Inc. 12,060 343,107
New Plan Excel Realty Trust 11,480 266,106
Macerich Co.+ 3,930 263,860
Developers Diversified Realty Corp. 1,680 78,994
-------------
TOTAL REAL ESTATE 1,753,695
-------------
BANKS 3.0%
Colonial BancGroup, Inc. 17,210 409,942
SVB Financial Group*+ 7,250 339,590
Wilmington Trust Corp. 8,550 332,680
Mercantile Bankshares Corp. 5,240 295,746
Associated Banc-Corp.+ 2,570 83,654
Cathay General Bancorp 890 31,987
FirstMerit Corp.+ 930 24,096
-------------
TOTAL BANKS 1,517,695
-------------
THRIFTS & MORTGAGE FINANCE 2.4%
Radian Group, Inc.+ 8,450 495,085
PMI Group, Inc.+ 10,680 438,628
Astoria Financial Corp. 7,880 231,672
IndyMac Bancorp, Inc. 1,690 65,944
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,231,329
-------------
CAPITAL MARKETS 2.3%
Legg Mason, Inc. 4,290 513,470
Jefferies Group, Inc.+ 8,420 378,732
LaBranche & Co., Inc.*+ 19,330 195,426
Investors Financial Services Corp.+ 1,750 64,452
Raymond James Financial, Inc.+ 580 21,849
-------------
TOTAL CAPITAL MARKETS 1,173,929
-------------
CONSUMER FINANCE 0.3%
AmeriCredit Corp.* 6,790 174,028
-------------
TOTAL CONSUMER FINANCE 174,028
-------------
DIVERSIFIED FINANCIALS 0.3%
Leucadia National Corp. 3,220 152,821
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIALS $ 152,821
-------------
TOTAL FINANCIALS 7,880,606
-------------
CONSUMER DISCRETIONARY 14.1%
SPECIALTY RETAIL 4.9%
American Eagle Outfitters, Inc.+ 19,750 453,855
Pacific Sunwear of California, Inc.* 14,540 362,337
Claire's Stores, Inc. 11,960 349,471
Chico's FAS, Inc.*+ 7,100 311,903
Advance Auto Parts, Inc.*+ 5,230 227,296
Barnes & Noble, Inc. 3,480 148,491
Urban Outfitters, Inc.* 4,600 116,426
Abercrombie & Fitch Co. --
Class A+ 1,710 111,458
Payless Shoesource, Inc.* 3,340 83,834
O'Reilly Automotive, Inc.* 2,470 79,065
Rent-A-Center, Inc.* 3,900 73,554
Ross Stores, Inc. 2,520 72,828
Petsmart, Inc. 2,780 71,335
Borders Group, Inc. 1,230 26,654
-------------
TOTAL SPECIALTY RETAIL 2,488,507
-------------
MEDIA 2.9%
Harte-Hanks, Inc. 11,420 301,374
Scholastic Corp.*+ 10,100 287,951
Belo Corp. -- Class A+ 13,240 283,468
Valassis Communications, Inc.* 9,370 272,386
Emmis Communications Corp. --
Class A* 5,770 114,881
Catalina Marketing Corp.+ 3,440 87,204
Media General, Inc. 1,640 83,148
Entercom Communications Corp.* 1,600 47,472
Westwood One, Inc. 470 7,661
-------------
TOTAL MEDIA 1,485,545
-------------
HOUSEHOLD DURABLES 1.9%
Toll Brothers, Inc.*+ 9,140 316,609
Ryland Group, Inc.+ 3,490 251,734
Harman International Industries,
Inc. 2,450 239,732
American Greetings Corp. --
Class A+ 4,680 102,820
Beazer Homes USA, Inc.+ 520 37,877
Hovnanian Enterprises, Inc. --
Class A* 540 26,806
Blyth, Inc. 840 17,598
-------------
TOTAL HOUSEHOLD DURABLES 993,176
-------------
MULTILINE RETAIL 1.1%
Dollar Tree Stores, Inc.* 16,420 393,095
Saks, Inc.*+ 10,250 172,815
-------------
TOTAL MULTILINE RETAIL 565,910
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 73
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES 1.0%
Career Education Corp.*+ 9,560 $ 322,363
ITT Educational Services, Inc.* 2,330 137,727
Education Management Corp.* 1,420 47,584
DeVry, Inc.* 470 9,400
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 517,074
-------------
HOTELS, RESTAURANTS & LEISURE 1.0%
Brinker International, Inc. 10,560 408,249
GTECH Holdings Corp. 1,890 59,989
CBRL Group, Inc.+ 1,140 40,071
Applebee's International, Inc. 260 5,873
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 514,182
-------------
TEXTILES & APPAREL 0.7%
Polo Ralph Lauren Corp.+ 6,310 354,243
-------------
TOTAL TEXTILES & APPAREL 354,243
-------------
AUTO COMPONENTS 0.6%
Modine Manufacturing Co.+ 9,510 309,931
-------------
TOTAL AUTO COMPONENTS 309,931
-------------
TOTAL CONSUMER DISCRETIONARY 7,228,568
-------------
INFORMATION TECHNOLOGY 13.6%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.3%
Lam Research Corp.* 12,950 462,056
Microchip Technology, Inc. 13,300 427,595
MEMC Electronic Materials, Inc.* 12,080 267,814
Intersil Corp. -- Class A 7,150 177,892
International Rectifier Corp.*+ 5,270 168,113
Cypress Semiconductor Corp.*+ 8,650 123,262
Micrel, Inc.* 3,210 37,236
Credence Systems Corp.* 3,900 27,144
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 1,691,112
-------------
IT CONSULTING & SERVICES 2.7%
DST Systems, Inc.* 6,950 416,375
Ceridian Corp.* 14,140 351,379
MPS Group, Inc.*+ 19,320 264,104
CSG Systems International, Inc.*+ 7,110 158,695
Alliance Data Systems Corp.* 3,070 109,292
BISYS Group, Inc.* 2,890 40,489
MoneyGram International, Inc. 1,100 28,688
-------------
TOTAL IT CONSULTING & SERVICES 1,369,022
-------------
SOFTWARE 2.4%
Sybase, Inc.*+ 15,810 345,606
Fair Isaac Corp.+ 5,480 242,052
Advent Software, Inc.* 8,130 235,038
McAfee, Inc.* 4,610 125,069
Activision, Inc.*+ 7,990 109,783
RSA Security, Inc.*+ 7,030 78,947
Macrovision Corp.* 4,460 74,616
-------------
TOTAL SOFTWARE 1,211,111
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT 1.8%
Harris Corp.+ 8,810 $ 378,918
Avocent Corp.* 4,480 121,811
ADTRAN, Inc.+ 3,550 105,577
F5 Networks, Inc.*+ 1,730 98,939
Polycom, Inc.* 6,030 92,259
Powerwave Technologies, Inc.*+ 5,500 69,135
Plantronics, Inc. 1,330 37,639
-------------
TOTAL COMMUNICATIONS EQUIPMENT 904,278
-------------
COMPUTERS & PERIPHERALS 1.7%
Sandisk Corp.*+ 8,770 550,932
Western Digital Corp.* 9,800 182,378
Imation Corp. 2,760 127,153
-------------
TOTAL COMPUTERS & PERIPHERALS 860,463
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.5%
CDW Corp. 6,290 362,115
Arrow Electronics, Inc.* 6,750 216,202
Plexus Corp.* 4,090 93,007
Amphenol Corp. -- Class A 1,210 53,555
National Instruments Corp. 1,390 44,549
Avnet, Inc.*+ 900 21,546
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 790,974
-------------
OFFICE ELECTRONICS 0.2%
Zebra Technologies Corp. --
Class A* 3,070 131,550
-------------
TOTAL OFFICE ELECTRONICS 131,550
-------------
TOTAL INFORMATION TECHNOLOGY 6,958,510
-------------
INDUSTRIALS 11.4%
COMMERCIAL SERVICES & SUPPLIES 3.8%
Dun & Bradstreet Corp.*+ 7,120 476,755
Adesa, Inc. 15,350 374,847
Herman Miller, Inc. 12,040 339,408
Manpower, Inc. 6,970 324,105
Corporate Executive Board Co. 1,550 139,035
Republic Services, Inc. 3,580 134,429
HNI Corp. 1,320 72,508
Deluxe Corp. 2,280 68,719
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,929,806
-------------
MACHINERY 1.9%
Crane Co. 10,630 374,920
Joy Global, Inc. 4,530 181,200
Timken Co. 5,200 166,504
Nordson Corp. 4,090 165,686
Trinity Industries, Inc.+ 1,150 50,680
-------------
TOTAL MACHINERY 938,990
-------------
AEROSPACE & DEFENSE 1.3%
Alliant Techsystems, Inc.*+ 5,210 396,846
Precision Castparts Corp.+ 5,410 280,292
-------------
TOTAL AEROSPACE & DEFENSE 677,138
-------------
74 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
ROAD & RAIL 1.2%
CNF, Inc.+ 7,160 $ 400,172
Yellow Roadway Corp.*+ 4,560 203,422
-------------
TOTAL ROAD & RAIL 603,594
-------------
TRADING COMPANIES & DISTRIBUTORS 0.8%
GATX Corp.+ 4,650 167,772
Fastenal Co.+ 3,460 135,597
MSC Industrial Direct Co. --
Class A 2,780 111,812
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 415,181
-------------
AIR FREIGHT & COURIERS 0.8%
CH Robinson Worldwide, Inc. 7,060 261,432
Expeditors International
Washington, Inc. 2,010 135,695
-------------
TOTAL AIR FREIGHT & COURIERS 397,127
-------------
CONSTRUCTION & ENGINEERING 0.5%
Jacobs Engineering Group, Inc.* 3,650 247,725
Granite Construction, Inc. 50 1,796
-------------
TOTAL CONSTRUCTION & ENGINEERING 249,521
-------------
INDUSTRIAL CONGLOMERATES 0.4%
Teleflex, Inc. 3,390 220,282
-------------
TOTAL INDUSTRIAL CONGLOMERATES 220,282
-------------
MARINE 0.3%
Alexander & Baldwin, Inc.+ 3,100 168,144
-------------
TOTAL MARINE 168,144
-------------
ELECTRICAL EQUIPMENT 0.2%
AMETEK, Inc.+ 2,740 116,560
-------------
TOTAL ELECTRICAL EQUIPMENT 116,560
-------------
AIRLINES 0.2%
AirTran Holdings, Inc.+ 6,400 102,592
-------------
TOTAL AIRLINES 102,592
-------------
TOTAL INDUSTRIALS 5,818,935
-------------
HEALTH CARE 9.4%
HEALTH CARE EQUIPMENT & SUPPLIES 3.0%
Hillenbrand Industries, Inc. 7,140 352,787
Varian Medical Systems, Inc.*+ 6,300 317,142
Varian, Inc.* 6,400 254,656
Inamed Corp.* 2,340 205,171
Edwards Lifesciences Corp.* 3,040 126,494
DENTSPLY International, Inc. 2,330 125,098
Intuitive Surgical, Inc.*+ 910 106,716
Gen-Probe, Inc.* 910 44,399
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,532,463
-------------
HEALTH CARE PROVIDERS & SERVICES 2.9%
Omnicare, Inc.+ 9,630 551,029
Lincare Holdings, Inc.* 9,730 407,784
Triad Hospitals, Inc.* 4,690 183,989
LifePoint Hospitals, Inc.*+ 3,390 127,125
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Apria Healthcare Group, Inc.* 4,090 $ 98,610
Health Net, Inc.* 1,370 70,623
Community Health Systems, Inc.*+ 1,160 44,474
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,483,634
-------------
PHARMACEUTICALS 1.8%
IVAX Corp.* 12,810 401,338
Barr Pharmaceuticals, Inc.* 5,670 353,184
Sepracor, Inc.*+ 2,720 140,352
Valeant Pharmaceuticals
International 1,140 20,611
-------------
TOTAL PHARMACEUTICALS 915,485
-------------
BIOTECHNOLOGY 1.7%
Invitrogen Corp.*+ 4,150 276,556
Protein Design Labs, Inc.*+ 9,090 258,338
Charles River Laboratories
International, Inc.*+ 5,150 218,205
Millennium Pharmaceuticals, Inc.*+ 3,830 37,151
Techne Corp.* 530 29,760
Cephalon, Inc.*+ 440 28,486
Martek Biosciences Corp.*+ 440 10,828
-------------
TOTAL BIOTECHNOLOGY 859,324
-------------
TOTAL HEALTH CARE 4,790,906
-------------
ENERGY 7.7%
OIL & GAS 4.1%
Peabody Energy Corp. 5,840 481,333
Noble Energy, Inc. 9,970 401,791
Southwestern Energy Co.* 6,550 235,407
Pioneer Natural Resources Co. 4,570 234,304
Arch Coal, Inc.+ 2,920 232,140
Forest Oil Corp.* 3,160 144,001
Newfield Exploration Co.* 2,700 135,189
Western Gas Resources, Inc. 2,810 132,323
Denbury Resources, Inc.* 4,380 99,777
Quicksilver Resources, Inc.*+ 730 30,667
Plains Exploration &
Production Co.* 70 2,781
-------------
TOTAL OIL & GAS 2,129,713
-------------
ENERGY EQUIPMENT & SERVICES 3.6%
Patterson-UTI Energy, Inc. 13,180 434,281
Pride International, Inc.* 7,830 240,772
Grant Prideco, Inc.*+ 5,340 235,601
Cooper Cameron Corp.*+ 5,380 222,732
Helmerich & Payne, Inc. 2,940 182,015
Smith International, Inc.+ 4,850 179,984
Tidewater, Inc.+ 3,930 174,728
ENSCO International, Inc.+ 3,840 170,304
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,840,417
-------------
TOTAL ENERGY 3,970,130
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 75
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
UTILITIES 6.2%
MULTI-UTILITIES 3.8%
Wisconsin Energy Corp. 12,020 $ 469,502
SCANA Corp. 11,590 456,414
WPS Resources Corp. 6,720 371,683
NSTAR 8,040 230,748
MDU Resources Group, Inc. 6,830 223,614
Aquila, Inc.* 45,560 164,016
-------------
TOTAL MULTI-UTILITIES 1,915,977
-------------
GAS UTILITIES 2.3%
Equitable Resources, Inc. 12,440 456,423
Oneok, Inc.+ 14,430 384,271
Questar Corp.+ 4,320 327,024
-------------
TOTAL GAS UTILITIES 1,167,718
-------------
ELECTRIC UTILITIES 0.1%
Sierra Pacific Resources*+ 4,400 57,376
Westar Energy, Inc. 600 12,900
-------------
TOTAL ELECTRIC UTILITIES 70,276
-------------
TOTAL UTILITIES 3,153,971
-------------
MATERIALS 3.6%
CHEMICALS 2.9%
Lyondell Chemical Co.+ 18,210 433,762
Lubrizol Corp. 8,250 358,297
Olin Corp.+ 17,220 338,890
FMC Corp.* 2,110 112,189
Cytec Industries, Inc. 2,200 104,786
Scotts Miracle-Gro Co. -- Class A 1,420 64,241
Airgas, Inc. 1,270 41,783
Chemtura Corp. 1,630 20,701
-------------
TOTAL CHEMICALS 1,474,649
-------------
CONSTRUCTION MATERIALS 0.5%
Martin Marietta Materials, Inc.+ 3,070 235,530
-------------
TOTAL CONSTRUCTION MATERIALS 235,530
-------------
METALS & MINING 0.2%
Worthington Industries, Inc. 6,710 128,899
-------------
TOTAL METALS & MINING 128,899
-------------
TOTAL MATERIALS 1,839,078
-------------
CONSUMER STAPLES 2.4%
HOUSEHOLD PRODUCTS 1.5%
Energizer Holdings, Inc.* 8,390 417,738
Church & Dwight Co., Inc. 11,060 365,312
-------------
TOTAL HOUSEHOLD PRODUCTS 783,050
-------------
FOOD PRODUCTS 0.9%
Hormel Foods Corp. 8,300 271,244
Dean Foods Co.* 4,610 173,612
-------------
TOTAL FOOD PRODUCTS 444,856
-------------
TOTAL CONSUMER STAPLES 1,227,906
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 0.3%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.3%
Cincinnati Bell, Inc.* 44,960 $ 157,810
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 157,810
-------------
WIRELESS TELECOMMUNICATION SERVICES 0.0%
Telephone & Data Systems, Inc. 500 18,015
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 18,015
-------------
TOTAL TELECOMMUNICATION SERVICES 175,825
-------------
TOTAL COMMON STOCKS
(Cost $40,217,344) 43,044,435
-------------
FACE
AMOUNT
-------------
FEDERAL AGENCY DISCOUNT NOTE 1.9%
Federal Farm Credit Bank**
4.04% due 01/09/06 $ 1,000,000 999,327
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTE
(Cost $999,327) 999,327
-------------
REPURCHASE AGREEMENTS 12.1%
Repurchase Agreement (Note 5)
3.45% due 01/03/06++ 1,790,668 1,790,668
3.40% due 01/03/06 1,072,285 1,072,285
3.39% due 01/03/06 1,103,724 1,103,724
3.30% due 01/03/06 1,103,724 1,103,724
2.90% due 01/03/06 1,103,724 1,103,724
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,174,125) 6,174,125
-------------
SECURITIES LENDING COLLATERAL 15.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 7,735,014 7,735,014
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $7,735,014) 7,735,014
-------------
TOTAL INVESTMENTS 113.2%
(Cost $55,125,810) $ 57,952,901
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (13.2)% $ (6,755,855)
=============
NET ASSETS - 100.0% $ 51,197,046
- -------------------------------------------------------------------------------
76 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $10,315,190) 139 $ (105,659)
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
February 2006 S&P MidCap 400 Index
Swap, Maturing 02/21/06***
(Notional Market
Value $23,581,157) 31,951 $ (152,901)
=============
* NON-INCOME PRODUCING SECURITY.
** THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A
CONGRESSIONAL CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY
THE U.S. GOVERNMENT.
*** 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, 2005 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 77
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 35.1%
Fannie Mae*
4.07% due 01/30/06 $ 250,000 $ 249,237
Federal Farm Credit Bank*
3.50% due 01/05/06 250,000 249,951
Federal Home Loan Bank*
3.98% due 01/04/06 250,000 249,972
Freddie Mac*
4.07% due 01/30/06 250,000 249,237
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $998,397) 998,397
-------------
REPURCHASE AGREEMENTS 52.5%
Repurchase Agreement (Note 5)
3.45% due 01/03/06+ 190,311 190,311
3.40% due 01/03/06 319,498 319,498
3.39% due 01/03/06 328,866 328,866
3.30% due 01/03/06 328,866 328,866
2.90% due 01/03/06 328,866 328,866
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,496,407) 1,496,407
-------------
TOTAL INVESTMENTS 87.6%
(Cost $2,494,804) $ 2,494,804
=============
OTHER ASSETS IN
EXCESS OF LIABILITIES - 12.4% $ 351,559
=============
NET ASSETS - 100.0% $ 2,846,363
- -------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2006 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $667,890) 9 $ 1,248
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT SOLD SHORT
February 2006 S&P MidCap 400 Index
Swap, Maturing 02/21/06**
(Notional Market
Value $2,227,354) 3,018 $ 24,915
=============
* 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 HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
78 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 93.3%
FINANCIALS 20.0%
REAL ESTATE 6.8%
Taubman Centers, Inc.+ 4,380 $ 152,205
Jones Lang LaSalle, Inc. 2,880 145,008
FelCor Lodging Trust, Inc. 7,480 128,731
Potlatch Corp.+ 2,500 127,450
Nationwide Health Properties, Inc. 5,810 124,334
Pennsylvania Real Estate
Investment Trust 3,320 124,035
Strategic Hotel Capital, Inc. 6,020 123,892
Commercial Net Lease Realty 6,030 122,831
Eastgroup Properties, Inc. 2,710 122,384
Corporate Office Properties
Trust SBI/MD 3,360 119,414
Mid-America Apartment
Communities, Inc. 2,440 118,340
Tanger Factory Outlet Centers, Inc. 4,100 117,834
Meristar Hospitality Corp.* 12,461 117,133
American Home Mortgage
Investment Corp.+ 3,540 115,298
Spirit Finance Corp. 10,050 114,067
Entertainment Properties Trust 2,630 107,172
National Health Investors, Inc. 3,520 91,379
Trammell Crow Co.* 2,040 52,326
Fieldstone Investment Corp. 4,360 51,710
Arbor Realty Trust, Inc. 1,920 49,766
Bedford Property Investors, Inc. 2,180 47,829
Newcastle Investment Corp. 1,790 44,482
Luminent Mortgage Capital, Inc. 5,720 42,957
Essex Property Trust, Inc.+ 410 37,802
Kilroy Realty Corp. 610 37,759
Realty Income Corp. 1,350 29,187
MFA Mortgage Investments, Inc. 4,810 27,417
Saxon Capital, Inc. 2,200 24,926
Equity Inns, Inc. 1,370 18,564
CB Richard Ellis Group, Inc. --
Class A* 300 17,655
Capstead Mortgage Corp.+ 2,890 16,791
Equity Lifestyle Properties, Inc. 340 15,130
HomeBanc Corp./Atlanta GA 1,870 13,988
New Century Financial Corp.+ 300 10,821
-------------
TOTAL REAL ESTATE 2,610,617
-------------
BANKS 6.2%
Umpqua Holding Corp. 4,970 141,794
Hudson United Bancorp 3,370 140,461
SVB Financial Group*+ 2,810 131,620
Central Pacific Financial Corp. Co. 3,430 123,206
Sterling Financial Corp./WA 4,775 119,279
Provident Bankshares Corp. 3,430 115,831
First Republic Bank 3,107 114,990
Greater Bay Bancorp 4,422 113,292
Republic Bancorp, Inc./MI 9,484 112,860
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
TrustCo Bank Corp./NY+ 8,630 $ 107,185
FNB Corp. 5,836 101,313
MB Financial Corp. 2,800 99,120
First Bancorp Puerto Rico 7,870 97,667
First Financial Bancorp+ 5,280 92,506
Community Bank System, Inc. 3,920 88,396
PrivateBancorp, Inc. 2,460 87,502
UCBH Holdings, Inc.+ 4,640 82,963
Hanmi Financial Corp. 4,520 80,727
United Bankshares, Inc. 2,100 74,004
Citizens Banking Corp./MI 2,090 57,997
First Midwest Bancorp, Inc./IL 1,550 54,343
Nara Bancorp, Inc.+ 2,760 49,073
First Community Bancorp/CA 870 47,302
Center Financial Corp. 1,660 41,766
East-West Bancorp, Inc. 1,020 37,220
Oriental Financial Group+ 2,860 35,350
Prosperity Bancshares, Inc. 910 26,153
-------------
TOTAL BANKS 2,373,920
-------------
THRIFTS & MORTGAGE FINANCE 2.8%
Fremont General Corp.+ 6,180 143,561
Corus Bankshares, Inc.+ 2,210 124,357
FirstFed Financial Corp.*+ 2,160 117,763
Harbor Florida Bancshares, Inc. 2,960 109,668
Provident Financial Services, Inc. 5,760 106,618
BankAtlantic Bancorp, Inc. --
Class A 6,530 91,420
Flagstar Bancorp, Inc. 5,180 74,592
NetBank, Inc.+ 6,920 49,686
Dime Community Bancshares 3,220 47,044
Kearny Financial Corp. 3,250 39,650
Federal Agricultural Mortgage
Corp. 1,290 38,610
Doral Financial Corp. 3,350 35,510
Downey Financial Corp. 460 31,459
Franklin Bank Corp./Houston TX* 1,630 29,324
W Holding Co., Inc.+ 2,940 24,196
R&G Financial Corp. -- Class B 1,830 24,156
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,087,614
-------------
INSURANCE 2.3%
ProAssurance Corp.*+ 2,730 132,787
Argonaut Group, Inc.* 3,930 128,786
LandAmerica Financial Group, Inc. 2,020 126,048
Zenith National Insurance Corp. 2,725 125,677
Selective Insurance Group, Inc. 1,920 101,952
American Physicians Capital, Inc.* 1,090 49,911
Safety Insurance Group, Inc. 1,140 46,022
Universal American Financial Corp.* 2,750 41,470
RLI Corp. 820 40,893
Delphi Financial Group, Inc. --
Class A 880 40,489
Philadelphia Consolidated
Holding Co.* 320 30,941
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 79
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Covanta Holding Corp.* 1,510 $ 22,741
AmerUs Group Co. 320 18,134
-------------
TOTAL INSURANCE 905,851
-------------
CAPITAL MARKETS 0.8%
Investment Technology Group,
Inc.* 3,710 131,482
Calamos Asset Management, Inc. --
Class A 3,420 107,559
Affiliated Managers Group*+ 390 31,297
GAMCO Investors, Inc. -- Class A 450 19,589
LaBranche & Co., Inc.*+ 1,550 15,671
MarketAxess Holdings, Inc.* 1,179 13,476
-------------
TOTAL CAPITAL MARKETS 319,074
-------------
CONSUMER FINANCE 0.8%
CompuCredit Corp.*+ 2,680 103,126
World Acceptance Corp.* 1,620 46,170
Collegiate Funding Services LLC* 2,200 43,450
Asta Funding, Inc.+ 1,530 41,830
ACE Cash Express, Inc.* 1,400 32,690
Advance America Cash Advance
Centers, Inc. 1,790 22,196
Nelnet, Inc. -- Class A* 260 10,577
-------------
TOTAL CONSUMER FINANCE 300,039
-------------
DIVERSIFIED FINANCIALS 0.3%
Nasdaq Stock Market, Inc.* 1,760 61,917
Archipelago Holdings, Inc.* 626 31,156
Asset Acceptance Capital Corp.* 990 22,235
-------------
TOTAL DIVERSIFIED FINANCIALS 115,308
-------------
TOTAL FINANCIALS 7,712,423
-------------
INFORMATION TECHNOLOGY 17.5%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4.1%
OmniVision Technologies, Inc.*+ 7,640 152,494
Cymer, Inc.* 3,580 127,126
Micrel, Inc.* 9,300 107,880
Silicon Image, Inc.* 11,820 106,971
Microsemi Corp.*+ 3,280 90,725
MKS Instruments, Inc.* 4,890 87,482
Cirrus Logic, Inc.* 12,720 84,970
ON Semiconductor Corp.* 14,760 81,623
Sigmatel, Inc.* 4,930 64,583
Photronics, Inc.*+ 4,020 60,541
Diodes, Inc.* 1,785 55,424
Tessera Technologies, Inc.* 2,120 54,802
Kopin Corp.* 9,140 48,899
ATMI, Inc.* 1,630 45,591
Netlogic Microsystems, Inc.* 1,560 42,494
ADE Corp.* 1,510 36,331
IXYS Corp.* 3,010 35,187
MIPS Technology, Inc.* 5,710 32,433
Cypress Semiconductor Corp.*+ 2,190 31,207
Power Integrations, Inc.* 1,310 31,191
Silicon Laboratories, Inc.*+ 840 30,794
Trident Microsystems, Inc.*+ 1,350 24,300
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
RF Micro Devices, Inc.* 4,295 $ 23,236
Atmel Corp.* 6,500 20,085
Amkor Technology, Inc.*+ 3,420 19,152
Silicon Storage Technology, Inc.* 3,260 16,463
Skyworks Solutions, Inc.* 2,920 14,863
Portalplayer, Inc.* 520 14,726
Credence Systems Corp.* 2,099 14,609
PMC - Sierra, Inc.*+ 1,660 12,799
Rambus, Inc.* 620 10,038
Conexant Systems, Inc.* 3,870 8,746
LTX Corp.* 1,920 8,640
Lattice Semiconductor Corp.*+ 790 3,413
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 1,599,818
-------------
SOFTWARE 3.1%
MicroStrategy, Inc. -- Class A* 1,660 137,348
Internet Security Systems, Inc.* 4,510 94,484
Epicor Software Corp.* 6,420 90,715
Serena Software, Inc.*+ 3,800 89,072
Macrovision Corp.* 4,920 82,312
Micros Systems, Inc.*+ 1,630 78,762
Ansys, Inc.* 1,740 74,281
Transaction Systems Architects,
Inc. -- Class A*+ 2,540 73,127
Secure Computing Corp.*+ 5,350 65,591
Parametric Technology Corp.* 7,690 46,909
Quest Software, Inc.* 2,620 38,226
Salesforce.com, Inc.*+ 1,190 38,139
Quality Systems, Inc.*+ 470 36,077
Advent Software, Inc.* 1,000 28,910
THQ, Inc.* 1,130 26,950
Take-Two Interactive Software, Inc.* 1,340 23,718
Progress Software Corp.* 830 23,555
TIBCO Software, Inc.* 3,000 22,410
Kronos, Inc./MA* 520 21,767
RSA Security, Inc.*+ 1,525 17,126
Vasco Data Security International* 1,730 17,058
Intervideo, Inc.* 1,520 16,036
InterVoice, Inc.* 1,820 14,487
Mentor Graphics Corp.* 1,375 14,218
Filenet Corp.* 550 14,217
GameStop Corp. -- Class B* 240 6,936
-------------
TOTAL SOFTWARE 1,192,431
-------------
INTERNET SOFTWARE & SERVICES 2.3%
Digitas, Inc.* 9,810 122,821
United Online, Inc. 8,110 115,324
Websense, Inc.* 1,660 108,963
InfoSpace, Inc.* 4,200 108,444
EarthLink, Inc.* 8,690 96,546
Equinix, Inc.*+ 1,920 78,259
j2 Global Communications, Inc.*+ 1,660 70,948
Sonicwall, Inc.* 7,990 63,281
Digital River, Inc.*+ 1,710 50,855
Bankrate, Inc.* 1,390 41,033
80 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Click Commerce, Inc.*+ 1,255 $ 26,380
Online Resources Corp.* 290 3,205
-------------
TOTAL INTERNET SOFTWARE & SERVICES 886,059
-------------
COMMUNICATIONS EQUIPMENT 2.2%
CommScope, Inc.*+ 5,930 119,371
Sycamore Networks, Inc.* 20,680 89,338
Extreme Networks, Inc.*+ 16,690 79,277
Ixia* 4,550 67,249
Netgear, Inc.* 3,330 64,102
Black Box Corp. 1,290 61,120
Symmetricom, Inc.* 6,920 58,612
ADTRAN, Inc. 1,580 46,989
Comtech Telecommunications
Corp.*+ 1,370 41,840
3Com Corp.*+ 10,235 36,846
Blue Coat Systems, Inc.* 780 35,662
Tekelec* 2,400 33,360
Utstarcom, Inc.*+ 3,213 25,897
Westell Technologies, Inc. --
Class A*+ 4,080 18,360
Avocent Corp.* 658 17,891
F5 Networks, Inc.*+ 250 14,298
Arris Group, Inc.* 1,210 11,459
Interdigital Communications Corp.* 570 10,442
Ditech Communications Corp.* 610 5,094
EndWave Corp.* 290 3,416
-------------
TOTAL COMMUNICATIONS EQUIPMENT 840,623
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.2%
Electro Scientific Industries, Inc.* 4,300 103,845
Coherent, Inc.* 3,260 96,757
Agilsys, Inc. 4,290 78,164
Itron, Inc.* 1,560 62,462
LoJack Corp.* 2,540 61,290
CTS Corp. 5,490 60,719
TTM Technologies, Inc.* 6,160 57,904
Rofin-Sinar Technologies, Inc.* 1,310 56,946
Littelfuse, Inc.* 1,780 48,505
MTS Systems Corp. 1,340 46,418
Brightpoint, Inc.* 1,350 37,435
Global Imaging Systems, Inc.* 1,080 37,400
Metrologic Instruments, Inc.* 1,610 31,009
International DisplayWorks, Inc.*+ 3,910 23,225
Trimble Navigation Ltd.* 550 19,520
Checkpoint Systems, Inc.* 420 10,353
Fargo Electronics, Inc.* 340 6,545
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 838,497
-------------
COMPUTERS & PERIPHERALS 1.9%
Emulex Corp.*+ 7,120 140,905
Komag, Inc.* 3,750 129,975
Intergraph Corp.* 2,160 107,590
Palm, Inc.*+ 2,500 79,500
Brocade Communications Systems,
Inc.*+ 19,420 79,039
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
UNOVA, Inc. 1,510 $ 51,038
McData Corp. -- Class A*+ 10,971 41,690
Mobility Electronics, Inc.*+ 4,000 38,640
Synaptics, Inc.* 1,070 26,450
Gateway, Inc.*+ 8,460 21,235
Adaptec, Inc.* 1,290 7,508
-------------
TOTAL COMPUTERS & PERIPHERALS 723,570
-------------
IT CONSULTING & SERVICES 1.7%
CSG Systems International, Inc.*+ 5,130 114,502
Talx Corp. 2,380 108,790
MAXIMUS, Inc. 2,870 105,300
Perot Systems Corp. -- Class A* 6,840 96,718
Intrado, Inc.* 2,650 61,003
Mantech International Corp. --
Class A* 1,180 32,875
BISYS Group, Inc.* 2,296 32,167
Sykes Enterprises, Inc.* 2,180 29,147
Acxiom Corp. 1,260 28,980
Infocrossing, Inc.*+ 2,790 24,022
CACI International, Inc. -- Class A* 330 18,935
iPayment Holdings, Inc.* 370 15,362
infoUSA, Inc. -- Class B 980 10,711
-------------
TOTAL IT CONSULTING & SERVICES 678,512
-------------
TOTAL INFORMATION TECHNOLOGY 6,759,510
-------------
CONSUMER DISCRETIONARY 13.9%
SPECIALTY RETAIL 3.7%
Charming Shoppes, Inc.* 11,830 156,156
Sports Authority, Inc.* 3,840 119,539
Genesco, Inc.* 3,020 117,146
Pantry, Inc.* 2,160 101,498
Christopher & Banks Corp. 5,350 100,473
Talbots, Inc.+ 3,430 95,423
Sonic Automotive, Inc. 4,270 95,136
Guess ?, Inc.*+ 2,100 74,760
Stein Mart, Inc. 3,860 70,059
Too, Inc.* 2,380 67,140
Cato Corp. -- Class A 2,970 63,706
CSK Auto Corp.* 4,130 62,280
Children's Place Retail Stores, Inc.* 1,080 53,374
Group 1 Automotive, Inc.* 1,360 42,745
Hibbett Sporting Goods, Inc.* 1,210 34,461
Dress Barn, Inc.* 730 28,185
Payless Shoesource, Inc.* 1,057 26,531
Cache, Inc.* 1,450 25,114
Buckle, Inc. 740 23,858
Select Comfort Corp.* 790 21,606
Guitar Center, Inc.* 420 21,004
Tractor Supply Co.*+ 360 19,058
Movie Gallery, Inc.+ 2,980 16,718
Burlington Coat Factory
Warehouse Corp. 100 4,021
Regis Corp. 80 3,086
-------------
TOTAL SPECIALTY RETAIL 1,443,077
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 81
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE 2.1%
CEC Entertainment, Inc.* 3,070 $ 104,503
Papa John's International, Inc.* 1,600 94,896
CKE Restaurants, Inc. 6,850 92,543
Jack in the Box, Inc.*+ 2,450 85,578
Vail Resorts, Inc.* 2,200 72,666
Steak n Shake Co.* 3,760 63,732
Ameristar Casinos, Inc. 2,500 56,750
Landry's Restaurants, Inc. 1,870 49,948
Bluegreen Corp.* 3,090 48,822
Sunterra Corp.* 2,910 41,380
Sonic Corp.* 940 27,730
Krispy Kreme Doughnuts, Inc.*+ 4,029 23,126
Gaylord Entertainment Co.* 340 14,821
Domino's Pizza, Inc. 550 13,310
Monarch Casino & Resort, Inc.* 550 12,430
Multimedia Games, Inc.*+ 1,310 12,117
Penn National Gaming, Inc.* 130 4,284
Boyd Gaming Corp. 80 3,813
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 822,449
-------------
HOUSEHOLD DURABLES 2.1%
Brookfield Homes Corp. 2,130 105,925
La-Z-Boy, Inc.+ 7,790 105,632
Yankee Candle Co., Inc. 4,050 103,680
Jarden Corp.* 3,270 98,591
Ethan Allen Interiors, Inc.+ 2,490 90,960
WCI Communities, Inc.*+ 3,380 90,753
Technical Olympic USA, Inc. 1,910 40,282
Maytag Corp. 2,050 38,581
William Lyon Homes, Inc.*+ 380 38,342
Champion Enterprises, Inc.* 2,720 37,046
Interface, Inc. -- Class A* 4,110 33,784
Blount International, Inc.* 1,534 24,437
-------------
TOTAL HOUSEHOLD DURABLES 808,013
-------------
MEDIA 2.0%
Journal Register Co. 6,130 91,643
Cumulus Media, Inc. -- Class A*+ 7,210 89,476
Citadel Broadcasting Corp. 6,550 88,032
RCN Corp.*+ 3,420 80,199
Reader's Digest Association, Inc. 5,200 79,144
Emmis Communications Corp. --
Class A* 3,840 76,454
Entravision Communications Corp. --
Class A* 7,410 52,759
Lin TV Corp. -- Class A* 4,050 45,117
Playboy Enterprises, Inc. --
Class B*+ 3,010 41,809
RH Donnelley Corp.*+ 550 33,891
Sinclair Broadcast Group, Inc. --
Class A+ 3,630 33,396
ProQuest Co.* 840 23,444
Gemstar-TV Guide International,
Inc.* 3,180 8,300
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Catalina Marketing Corp. 290 $ 7,352
Primedia, Inc.* 3,460 5,571
-------------
TOTAL MEDIA 756,587
-------------
TEXTILES & APPAREL 1.2%
Phillips-Van Heusen Corp. 3,910 126,684
K-Swiss, Inc. -- Class A 3,720 120,677
Skechers U.S.A., Inc. -- Class A* 3,010 46,113
Carter's, Inc.* 780 45,903
Quiksilver, Inc.* 2,190 30,309
Charles & Colvard Ltd.+ 1,480 29,896
Russell Corp. 2,180 29,343
Wolverine World Wide, Inc. 1,260 28,300
-------------
TOTAL TEXTILES & APPAREL 457,225
-------------
COMMERCIAL SERVICES & SUPPLIES 0.6%
Sotheby's Holdings, Inc. --
Class A* 5,470 100,429
Jackson Hewitt Tax Service, Inc. 1,940 53,758
DeVry, Inc.*+ 1,870 37,400
Corinthian Colleges, Inc.* 2,840 33,455
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 225,042
-------------
INTERNET & CATALOG RETAIL 0.5%
Stamps.com, Inc.* 2,420 55,563
Coldwater Creek, Inc.* 1,780 54,343
Nutri/System, Inc.*+ 1,460 52,589
1-800-FLOWERS.com, Inc.* 3,430 22,021
Priceline.com, Inc.* 880 19,642
-------------
TOTAL INTERNET & CATALOG RETAIL 204,158
-------------
LEISURE EQUIPMENT & PRODUCTS 0.5%
Jakks Pacific, Inc.*+ 3,760 78,735
RC2 Corp.* 1,350 47,952
SCP Pool Corp. 990 36,848
Callaway Golf Co. 1,710 23,666
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 187,201
-------------
MULTILINE RETAIL 0.3%
Tuesday Morning Corp. 3,840 80,333
Conn's, Inc.*+ 730 26,915
Big Lots, Inc.*+ 1,230 14,772
99 Cents Only Stores*+ 1,260 13,180
-------------
TOTAL MULTILINE RETAIL 135,200
-------------
AUTO COMPONENTS 0.3%
LKQ Corp.* 1,150 39,813
ArvinMeritor, Inc. 1,970 28,348
Visteon Corp.* 4,000 25,040
Goodyear Tire & Rubber Co.*+ 1,440 25,027
Exide Technologies* 3,090 11,433
-------------
TOTAL AUTO COMPONENTS 129,661
-------------
DISTRIBUTORS 0.2%
Building Material Holding Corp. 1,200 81,852
-------------
TOTAL DISTRIBUTORS 81,852
-------------
82 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES 0.2%
Alderwoods Group, Inc.* 4,080 $ 64,750
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 64,750
-------------
AUTOMOBILES 0.2%
Winnebago Industries, Inc.+ 1,160 38,605
Thor Industries, Inc.+ 590 23,641
-------------
TOTAL AUTOMOBILES 62,246
-------------
TOTAL CONSUMER DISCRETIONARY 5,377,461
-------------
INDUSTRIALS 13.5%
COMMERCIAL SERVICES & SUPPLIES 3.5%
Brady Corp. -- Class A 3,750 135,675
United Stationers, Inc.* 2,536 122,996
John H. Harland Co. 2,760 103,776
PHH Corp.* 3,220 90,224
FTI Consulting, Inc.* 3,100 85,064
Korn/Ferry International, Inc.* 4,370 81,675
Kelly Services, Inc. 2,680 70,270
NCO Group, Inc.* 4,140 70,049
Administaff, Inc. 1,560 65,598
Advisory Board Co.* 1,250 59,587
Navigant Consulting, Inc.* 2,710 59,566
Resources Connection, Inc.* 2,192 57,124
Portfolio Recovery Associates, Inc.* 1,050 48,762
Labor Ready, Inc.*+ 2,180 45,388
Clean Harbors, Inc.*+ 1,530 44,079
Mine Safety Appliances Co. 1,130 40,917
DiamondCluster International,
Inc. -- Class A* 4,450 35,333
Rollins, Inc. 1,460 28,777
School Specialty, Inc.* 670 24,415
Mobile Mini, Inc.*+ 410 19,434
Hudson Highland Group, Inc.* 1,040 18,054
Duratek, Inc.* 1,110 16,572
CRA International, Inc.* 320 15,261
Waste Connections, Inc.*+ 260 8,960
Teletech Holdings, Inc.* 340 4,097
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,351,653
-------------
MACHINERY 3.0%
Kennametal, Inc. 2,880 146,995
Gardner Denver, Inc.* 2,650 130,645
JLG Industries, Inc.+ 2,790 127,391
Wabash National Corp. 4,650 88,583
Cascade Corp. 1,820 85,376
EnPro Industries, Inc.* 3,120 84,084
Barnes Group, Inc. 2,270 74,910
American Science & Engineering,
Inc.*+ 1,190 74,220
Actuant Corp. -- Class A 1,320 73,656
Watts Industries, Inc. -- Class A 1,310 39,680
Toro Co. 890 38,955
Terex Corp.* 650 38,610
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Tecumseh Products Co. -- Class A+ 1,250 $ 28,638
Gehl Co.* 1,040 27,300
Dynamic Materials Corp. 850 25,517
Titan International, Inc. 1,455 25,099
Wabtec Corp. 840 22,596
ESCO Technologies, Inc.* 430 19,131
Joy Global, Inc. 330 13,200
Sun Hydraulics Corp. 160 3,093
-------------
TOTAL MACHINERY 1,167,679
-------------
AEROSPACE & DEFENSE 1.6%
Triumph Group, Inc.* 2,370 86,766
Teledyne Technologies, Inc.* 2,320 67,512
Aviall, Inc.* 2,290 65,952
Moog, Inc. -- Class A* 2,320 65,842
Kaman Corp. -- Class A 3,320 65,371
United Industrial Corp./NY 1,450 59,986
Cubic Corp. 2,320 46,307
Essex Corp.* 2,540 43,307
Armor Holdings, Inc.* 900 38,385
BE Aerospace, Inc.* 1,380 30,360
Esterline Technologies Corp.* 690 25,661
Innovative Solutions & Support, _
Inc.* 1,975 25,240
-------------
TOTAL AEROSPACE & DEFENSE 620,689
-------------
ELECTRICAL EQUIPMENT 1.4%
Genlyte Group, Inc.* 2,500 133,925
Woodward Governor Co. 1,100 94,611
Artesyn Technologies, Inc.*+ 5,370 55,311
General Cable Corp.* 2,706 53,308
LSI Industries, Inc. 2,960 46,354
Thomas & Betts Corp.* 1,040 43,638
II-Vi, Inc.* 2,340 41,816
Regal-Beloit Corp.+ 990 35,046
Energy Conversion Devices, Inc.*+ 750 30,563
GrafTech International Ltd.* 2,470 15,363
-------------
TOTAL ELECTRICAL EQUIPMENT 549,935
-------------
BUILDING PRODUCTS 1.0%
Universal Forest Products, Inc. 2,080 114,920
NCI Building Systems, Inc.*+ 2,690 114,271
Lennox International, Inc. 2,770 78,114
ElkCorp 2,320 78,091
-------------
TOTAL BUILDING PRODUCTS 385,396
-------------
TRADING COMPANIES & DISTRIBUTORS 0.9%
Watsco, Inc. 1,740 104,069
Applied Industrial Technologies,
Inc. 2,615 88,099
GATX Corp. 2,336 84,283
Beacon Roofing Supply, Inc.* 1,250 35,913
WESCO International, Inc.* 510 21,792
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 334,156
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 83
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING 0.5%
EMCOR Group, Inc.* 1,940 $ 131,008
Shaw Group, Inc.*+ 1,770 51,490
URS Corp.* 530 19,933
-------------
TOTAL CONSTRUCTION & ENGINEERING 202,431
-------------
INDUSTRIAL CONGLOMERATES 0.5%
Walter Industries, Inc. 3,020 150,154
Tredegar Corp. 2,727 35,151
-------------
TOTAL INDUSTRIAL CONGLOMERATES 185,305
-------------
AIRLINES 0.4%
Alaska Air Group, Inc.*+ 2,100 75,012
Mesa Air Group, Inc.*+ 4,490 46,965
AirTran Holdings, Inc.+ 2,257 36,180
-------------
TOTAL AIRLINES 158,157
-------------
ROAD & RAIL 0.4%
Arkansas Best Corp. 2,440 106,579
Swift Transportation Co., Inc.*+ 1,390 28,217
Laidlaw International, Inc. 490 11,383
-------------
TOTAL ROAD & RAIL 146,179
-------------
AIR FREIGHT & COURIERS 0.3%
Pacer International, Inc. 2,870 74,792
HUB Group, Inc. -- Class A* 1,370 48,430
-------------
TOTAL AIR FREIGHT & COURIERS 123,222
-------------
TOTAL INDUSTRIALS 5,224,802
-------------
HEALTH CARE 12.1%
HEALTH CARE EQUIPMENT & SUPPLIES 4.2%
Hologic, Inc.* 3,810 144,475
Sybron Dental Specialties, Inc.*+ 3,290 130,975
Haemonetics Corp./MA* 2,480 121,173
Intuitive Surgical, Inc.*+ 950 111,406
Lifecell Corp.* 4,780 91,155
DJ Orthopedics, Inc.* 3,250 89,635
West Pharmaceutical Services, Inc. 3,540 88,606
Conmed Corp.* 3,520 83,283
Varian, Inc.* 2,060 81,967
Mentor Corp. 1,640 75,571
Steris Corp. 2,790 69,806
Palomar Medical Technologies,
Inc.*+ 1,990 69,730
Aspect Medical Systems, Inc.* 1,980 68,013
Molecular Devices Corp.* 2,050 59,306
Laserscope*+ 2,360 53,006
Ventana Medical Systems, Inc.* 1,210 51,243
Thoratec Corp.* 2,370 49,035
Immucor, Inc.* 1,890 44,150
Kyphon, Inc.* 990 40,422
SurModics, Inc.*+ 930 34,401
Invacare Corp. 1,040 32,750
Cantel Medical Corp.* 440 7,894
Neurometrix, Inc.* 260 7,093
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,605,095
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
BIOTECHNOLOGY 3.6%
Alkermes, Inc.*+ 7,660 $ 146,459
United Therapeutics Corp.* 2,030 140,313
Medarex, Inc.*+ 8,080 111,908
Serologicals Corp.*+ 5,170 102,056
Exelixis, Inc.* 10,290 96,932
Cubist Pharmaceuticals, Inc.* 4,510 95,837
Vertex Pharmaceuticals, Inc.*+ 3,230 89,374
Myriad Genetics, Inc.* 4,280 89,024
Keryx Biopharmaceuticals, Inc.* 3,550 51,972
Enzo Biochem, Inc.*+ 3,450 42,849
Pharmion Corp.*+ 2,410 42,826
Albany Molecular Research, Inc.*+ 3,520 42,768
Geron Corp.*+ 4,960 42,706
Senomyx, Inc.* 3,150 38,178
Amylin Pharmaceuticals, Inc.*+ 930 37,126
Cambrex Corp. 1,820 34,161
Neurocrine Biosciences, Inc.* 530 33,247
Momenta Pharmaceuticals, Inc.*+ 1,400 30,856
Genitope Corp.*+ 3,550 28,222
Neopharm, Inc.*+ 1,770 19,098
Myogen, Inc.* 620 18,699
Northfield Laboratories, Inc.*+ 1,310 17,554
Progenics Pharmaceuticals, Inc.* 580 14,506
Digene Corp.* 470 13,710
Martek Biosciences Corp.*+ 470 11,567
OSI Pharmaceuticals, Inc.*+ 191 5,356
Ligand Pharmaceuticals, Inc. --
Class B*+ 424 4,728
-------------
TOTAL BIOTECHNOLOGY 1,402,032
-------------
HEALTH CARE PROVIDERS & SERVICES 2.8%
The Trizetto Group, Inc.* 6,350 107,886
Magellan Health Services, Inc.* 3,270 102,841
Kindred Healthcare, Inc.*+ 3,750 96,600
Genesis HealthCare Corp.* 2,440 89,109
Pediatrix Medical Group, Inc.*+ 840 74,399
Matria Healthcare, Inc.* 1,710 66,280
Apria Healthcare Group, Inc.* 2,380 57,382
Radiation Therapy Services, Inc.* 1,610 56,849
United Surgical Partners
International, Inc.* 1,610 51,761
Psychiatric Solutions, Inc.*+ 780 45,817
Per-Se Technologies, Inc.*+ 1,820 42,515
Beverly Enterprises, Inc.* 3,290 38,394
Centene Corp.* 1,380 36,280
American Dental Partners, Inc.* 1,950 35,256
Sierra Health Services, Inc.* 360 28,786
American Healthways, Inc.* 610 27,602
Odyssey HealthCare, Inc.* 1,350 25,164
Parexel International Corp.* 1,180 23,907
American Retirement Corp.*+ 860 21,612
Hanger Orthopedic Group, Inc.* 3,310 18,900
84 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Computer Programs & Systems,
Inc. 260 $ 10,772
LCA-Vision, Inc. 150 7,127
Allscripts Healthcare Solutions,
Inc.*+ 530 7,102
Symbion, Inc.* 160 3,680
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,076,021
-------------
PHARMACEUTICALS 1.5%
Salix Pharmaceuticals Ltd.* 5,970 104,953
KV Pharmaceutical Co.* 3,890 80,134
Par Pharmaceutical Cos., Inc.*+ 2,490 78,037
Andrx Corp.* 4,710 77,574
Adams Respiratory Therapeutics,
Inc.* 1,190 48,385
CNS, Inc. 2,120 46,449
Hi-Tech Pharmacal Co., Inc.* 760 33,660
First Horizon Pharmaceutical
Corp.*+ 1,910 32,948
Alpharma, Inc. -- Class A 1,040 29,650
SuperGen, Inc.* 4,780 24,139
MGI Pharma, Inc.*+ 1,130 19,391
Connetics Corp.*+ 320 4,624
-------------
TOTAL PHARMACEUTICALS 579,944
-------------
TOTAL HEALTH CARE 4,663,092
-------------
ENERGY 6.1%
OIL & GAS 3.2%
Frontier Oil Corp. 2,450 91,948
World Fuel Services Corp. 2,540 85,649
Swift Energy Co.*+ 1,900 85,633
Giant Industries, Inc.* 1,610 83,656
Cheniere Energy, Inc.*+ 2,080 77,418
St. Mary Land & Exploration Co.+ 1,730 63,681
Atlas America, Inc.* 1,056 63,592
Berry Petroleum Co. -- Class A 1,040 59,488
Petroleum Development Corp.* 1,730 57,678
W&T Offshore, Inc. 1,770 52,038
Holly Corp. 850 50,039
USEC, Inc. 4,160 49,712
Harvest Natural Resources, Inc.* 5,530 49,106
Syntroleum Corp.*+ 4,670 42,170
Meridian Resource Corp.* 9,370 39,354
Cabot Oil & Gas Corp. 830 37,433
TransMontaigne, Inc.* 5,470 36,102
Toreador Resources Corp.*+ 1,660 34,976
Forest Oil Corp.* 690 31,443
Alon USA Energy, Inc.* 1,560 30,654
ATP Oil & Gas Corp.*+ 670 24,797
Denbury Resources, Inc.* 970 22,097
Resource America, Inc. -- Class A 1,260 21,483
Vintage Petroleum, Inc. 350 18,666
Tesoro Corp. 280 17,234
Cimarex Energy Co.*+ 300 12,903
Foundation Coal Holdings, Inc. 100 3,800
-------------
TOTAL OIL & GAS 1,242,750
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES 2.9%
NS Group, Inc.* 3,220 $ 134,628
Grey Wolf, Inc.* 17,140 132,492
Lone Star Technologies, Inc.* 2,550 131,733
Global Industries, Ltd.* 8,200 93,070
Veritas DGC, Inc.*+ 2,370 84,111
Parker Drilling Co.* 6,850 74,186
Todco -- Class A*+ 1,740 66,225
Cal Dive International, Inc.*+ 1,680 60,295
Superior Energy Services*+ 2,720 57,256
Hydril Co.* 900 56,340
Atwood Oceanics, Inc.* 600 46,818
Maverick Tube Corp.*+ 1,130 45,042
GulfMark Offshore, Inc.* 1,400 41,468
Pioneer Drilling Co.* 1,840 32,991
Unit Corp.* 410 22,562
Lufkin Industries, Inc. 310 15,460
Hornbeck Offshore Services, Inc.* 100 3,270
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,097,947
-------------
TOTAL ENERGY 2,340,697
-------------
MATERIALS 4.3%
METALS & MINING 1.9%
Commercial Metals Co. 3,630 136,270
Reliance Steel & Aluminum Co. 1,930 117,962
Cleveland-Cliffs, Inc. 1,330 117,798
Quanex Corp. 1,600 79,952
Carpenter Technology Corp.+ 1,120 78,927
Century Aluminum Co.*+ 1,660 43,509
Aleris International, Inc.* 1,210 39,010
Oregon Steel Mills, Inc.* 1,210 35,598
AK Steel Holding Corp.* 2,720 21,624
Allegheny Technologies, Inc. 500 18,040
Hecla Mining Co.*+ 3,890 15,793
Wheeling-Pittsburgh Corp.* 1,290 11,636
Titanium Metals Corp.*+ 100 6,326
Coeur d'Alene Mines Corp.* 950 3,800
-------------
TOTAL METALS & MINING 726,245
-------------
CHEMICALS 0.9%
Terra Industries, Inc.*+ 13,870 77,672
Pioneer Cos., Inc.* 1,660 49,750
Westlake Chemical Corp. 1,550 44,655
Cytec Industries, Inc. 855 40,724
Airgas, Inc. 1,180 38,822
FMC Corp.* 606 32,221
Ferro Corp. 1,550 29,078
Minerals Technologies, Inc. 349 19,506
Olin Corp.+ 550 10,824
Wellman, Inc. 1,520 10,305
-------------
TOTAL CHEMICALS 353,557
-------------
CONSTRUCTION MATERIALS 0.8%
Eagle Materials, Inc.+ 1,210 148,056
Texas Industries, Inc. 1,920 95,693
Headwaters, Inc.*+ 1,660 58,830
-------------
TOTAL CONSTRUCTION MATERIALS 302,579
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 85
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONTAINERS & PACKAGING 0.6%
Silgan Holdings, Inc. 3,200 $ 115,584
Greif, Inc. -- Class A 610 40,431
AptarGroup, Inc. 670 34,974
Crown Holdings, Inc.* 1,730 33,787
-------------
TOTAL CONTAINERS & PACKAGING 224,776
-------------
PAPER & FOREST PRODUCTS 0.1%
Bowater, Inc.+ 1,178 36,188
-------------
TOTAL PAPER & FOREST PRODUCTS 36,188
-------------
TOTAL MATERIALS 1,643,345
-------------
UTILITIES 2.3%
GAS UTILITIES 1.0%
Southwest Gas Corp. 4,460 117,744
Northwest Natural Gas Co. 3,100 105,958
Laclede Group, Inc. 2,760 80,620
South Jersey Industries, Inc.+ 1,230 35,842
Atmos Energy Corp. 1,210 31,654
Southern Union Co.* 668 15,794
Energen Corp. 90 3,269
-------------
TOTAL GAS UTILITIES 390,881
-------------
ELECTRIC UTILITIES 0.9%
IDACORP, Inc.+ 4,130 121,009
Cleco Corp. 5,400 112,590
Sierra Pacific Resources*+ 4,830 62,983
Otter Tail Power Co. 1,470 42,601
Duquesne Light Holdings, Inc. 917 14,965
-------------
TOTAL ELECTRIC UTILITIES 354,148
-------------
WATER UTILITIES 0.2%
American States Water Co. 2,320 71,456
-------------
TOTAL WATER UTILITIES 71,456
-------------
MULTI-UTILITIES 0.2%
NorthWestern Corp. 1,070 33,245
PNM Resources, Inc. 919 22,506
CMS Energy Corp.*+ 780 11,318
-------------
TOTAL MULTI-UTILITIES 67,069
-------------
TOTAL UTILITIES 883,554
-------------
CONSUMER STAPLES 2.2%
FOOD PRODUCTS 0.9%
Ralcorp Holdings, Inc.* 2,970 118,533
Chiquita Brands International, Inc. 4,400 88,044
Gold Kist, Inc.* 2,640 39,468
Seaboard Corp.+ 22 33,242
Lance, Inc. 1,650 30,740
Hain Celestial Group, Inc.*+ 1,390 29,412
-------------
TOTAL FOOD PRODUCTS 339,439
-------------
FOOD & DRUG RETAILING 0.5%
Longs Drug Stores Corp. 2,160 78,603
Nash Finch Co. 1,880 47,903
Pathmark Stores, Inc.*+ 2,700 26,973
Smart & Final, Inc.* 1,930 24,858
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Performance Food Group Co.*+ 620 $ 17,589
Spartan Stores, Inc.* 1,060 11,045
-------------
TOTAL FOOD & DRUG RETAILING 206,971
-------------
PERSONAL PRODUCTS 0.4%
Playtex Products, Inc.* 5,360 73,271
Nu Skin Enterprises, Inc. 3,050 53,619
USANA Health Sciences, Inc.*+ 470 18,029
-------------
TOTAL PERSONAL PRODUCTS 144,919
-------------
HOUSEHOLD PRODUCTS 0.2%
Central Garden and Pet Co.* 1,660 76,260
-------------
TOTAL HOUSEHOLD PRODUCTS 76,260
-------------
BEVERAGES 0.2%
Hansen Natural Corp.*+ 830 65,412
-------------
TOTAL BEVERAGES 65,412
-------------
TOTAL CONSUMER STAPLES 833,001
-------------
TELECOMMUNICATION SERVICES 1.4%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.8%
Commonwealth Telephone
Enterprises, Inc. 2,710 91,517
Premiere Global Services, Inc.* 10,750 87,398
Valor Communications Group, Inc.+ 4,360 49,704
Golden Telecom, Inc.+ 1,630 42,315
Iowa Telecommunications Services,
Inc.+ 1,500 23,235
Level 3 Communications, Inc.*+ 6,820 19,573
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 313,742
-------------
WIRELESS TELECOMMUNICATION SERVICES 0.6%
UbiquiTel, Inc.* 11,330 112,054
USA Mobility, Inc.* 2,470 68,468
Dobson Communications Corp. --
Class A* 5,430 40,725
Alamosa Holdings, Inc.* 830 15,446
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 236,693
-------------
TOTAL TELECOMMUNICATION SERVICES 550,435
-------------
TOTAL COMMON STOCKS
(Cost $32,575,538) 35,988,320
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 14.9%
Repurchase Agreement (Note 5)
3.45% due 01/03/06++ $ 882,562 882,562
3.40% due 01/03/06++ 1,496,900 1,496,900
3.39% due 01/03/06 1,129,734 1,129,734
3.30% due 01/03/06 1,129,734 1,129,734
2.90% due 01/03/06 1,129,734 1,129,734
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $5,768,664) 5,768,664
-------------
86 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL 10.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) $ 3,910,059 $ 3,910,059
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,910,059) 3,910,059
-------------
TOTAL INVESTMENTS 118.3%
(Cost $42,254,261) $ 45,667,043
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (18.3)% $ (7,077,605)
=============
NET ASSETS - 100.0% $ 38,589,438
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $17,137,380) 254 $ (328,877)
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENTS
February 2006 Russell 2000 Index
Swap, Maturing 02/17/06**
(Notional Market Value
$2,139,460) 3,178 (71,484)
March 2006 Russell 2000 Index
Swap, Maturing 03/14/06**
(Notional Market Value
$2,600,612) 3,863 $ (65,570)
-------------
(TOTAL NOTIONAL MARKET
VALUE $4,740,072) $ (137,054)
=============
* NON-INCOME PRODUCING SECURITY.
** 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, 2005 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
REIT -- REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 87
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 33.7%
Fannie Mae*
4.07% due 01/30/06 $ 1,000,000 $ 996,947
Federal Farm Credit Bank*
3.50% due 01/05/06 1,000,000 999,806
Federal Home Loan Bank*
3.98% due 01/04/06 1,000,000 999,889
Freddie Mac*
4.07% due 01/30/06 1,000,000 996,948
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $3,993,590) 3,993,590
-------------
REPURCHASE AGREEMENTS 50.9%
Repurchase Agreement (Note 5)
3.45% due 01/03/06+ 632,104 632,104
3.40% due 01/03/06 1,321,933 1,321,933
3.39% due 01/03/06 1,360,695 1,360,695
3.30% due 01/03/06 1,360,695 1,360,695
2.90% due 01/03/06 1,360,695 1,360,695
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,036,122) 6,036,122
-------------
TOTAL INVESTMENTS 84.6%
(Cost $10,029,712) $ 10,029,712
=============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 15.4% $ 1,820,498
=============
NET ASSETS - 100.0% $ 11,850,210
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2006 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $1,956,630) 29 $ 38,992
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
February 2006 Russell 2000 Index
Swap, Maturing 02/22/06**
(Notional Market Value
$9,782,697) 14,531 $ 156,037
=============
* 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 HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
88 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 16.6%
Federal Farm Credit Bank*
4.04% due 01/09/06 $ 4,000,000 $ 3,997,306
Federal Home Loan Bank*
4.03% due 01/13/06 3,000,000 2,996,642
Freddie Mac*
4.10% due 01/30/06 3,000,000 2,990,775
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $9,984,723) 9,984,723
-------------
U.S. TREASURY OBLIGATION 24.4%
U.S. Treasury Bond
5.38% due 02/15/31 13,062,000 14,688,627
-------------
TOTAL U.S. TREASURY OBLIGATION
(Cost $13,229,221) 14,688,627
-------------
REPURCHASE AGREEMENTS 59.6%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 8,767,116 8,767,116
3.39% due 01/03/06 9,024,175 9,024,175
3.30% due 01/03/06 9,024,175 9,024,175
2.90% due 01/03/06 9,024,175 9,024,175
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $35,839,641) 35,839,641
-------------
TOTAL INVESTMENTS 100.6%
(Cost $59,053,585) $ 60,512,991
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.6)% $ (353,392)
=============
NET ASSETS - 100.0% $ 60,159,599
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 U.S. Treasury Bond
Futures Contracts
(Aggregate Market Value
of Contracts $83,790,688) 734 $ 23,513
=============
* 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 | 89
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
JUNO FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 60.5%
Farmer Mac*
4.11% due 02/16/06 $ 3,000,000 $ 2,984,930
Federal Farm Credit Bank*
4.04% due 01/09/06 4,000,000 3,997,306
4.15% due 01/20/06 3,000,000 2,994,121
Federal Home Loan Bank*
4.00% due 02/10/06 4,000,000 3,983,111
Freddie Mac*
4.21% due 03/01/06 4,000,000 3,973,337
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $17,932,805) 17,932,805
-------------
CONTRACTS
-------------
OPTIONS PURCHASED 0.0%
Call Options on:
March 2006 U.S. Treasury
Bond Index Futures Contracts
Expiring February 2006
with strike price of 126 74 --
-------------
TOTAL OPTIONS PURCHASED
(Cost $1,471) --
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 109.9%
Joint Repurchase Agreement (Note 5)
3.40% due 01/03/06+ $ 3,185,686 3,185,686
3.39% due 01/03/06+ 3,279,093 3,279,093
3.30% due 01/03/06+ 3,279,093 3,279,093
2.90% due 01/03/06+ 3,279,093 3,279,093
Individual Repurchase Agreement
Lehman Brothers, Inc. at 2.80%
due 01/03/06 (Secured by
U.S. Treasury Bonds, at rate
of 5.38% and maturing
02/15/31 as collateral,
with a Market Value of
$19,988,250) and a Maturity
Value of $19,601,096 19,595,000 19,595,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $32,617,965) 32,617,965
-------------
TOTAL LONG SECURITIES 170.4%
(Cost $50,552,241) $ 50,550,770
=============
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS
SOLD SHORT (66.4)%
U.S. Treasury Bond, at
5.38% due 02/15/31 $ 17,525,000 $ (19,707,410)
-------------
TOTAL U.S. TREASURY OBLIGATIONS
SOLD SHORT
(Proceeds $20,412,572) (19,707,410)
-------------
TOTAL SHORT SALES (66.4)%
(Proceeds $20,412,572) (19,707,410)
-------------
TOTAL INVESTMENTS 104.0%
(Cost $30,139,669) $ 30,843,360
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (4.0)% $ (1,172,540)
=============
NET ASSETS - 100.0% $ 29,670,820
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2006 U.S. Treasury Bond
Futures Contracts
(Aggregate Market Value
of Contracts $16,096,031) 141 $ (226,537)
=============
* 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,
2005.
90 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 65.2%
FINANCIALS 23.7%
BANKS 13.0%
HSBC Holdings PLC -- SP ADR 11,390 $ 916,553
Banco Santander Central Hispano
SA -- SP ADR 41,820 551,606
Banco Bilbao Vizcaya Argentaria
SA -- SP ADR 30,160 538,356
Barclays PLC -- SP ADR 11,920 501,594
Lloyds TSB Group PLC -- SP ADR 12,870 435,006
ABN AMRO Holding NV --
SP ADR 16,620 434,447
-------------
TOTAL BANKS 3,377,562
-------------
CAPITAL MARKETS 6.1%
UBS AG 8,640 822,096
Credit Suisse Group -- SP ADR 8,160 415,752
Deutsche Bank AG 3,520 340,983
-------------
TOTAL CAPITAL MARKETS 1,578,831
-------------
INSURANCE 2.6%
AXA -- SP ADR 12,170 393,456
Allianz AG -- SP ADR 19,000 287,660
-------------
TOTAL INSURANCE 681,116
-------------
DIVERSIFIED FINANCIALS 2.0%
ING Groep NV -- SP ADR 14,420 502,104
-------------
TOTAL DIVERSIFIED FINANCIALS 502,104
-------------
TOTAL FINANCIALS 6,139,613
-------------
ENERGY 10.6%
OIL & GAS 10.6%
BP PLC -- SP ADR 17,360 1,114,859
Total SA -- SP ADR 6,040 763,456
Royal Dutch Shell PLC -- SP ADR 9,670 594,608
ENI-Ente Nazionale Idrocarburi --
SP ADR 2,010 280,315
-------------
TOTAL OIL & GAS 2,753,238
-------------
TOTAL ENERGY 2,753,238
-------------
HEALTH CARE 9.4%
PHARMACEUTICALS 9.2%
Novartis AG -- SP ADR 16,690 875,891
GlaxoSmithKline PLC -- SP ADR 15,930 804,147
AstraZeneca PLC -- SP ADR 9,600 466,560
Schering AG -- SP ADR 1,730 115,754
Teva Pharmaceutical Industries Ltd.
-- SP ADR 1,220 52,472
Shire PLC -- SP ADR 1,100 42,669
Sanofi-Aventis SA -- ADR 910 39,949
-------------
TOTAL PHARMACEUTICALS 2,397,442
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.2%
Alcon, Inc. 350 45,360
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 45,360
-------------
TOTAL HEALTH CARE 2,442,802
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 6.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 3.6%
Telefonica SA 7,370 $ 331,797
Deutsche Telekom AG -- SP ADR 12,190 202,720
France Telecom SA -- SP ADR 6,950 172,638
Telecom Italia -- SP ADR 4,150 121,222
BT Group PLC -- SP ADR 2,730 104,777
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 933,154
-------------
WIRELESS TELECOMMUNICATION SERVICES 2.6%
Vodafone Group PLC -- SP ADR 31,250 670,938
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 670,938
-------------
TOTAL TELECOMMUNICATION SERVICES 1,604,092
-------------
CONSUMER STAPLES 4.4%
FOOD PRODUCTS 2.6%
Unilever NV 6,040 414,767
Cadbury Schweppes PLC --
SP ADR 6,540 250,416
-------------
TOTAL FOOD PRODUCTS 665,183
-------------
BEVERAGES 1.8%
Diageo PLC -- SP ADR 8,120 473,396
-------------
TOTAL BEVERAGES 473,396
-------------
TOTAL CONSUMER STAPLES 1,138,579
-------------
INFORMATION TECHNOLOGY 3.1%
COMMUNICATIONS EQUIPMENT 2.4%
Nokia OYJ -- SP ADR 20,500 375,150
Telefonaktiebolaget LM Ericsson --
SP ADR 7,220 248,368
-------------
TOTAL COMMUNICATIONS EQUIPMENT 623,518
-------------
SOFTWARE 0.7%
SAP AG -- SP ADR 4,140 186,590
-------------
TOTAL SOFTWARE 186,590
-------------
TOTAL INFORMATION TECHNOLOGY 810,108
-------------
MATERIALS 2.9%
METALS & MINING 1.9%
Anglo American PLC -- ADR 6,940 241,373
Rio Tinto PLC -- SP ADR 1,280 233,971
-------------
TOTAL METALS & MINING 475,344
-------------
CHEMICALS 1.0%
BASF AG -- SP ADR 3,450 263,856
-------------
TOTAL CHEMICALS 263,856
-------------
TOTAL MATERIALS 739,200
-------------
CONSUMER DISCRETIONARY 2.1%
AUTOMOBILES 0.8%
DaimlerChrysler AG 4,070 207,692
-------------
TOTAL AUTOMOBILES 207,692
-------------
TEXTILES & APPAREL 0.7%
Luxottica Group 7,620 192,862
-------------
TOTAL TEXTILES & APPAREL 192,862
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 91
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HOUSEHOLD DURABLES 0.6%
Koninklijke Philips Electronics NV 4,990 $ 155,189
-------------
TOTAL HOUSEHOLD DURABLES 155,189
-------------
TOTAL CONSUMER DISCRETIONARY 555,743
-------------
UTILITIES 1.8%
ELECTRIC UTILITIES 1.4%
E.ON AG -- SP ADR 10,880 375,577
-------------
TOTAL ELECTRIC UTILITIES 375,577
-------------
MULTI-UTILITIES 0.4%
Suez SA -- SP ADR 3,140 98,094
-------------
TOTAL MULTI-UTILITIES 98,094
-------------
TOTAL UTILITIES 473,671
-------------
INDUSTRIALS 1.0%
INDUSTRIAL CONGLOMERATES 1.0%
Siemens AG -- SP ADR 3,110 266,185
-------------
TOTAL INDUSTRIAL CONGLOMERATES 266,185
-------------
TOTAL INDUSTRIALS 266,185
-------------
TOTAL COMMON STOCKS
(Cost $15,659,396) 16,923,231
-------------
FACE
AMOUNT
-------------
FEDERAL AGENCY DISCOUNT NOTES 7.7%
Farmer Mac**
4.21% due 02/03/06 $ 1,000,000 996,375
Federal Farm Credit Bank**
4.04% due 01/09/06 1,000,000 999,326
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,995,701) 1,995,701
-------------
REPURCHASE AGREEMENTS 27.6%
Repurchase Agreement (Note 5)
3.45% due 01/03/06+ 80,050 80,050
3.40% due 01/03/06+ 2,536,382 2,536,382
3.39% due 01/03/06 1,518,863 1,518,863
3.30% due 01/03/06 1,518,863 1,518,863
2.90% due 01/03/06 1,518,863 1,518,863
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $7,173,021) 7,173,021
-------------
TOTAL INVESTMENTS 100.5%
(Cost $24,828,118) $ 26,091,953
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.5)% $ (138,215)
=============
NET ASSETS - 100.0% $ 25,953,738
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
UNITS (NOTE 1)
- -------------------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENTS
March 2006 Dow Jones STOXX 50 Index
Swap, Maturing 3/14/06***
(Total Notional Value
$10,554,497) 2,661 $ (54,257)
March 2006 Dow Jones STOXX 50 Index
Swap, Maturing 3/29/06***
(Notional Market Value
$5,185,916) 1,307 (17,473)
-------------
(TOTAL NOTIONAL MARKET
VALUE $15,740,413) $ (71,730)
=============
COUNTRY DIVERSIFICATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
GREAT BRITAIN 38%
GERMANY 13%
SWITZERLAND 13%
NETHERLANDS 12%
FRANCE 9%
SPAIN 8%
ITALY 4%
FINLAND 2%
SWEDEN 1%
The pie chart above reflects percentages of the market value of Common Stocks
* NON-INCOME PRODUCING SECURITY.
** THE ISSUER IS A PUBLICLY TRADED COMPANY THAT OPERATES UNDER A
CONGRESSIONAL CHARTER; ITS SECURITIES ARE NEITHER ISSUED NOR GUARANTEED BY
THE U.S. GOVERNMENT.
*** PRICE RETURN BASED ON DOW JONES STOXX 50 INDEX +/- FINANCING AT A VARIABLE
RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
ADR -- AMERICAN DEPOSITORY RECEIPT.
92 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 23.5%
Farmer Mac*
4.21% due 02/03/06 $ 2,000,000 $ 1,992,750
4.23% due 02/27/06 2,000,000 1,987,075
Federal Farm Credit Bank*
4.15% due 01/20/06 4,000,000 3,992,161
Federal Home Loan Bank*
4.09% due 01/09/06 3,000,000 2,997,955
Freddie Mac*
4.19% due 01/30/06 2,000,000 1,993,715
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $12,963,656) 12,963,656
-------------
REPURCHASE AGREEMENTS 71.5%
Repurchase Agreement (Note 5)
3.40% due 01/03/06+ 21,337,735 21,337,735
3.39% due 01/03/06 6,058,150 6,058,150
3.30% due 01/03/06 6,058,150 6,058,150
2.90% due 01/03/06 6,058,150 6,058,150
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $39,512,185) 39,512,185
-------------
TOTAL INVESTMENTS 95.0%
(Cost $52,475,841) $ 52,475,841
=============
OTHER ASSETS IN
EXCESS OF LIABILITIES - 5.0% $ 2,743,162
=============
NET ASSETS - 100.0% $ 55,219,003
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 Nikkei 225 Index
Futures Contracts
(Aggregate Market Value
of Contracts $12,350,925) 153 $ 501,951
March 2006 Yen Currency
Exchange Futures Contracts
(Aggregate Market Value
of Contracts $12,185,175) 114 76,604
-------------
(TOTAL AGGREGATE MARKET VALUE
OF CONTRACTS $24,536,100) $ 578,555
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
March 2006 Topix 100 Index Swap,
Maturing 03/14/06**
(Notional Market Value
$56,800,188) 5,847,609 $ 1,518,380
=============
* 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 EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 93
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 78.2%
INDUSTRIALS 19.5%
AEROSPACE & DEFENSE 9.5%
Boeing Co.+ 7,540 $ 529,610
United Technologies Corp. 7,542 421,673
Honeywell International, Inc. 7,540 280,865
-------------
TOTAL AEROSPACE & DEFENSE 1,232,148
-------------
INDUSTRIAL CONGLOMERATES 6.6%
3M Co. 7,540 584,350
General Electric Co. 7,540 264,277
-------------
TOTAL INDUSTRIAL CONGLOMERATES 848,627
-------------
MACHINERY 3.4%
Caterpillar, Inc. 7,540 435,586
-------------
TOTAL MACHINERY 435,586
-------------
TOTAL INDUSTRIALS 2,516,361
-------------
CONSUMER STAPLES 12.8%
TOBACCO 4.4%
Altria Group, Inc. 7,540 563,389
-------------
TOTAL TOBACCO 563,389
-------------
HOUSEHOLD PRODUCTS 3.4%
Procter & Gamble Co. 7,538 436,300
-------------
TOTAL HOUSEHOLD PRODUCTS 436,300
-------------
FOOD & DRUG RETAILING 2.7%
Wal-Mart Stores, Inc. 7,540 352,872
-------------
TOTAL FOOD & DRUG RETAILING 352,872
-------------
BEVERAGES 2.3%
Coca-Cola Co. 7,540 303,937
-------------
TOTAL BEVERAGES 303,937
-------------
TOTAL CONSUMER STAPLES 1,656,498
-------------
FINANCIALS 12.1%
DIVERSIFIED FINANCIALS 5.1%
Citigroup, Inc. 7,543 366,062
J.P. Morgan Chase & Co. 7,540 299,262
-------------
TOTAL DIVERSIFIED FINANCIALS 665,324
-------------
INSURANCE 4.0%
American International Group, Inc. 7,540 514,454
-------------
TOTAL INSURANCE 514,454
-------------
CONSUMER FINANCE 3.0%
American Express Co. 7,540 388,009
-------------
TOTAL CONSUMER FINANCE 388,009
-------------
TOTAL FINANCIALS 1,567,787
-------------
INFORMATION TECHNOLOGY 9.5%
COMPUTERS & PERIPHERALS 6.5%
International Business Machines
Corp.+ 7,540 619,788
Hewlett-Packard Co. 7,540 215,870
-------------
TOTAL COMPUTERS & PERIPHERALS 835,658
-------------
SOFTWARE 1.5%
Microsoft Corp. 7,540 197,171
-------------
TOTAL SOFTWARE 197,171
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.5%
Intel Corp. 7,540 $ 188,198
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 188,198
-------------
TOTAL INFORMATION TECHNOLOGY 1,221,027
-------------
CONSUMER DISCRETIONARY 6.9%
SPECIALTY RETAIL 2.4%
Home Depot, Inc.+ 7,540 305,219
-------------
TOTAL SPECIALTY RETAIL 305,219
-------------
HOTELS, RESTAURANTS & LEISURE 2.0%
McDonald's Corp. 7,540 254,248
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 254,248
-------------
MEDIA 1.4%
The Walt Disney Co.+ 7,540 180,734
-------------
TOTAL MEDIA 180,734
-------------
AUTOMOBILES 1.1%
General Motors Corp.+ 7,540 146,427
-------------
TOTAL AUTOMOBILES 146,427
-------------
TOTAL CONSUMER DISCRETIONARY 886,628
-------------
HEALTH CARE 6.7%
PHARMACEUTICALS 6.7%
Johnson & Johnson, Inc. 7,540 453,154
Merck & Co., Inc. 7,540 239,847
Pfizer, Inc. 7,544 175,926
-------------
TOTAL PHARMACEUTICALS 868,927
-------------
TOTAL HEALTH CARE 868,927
-------------
MATERIALS 4.2%
CHEMICALS 2.5%
E.I. du Pont de Nemours and Co.+ 7,540 320,450
-------------
TOTAL CHEMICALS 320,450
-------------
METALS & MINING 1.7%
Alcoa, Inc. 7,540 222,958
-------------
TOTAL METALS & MINING 222,958
-------------
TOTAL MATERIALS 543,408
-------------
ENERGY 3.3%
OIL & GAS 3.3%
Exxon Mobil Corp. 7,540 423,522
-------------
TOTAL OIL & GAS 423,522
-------------
TOTAL ENERGY 423,522
-------------
TELECOMMUNICATION SERVICES 3.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 3.2%
Verizon Communications, Inc.+ 7,536 226,984
AT&T, Inc.+ 7,540 184,655
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 411,639
-------------
TOTAL TELECOMMUNICATION SERVICES 411,639
-------------
TOTAL COMMON STOCKS
(Cost $9,469,222) 10,095,797
-------------
94 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 8.2%
Repurchase Agreement (Note 5)
3.40% due 01/03/06++ $ 807,232 $ 807,232
3.39% due 01/03/06 84,521 84,521
3.30% due 01/03/06 84,521 84,521
2.90% due 01/03/06 84,521 84,521
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,060,795) 1,060,795
-------------
SECURITIES LENDING COLLATERAL 8.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,061,994 1,061,994
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,061,994) 1,061,994
-------------
TOTAL INVESTMENTS 94.6%
(Cost $11,592,011) $ 12,218,586
=============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 5.4% $ 701,191
-------------
NET ASSETS - 100.0% $ 12,919,777
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 Dow Jones Industrial Average
Index Mini Futures Contracts
(Aggregate Market Value
of Contracts $8,600,000) 160 $ (107,548)
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
March 2006 Dow Jones Industrial Average
Index Swap, Maturing 03/14/06*
(Notional Market Value
$7,163,593) 668 $ (86,829)
=============
* 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, 2005 - SEE
NOTE 8.
++ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 95
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
INVERSE DYNAMIC DOW 30 FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 33.0%
Farmer Mac*
4.25% due 02/27/06 $ 600,000 $ 596,104
Federal Farm Credit Bank*
3.50% due 01/05/06 600,000 599,883
Federal Home Loan Bank*
3.98% due 01/04/06 600,000 599,934
Freddie Mac*
4.07% due 01/30/06 600,000 598,169
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $2,394,090) 2,394,090
-------------
REPURCHASE AGREEMENTS 58.3%
Repurchase Agreement (Note 5)
3.40% due 01/03/06+ 1,957,666 1,957,666
3.39% due 01/03/06 758,927 758,927
3.30% due 01/03/06 758,927 758,927
2.90% due 01/03/06 758,927 758,927
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $4,234,447) 4,234,447
-------------
TOTAL INVESTMENTS 91.3%
(Cost $6,628,537) $ 6,628,537
=============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 8.7% $ 628,347
=============
NET ASSETS - 100.0% $ 7,256,884
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2006 Dow Jones Industrial Average
Index Mini Futures Contracts
(Aggregate Market Value
of Contracts $2,472,500) 46 $ 11,782
=============
UNITS
-------------
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
March 2006 Dow Jones Industrial Average
Index Swap, Maturing 03/14/06**
(Notional Market Value
$12,058,109) 1,125 $ 178,116
=============
* 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 EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
96 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
CONSUMER DISCRETIONARY 24.4%
SPECIALTY RETAIL 7.6%
PEP Boys-Manny Moe & Jack 14,666 $ 218,377
Sonic Automotive, Inc. 7,777 173,272
Haverty Furniture Cos., Inc. 13,288 171,282
Group 1 Automotive, Inc.* 5,223 164,159
Stage Stores, Inc. 5,152 153,427
Hancock Fabrics, Inc./DE+ 34,494 140,391
Cato Corp. -- Class A 5,712 122,522
Jo-Ann Stores, Inc.* 9,258 109,244
Linens `N Things, Inc.* 3,849 102,383
Burlington Coat Factory
Warehouse Corp. 1,274 51,227
Zale Corp.* 1,841 46,301
-------------
TOTAL SPECIALTY RETAIL 1,452,585
-------------
TEXTILES & APPAREL 3.9%
Kellwood Co. 8,935 213,368
Brown Shoe Co., Inc. 3,719 157,797
Ashworth, Inc.* 18,614 157,289
Russell Corp. 8,813 118,623
Stride Rite Corp. 3,645 49,426
Oxford Industries, Inc. 733 40,095
-------------
TOTAL TEXTILES & APPAREL 736,598
-------------
HOUSEHOLD DURABLES 3.7%
Bassett Furniture Industries, Inc. 7,947 147,020
Standard-Pacific Corp. 3,883 142,894
La-Z-Boy, Inc.+ 8,908 120,792
Libbey, Inc. 10,200 104,244
Lenox Group, Inc.* 6,623 87,689
National Presto Industries, Inc. 1,630 72,291
Russ Berrie & Co., Inc. 2,832 32,341
-------------
TOTAL HOUSEHOLD DURABLES 707,271
-------------
HOTELS, RESTAURANTS & LEISURE 2.8%
O'Charleys, Inc.* 11,372 176,380
Bally Total Fitness Holding Corp.* 19,257 120,934
Ryan's Restaurant Group, Inc.* 7,332 88,424
Lone Star Steakhouse & Saloon,
Inc. 3,091 73,380
Marcus Corp. 3,115 73,202
Landry's Restaurants, Inc. 10 267
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 532,587
-------------
AUTO COMPONENTS 2.0%
Standard Motor Products, Inc. 22,210 204,999
Superior Industries International,
Inc.+ 8,001 178,102
-------------
TOTAL AUTO COMPONENTS 383,101
-------------
AUTOMOBILES 1.6%
Coachmen Industries, Inc. 15,107 178,414
Monaco Coach Corp. 9,467 125,911
-------------
TOTAL AUTOMOBILES 304,325
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS 1.3%
Jakks Pacific, Inc.*+ 5,260 $ 110,144
K2, Inc.* 9,962 100,716
Sturm Ruger & Co., Inc. 5,250 36,803
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 247,663
-------------
MULTILINE RETAIL 0.8%
Fred's, Inc. 8,683 141,272
-------------
TOTAL MULTILINE RETAIL 141,272
-------------
INTERNET & CATALOG RETAIL 0.5%
Insight Enterprises, Inc.* 5,220 102,364
-------------
TOTAL INTERNET & CATALOG RETAIL 102,364
-------------
DISTRIBUTORS 0.2%
Audiovox Corp. -- Class A* 2,210 30,631
-------------
TOTAL DISTRIBUTORS 30,631
-------------
TOTAL CONSUMER DISCRETIONARY 4,638,397
-------------
MATERIALS 19.2%
CHEMICALS 6.5%
Wellman, Inc. 36,206 245,477
A. Schulman, Inc. 10,214 219,805
Quaker Chemical Corp. 10,731 206,357
Arch Chemicals, Inc. 5,075 151,742
Georgia Gulf Corp.+ 3,852 117,178
Penford Corp. 9,475 115,595
PolyOne Corp.* 14,633 94,090
H.B. Fuller Co. 2,553 81,875
-------------
TOTAL CHEMICALS 1,232,119
-------------
METALS & MINING 5.2%
Steel Technologies, Inc. 6,527 182,691
Ryerson Tull, Inc.+ 6,412 155,940
A.M. Castle & Co.* 5,974 130,472
Chaparral Steel Co.* 3,479 105,240
Commercial Metals Co. 2,614 98,130
Reliance Steel & Aluminum Co. 1,580 96,570
Brush Engineered Materials, Inc.* 4,587 72,933
Century Aluminum Co.* 2,162 56,666
Aleris International, Inc.* 1,698 54,743
Quanex Corp. 888 44,373
-------------
TOTAL METALS & MINING 997,758
-------------
PAPER & FOREST PRODUCTS 3.7%
Schweitzer-Mauduit International,
Inc. 8,820 218,560
Pope & Talbot, Inc. 24,086 200,636
Wausau Paper Corp. 8,622 102,171
Buckeye Technologies, Inc.* 12,197 98,186
Neenah Paper, Inc. 3,170 88,760
-------------
TOTAL PAPER & FOREST PRODUCTS 708,313
-------------
CONTAINERS & PACKAGING 3.5%
Chesapeake Corp. 12,660 214,967
Myers Industries, Inc. 13,126 191,377
Rock-Tenn Co. -- Class A 13,097 178,774
Caraustar Industries, Inc.* 8,129 70,641
-------------
TOTAL CONTAINERS & PACKAGING 655,759
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 97
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONSTRUCTION MATERIALS 0.3%
Texas Industries, Inc. 1,042 $ 51,933
-------------
TOTAL CONSTRUCTION MATERIALS 51,933
-------------
TOTAL MATERIALS 3,645,882
-------------
INDUSTRIALS 17.0%
COMMERCIAL SERVICES & SUPPLIES 6.1%
Spherion Corp.* 17,409 174,264
Standard Register Co. 10,842 171,412
Volt Information Sciences, Inc.* 7,812 148,584
Angelica Corp. 6,785 112,224
Bowne & Co., Inc. 7,325 108,703
NCO Group, Inc.* 5,174 87,544
Sourcecorp, Inc.* 3,511 84,194
United Stationers, Inc.* 1,256 60,916
ABM Industries, Inc. 2,847 55,659
Consolidated Graphics, Inc.* 946 44,783
Central Parking Corp. 2,987 40,982
CDI Corp. 1,487 40,744
Viad Corp. 1,112 32,615
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,162,624
-------------
MACHINERY 2.6%
Wolverine Tube, Inc.* 21,677 109,686
Robbins & Myers, Inc. 5,362 109,117
Lydall, Inc.* 12,470 101,630
Briggs & Stratton Corp. 2,145 83,205
Mueller Industries, Inc. 1,887 51,741
Barnes Group, Inc. 1,055 34,815
-------------
TOTAL MACHINERY 490,194
-------------
ELECTRICAL EQUIPMENT 2.3%
A.O. Smith Corp. 4,842 169,954
MagneTek, Inc.* 42,348 137,631
C&D Technologies, Inc. 10,633 81,023
Acuity Brands, Inc. 1,691 53,774
-------------
TOTAL ELECTRICAL EQUIPMENT 442,382
-------------
INDUSTRIAL CONGLOMERATES 1.4%
Tredegar Corp. 11,154 143,775
Standex International Corp. 4,596 127,585
-------------
TOTAL INDUSTRIAL CONGLOMERATES 271,360
-------------
AEROSPACE & DEFENSE 0.9%
Cubic Corp.+ 3,421 68,283
Kaman Corp. -- Class A 2,580 50,800
Triumph Group, Inc.* 1,295 47,410
-------------
TOTAL AEROSPACE & DEFENSE 166,493
-------------
ROAD & RAIL 0.8%
Arkansas Best Corp. 3,392 148,163
-------------
TOTAL ROAD & RAIL 148,163
-------------
TRADING COMPANIES & DISTRIBUTORS 0.7%
Hughes Supply, Inc. 2,221 79,623
Lawson Products, Inc. 1,589 59,969
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 139,592
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
BUILDING PRODUCTS 0.7%
Lennox International, Inc. 2,431 $ 68,554
NCI Building Systems, Inc.*+ 999 42,438
Griffon Corp.* 1,194 28,429
-------------
TOTAL BUILDING PRODUCTS 139,421
-------------
CONSTRUCTION & ENGINEERING 0.6%
EMCOR Group, Inc.* 1,775 119,866
-------------
TOTAL CONSTRUCTION & ENGINEERING 119,866
-------------
AIR FREIGHT & COURIERS 0.6%
HUB Group, Inc. -- Class A* 3,277 115,842
-------------
TOTAL AIR FREIGHT & COURIERS 115,842
-------------
AIRLINES 0.3%
Frontier Airlines, Inc.*+ 5,034 46,514
-------------
TOTAL AIRLINES 46,514
-------------
TOTAL INDUSTRIALS 3,242,451
-------------
UTILITIES 11.3%
GAS UTILITIES 5.8%
South Jersey Industries, Inc.+ 6,940 202,232
Southwest Gas Corp. 6,168 162,835
Atmos Energy Corp. 5,709 149,347
UGI Corp. 6,930 142,758
Cascade Natural Gas Corp. 6,494 126,698
Laclede Group, Inc. 4,180 122,098
Northwest Natural Gas Co. 2,183 74,615
Piedmont Natural Gas Co.+ 2,813 67,962
Energen Corp. 1,777 64,541
-------------
TOTAL GAS UTILITIES 1,113,086
-------------
ELECTRIC UTILITIES 3.9%
Central Vermont Public Service
Corp. 12,479 224,747
UIL Holding Corp. 3,346 153,883
Green Mountain Power Corp. 4,678 134,586
Unisource Energy Corp. 2,901 90,511
Allete, Inc.+ 1,668 73,392
Cleco Corp. 3,177 66,240
-------------
TOTAL ELECTRIC UTILITIES 743,359
-------------
MULTI-UTILITIES 1.4%
Avista Corp.+ 7,886 139,661
CH Energy Group, Inc. 2,681 123,058
-------------
TOTAL MULTI-UTILITIES 262,719
-------------
WATER UTILITIES 0.2%
American States Water Co. 1,074 33,079
-------------
TOTAL WATER UTILITIES 33,079
-------------
TOTAL UTILITIES 2,152,243
-------------
FINANCIALS 11.1%
INSURANCE 4.2%
LandAmerica Financial Group, Inc.+ 3,559 222,082
Stewart Information Services Corp. 3,343 162,704
UICI 3,088 109,655
Selective Insurance Group, Inc. 2,053 109,014
98 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Presidential Life Corp. 3,802 $ 72,390
Infinity Property & Casualty Corp. 1,754 65,266
Delphi Financial Group, Inc. --
Class A 1,072 49,323
-------------
TOTAL INSURANCE 790,434
-------------
REAL ESTATE 2.7%
Glenborough Realty Trust, Inc. 5,687 102,935
Commercial Net Lease Realty 4,781 97,389
Parkway Properties, Inc./MD 2,035 81,685
Colonial Properties Trust 1,677 70,400
Lexington Corporate Properties
Trust+ 2,921 62,217
Sovran Self Storage, Inc.+ 1,184 55,613
Entertainment Properties Trust 1,264 51,508
-------------
TOTAL REAL ESTATE 521,747
-------------
BANKS 2.5%
First Bancorp Puerto Rico 8,162 101,290
Whitney Holding Corp. 3,125 86,125
Community Bank System, Inc. 2,938 66,252
Susquehanna Bancshares, Inc. 2,470 58,490
Sterling Financial Corp./WA 2,200 54,956
South Financial Group, Inc. 1,937 53,345
Provident Bankshares Corp. 1,446 48,831
-------------
TOTAL BANKS 469,289
-------------
CAPITAL MARKETS 1.5%
SWS Group, Inc. 7,310 153,072
Piper Jaffray Cos., Inc.* 3,221 130,128
-------------
TOTAL CAPITAL MARKETS 283,200
-------------
THRIFTS & MORTGAGE FINANCE 0.2%
Brookline Bancorp, Inc.+ 3,261 46,208
FirstFed Financial Corp.* 10 545
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 46,753
-------------
TOTAL FINANCIALS 2,111,423
-------------
INFORMATION TECHNOLOGY 9.0%
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.0%
Planar Systems, Inc.* 16,188 135,494
Gerber Scientific, Inc.* 13,967 133,664
Bell Microproducts, Inc.* 14,325 109,586
Technitrol, Inc. 5,552 94,939
Agilsys, Inc. 4,382 79,840
Anixter International, Inc. 1,203 47,062
Brightpoint, Inc.* 1,557 43,176
Benchmark Electronics, Inc.* 1,272 42,777
Methode Electronics, Inc. -- Class A 4,203 41,904
CTS Corp. 3,556 39,329
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 767,771
-------------
IT CONSULTING & SERVICES 2.3%
Startek, Inc. 14,502 261,036
Pegasus Solutions, Inc.* 9,197 82,497
Ciber, Inc.* 7,604 50,186
Keane, Inc.*+ 3,692 40,649
-------------
TOTAL IT CONSULTING & SERVICES 434,368
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS 1.2%
Adaptec, Inc.* 30,046 $ 174,868
SBS Technologies, Inc.* 4,963 49,977
-------------
TOTAL COMPUTERS & PERIPHERALS 224,845
-------------
COMMUNICATIONS EQUIPMENT 0.9%
Ditech Communications Corp.* 10,674 89,128
Belden CDT, Inc.+ 3,142 76,759
-------------
TOTAL COMMUNICATIONS EQUIPMENT 165,887
-------------
SOFTWARE 0.3%
THQ, Inc.* 2,437 58,122
-------------
TOTAL SOFTWARE 58,122
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 0.3%
Axcelis Technologies, Inc.* 6,255 29,837
Photronics, Inc.*+ 1,555 23,418
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 53,255
-------------
TOTAL INFORMATION TECHNOLOGY 1,704,248
-------------
CONSUMER STAPLES 5.0%
FOOD PRODUCTS 1.9%
American Italian Pasta Co. --
Class A+ 18,821 127,983
Lance, Inc. 4,762 88,716
Corn Products International, Inc. 3,288 78,550
Flowers Foods, Inc. 2,481 68,377
-------------
TOTAL FOOD PRODUCTS 363,626
-------------
FOOD & DRUG RETAILING 1.8%
Nash Finch Co. 3,829 97,563
Performance Food Group Co.* 3,270 92,770
Longs Drug Stores Corp. 2,157 78,493
Casey's General Stores, Inc.+ 2,884 71,523
-------------
TOTAL FOOD & DRUG RETAILING 340,349
-------------
TOBACCO 1.3%
Alliance One International, Inc. 65,543 255,618
-------------
TOTAL TOBACCO 255,618
-------------
TOTAL CONSUMER STAPLES 959,593
-------------
HEALTH CARE 2.3%
HEALTH CARE PROVIDERS & SERVICES 1.2%
Owens & Minor, Inc. 3,180 87,546
Chemed Corp. 1,513 75,166
Hooper Holmes, Inc. 19,146 48,822
Gentiva Health Services, Inc.* 1,854 27,328
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 238,862
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.8%
Datascope Corp. 3,450 114,022
Osteotech, Inc.* 7,581 37,678
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 151,700
-------------
BIOTECHNOLOGY 0.3%
Cambrex Corp. 2,911 54,639
-------------
TOTAL BIOTECHNOLOGY 54,639
-------------
TOTAL HEALTH CARE 445,201
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 99
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
ENERGY 0.2%
ENERGY EQUIPMENT & SERVICES 0.2%
Lufkin Industries, Inc. 720 $ 35,906
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 35,906
-------------
TOTAL ENERGY 35,906
-------------
TOTAL COMMON STOCKS
(Cost $18,194,791) 18,935,344
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.7%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 130,179 130,179
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $130,179) 130,179
-------------
SECURITIES LENDING COLLATERAL 4.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 896,615 896,615
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $896,615) 896,615
-------------
TOTAL INVESTMENTS 104.9%
(Cost $19,221,585) $ 19,962,138
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (4.9)% $ (926,868)
=============
NET ASSETS - 100.0% $ 19,035,270
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
100 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
UTILITIES 25.0%
MULTI-UTILITIES 11.3%
NSTAR 9,840 $ 282,408
Puget Energy, Inc. 9,158 187,006
OGE Energy Corp.+ 6,602 176,868
WPS Resources Corp. 3,108 171,904
Energy East Corp. 7,518 171,410
Alliant Energy Corp. 6,063 170,007
Vectren Corp. 4,281 116,272
SCANA Corp. 2,763 108,807
PNM Resources, Inc. 4,121 100,923
Wisconsin Energy Corp. 2,100 82,026
MDU Resources Group, Inc. 1,291 42,267
-------------
TOTAL MULTI-UTILITIES 1,609,898
-------------
ELECTRIC UTILITIES 10.4%
Northeast Utilities 15,794 310,984
Pepco Holdings, Inc.+ 11,824 264,503
Great Plains Energy, Inc. 5,879 164,377
IDACORP, Inc.+ 5,293 155,085
Westar Energy, Inc. 6,085 130,827
Hawaiian Electric Industries, Inc. 4,846 125,511
Duquesne Light Holdings, Inc. 7,430 121,258
Sierra Pacific Resources*+ 9,099 118,651
Black Hills Corp. 2,386 82,579
-------------
TOTAL ELECTRIC UTILITIES 1,473,775
-------------
GAS UTILITIES 3.3%
WGL Holdings, Inc. 4,759 143,055
National Fuel Gas Co. 4,156 129,626
Oneok, Inc.+ 4,446 118,397
AGL Resources, Inc. 2,321 80,794
-------------
TOTAL GAS UTILITIES 471,872
-------------
TOTAL UTILITIES 3,555,545
-------------
FINANCIALS 17.5%
INSURANCE 10.4%
American Financial Group,
Inc./OH+ 6,047 231,660
Old Republic International Corp. 5,915 155,328
First American Corp.+ 3,233 146,455
Protective Life Corp. 3,340 146,192
HCC Insurance Holdings, Inc.+ 4,810 142,761
Ohio Casualty Corp. 4,027 114,045
Horace Mann Educators Corp. 5,634 106,821
Stancorp Financial Group, Inc. 1,962 98,002
Unitrin, Inc. 2,099 94,560
Mercury General Corp.+ 1,516 88,261
Hanover Insurance Group, Inc. 1,979 82,663
AmerUs Group Co. 1,441 81,661
-------------
TOTAL INSURANCE 1,488,409
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
REAL ESTATE 5.1%
New Plan Excel Realty Trust 4,988 $ 115,622
Highwoods Properties, Inc. 4,012 114,141
Mack-Cali Realty Corp. 2,237 96,638
Hospitality Properties Trust 2,119 84,972
Potlatch Corp.+ 1,626 82,893
Liberty Property Trust+ 1,784 76,444
Rayonier, Inc.+ 1,550 61,768
United Dominion Realty Trust, Inc.+ 2,040 47,818
AMB Property Corp. 880 43,270
-------------
TOTAL REAL ESTATE 723,566
-------------
THRIFTS & MORTGAGE FINANCE 1.7%
New York Community Bancorp,
Inc.+ 8,636 142,667
Webster Financial Corp. 1,070 50,183
Washington Federal, Inc.+ 2,056 47,267
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 240,117
-------------
BANKS 0.3%
FirstMerit Corp. 1,615 41,845
-------------
TOTAL BANKS 41,845
-------------
TOTAL FINANCIALS 2,493,937
-------------
INDUSTRIALS 16.2%
MACHINERY 5.7%
Tecumseh Products Co. --
Class A+ 12,932 296,272
AGCO Corp.*+ 8,941 148,152
Timken Co. 4,337 138,871
SPX Corp. 2,263 103,578
Kennametal, Inc.+ 1,580 80,643
Harsco Corp. 730 49,282
-------------
TOTAL MACHINERY 816,798
-------------
ROAD & RAIL 4.5%
J.B. Hunt Transport Services, Inc. 9,220 208,741
Yellow Roadway Corp.*+ 4,156 185,399
Swift Transportation Co., Inc.* 6,983 141,755
Werner Enterprises, Inc.+ 5,468 107,719
-------------
TOTAL ROAD & RAIL 643,614
-------------
COMMERCIAL SERVICES & SUPPLIES 2.7%
Kelly Services, Inc. 4,856 127,324
Manpower, Inc. 2,684 124,806
Brink's Co. 1,536 73,590
Banta Corp. 1,148 57,171
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 382,891
-------------
AIRLINES 1.7%
Alaska Air Group, Inc.* 6,756 241,324
-------------
TOTAL AIRLINES 241,324
-------------
AEROSPACE & DEFENSE 1.3%
Sequa Corp. -- Class A* 2,676 184,778
-------------
TOTAL AEROSPACE & DEFENSE 184,778
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 101
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS 0.3%
GATX Corp. 1,151 $ 41,528
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 41,528
-------------
TOTAL INDUSTRIALS 2,310,933
-------------
CONSUMER DISCRETIONARY 15.2%
AUTO COMPONENTS 5.3%
Lear Corp.+ 9,108 259,214
ArvinMeritor, Inc. 17,442 250,990
Bandag, Inc. 2,783 118,751
Modine Manufacturing Co. 2,028 66,092
BorgWarner, Inc. 988 59,902
-------------
TOTAL AUTO COMPONENTS 754,949
-------------
HOUSEHOLD DURABLES 3.3%
Furniture Brands International,
Inc.+ 12,689 283,345
Blyth, Inc. 4,525 94,799
American Greetings Corp. --
Class A+ 2,108 46,313
Tupperware Brands Corp. 1,870 41,888
-------------
TOTAL HOUSEHOLD DURABLES 466,345
-------------
SPECIALTY RETAIL 3.2%
Borders Group, Inc. 7,446 161,355
Foot Locker, Inc. 4,959 116,983
Pier 1 Imports, Inc. 12,779 111,561
Payless Shoesource, Inc.* 2,645 66,389
-------------
TOTAL SPECIALTY RETAIL 456,288
-------------
HOTELS, RESTAURANTS & LEISURE 1.5%
Bob Evans Farms, Inc. 6,532 150,628
CBRL Group, Inc.+ 1,819 63,938
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 214,566
-------------
MULTILINE RETAIL 0.8%
Saks, Inc.*+ 6,944 117,076
-------------
TOTAL MULTILINE RETAIL 117,076
-------------
MEDIA 0.8%
Media General, Inc. 1,134 57,494
Scholastic Corp.*+ 1,810 51,603
-------------
TOTAL MEDIA 109,097
-------------
LEISURE EQUIPMENT & PRODUCTS 0.3%
Callaway Golf Co. 3,084 42,682
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 42,682
-------------
TOTAL CONSUMER DISCRETIONARY 2,161,003
-------------
MATERIALS 11.1%
CHEMICALS 5.4%
Sensient Technologies Corp. 8,507 152,275
Ferro Corp. 7,925 148,673
Lubrizol Corp. 2,815 122,256
Cabot Corp. 2,733 97,841
RPM International, Inc. 4,636 80,527
Albemarle Corp. 1,482 56,835
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Lyondell Chemical Co.+ 2,252 $ 53,643
Chemtura Corp. 4,110 52,197
-------------
TOTAL CHEMICALS 764,247
-------------
METALS & MINING 2.2%
Worthington Industries, Inc. 9,352 179,652
Steel Dynamics, Inc.+ 3,757 133,411
-------------
TOTAL METALS & MINING 313,063
-------------
PAPER & FOREST PRODUCTS 2.0%
Bowater, Inc.+ 5,989 183,982
Glatfelter 6,840 97,060
-------------
TOTAL PAPER & FOREST PRODUCTS 281,042
-------------
CONTAINERS & PACKAGING 1.5%
Packaging Corporation of America 5,110 117,274
Sonoco Products Co.+ 3,367 98,990
-------------
TOTAL CONTAINERS & PACKAGING 216,264
-------------
TOTAL MATERIALS 1,574,616
-------------
INFORMATION TECHNOLOGY 7.2%
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.9%
Tech Data Corp.*+ 4,806 190,702
Ingram Micro, Inc. -- Class A* 7,460 148,678
Avnet, Inc.*+ 5,055 121,016
Arrow Electronics, Inc.* 3,570 114,347
Vishay Intertechnology, Inc.* 8,272 113,823
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 688,566
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.9%
Atmel Corp.* 86,620 267,656
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 267,656
-------------
SOFTWARE 0.4%
Mentor Graphics Corp.*+ 5,969 61,720
-------------
TOTAL SOFTWARE 61,720
-------------
TOTAL INFORMATION TECHNOLOGY 1,017,942
-------------
CONSUMER STAPLES 5.0%
FOOD & DRUG RETAILING 1.9%
Ruddick Corp. 7,026 149,513
BJ's Wholesale Club, Inc.*+ 4,166 123,147
-------------
TOTAL FOOD & DRUG RETAILING 272,660
-------------
TOBACCO 1.9%
Universal Corp./Richmond VA 6,188 268,312
-------------
TOTAL TOBACCO 268,312
-------------
FOOD PRODUCTS 1.2%
Smithfield Foods, Inc.* 5,711 174,757
-------------
TOTAL FOOD PRODUCTS 174,757
-------------
TOTAL CONSUMER STAPLES 715,729
-------------
TELECOMMUNICATION SERVICES 1.3%
WIRELESS TELECOMMUNICATION SERVICES 1.3%
Telephone & Data Systems, Inc. 5,065 182,492
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 182,492
-------------
TOTAL TELECOMMUNICATION SERVICES 182,492
-------------
102 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HEALTH CARE 0.7%
HEALTH CARE PROVIDERS & SERVICES 0.7%
Triad Hospitals, Inc.* 2,520 $ 98,860
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 98,860
-------------
TOTAL HEALTH CARE 98,860
-------------
ENERGY 0.3%
OIL & GAS 0.3%
Forest Oil Corp.* 955 43,519
-------------
TOTAL OIL & GAS 43,519
-------------
TOTAL ENERGY 43,519
-------------
TOTAL COMMON STOCKS
(Cost $13,793,479) 14,154,576
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.9%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 130,936 130,936
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $130,936) 130,936
-------------
SECURITIES LENDING COLLATERAL 11.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,652,797 1,652,797
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,652,797) 1,652,797
-------------
TOTAL INVESTMENTS 112.0%
(Cost $15,577,212) $ 15,938,309
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (12.0)% $ (1,706,529)
=============
NET ASSETS - 100.0% $ 14,231,780
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 103
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 100.2%
FINANCIALS 20.6%
INSURANCE 9.6%
UnumProvident Corp.+ 12,375 $ 281,531
ACE Ltd. 5,050 269,872
XL Capital Ltd. 3,958 266,690
Chubb Corp.+ 2,028 198,034
St. Paul Travelers Cos., Inc. 4,249 189,803
Genworth Financial, Inc. -- Class A 5,150 178,087
Jefferson-Pilot Corp. 2,630 149,726
MetLife, Inc.+ 2,906 142,394
Lincoln National Corp.+ 2,407 127,643
SAFECO Corp. 2,230 125,995
Allstate Corp. 2,307 124,739
Aon Corp. 2,924 105,118
Hartford Financial Services Group,
Inc. 1,212 104,099
Loews Corp. 1,069 101,395
-------------
TOTAL INSURANCE 2,365,126
-------------
BANKS 6.0%
First Horizon National Corp. 4,401 169,174
Huntington Bancshares, Inc. 5,522 131,147
Regions Financial Corp.+ 3,773 128,886
National City Corp.+ 3,710 124,545
KeyCorp+ 3,720 122,500
North Fork Bancorporation, Inc. 4,327 118,387
SunTrust Banks, Inc. 1,617 117,653
BB&T Corp.+ 2,267 95,010
PNC Financial Services Group, Inc. 1,483 91,694
AmSouth Bancorp+ 3,374 88,432
Wells Fargo & Co. 1,225 76,967
Wachovia Corp. 1,338 70,727
Comerica, Inc. 1,156 65,614
U.S. Bancorp 2,181 65,190
-------------
TOTAL BANKS 1,465,926
-------------
DIVERSIFIED FINANCIALS 1.9%
J.P. Morgan Chase & Co. 5,480 217,501
Citigroup, Inc. 2,935 142,436
CIT Group, Inc. 2,162 111,948
-------------
TOTAL DIVERSIFIED FINANCIALS 471,885
-------------
REAL ESTATE 1.7%
Equity Office Properties Trust+ 4,952 150,194
Apartment Investment &
Management Co. -- Class A+ 3,957 149,851
Archstone-Smith Trust 1,376 57,641
Equity Residential 1,432 56,020
-------------
TOTAL REAL ESTATE 413,706
-------------
THRIFTS & MORTGAGE FINANCE 0.8%
Washington Mutual, Inc.+ 4,180 181,830
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 181,830
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CAPITAL MARKETS 0.6%
Morgan Stanley 1,437 $ 81,535
Bear Stearns Cos., Inc. 597 68,972
-------------
TOTAL CAPITAL MARKETS 150,507
-------------
TOTAL FINANCIALS 5,048,980
-------------
UTILITIES 18.4%
MULTI-UTILITIES 10.8%
KeySpan Corp. 7,081 252,721
Dynegy, Inc. -- Class A*+ 49,498 239,570
NiSource, Inc.+ 10,366 216,235
Consolidated Edison, Inc.+ 4,551 210,848
Xcel Energy, Inc.+ 11,410 210,628
DTE Energy Co. 4,777 206,319
Duke Energy Corp.+ 7,274 199,671
CMS Energy Corp.*+ 13,587 197,147
PG&E Corp.+ 4,158 154,345
Ameren Corp.+ 2,954 151,363
CenterPoint Energy, Inc.+ 10,956 140,785
Sempra Energy 2,695 120,844
Constellation Energy Group, Inc. 2,012 115,891
Dominion Resources, Inc./VA+ 1,152 88,934
Public Service Enterprise Group,
Inc.+ 1,241 80,628
TECO Energy, Inc. 3,260 56,007
-------------
TOTAL MULTI-UTILITIES 2,641,936
-------------
ELECTRIC UTILITIES 5.9%
Progress Energy, Inc.+ 6,424 282,142
PPL Corp. 8,104 238,258
Pinnacle West Capital Corp. 4,335 179,252
American Electric Power Co., Inc. 4,778 177,216
Cinergy Corp. 3,282 139,354
Entergy Corp. 1,757 120,618
Southern Co.+ 3,214 110,979
FirstEnergy Corp.+ 2,084 102,095
FPL Group, Inc. 2,312 96,087
-------------
TOTAL ELECTRIC UTILITIES 1,446,001
-------------
GAS UTILITIES 1.7%
Peoples Energy Corp.+ 6,495 227,780
Nicor, Inc.+ 5,091 200,127
-------------
TOTAL GAS UTILITIES 427,907
-------------
TOTAL UTILITIES 4,515,844
-------------
CONSUMER DISCRETIONARY 17.9%
AUTO COMPONENTS 4.0%
Dana Corp.+ 44,928 322,583
Cooper Tire & Rubber Co. 17,629 270,076
Johnson Controls, Inc. 2,862 208,669
Visteon Corp.* 28,380 177,659
-------------
TOTAL AUTO COMPONENTS 978,987
-------------
SPECIALTY RETAIL 3.4%
Circuit City Stores, Inc.+ 10,956 247,496
OfficeMax, Inc. 9,146 231,943
104 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
AutoNation, Inc.* 10,224 $ 222,168
Limited Brands, Inc. 5,830 130,300
-------------
TOTAL SPECIALTY RETAIL 831,907
-------------
MULTILINE RETAIL 3.3%
Dillard's, Inc. -- Class A 16,458 408,488
Big Lots, Inc.* 18,912 227,133
Federated Department Stores, Inc. 1,727 114,552
Nordstrom, Inc. 1,750 65,450
-------------
TOTAL MULTILINE RETAIL 815,623
-------------
HOUSEHOLD DURABLES 2.9%
Whirlpool Corp. 2,491 208,646
Pulte Homes, Inc. 4,888 192,392
Snap-On, Inc. 2,934 110,201
Newell Rubbermaid, Inc.+ 4,490 106,772
Leggett & Platt, Inc. 4,464 102,493
-------------
TOTAL HOUSEHOLD DURABLES 720,504
-------------
AUTOMOBILES 2.4%
Ford Motor Co.+ 43,348 334,646
General Motors Corp.+ 13,254 257,393
-------------
TOTAL AUTOMOBILES 592,039
-------------
LEISURE EQUIPMENT & PRODUCTS 1.0%
Eastman Kodak Co. 7,487 175,196
Brunswick Corp. 1,448 58,875
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 234,071
-------------
TEXTILES & APPAREL 0.9%
Jones Apparel Group, Inc. 7,007 215,255
-------------
TOTAL TEXTILES & APPAREL 215,255
-------------
TOTAL CONSUMER DISCRETIONARY 4,388,386
-------------
MATERIALS 10.3%
PAPER & FOREST PRODUCTS 3.6%
International Paper Co.+ 7,448 250,327
Weyerhaeuser Co. 3,294 218,524
MeadWestvaco Corp. 7,749 217,205
Louisiana-Pacific Corp.+ 7,532 206,904
-------------
TOTAL PAPER & FOREST PRODUCTS 892,960
-------------
CHEMICALS 3.1%
Ashland, Inc.+ 3,706 214,578
Eastman Chemical Co. 3,492 180,152
E.I. du Pont de Nemours and Co. 2,108 89,590
Rohm & Haas Co. 1,795 86,914
Dow Chemical Co. 1,633 71,558
PPG Industries, Inc. 1,143 66,180
Engelhard Corp. 2,082 62,772
-------------
TOTAL CHEMICALS 771,744
-------------
METALS & MINING 2.5%
United States Steel Corp. 6,757 324,809
Alcoa, Inc. 4,319 127,713
Phelps Dodge Corp. 618 88,911
Nucor Corp. 994 66,320
-------------
TOTAL METALS & MINING 607,753
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONTAINERS & PACKAGING 1.1%
Temple-Inland, Inc. 2,992 $ 134,191
Bemis Co.+ 4,789 133,469
-------------
TOTAL CONTAINERS & PACKAGING 267,660
-------------
TOTAL MATERIALS 2,540,117
-------------
CONSUMER STAPLES 9.5%
FOOD & DRUG RETAILING 4.3%
Supervalu, Inc. 9,378 304,598
Albertson's, Inc.+ 13,341 284,830
Safeway, Inc.+ 7,843 185,565
CVS Corp. 5,582 147,477
Costco Wholesale Corp.+ 2,460 121,696
-------------
TOTAL FOOD & DRUG RETAILING 1,044,166
-------------
FOOD PRODUCTS 2.3%
Tyson Foods, Inc. -- Class A 14,860 254,106
Archer-Daniels-Midland Co.+ 7,203 177,626
ConAgra Foods, Inc.+ 7,120 144,394
-------------
TOTAL FOOD PRODUCTS 576,126
-------------
BEVERAGES 2.2%
Molson Coors Brewing Co. --
Class B+ 3,654 244,782
Coca-Cola Enterprises, Inc. 9,872 189,246
Constellation Brands, Inc. --
Class A* 4,114 107,910
-------------
TOTAL BEVERAGES 541,938
-------------
TOBACCO 0.7%
Reynolds American, Inc.+ 1,780 169,687
-------------
TOTAL TOBACCO 169,687
-------------
TOTAL CONSUMER STAPLES 2,331,917
-------------
INDUSTRIALS 9.4%
MACHINERY 2.5%
Ingersoll-Rand Co. -- Class A 4,586 185,137
Deere & Co. 2,029 138,195
Caterpillar, Inc. 2,130 123,050
Cummins, Inc. 1,290 115,752
Navistar International Corp.* 2,110 60,388
-------------
TOTAL MACHINERY 622,522
-------------
COMMERCIAL SERVICES & SUPPLIES 1.9%
Allied Waste Industries, Inc.* 30,366 265,399
R.R. Donnelley & Sons Co. 3,963 135,574
Avery Dennison Corp. 1,300 71,851
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 472,824
-------------
AEROSPACE & DEFENSE 1.8%
United Technologies Corp. 3,100 173,321
Northrop Grumman Corp.+ 2,873 172,696
Raytheon Co. 2,383 95,678
-------------
TOTAL AEROSPACE & DEFENSE 441,695
-------------
AIR FREIGHT & COURIERS 1.6%
Ryder System, Inc. 9,311 381,937
-------------
TOTAL AIR FREIGHT & COURIERS 381,937
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 105
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
ROAD & RAIL 1.0%
Union Pacific Corp. 1,762 $ 141,859
CSX Corp. 2,121 107,683
-------------
TOTAL ROAD & RAIL 249,542
-------------
BUILDING PRODUCTS 0.3%
Masco Corp.+ 2,421 73,090
-------------
TOTAL BUILDING PRODUCTS 73,090
-------------
INDUSTRIAL CONGLOMERATES 0.3%
Textron, Inc. 777 59,813
-------------
TOTAL INDUSTRIAL CONGLOMERATES 59,813
-------------
TOTAL INDUSTRIALS 2,301,423
-------------
INFORMATION TECHNOLOGY 5.5%
IT CONSULTING & SERVICES 3.2%
Computer Sciences Corp.* 4,470 226,361
Unisys Corp.* 36,063 210,247
Electronic Data Systems Corp. 8,625 207,345
Sabre Holdings Corp.+ 5,665 136,583
-------------
TOTAL IT CONSULTING & SERVICES 780,536
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.5%
Sanmina-SCI Corp.* 49,743 211,905
Solectron Corp.* 43,400 158,844
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 370,749
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 0.5%
Micron Technology, Inc.*+ 10,216 135,975
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 135,975
-------------
COMMUNICATIONS EQUIPMENT 0.3%
Andrew Corp.* 7,079 75,958
-------------
TOTAL COMMUNICATIONS EQUIPMENT 75,958
-------------
TOTAL INFORMATION TECHNOLOGY 1,363,218
-------------
TELECOMMUNICATION SERVICES 4.1%
DIVERSIFIED TELECOMMUNICATION SERVICES 4.1%
Verizon Communications, Inc.+ 7,700 231,924
AT&T, Inc.+ 8,170 200,083
BellSouth Corp.+ 6,139 166,367
Citizens Communications Co.+ 12,970 158,623
Qwest Communications
International, Inc.* 24,170 136,561
CenturyTel, Inc. 3,222 106,842
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 1,000,400
-------------
TOTAL TELECOMMUNICATION SERVICES 1,000,400
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
ENERGY 3.2%
OIL & GAS 3.2%
ConocoPhillips+ 5,282 $ 307,307
Sunoco, Inc. 2,930 229,653
Marathon Oil Corp. 2,204 134,378
El Paso Corp.+ 10,180 123,789
-------------
TOTAL OIL & GAS 795,127
-------------
TOTAL ENERGY 795,127
-------------
HEALTH CARE 1.3%
HEALTH CARE PROVIDERS & SERVICES 1.3%
WellPoint, Inc.* 2,034 162,293
Tenet Healthcare Corp.*+ 10,041 76,914
McKesson Corp. 1,463 75,476
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 314,683
-------------
TOTAL HEALTH CARE 314,683
-------------
TOTAL COMMON STOCKS
(Cost $23,961,649) 24,600,095
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.7%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 176,059 176,059
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $176,059) 176,059
-------------
SECURITIES LENDING COLLATERAL 16.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 3,908,252 3,908,252
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,908,252) 3,908,252
-------------
TOTAL INVESTMENTS 116.9%
(Cost $28,045,960) $ 28,684,406
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (16.9)% $ (4,137,263)
=============
NET ASSETS - 100.0% $ 24,547,143
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
REIT -- REAL ESTATE INVESTMENT TRUST.
106 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
HEALTH CARE 25.8%
HEALTH CARE EQUIPMENT & SUPPLIES 13.2%
BioLase Technology, Inc.+ 54,630 $ 436,494
Integra LifeSciences Holdings
Corp.* 7,276 258,007
Possis Medical, Inc.* 24,890 247,655
Biosite, Inc.*+ 4,380 246,550
ResMed, Inc.*+ 6,380 244,418
SurModics, Inc.*+ 4,388 162,312
ICU Medical, Inc.* 3,970 155,664
Sybron Dental Specialties, Inc.* 3,855 153,467
Dionex Corp.* 2,889 141,792
PolyMedica Corp. 3,810 127,521
Respironics, Inc.* 2,829 104,871
Immucor, Inc.* 4,476 104,559
Mentor Corp. 2,258 104,049
Idexx Laboratories, Inc.* 1,412 101,636
Greatbatch, Inc.* 3,880 100,919
Cooper Cos., Inc. 1,960 100,548
American Medical Systems
Holdings, Inc.* 5,634 100,454
Kensey Nash Corp.* 3,922 86,402
ArthroCare Corp.*+ 1,800 75,852
Diagnostic Products Corp.+ 1,562 75,835
Merit Medical Systems, Inc.* 6,234 75,681
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,204,686
-------------
HEALTH CARE PROVIDERS & SERVICES 9.1%
Odyssey HealthCare, Inc.* 19,465 362,828
Centene Corp.* 10,960 288,138
American Healthways, Inc.* 4,762 215,481
Sierra Health Services, Inc.* 2,502 200,060
United Surgical Partners
International, Inc.* 5,435 174,735
Sunrise Senior Living, Inc.*+ 5,030 169,561
AMERIGROUP Corp.* 7,530 146,534
Pharmaceutical Product
Development, Inc. 2,031 125,821
AmSurg Corp.* 5,149 117,706
Cerner Corp.*+ 1,141 103,728
Amedisys, Inc.*+ 2,232 94,280
Pediatrix Medical Group, Inc.* 939 83,167
SFBC International, Inc.*+ 4,880 78,129
Dendrite International, Inc.* 3,652 52,625
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,212,793
-------------
PHARMACEUTICALS 3.5%
Connetics Corp.*+ 18,126 261,921
CNS, Inc. 11,260 246,706
Bradley Pharmaceuticals, Inc.*+ 14,800 140,600
Noven Pharmaceuticals, Inc.*+ 7,212 109,117
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Medicis Pharmaceutical Corp. --
Class A+ 2,833 $ 90,798
-------------
TOTAL PHARMACEUTICALS 849,142
-------------
TOTAL HEALTH CARE 6,266,621
-------------
CONSUMER DISCRETIONARY 23.3%
SPECIALTY RETAIL 6.8%
Christopher & Banks Corp. 17,095 321,044
HOT Topic, Inc.* 17,860 254,505
Hibbett Sporting Goods, Inc.* 5,538 157,722
Tractor Supply Co.* 2,842 150,455
Select Comfort Corp.* 5,005 136,887
Children's Place Retail Stores, Inc.* 2,744 135,608
Genesco, Inc.* 3,404 132,041
Guitar Center, Inc.* 2,623 131,176
Too, Inc.* 4,450 125,535
Movie Gallery, Inc.+ 19,150 107,432
-------------
TOTAL SPECIALTY RETAIL 1,652,405
-------------
HOTELS, RESTAURANTS & LEISURE 5.8%
Multimedia Games, Inc.*+ 31,596 292,263
Shuffle Master, Inc.*+ 10,692 268,797
Panera Bread Co. -- Class A* 3,731 245,052
Papa John's International, Inc.* 3,096 183,624
Sonic Corp.* 5,399 159,271
P.F. Chang's China Bistro, Inc.* 3,121 154,895
CEC Entertainment, Inc.* 3,505 119,310
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,423,212
-------------
LEISURE EQUIPMENT & PRODUCTS 2.7%
SCP Pool Corp. 6,880 256,074
Nautilus, Inc.+ 12,700 236,982
Polaris Industries, Inc. 3,156 158,431
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 651,487
-------------
HOUSEHOLD DURABLES 2.7%
NVR, Inc.* 366 256,932
Meritage Homes Corp.* 3,930 247,276
M.D.C. Holdings, Inc. 2,300 142,554
-------------
TOTAL HOUSEHOLD DURABLES 646,762
-------------
COMMERCIAL SERVICES & SUPPLIES 1.9%
Pre-Paid Legal Services, Inc.+ 7,172 274,042
Vertrue, Inc.*+ 5,234 184,917
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 458,959
-------------
TEXTILES & APPAREL 1.6%
K-Swiss, Inc. -- Class A 7,253 235,287
Fossil, Inc.*+ 7,645 164,444
-------------
TOTAL TEXTILES & APPAREL 399,731
-------------
MEDIA 1.1%
Arbitron, Inc. 3,919 148,844
Advo, Inc. 4,568 128,726
-------------
TOTAL MEDIA 277,570
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 107
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
AUTOMOBILES 0.7%
Winnebago Industries, Inc.+ 4,982 $ 165,801
-------------
TOTAL AUTOMOBILES 165,801
-------------
TOTAL CONSUMER DISCRETIONARY 5,675,927
-------------
INFORMATION TECHNOLOGY 19.0%
SOFTWARE 5.0%
Factset Research Systems, Inc. 6,450 265,482
Internet Security Systems, Inc.* 8,820 184,779
Ansys, Inc.* 3,965 169,266
EPIQ Systems, Inc.* 7,040 130,522
Quality Systems, Inc.* 1,700 130,492
Manhattan Associates, Inc.* 6,215 127,283
Take-Two Interactive Software,
Inc.*+ 6,830 120,891
Kronos, Inc./MA* 2,247 94,059
-------------
TOTAL SOFTWARE 1,222,774
-------------
INTERNET SOFTWARE & SERVICES 4.9%
Websense, Inc.* 5,630 369,553
j2 Global Communications, Inc.*+ 8,219 351,280
MIVA, Inc.* 56,307 278,720
Digital Insight Corp.* 3,290 105,346
WebEx Communications, Inc.* 3,380 73,109
-------------
TOTAL INTERNET SOFTWARE & SERVICES 1,178,008
-------------
IT CONSULTING & SERVICES 4.5%
Intrado, Inc.* 10,200 234,804
iPayment Holdings, Inc.* 5,260 218,395
Talx Corp. 4,680 213,923
eFunds Corp.* 7,720 180,957
Mantech International Corp. --
Class A* 5,060 140,971
CACI International, Inc. -- Class A* 1,773 101,735
-------------
TOTAL IT CONSULTING & SERVICES 1,090,785
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.5%
Scansource, Inc.* 4,096 223,969
Flir Systems, Inc.* 8,468 189,091
Daktronics, Inc. 5,163 152,670
Mercury Computer Systems, Inc.* 2,276 46,954
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 612,684
-------------
COMPUTERS & PERIPHERALS 1.8%
Synaptics, Inc.* 9,087 224,630
Komag, Inc.* 5,830 202,068
-------------
TOTAL COMPUTERS & PERIPHERALS 426,698
-------------
COMMUNICATIONS EQUIPMENT 0.3%
Comtech Telecommunications
Corp.*+ 2,720 83,069
-------------
TOTAL COMMUNICATIONS EQUIPMENT 83,069
-------------
TOTAL INFORMATION TECHNOLOGY 4,614,018
-------------
INDUSTRIALS 10.1%
COMMERCIAL SERVICES & SUPPLIES 3.4%
Coinstar, Inc.* 16,610 379,206
Portfolio Recovery Associates, Inc.* 7,000 325,080
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Waste Connections, Inc.*+ 3,559 $ 122,643
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 826,929
-------------
AEROSPACE & DEFENSE 3.0%
Ceradyne, Inc.* 6,725 294,555
Engineered Support Systems, Inc. 5,984 249,174
Curtiss-Wright Corp. 2,200 120,120
Gencorp, Inc.* 3,184 56,516
-------------
TOTAL AEROSPACE & DEFENSE 720,365
-------------
ROAD & RAIL 2.0%
Landstar System, Inc. 4,735 197,639
Knight Transportation, Inc. 8,863 183,730
Heartland Express, Inc.+ 5,630 114,233
-------------
TOTAL ROAD & RAIL 495,602
-------------
MACHINERY 0.8%
EnPro Industries, Inc.* 3,810 102,679
ASV, Inc.*+ 3,447 86,106
-------------
TOTAL MACHINERY 188,785
-------------
AIR FREIGHT & COURIERS 0.5%
Forward Air Corp. 3,458 126,736
-------------
TOTAL AIR FREIGHT & COURIERS 126,736
-------------
BUILDING PRODUCTS 0.4%
Simpson Manufacturing Co., Inc. 2,498 90,802
-------------
TOTAL BUILDING PRODUCTS 90,802
-------------
TOTAL INDUSTRIALS 2,449,219
-------------
ENERGY 9.7%
OIL & GAS 7.4%
Frontier Oil Corp. 7,288 273,519
St. Mary Land & Exploration Co.+ 6,890 253,621
Remington Oil & Gas Corp.* 6,780 247,470
Stone Energy Corp.* 4,340 197,600
Swift Energy Co.* 3,660 164,956
World Fuel Services Corp. 4,640 156,461
Penn Virginia Corp. 2,540 145,796
Cimarex Energy Co.*+ 3,290 141,503
Petroleum Development Corp.* 3,676 122,558
Cabot Oil & Gas Corp. 2,021 91,147
-------------
TOTAL OIL & GAS 1,794,631
-------------
ENERGY EQUIPMENT & SERVICES 2.3%
W-H Energy Services, Inc.* 4,160 137,613
Unit Corp.* 2,324 127,890
Cal Dive International, Inc.* 2,866 102,861
Hydril Co.* 1,564 97,906
CARBO Ceramics, Inc. 1,553 87,775
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 554,045
-------------
TOTAL ENERGY 2,348,676
-------------
FINANCIALS 7.5%
BANKS 2.6%
Nara Bancorp, Inc.+ 12,704 225,877
PrivateBancorp, Inc. 3,777 134,348
UCBH Holdings, Inc.+ 5,760 102,989
108 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Wintrust Financial Corp. 1,870 $ 102,663
East-West Bancorp, Inc. 1,985 72,432
-------------
TOTAL BANKS 638,309
-------------
THRIFTS & MORTGAGE FINANCE 2.3%
Fremont General Corp. 13,430 311,979
Flagstar Bancorp, Inc. 17,183 247,435
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 559,414
-------------
INSURANCE 1.4%
Hilb Rogal & Hobbs Co. 4,860 187,159
Philadelphia Consolidated
Holding Co.* 1,583 153,060
-------------
TOTAL INSURANCE 340,219
-------------
CONSUMER FINANCE 0.6%
World Acceptance Corp.* 5,440 155,040
-------------
TOTAL CONSUMER FINANCE 155,040
-------------
CAPITAL MARKETS 0.6%
Investment Technology Group,
Inc.* 4,090 144,950
-------------
TOTAL CAPITAL MARKETS 144,950
-------------
TOTAL FINANCIALS 1,837,932
-------------
CONSUMER STAPLES 2.8%
PERSONAL PRODUCTS 1.2%
USANA Health Sciences, Inc.*+ 4,600 176,456
NBTY, Inc.* 7,340 119,275
-------------
TOTAL PERSONAL PRODUCTS 295,731
-------------
BEVERAGES 1.0%
Hansen Natural Corp.*+ 3,120 245,887
-------------
TOTAL BEVERAGES 245,887
-------------
FOOD PRODUCTS 0.6%
Delta & Pine Land Co. 3,407 78,395
Peet's Coffee & Tea, Inc.* 1,890 57,362
-------------
TOTAL FOOD PRODUCTS 135,757
-------------
TOTAL CONSUMER STAPLES 677,375
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
MATERIALS 1.3%
CONSTRUCTION MATERIALS 1.3%
Headwaters, Inc.*+ 8,981 $ 318,287
-------------
TOTAL CONSTRUCTION MATERIALS 318,287
-------------
TOTAL MATERIALS 318,287
-------------
TOTAL COMMON STOCKS
(Cost $22,746,439) 24,188,055
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.0%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 10,842 10,842
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $10,842) 10,842
-------------
SECURITIES LENDING COLLATERAL 10.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,637,451 2,637,451
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,637,451) 2,637,451
-------------
TOTAL INVESTMENTS 110.4%
(Cost $25,394,732) $ 26,836,348
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (10.4)% $ (2,528,039)
=============
NET ASSETS - 100.0% $ 24,308,309
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 109
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.6%
CONSUMER DISCRETIONARY 28.9%
SPECIALTY RETAIL 14.4%
Chico's FAS, Inc.*+ 29,299 $ 1,287,105
Aeropostale, Inc.*+ 42,247 1,111,096
Abercrombie & Fitch Co. --
Class A+ 12,627 823,028
GameStop Corp. -- Class A*+ 23,600 750,952
Ross Stores, Inc. 22,900 661,810
Advance Auto Parts, Inc.*+ 14,050 610,613
Pacific Sunwear of California, Inc.*+ 23,876 594,990
Petsmart, Inc.+ 20,543 527,133
Williams-Sonoma, Inc.*+ 11,617 501,274
American Eagle Outfitters, Inc.+ 17,503 402,219
Urban Outfitters, Inc.* 14,490 366,742
-------------
TOTAL SPECIALTY RETAIL 7,636,962
-------------
COMMERCIAL SERVICES & SUPPLIES 5.4%
ITT Educational Services, Inc.* 14,278 843,973
Corinthian Colleges, Inc.* 66,262 780,566
Career Education Corp.*+ 19,902 671,095
Education Management Corp.* 16,398 549,497
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,845,131
-------------
HOUSEHOLD DURABLES 4.0%
Hovnanian Enterprises, Inc. --
Class A* 14,245 707,122
Ryland Group, Inc.+ 9,325 672,612
Toll Brothers, Inc.*+ 11,955 414,121
Harman International Industries,
Inc. 3,422 334,843
-------------
TOTAL HOUSEHOLD DURABLES 2,128,698
-------------
HOTELS, RESTAURANTS & LEISURE 2.6%
GTECH Holdings Corp. 15,502 492,034
Cheesecake Factory, Inc.* 12,919 483,041
Applebee's International, Inc. 17,555 396,567
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,371,642
-------------
TEXTILES & APPAREL 1.1%
Timberland Co. -- Class A* 17,840 580,692
-------------
TOTAL TEXTILES & APPAREL 580,692
-------------
AUTOMOBILES 0.8%
Thor Industries, Inc.+ 11,130 445,979
-------------
TOTAL AUTOMOBILES 445,979
-------------
MEDIA 0.6%
Catalina Marketing Corp.+ 11,632 294,871
-------------
TOTAL MEDIA 294,871
-------------
TOTAL CONSUMER DISCRETIONARY 15,303,975
-------------
INFORMATION TECHNOLOGY 19.8%
IT CONSULTING & SERVICES 7.2%
Cognizant Technology Solutions
Corp.* 20,077 1,010,877
Anteon International Corp.* 11,288 613,503
Certegy, Inc. 14,544 589,905
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CSG Systems International, Inc.*+ 21,190 $ 472,961
DST Systems, Inc.* 7,350 440,338
BISYS Group, Inc.* 28,820 403,768
Alliance Data Systems Corp.*+ 8,258 293,985
-------------
TOTAL IT CONSULTING & SERVICES 3,825,337
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.6%
Cree, Inc.*+ 29,699 749,603
Silicon Laboratories, Inc.*+ 17,885 655,664
Cabot Microelectronics Corp.*+ 16,610 487,171
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 1,892,438
-------------
COMPUTERS & PERIPHERALS 3.0%
Western Digital Corp.* 50,590 941,480
Sandisk Corp.*+ 10,090 633,854
-------------
TOTAL COMPUTERS & PERIPHERALS 1,575,334
-------------
SOFTWARE 2.3%
Macrovision Corp.* 19,640 328,577
Jack Henry & Associates, Inc. 16,579 316,327
McAfee, Inc.* 7,950 215,683
Fair Isaac Corp. 4,210 185,956
Activision, Inc.*+ 13,390 183,979
-------------
TOTAL SOFTWARE 1,230,522
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.7%
CDW Corp. 8,643 497,578
Amphenol Corp. -- Class A 9,047 400,420
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 897,998
-------------
COMMUNICATIONS EQUIPMENT 1.6%
Plantronics, Inc. 16,763 474,393
F5 Networks, Inc.*+ 6,877 393,295
-------------
TOTAL COMMUNICATIONS EQUIPMENT 867,688
-------------
OFFICE ELECTRONICS 0.4%
Zebra Technologies Corp. --
Class A* 4,674 200,281
-------------
TOTAL OFFICE ELECTRONICS 200,281
-------------
TOTAL INFORMATION TECHNOLOGY 10,489,598
-------------
HEALTH CARE 19.1%
PHARMACEUTICALS 6.7%
Par Pharmaceutical Cos., Inc.*+ 37,060 1,161,460
Sepracor, Inc.*+ 17,996 928,594
IVAX Corp.* 24,206 758,374
Barr Pharmaceuticals, Inc.* 10,992 684,692
-------------
TOTAL PHARMACEUTICALS 3,533,120
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 5.4%
Cytyc Corp.*+ 32,647 921,625
Gen-Probe, Inc.* 10,520 513,271
DENTSPLY International, Inc. 7,793 418,406
Intuitive Surgical, Inc.*+ 3,470 406,927
Beckman Coulter, Inc. 6,103 347,260
Inamed Corp.* 3,216 281,979
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,889,468
-------------
110 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES 4.0%
Lincare Holdings, Inc.* 13,468 $ 564,444
Apria Healthcare Group, Inc.* 21,790 525,357
Renal Care Group, Inc.* 8,250 390,307
Community Health Systems, Inc.*+ 8,840 338,926
LifePoint Hospitals, Inc.*+ 8,225 308,437
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,127,471
-------------
BIOTECHNOLOGY 3.0%
Cephalon, Inc.*+ 13,444 870,365
Techne Corp.* 5,990 336,339
Invitrogen Corp.* 3,260 217,246
Martek Biosciences Corp.*+ 6,000 147,660
-------------
TOTAL BIOTECHNOLOGY 1,571,610
-------------
TOTAL HEALTH CARE 10,121,669
-------------
INDUSTRIALS 14.1%
COMMERCIAL SERVICES & SUPPLIES 4.5%
Corporate Executive Board Co. 11,120 997,464
Stericycle, Inc.*+ 8,380 493,414
Copart, Inc.*+ 18,998 438,094
Rollins, Inc. 14,514 286,071
ChoicePoint, Inc.* 4,169 185,562
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,400,605
-------------
AIRLINES 3.8%
JetBlue Airways Corp.*+ 65,119 1,001,523
AirTran Holdings, Inc.+ 61,550 986,646
-------------
TOTAL AIRLINES 1,988,169
-------------
AIR FREIGHT & COURIERS 1.8%
Expeditors International
Washington, Inc.+ 8,436 569,514
CH Robinson Worldwide, Inc. 10,788 399,480
-------------
TOTAL AIR FREIGHT & COURIERS 968,994
-------------
MACHINERY 1.4%
Graco, Inc.+ 12,832 468,111
Donaldson Co., Inc.+ 8,222 261,460
-------------
TOTAL MACHINERY 729,571
-------------
AEROSPACE & DEFENSE 1.3%
Alliant Techsystems, Inc.*+ 9,087 692,157
-------------
TOTAL AEROSPACE & DEFENSE 692,157
-------------
TRADING COMPANIES & DISTRIBUTORS 0.7%
Fastenal Co.+ 9,492 371,992
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 371,992
-------------
CONSTRUCTION & ENGINEERING 0.6%
Jacobs Engineering Group, Inc.* 4,615 313,220
-------------
TOTAL CONSTRUCTION & ENGINEERING 313,220
-------------
TOTAL INDUSTRIALS 7,464,708
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
ENERGY 8.8%
OIL & GAS 7.7%
Pogo Producing Co.+ 15,020 $ 748,146
Newfield Exploration Co.* 14,640 733,025
Denbury Resources, Inc.* 28,770 655,381
Western Gas Resources, Inc. 12,560 591,450
Southwestern Energy Co.* 10,500 377,370
Plains Exploration & Production
Co.*+ 9,250 367,502
Pioneer Natural Resources Co. 6,950 356,327
Noble Energy, Inc. 6,020 242,606
-------------
TOTAL OIL & GAS 4,071,807
-------------
ENERGY EQUIPMENT & SERVICES 1.1%
Patterson-UTI Energy, Inc. 10,094 332,597
Grant Prideco, Inc.*+ 6,504 286,957
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 619,554
-------------
TOTAL ENERGY 4,691,361
-------------
FINANCIALS 8.1%
CAPITAL MARKETS 4.9%
Eaton Vance Corp. 23,724 649,089
Investors Financial Services Corp.+ 16,553 609,647
SEI Investments Co. 15,937 589,669
Waddell & Reed Financial, Inc.
-- Class A 24,911 522,384
Legg Mason, Inc. 1,695 202,874
-------------
TOTAL CAPITAL MARKETS 2,573,663
-------------
INSURANCE 1.7%
Brown & Brown, Inc. 30,054 917,849
-------------
TOTAL INSURANCE 917,849
-------------
BANKS 0.8%
Commerce Bancorp, Inc./NJ+ 11,660 401,220
-------------
TOTAL BANKS 401,220
-------------
THRIFTS & MORTGAGE FINANCE 0.7%
Radian Group, Inc.+ 6,730 394,311
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 394,311
-------------
TOTAL FINANCIALS 4,287,043
-------------
CONSUMER STAPLES 0.8%
HOUSEHOLD PRODUCTS 0.8%
Energizer Holdings, Inc.* 5,127 255,273
Church & Dwight Co., Inc. 5,479 180,972
-------------
TOTAL HOUSEHOLD PRODUCTS 436,245
-------------
TOTAL CONSUMER STAPLES 436,245
-------------
TOTAL COMMON STOCKS
(Cost $51,158,490) 52,794,599
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 111
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 259,976 $ 259,976
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $259,976) 259,976
-------------
SECURITIES LENDING COLLATERAL 14.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 7,752,932 7,752,932
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $7,752,932) 7,752,932
-------------
TOTAL INVESTMENTS 114.7%
(Cost $59,171,398) $ 60,807,507
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (14.7)% $ (7,772,649)
=============
NET ASSETS - 100.0% $ 53,034,858
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
112 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS DECEMBER 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 100.0%
CONSUMER DISCRETIONARY 29.2%
SPECIALTY RETAIL 6.5%
AutoZone, Inc.*+ 3,204 $ 293,967
TJX Cos., Inc. 11,444 265,844
Bed Bath & Beyond, Inc.* 6,332 228,902
Best Buy Co., Inc.+ 4,171 181,355
Lowe's Cos., Inc. 2,410 160,651
Home Depot, Inc.+ 3,332 134,879
RadioShack Corp. 5,499 115,644
Tiffany & Co. 2,070 79,260
-------------
TOTAL SPECIALTY RETAIL 1,460,502
-------------
HOUSEHOLD DURABLES 5.3%
Black & Decker Corp. 3,270 284,359
Lennar Corp. -- Class A 4,390 267,878
D.R. Horton, Inc.+ 6,860 245,108
Centex Corp. 3,080 220,189
Fortune Brands, Inc. 2,235 174,375
-------------
TOTAL HOUSEHOLD DURABLES 1,191,909
-------------
HOTELS, RESTAURANTS & LEISURE 4.6%
International Game
Technology, Inc.+ 12,217 376,039
Starbucks Corp.* 7,264 217,993
Darden Restaurants, Inc.+ 3,710 144,245
Yum! Brands, Inc. 2,582 121,044
Wendy's International, Inc. 1,750 96,705
Starwood Hotels & Resorts
Worldwide, Inc.+ 1,150 73,439
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,029,465
-------------
INTERNET & CATALOG RETAIL 2.9%
Amazon.com, Inc.*+ 7,580 357,397
eBay, Inc.*+ 7,046 304,739
-------------
TOTAL INTERNET & CATALOG RETAIL 662,136
-------------
COMMERCIAL SERVICES & SUPPLIES 2.3%
Apollo Group, Inc. -- Class A*+ 4,674 282,590
H&R Block, Inc. 9,453 232,071
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 514,661
-------------
MEDIA 2.1%
Clear Channel Communications,
Inc. 4,500 141,525
Omnicom Group, Inc. 1,626 138,421
Dow Jones & Co., Inc. 3,211 113,959
Univision Communications, Inc. --
Class A* 2,680 78,765
-------------
TOTAL MEDIA 472,670
-------------
TEXTILES & APPAREL 2.1%
Coach, Inc.* 8,586 286,257
Liz Claiborne, Inc. 2,980 106,744
Nike, Inc. -- Class B 821 71,254
-------------
TOTAL TEXTILES & APPAREL 464,255
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
MULTILINE RETAIL 1.5%
Kohl's Corp.* 3,500 $ 170,100
Sears Holdings Corp.*+ 730 84,337
Target Corp. 1,379 75,804
-------------
TOTAL MULTILINE RETAIL 330,241
-------------
AUTOMOBILES 1.0%
Harley-Davidson, Inc.+ 4,436 228,410
-------------
TOTAL AUTOMOBILES 228,410
-------------
AUTO COMPONENTS 0.9%
Goodyear Tire & Rubber Co.*+ 12,374 215,060
-------------
TOTAL AUTO COMPONENTS 215,060
-------------
TOTAL CONSUMER DISCRETIONARY 6,569,309
-------------
HEALTH CARE 26.2%
HEALTH CARE PROVIDERS & SERVICES 11.0%
Express Scripts, Inc.* 3,742 313,580
UnitedHealth Group, Inc. 4,685 291,126
AmerisourceBergen Corp. 6,160 255,024
Coventry Health Care, Inc.* 4,350 247,776
Caremark Rx, Inc.* 3,810 197,320
Humana, Inc.* 3,600 195,588
Manor Care, Inc.+ 4,850 192,884
Cardinal Health, Inc. 2,330 160,187
IMS Health, Inc. 6,380 158,990
Quest Diagnostics, Inc. 2,915 150,064
Patterson Cos., Inc.*+ 4,070 135,938
Health Management Associates,
Inc. -- Class A 6,120 134,395
Laboratory Corporation of
America Holdings* 1,040 56,004
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,488,876
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 8.8%
Fisher Scientific International, Inc.*+ 4,270 264,142
Zimmer Holdings, Inc.* 3,738 252,091
Hospira, Inc.* 5,410 231,440
Stryker Corp. 5,037 223,794
Guidant Corp. 2,679 173,465
Biomet, Inc.+ 4,138 151,327
St. Jude Medical, Inc.* 2,976 149,395
Waters Corp.* 3,914 147,949
Medtronic, Inc. 2,326 133,908
Boston Scientific Corp.*+ 4,628 113,340
Millipore Corp.*+ 1,057 69,804
Becton, Dickinson & Co. 1,125 67,590
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,978,245
-------------
PHARMACEUTICALS 4.8%
Forest Laboratories, Inc.*+ 7,151 290,903
King Pharmaceuticals, Inc.* 10,750 181,890
Mylan Laboratories, Inc. 6,010 119,960
Schering-Plough Corp. 5,573 116,197
Pfizer, Inc. 4,120 96,078
Johnson & Johnson, Inc. 1,412 84,861
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 113
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Wyeth 1,468 $ 67,631
Watson Pharmaceuticals, Inc.* 2,020 65,670
Eli Lilly & Co. 1,154 65,305
-------------
TOTAL PHARMACEUTICALS 1,088,495
-------------
BIOTECHNOLOGY 1.6%
Gilead Sciences, Inc.*+ 2,104 110,733
Chiron Corp.* 2,030 90,254
Amgen, Inc.*+ 993 78,308
Medimmune, Inc.* 2,227 77,990
-------------
TOTAL BIOTECHNOLOGY 357,285
-------------
TOTAL HEALTH CARE 5,912,901
-------------
INFORMATION TECHNOLOGY 13.5%
SOFTWARE 4.5%
Adobe Systems, Inc. 6,439 237,985
Citrix Systems, Inc.* 4,958 142,691
Electronic Arts, Inc.*+ 2,653 138,778
Oracle Corp.* 10,818 132,088
Mercury Interactive Corp.* 4,339 120,581
Symantec Corp.* 5,491 96,093
Microsoft Corp. 3,106 81,222
Intuit, Inc.*+ 1,318 70,249
-------------
TOTAL SOFTWARE 1,019,687
-------------
COMPUTERS & PERIPHERALS 3.3%
Dell, Inc.* 6,897 206,841
QLogic Corp.* 5,410 175,879
Lexmark International, Inc.*+ 3,133 140,453
Network Appliance, Inc.*+ 5,151 139,077
International Business
Machines Corp.+ 965 79,323
-------------
TOTAL COMPUTERS & PERIPHERALS 741,573
-------------
IT CONSULTING & SERVICES 2.1%
First Data Corp. 4,171 179,395
Affiliated Computer Services,
Inc. -- Class A* 2,670 158,010
Fiserv, Inc.* 3,080 133,272
-------------
TOTAL IT CONSULTING & SERVICES 470,677
-------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.0%
Nvidia Corp.* 9,040 330,503
Maxim Integrated Products, Inc.+ 2,043 74,038
Broadcom Corp. -- Class A* 1,020 48,093
-------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 452,634
-------------
INTERNET SOFTWARE & SERVICES 1.1%
Yahoo!, Inc.*+ 6,180 242,132
-------------
TOTAL INTERNET SOFTWARE & SERVICES 242,132
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Jabil Circuit, Inc.* 2,050 76,034
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 76,034
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT 0.2%
Cisco Systems, Inc.* 2,780 $ 47,594
-------------
TOTAL COMMUNICATIONS EQUIPMENT 47,594
-------------
TOTAL INFORMATION TECHNOLOGY 3,050,331
-------------
FINANCIALS 8.9%
THRIFTS & MORTGAGE FINANCE 3.3%
Countrywide Financial Corp.+ 7,510 256,767
Freddie Mac 3,700 241,795
MGIC Investment Corp.+ 2,260 148,753
Golden West Financial Corp. 1,510 99,660
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 746,975
-------------
CONSUMER FINANCE 2.5%
Capital One Financial Corp. 3,100 267,840
SLM Corp.+ 4,192 230,937
American Express Co. 1,047 53,879
-------------
TOTAL CONSUMER FINANCE 552,656
-------------
INSURANCE 1.6%
Progressive Corp.+ 1,880 219,546
Ambac Financial Group, Inc.+ 1,810 139,479
-------------
TOTAL INSURANCE 359,025
-------------
CAPITAL MARKETS 1.5%
Federated Investors, Inc. --
Class B 6,559 242,945
Janus Capital Group, Inc. 5,290 98,553
-------------
TOTAL CAPITAL MARKETS 341,498
-------------
TOTAL FINANCIALS 2,000,154
-------------
ENERGY 8.4%
OIL & GAS 7.6%
XTO Energy, Inc. 8,804 386,848
Devon Energy Corp. 4,730 295,814
Apache Corp. 3,190 218,579
Anadarko Petroleum Corp. 2,290 216,977
Burlington Resources, Inc.+ 2,460 212,052
Valero Energy Corp. 3,780 195,048
EOG Resources, Inc. 2,523 185,113
-------------
TOTAL OIL & GAS 1,710,431
-------------
ENERGY EQUIPMENT & SERVICES 0.8%
BJ Services Co. 3,097 113,567
Nabors Industries Ltd.*+ 740 56,055
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 169,622
-------------
TOTAL ENERGY 1,880,053
-------------
CONSUMER STAPLES 8.3%
FOOD PRODUCTS 2.6%
General Mills, Inc. 3,895 192,101
Campbell Soup Co. 4,529 134,828
Kellogg Co. 2,552 110,298
McCormick & Co., Inc. 2,817 87,102
WM Wrigley Jr Co.+ 1,067 70,945
-------------
TOTAL FOOD PRODUCTS 595,274
-------------
114 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
FOOD & DRUG RETAILING 2.1%
Sysco Corp.+ 4,152 $ 128,920
Wal-Mart Stores, Inc. 2,623 122,756
Walgreen Co. 2,666 117,997
Whole Foods Market, Inc. 1,320 102,155
-------------
TOTAL FOOD & DRUG RETAILING 471,828
-------------
HOUSEHOLD PRODUCTS 1.9%
Colgate-Palmolive Co. 3,088 169,377
Clorox Co.+ 2,961 168,451
Procter & Gamble Co. 1,385 80,164
-------------
TOTAL HOUSEHOLD PRODUCTS 417,992
-------------
BEVERAGES 1.1%
Anheuser-Busch Cos., Inc.+ 4,234 181,892
PepsiCo, Inc. 1,136 67,115
-------------
TOTAL BEVERAGES 249,007
-------------
TOBACCO 0.6%
UST, Inc.+ 3,249 132,657
-------------
TOTAL TOBACCO 132,657
-------------
TOTAL CONSUMER STAPLES 1,866,758
-------------
INDUSTRIALS 3.5%
COMMERCIAL SERVICES & SUPPLIES 1.5%
Cendant Corp. 12,060 208,035
Equifax, Inc. 1,876 71,325
Cintas Corp. 1,600 65,888
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 345,248
-------------
AEROSPACE & DEFENSE 1.2%
L-3 Communications
Holdings, Inc.+ 1,890 140,521
General Dynamics Corp. 1,050 119,753
-------------
TOTAL AEROSPACE & DEFENSE 260,274
-------------
MACHINERY 0.8%
ITT Industries, Inc.+ 1,030 105,905
Danaher Corp.+ 1,486 82,889
-------------
TOTAL MACHINERY 188,794
-------------
TOTAL INDUSTRIALS 794,316
-------------
MATERIALS 2.0%
CHEMICALS 1.0%
Ecolab, Inc. 3,761 136,411
Sigma-Aldrich Corp. 1,440 91,138
-------------
TOTAL CHEMICALS 227,549
-------------
CONTAINERS & PACKAGING 1.0%
Ball Corp. 5,694 226,166
-------------
TOTAL CONTAINERS & PACKAGING 226,166
-------------
TOTAL MATERIALS 453,715
-------------
TOTAL COMMON STOCKS
(Cost $22,172,899) 22,527,537
-------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 120,445 $ 120,445
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $120,445) 120,445
-------------
SECURITIES LENDING COLLATERAL 11.5%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,584,493 2,584,493
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,584,493) 2,584,493
-------------
TOTAL INVESTMENTS 112.0%
(Cost $24,877,837) $ 25,232,475
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (12.0)% $ (2,694,493)
=============
NET ASSETS - 100.0% $ 22,537,982
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 115
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
STRENGTHENING DOLLAR FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 84.0%
Fannie Mae*
3.75% due 01/05/06 $ 200,000 $ 199,958
4.07% due 01/30/06 10,000 9,970
Farmer Mac*
4.13% due 01/09/06 15,000 14,990
Federal Farm Credit Bank*
3.50% due 01/05/06 15,000 14,997
Federal Home Loan Bank*
3.75% due 01/04/06 400,000 399,958
Freddie Mac*
3.75% due 01/03/06 400,000 400,000
4.07% due 01/30/06 10,000 9,969
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,049,842) 1,049,842
-------------
REPURCHASE AGREEMENTS 35.0%
Repurchase Agreement (Note 5)
3.45% due 01/03/06+ 249,983 249,983
3.40% due 01/03/06 45,789 45,789
3.39% due 01/03/06 47,132 47,132
3.30% due 01/03/06 47,132 47,132
2.90% due 01/03/06 47,132 47,132
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $437,168) 437,168
-------------
TOTAL INVESTMENTS 119.0%
(Cost $1,487,010) $ 1,487,010
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (19.0)% $ (237,342)
=============
NET ASSETS - 100.0% $ 1,249,668
- -------------------------------------------------------------------------------
UNREALIZED
GAIN
UNITS (NOTE 1)
- -------------------------------------------------------------------------------
CURRENCY INDEX SWAP AGREEMENT
February 2006 U.S. Dollar Index
Swap, Maturing 02/28/06**
(Notional Market Value
$2,501,569) 27,499 $ 8,044
=============
* 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 U.S. DOLLAR INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
116 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
WEAKENING DOLLAR FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 63.3%
Fannie Mae*
3.75% due 01/05/06 $ 500,000 $ 499,896
4.07% due 01/30/06 50,000 49,847
Farmer Mac*
4.13% due 01/09/06 35,000 34,976
Federal Farm Credit Bank*
3.50% due 01/05/06 35,000 34,993
Federal Home Loan Bank*
3.75% due 01/04/06 600,000 599,938
Freddie Mac*
3.75% due 01/03/06 600,000 600,000
4.07% due 01/30/06 50,000 49,847
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,869,497) 1,869,497
-------------
REPURCHASE AGREEMENTS 30.3%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 219,426 219,426
3.39% due 01/03/06 225,861 225,861
3.30% due 01/03/06 225,861 225,861
2.90% due 01/03/06 225,861 225,861
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $897,009) 897,009
-------------
TOTAL INVESTMENTS 93.6%
(Cost $2,766,506) $ 2,766,506
=============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 6.4% $ 187,849
=============
NET ASSETS - 100.0% $ 2,954,355
- -------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
March 2006 U.S. Dollar Index
Futures Contracts
(Aggregate Market Value
of Contracts $90,960) 1 $ 36
=============
UNITS
-------------
CURRENCY INDEX SWAP AGREEMENT
SOLD SHORT
February 2006 U.S. Dollar Index
Swap, Maturing 02/28/06**
(Notional Market Value
$5,777,364) 63,508 $ (9,415)
=============
* 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 U.S. DOLLAR INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 117
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 97.9%
FINANCIALS 20.8%
INSURANCE 10.1%
American International Group, Inc. 170 $ 11,599
Prudential Financial, Inc. 120 8,783
Principal Financial Group, Inc. 170 8,063
Hartford Financial Services
Group, Inc. 90 7,730
Aon Corp. 212 7,621
Lincoln National Corp. 140 7,424
AFLAC, Inc. 150 6,963
Genworth Financial, Inc. -- Class A 201 6,951
Chubb Corp. 70 6,835
St. Paul Travelers Cos., Inc. 152 6,790
SAFECO Corp. 120 6,780
UnumProvident Corp. 292 6,643
MetLife, Inc. 132 6,468
W.R. Berkley Corp. 130 6,191
Assurant, Inc. 140 6,089
Conseco, Inc.* 261 6,047
Ohio Casualty Corp. 211 5,975
Selective Insurance Group, Inc. 110 5,841
ProAssurance Corp.* 120 5,837
Old Republic International Corp. 222 5,830
Loews Corp. 61 5,786
Phoenix Cos., Inc. 422 5,756
Nationwide Financial Services, Inc. 130 5,720
Argonaut Group, Inc.* 172 5,636
Zenith National Insurance Corp. 121 5,581
American Financial Group, Inc./OH 141 5,402
HCC Insurance Holdings, Inc. 181 5,372
Protective Life Corp. 121 5,296
Horace Mann Educators Corp. 271 5,138
AmerUs Group Co. 90 5,100
American Physicians Capital, Inc.* 111 5,083
LandAmerica Financial Group, Inc. 81 5,054
UICI 142 5,042
Unitrin, Inc. 111 5,001
Stancorp Financial Group, Inc. 100 4,995
Philadelphia Consolidated
Holding Co.* 51 4,931
Donegal Group, Inc. -- Class A 212 4,927
Safety Insurance Group, Inc. 121 4,885
First Acceptance Corp.* 473 4,867
American National Insurance Co. 41 4,797
Mercury General Corp. 80 4,658
CNA Financial Corp.* 142 4,648
FPIC Insurance Group, Inc.* 130 4,511
United Fire & Casualty Co. 111 4,488
Great American Financial
Resources, Inc. 223 4,424
National Western Life Insurance
Co. -- Class A* 20 4,138
RLI Corp. 80 3,990
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CNA Surety Corp.* 150 $ 2,185
The Midland Co. 50 1,802
Fidelity National Title Group, Inc. --
Class A 71 1,729
Universal American Financial Corp.* 101 1,523
Kansas City Life Insurance Co. 30 1,502
EMC Insurance Group, Inc. 60 1,196
Harleysville Group, Inc. 40 1,060
Crawford & Co. -- Class B 160 922
First American Corp. 20 906
James River Group, Inc.* 30 595
-------------
TOTAL INSURANCE 289,106
-------------
BANKS 2.7%
Bank of America Corp. 523 24,136
Wachovia Corp. 251 13,268
SunTrust Banks, Inc. 101 7,349
BB&T Corp. 170 7,125
M&T Bank Corp. 61 6,652
Wells Fargo & Co. 101 6,346
Gold Banc Corp., Inc. 292 5,320
First Citizens BancShares, Inc. --
Class A 30 5,233
Westcorp 30 1,998
U.S. Bancorp 31 926
-------------
TOTAL BANKS 78,353
-------------
CAPITAL MARKETS 2.2%
Merrill Lynch & Co., Inc. 171 11,582
Lehman Brothers Holdings, Inc. 60 7,690
E*Trade Financial Corp.* 341 7,113
Charles Schwab Corp. 413 6,059
Blackrock, Inc. 50 5,424
Calamos Asset Management, Inc. --
Class A 172 5,409
LaBranche & Co., Inc.* 463 4,681
Capital Southwest Corp. 51 4,616
American Capital Strategies, Ltd. 100 3,621
Apollo Investment Corp. 121 2,170
Morgan Stanley 30 1,702
Goldman Sachs Group, Inc. 10 1,277
-------------
TOTAL CAPITAL MARKETS 61,344
-------------
THRIFTS & MORTGAGE FINANCE 1.6%
Washington Mutual, Inc. 212 9,222
Radian Group, Inc. 110 6,445
PMI Group, Inc. 140 5,750
Downey Financial Corp. 80 5,471
Corus Bankshares, Inc. 91 5,121
ITLA Capital Corp.* 90 4,396
MGIC Investment Corp. 50 3,291
Doral Financial Corp. 292 3,095
Federal Agricultural Mortgage Corp. 20 599
Fannie Mae 10 488
R&G Financial Corp. -- Class B 31 409
-------------
TOTAL THRIFTS & MORTGAGE FINANCE 44,287
-------------
118 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS 1.5%
Citigroup, Inc. 633 $ 30,720
J.P. Morgan Chase & Co. 312 12,383
-------------
TOTAL DIVERSIFIED FINANCIALS 43,103
-------------
REAL ESTATE 1.5%
Highwoods Properties, Inc. 200 5,690
Criimi MAE, Inc.* 252 4,990
CBL & Associates Properties, Inc. 120 4,741
LTC Properties, Inc. 223 4,690
Winston Hotels, Inc. 463 4,584
Fieldstone Investment Corp. 381 4,519
One Liberty Properties, Inc. 240 4,418
AvalonBay Communities, Inc. 40 3,570
Vornado Realty Trust 30 2,504
MFA Mortgage Investments, Inc. 243 1,385
BioMed Realty Trust, Inc. 40 976
CB Richard Ellis Group, Inc. --
Class A* 10 588
-------------
TOTAL REAL ESTATE 42,655
-------------
CONSUMER FINANCE 1.2%
Capital One Financial Corp. 90 7,776
AmeriCredit Corp.* 231 5,921
United PanAm Financial Corp.* 213 5,510
Nelnet, Inc. -- Class A* 121 4,922
Asta Funding, Inc. 160 4,374
Cash America International, Inc. 161 3,734
WFS Financial, Inc.* 20 1,523
American Express Co. 21 1,081
-------------
TOTAL CONSUMER FINANCE 34,841
-------------
TOTAL FINANCIALS 593,689
-------------
INFORMATION TECHNOLOGY 16.3%
COMPUTERS & PERIPHERALS 3.5%
Hewlett-Packard Co. 462 13,227
Apple Computer, Inc.* 150 10,784
International Business Machines Corp. 120 9,864
EMC Corp./MA* 583 7,940
NCR Corp.* 192 6,516
Imation Corp. 132 6,081
Intergraph Corp.* 120 5,977
Emulex Corp.* 292 5,779
Komag, Inc.* 161 5,580
QLogic Corp.* 170 5,527
Advanced Digital Information Corp.* 504 4,934
Sandisk Corp.* 70 4,397
Brocade Communications Systems,
Inc.* 1,055 4,294
Western Digital Corp.* 192 3,573
Dell, Inc.* 100 2,999
Synaptics, Inc.* 91 2,250
Palm, Inc.* 41 1,304
-------------
TOTAL COMPUTERS & PERIPHERALS 101,026
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.5%
Intel Corp. 814 $ 20,317
Texas Instruments, Inc. 321 10,294
Freescale Semiconductor, Inc. --
Class B* 282 7,098
National Semiconductor Corp. 272 7,067
Lam Research Corp.* 161 5,745
Silicon Image, Inc.* 543 4,914
Novellus Systems, Inc.* 202 4,872
IXYS Corp.* 413 4,828
Cirrus Logic, Inc.* 693 4,629
Genesis Microchip, Inc.* 242 4,378
Diodes, Inc.* 132 4,099
LSI Logic Corp.* 493 3,944
Photronics, Inc.* 253 3,810
Skyworks Solutions, Inc.* 713 3,629
OmniVision Technologies, Inc.* 180 3,593
Nvidia Corp.* 80 2,925
Sigmatel, Inc.* 140 1,834
Applied Materials, Inc. 50 897
MEMC Electronic Materials, Inc.* 10 222
-------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 99,095
-------------
SOFTWARE 3.0%
Microsoft Corp. 794 20,763
Micromuse, Inc.* 663 6,557
Computer Associates International,
Inc. 212 5,976
Macrovision Corp.* 352 5,889
MicroStrategy, Inc. -- Class A* 70 5,792
Compuware Corp.* 633 5,678
Serena Software, Inc.* 223 5,227
Lawson Software, Inc.* 673 4,946
Pegasystems, Inc.* 673 4,920
Fair Isaac Corp. 111 4,903
Sybase, Inc.* 223 4,875
Internet Security Systems, Inc.* 210 4,399
Secure Computing Corp.* 170 2,084
RSA Security, Inc.* 101 1,134
MRO Software, Inc.* 80 1,123
TIBCO Software, Inc.* 131 979
Oracle Corp.* 41 501
-------------
TOTAL SOFTWARE 85,746
-------------
IT CONSULTING & SERVICES 2.4%
First Data Corp. 190 8,172
Affiliated Computer Services, Inc. --
Class A* 120 7,102
Fiserv, Inc.* 150 6,490
Ceridian Corp.* 251 6,237
MPS Group, Inc.* 453 6,193
Sabre Holdings Corp. 251 6,052
CACI International, Inc. -- Class A* 100 5,738
BISYS Group, Inc.* 341 4,777
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 119
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Forrester Research, Inc.* 232 $ 4,350
Automatic Data Processing, Inc. 80 3,671
Sykes Enterprises, Inc.* 222 2,968
infoUSA, Inc. -- Class B 271 2,962
Global Payments, Inc. 41 1,911
Covansys Corp.* 70 953
Infocrossing, Inc.* 110 947
-------------
TOTAL IT CONSULTING & SERVICES 68,523
-------------
COMMUNICATIONS EQUIPMENT 1.9%
Motorola, Inc. 452 10,211
Cisco Systems, Inc.* 444 7,601
Belden CDT, Inc. 242 5,912
Ixia* 391 5,779
Juniper Networks, Inc.* 252 5,620
Andrew Corp.* 473 5,075
Polycom, Inc.* 220 3,366
Qualcomm, Inc. 70 3,016
Scientific-Atlanta, Inc. 70 3,015
Avaya, Inc.* 272 2,902
Foundry Networks, Inc.* 121 1,671
Digi International, Inc.* 70 734
ADTRAN, Inc. 10 297
-------------
TOTAL COMMUNICATIONS EQUIPMENT 55,199
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.0%
Jabil Circuit, Inc.* 182 6,750
Arrow Electronics, Inc.* 181 5,798
Solectron Corp.* 1,556 5,695
Coherent, Inc.* 170 5,046
Dolby Laboratories, Inc. -- Class A* 283 4,825
MTS Systems Corp. 50 1,732
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 29,846
-------------
INTERNET SOFTWARE & SERVICES 0.8%
Digital River, Inc.* 201 5,978
ValueClick, Inc.* 322 5,831
Sonicwall, Inc.* 674 5,338
United Online, Inc. 241 3,427
EarthLink, Inc.* 130 1,444
Digital Insight Corp.* 31 993
Yahoo!, Inc.* 10 392
-------------
TOTAL INTERNET SOFTWARE & SERVICES 23,403
-------------
OFFICE ELECTRONICS 0.2%
Xerox Corp.* 332 4,864
-------------
TOTAL OFFICE ELECTRONICS 4,864
-------------
TOTAL INFORMATION TECHNOLOGY 467,702
-------------
CONSUMER DISCRETIONARY 14.2%
MEDIA 3.5%
Time Warner, Inc. 734 12,801
The Walt Disney Co. 403 9,660
News Corp. -- Class A 543 8,444
McGraw-Hill Cos., Inc. 130 6,712
Omnicom Group, Inc. 71 6,044
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
EW Scripps Co. -- Class A 120 $ 5,762
Lamar Advertising Co.* 121 5,583
World Wrestling Entertainment, Inc. 372 5,461
Belo Corp. -- Class A 241 5,160
Sinclair Broadcast Group, Inc. --
Class A 553 5,087
John Wiley & Sons, Inc. -- Class A 130 5,075
McClatchy Co. -- Class A 80 4,728
Cox Radio Inc. -- Class A* 312 4,393
Salem Communications Corp. /DE --
Class A* 240 4,198
Playboy Enterprises, Inc. -- Class B* 202 2,806
Morningstar, Inc.* 70 2,425
Journal Communications, Inc. --
Class A 150 2,092
DreamWorks Animation SKG, Inc. --
Class A* 40 982
Comcast Corp. -- Class A* 30 779
Viacom, Inc. -- Class B* 10 326
-------------
TOTAL MEDIA 98,518
-------------
SPECIALTY RETAIL 3.2%
Lowe's Cos., Inc. 150 9,999
Dress Barn, Inc.* 181 6,989
Payless Shoesource, Inc.* 261 6,551
Staples, Inc. 283 6,427
AutoNation, Inc.* 280 6,084
Claire's Stores, Inc. 191 5,581
Barnes & Noble, Inc. 130 5,547
Group 1 Automotive, Inc.* 171 5,375
American Eagle Outfitters, Inc. 230 5,285
Home Depot, Inc. 111 4,493
Talbots, Inc. 153 4,257
Escala Group, Inc.* 192 3,894
Rent-A-Center, Inc.* 191 3,602
Best Buy Co., Inc. 80 3,478
Too, Inc.* 111 3,131
Sports Authority, Inc.* 80 2,490
Guess ?, Inc.* 60 2,136
Pacific Sunwear of California, Inc.* 80 1,994
Genesco, Inc.* 40 1,552
Stein Mart, Inc. 60 1,089
Syms Corp. 70 1,011
Charming Shoppes, Inc.* 10 132
-------------
TOTAL SPECIALTY RETAIL 91,097
-------------
HOUSEHOLD DURABLES 2.0%
NVR, Inc.* 10 7,020
Lennar Corp. -- Class A 111 6,773
Pulte Homes, Inc. 162 6,376
Mohawk Industries, Inc.* 70 6,089
Black & Decker Corp. 70 6,087
Toll Brothers, Inc.* 160 5,542
Meritage Homes Corp.* 80 5,034
120 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Hovnanian Enterprises, Inc. --
Class A* 100 $ 4,964
Ryland Group, Inc. 60 4,328
Stanley Furniture Co. 160 3,709
Newell Rubbermaid, Inc. 40 951
Standard-Pacific Corp. 10 368
-------------
TOTAL HOUSEHOLD DURABLES 57,241
-------------
TEXTILES & APPAREL 1.7%
Nike, Inc. -- Class B 70 6,075
Polo Ralph Lauren Corp. 101 5,670
Steven Madden, Ltd.* 182 5,320
Reebok International Ltd. 90 5,241
Phillips-Van Heusen Corp. 161 5,216
K-Swiss, Inc. -- Class A 150 4,866
Columbia Sportswear Co.* 100 4,773
Skechers U.S.A., Inc. -- Class A* 303 4,642
Jones Apparel Group, Inc. 150 4,608
Unifirst Corp./MA 111 3,452
-------------
TOTAL TEXTILES & APPAREL 49,863
-------------
HOTELS, RESTAURANTS & LEISURE 1.6%
McDonald's Corp. 262 8,835
Darden Restaurants, Inc. 171 6,648
Yum! Brands, Inc. 130 6,094
Brinker International, Inc. 141 5,451
Landry's Restaurants, Inc. 181 4,835
Dover Motorsports, Inc. 773 4,723
Dover Downs Gaming &
Entertainment, Inc. 272 3,849
GTECH Holdings Corp. 90 2,857
Bluegreen Corp.* 120 1,896
Luby's, Inc.* 60 798
Multimedia Games, Inc.* 40 370
Krispy Kreme Doughnuts, Inc.* 50 287
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 46,643
-------------
MULTILINE RETAIL 0.6%
Federated Department Stores, Inc. 141 9,353
Nordstrom, Inc. 90 3,366
Saks, Inc.* 143 2,411
Sears Holdings Corp.* 10 1,155
Target Corp. 10 550
-------------
TOTAL MULTILINE RETAIL 16,835
-------------
INTERNET & CATALOG RETAIL 0.4%
Priceline.com, Inc.* 220 4,910
Systemax, Inc.* 584 3,644
Blair Corp. 90 3,505
eBay, Inc.* 10 433
-------------
TOTAL INTERNET & CATALOG RETAIL 12,492
-------------
AUTO COMPONENTS 0.4%
Goodyear Tire & Rubber Co.* 322 5,596
Aftermarket Technology Corp.* 252 4,899
Modine Manufacturing Co. 20 652
-------------
TOTAL AUTO COMPONENTS 11,147
-------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS 0.3%
Brunswick Corp. 111 $ 4,513
RC2 Corp.* 111 3,943
Jakks Pacific, Inc.* 40 838
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 9,294
-------------
HEALTH CARE PROVIDERS & SERVICES 0.3%
Alderwoods Group, Inc.* 312 4,951
Stewart Enterprises, Inc. -- Class A 563 3,046
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 7,997
-------------
COMMERCIAL SERVICES & SUPPLIES 0.2%
Career Education Corp.* 152 5,125
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 5,125
-------------
DISTRIBUTORS 0.0%
Building Material Holding Corp. 10 682
-------------
TOTAL DISTRIBUTORS 682
-------------
TOTAL CONSUMER DISCRETIONARY 406,934
-------------
HEALTH CARE 12.8%
HEALTH CARE PROVIDERS & SERVICES 5.5%
UnitedHealth Group, Inc. 211 13,112
WellPoint, Inc.* 161 12,873
McKesson Corp. 171 8,822
Cardinal Health, Inc. 120 8,250
CIGNA Corp. 70 7,819
Aetna, Inc. 80 7,545
Express Scripts, Inc.* 90 7,542
Caremark Rx, Inc.* 141 7,302
HCA, Inc. 140 7,070
Humana, Inc.* 130 7,063
Coventry Health Care, Inc.* 120 6,835
Medco Health Solutions, Inc.* 121 6,752
Manor Care, Inc. 140 5,568
Lincare Holdings, Inc.* 130 5,448
NDCHealth Corp.* 281 5,404
Health Tronics Surgical Services, Inc.* 683 5,225
Triad Hospitals, Inc.* 131 5,139
Allied Healthcare International, Inc.* 824 5,059
Sierra Health Services, Inc.* 61 4,878
United Surgical Partners International,
Inc.* 151 4,855
PRA International* 162 4,560
Vital Images, Inc.* 140 3,661
The Trizetto Group, Inc.* 110 1,869
Ventiv Health, Inc.* 70 1,653
Matria Healthcare, Inc.* 30 1,163
Medcath Corp.* 60 1,113
American Retirement Corp.* 30 754
Henry Schein, Inc.* 10 436
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 157,770
-------------
PHARMACEUTICALS 4.0%
Pfizer, Inc. 924 21,548
Johnson & Johnson, Inc. 230 13,823
Merck & Co., Inc. 384 12,215
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 121
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Abbott Laboratories 282 $ 11,119
Barr Pharmaceuticals, Inc.* 101 6,291
King Pharmaceuticals, Inc.* 362 6,125
Medicis Pharmaceutical Corp. --
Class A 191 6,122
Alpharma, Inc. -- Class A 202 5,759
Endo Pharmaceuticals Holdings, Inc.* 170 5,144
Watson Pharmaceuticals, Inc.* 150 4,876
Hi-Tech Pharmacal Co., Inc.* 101 4,473
Kos Pharmaceuticals, Inc.* 70 3,621
First Horizon Pharmaceutical Corp.* 150 2,587
Andrx Corp.* 140 2,306
Connetics Corp.* 131 1,893
CNS, Inc. 70 1,534
Wyeth 30 1,382
Bentley Pharmaceuticals, Inc.* 70 1,149
Eli Lilly & Co. 10 566
-------------
TOTAL PHARMACEUTICALS 112,533
-------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.3%
Fisher Scientific International, Inc.* 101 6,248
Bio--Rad Laboratories, Inc. --
Class A* 91 5,955
Thoratec Corp.* 282 5,835
PerkinElmer, Inc. 243 5,725
ICU Medical, Inc.* 141 5,529
DJ Orthopedics, Inc.* 170 4,689
Dade Behring Holdings, Inc. 90 3,680
Orasure Technologies, Inc.* 332 2,928
West Pharmaceutical Services, Inc. 111 2,778
Molecular Devices Corp.* 90 2,604
Intuitive Surgical, Inc.* 20 2,345
Cantel Medical Corp.* 130 2,332
Angiodynamics, Inc.* 91 2,323
Medtronic, Inc. 40 2,303
TriPath Imaging, Inc.* 362 2,187
Haemonetics Corp./MA* 40 1,954
Hologic, Inc.* 50 1,896
Integra LifeSciences Holdings Corp.* 41 1,454
Palomar Medical Technologies, Inc.* 30 1,051
Immucor, Inc.* 40 934
Greatbatch, Inc.* 30 780
Vital Signs, Inc. 11 471
Mentor Corp. 10 461
-------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 66,462
-------------
BIOTECHNOLOGY 1.0%
Amgen, Inc.* 190 14,983
Pharmion Corp.* 292 5,189
Albany Molecular Research, Inc.* 352 4,277
United Therapeutics Corp.* 50 3,456
Savient Pharmaceuticals, Inc.* 51 191
-------------
TOTAL BIOTECHNOLOGY 28,096
-------------
TOTAL HEALTH CARE 364,861
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
INDUSTRIALS 11.2%
MACHINERY 2.0%
Illinois Tool Works, Inc. 80 $ 7,039
Cummins, Inc. 70 6,281
Timken Co. 172 5,507
Terex Corp.* 91 5,405
Albany International Corp. -- Class A 142 5,135
Accuride Corp.* 392 5,057
Commercial Vehicle Group, Inc.* 242 4,545
Parker Hannifin Corp. 60 3,958
Circor International, Inc. 121 3,105
Barnes Group, Inc. 91 3,003
Kaydon Corp. 80 2,571
Watts Industries, Inc. -- Class A 61 1,848
Cascade Corp. 30 1,407
JLG Industries, Inc. 20 913
Titan International, Inc. 51 880
-------------
TOTAL MACHINERY 56,654
-------------
COMMERCIAL SERVICES & SUPPLIES 1.8%
Waste Management, Inc. 212 6,434
United Stationers, Inc.* 121 5,869
Adesa, Inc. 222 5,421
Steelcase, Inc. -- Class A 342 5,414
West Corp.* 120 5,058
Sourcecorp, Inc.* 201 4,820
CBIZ, Inc.* 794 4,780
Labor Ready, Inc.* 220 4,580
Kforce.Com* 382 4,263
John H. Harland Co. 80 3,008
Spherion Corp.* 210 2,102
-------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 51,749
-------------
AEROSPACE & DEFENSE 1.7%
Lockheed Martin Corp. 120 7,635
Northrop Grumman Corp. 121 7,273
Raytheon Co. 171 6,866
General Dynamics Corp. 60 6,843
Precision Castparts Corp. 130 6,735
Alliant Techsystems, Inc.* 70 5,332
Esterline Technologies Corp.* 140 5,207
Boeing Co. 20 1,405
United Technologies Corp. 20 1,118
Innovative Solutions & Support, Inc.* 20 256
-------------
TOTAL AEROSPACE & DEFENSE 48,670
-------------
INDUSTRIAL CONGLOMERATES 1.4%
General Electric Co. 965 33,823
Teleflex, Inc. 80 5,199
3M Co. 20 1,550
-------------
TOTAL INDUSTRIAL CONGLOMERATES 40,572
-------------
ELECTRICAL EQUIPMENT 1.1%
Thomas & Betts Corp.* 130 5,455
Woodward Governor Co. 61 5,247
A.O. Smith Corp. 142 4,984
Preformed Line Products Co. 101 4,322
122 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Vicor Corp. 271 $ 4,284
LSI Industries, Inc. 271 4,244
Global Power Equipment Group, Inc.* 483 2,183
LaBarge, Inc.* 101 1,451
-------------
TOTAL ELECTRICAL EQUIPMENT 32,170
-------------
ROAD & RAIL 1.1%
Norfolk Southern Corp. 212 9,504
Burlington Northern Santa Fe Corp. 111 7,861
CSX Corp. 153 7,768
RailAmerica, Inc.* 453 4,978
Yellow Roadway Corp.* 20 892
-------------
TOTAL ROAD & RAIL 31,003
-------------
AIRLINES 0.7%
Southwest Airlines Co. 493 8,100
Continental Airlines, Inc. -- Class B* 372 7,924
Mesa Air Group, Inc.* 252 2,636
-------------
TOTAL AIRLINES 18,660
-------------
BUILDING PRODUCTS 0.7%
ElkCorp 160 5,385
USG Corp.* 81 5,265
Water Pik Technologies, Inc.* 240 5,153
Universal Forest Products, Inc. 51 2,818
-------------
TOTAL BUILDING PRODUCTS 18,621
-------------
AIR FREIGHT & COURIERS 0.4%
United Parcel Service, Inc. -- Class B 100 7,515
HUB Group, Inc. -- Class A* 101 3,570
-------------
TOTAL AIR FREIGHT & COURIERS 11,085
-------------
CONSTRUCTION & ENGINEERING 0.2%
EMCOR Group, Inc.* 80 5,402
Shaw Group, Inc.* 61 1,775
-------------
TOTAL CONSTRUCTION & ENGINEERING 7,177
-------------
TRADING COMPANIES & DISTRIBUTORS 0.1%
Applied Industrial Technologies, Inc. 60 2,022
Watsco, Inc. 10 598
MSC Industrial Direct Co. -- Class A 10 402
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 3,022
-------------
TOTAL INDUSTRIALS 319,383
-------------
ENERGY 7.4%
OIL & GAS 5.5%
Exxon Mobil Corp. 584 32,803
ConocoPhillips 220 12,800
Chevron Corp. 152 8,629
Occidental Petroleum Corp. 101 8,068
Valero Energy Corp. 151 7,792
Devon Energy Corp. 121 7,567
Kerr-McGee Corp. 80 7,269
Sunoco, Inc. 90 7,054
Tesoro Corp. 101 6,217
Burlington Resources, Inc. 71 6,120
Frontier Oil Corp. 150 5,630
Marathon Oil Corp. 90 5,487
Swift Energy Co.* 121 5,454
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Pogo Producing Co. 101 $ 5,031
Vintage Petroleum, Inc. 91 4,853
Callon Petroleum Co.* 260 4,589
W&T Offshore, Inc. 150 4,410
Giant Industries, Inc.* 70 3,637
Forest Oil Corp.* 71 3,235
EOG Resources, Inc. 40 2,935
Overseas Shipholding Group, Inc. 40 2,016
St. Mary Land & Exploration Co. 41 1,509
Amerada Hess Corp. 10 1,268
Harvest Natural Resources, Inc.* 132 1,172
Newfield Exploration Co.* 20 1,001
Holly Corp. 10 589
Noble Energy, Inc. 10 403
Foundation Coal Holdings, Inc. 10 380
Petroleum Development Corp.* 10 333
-------------
TOTAL OIL & GAS 158,251
-------------
ENERGY EQUIPMENT & SERVICES 1.9%
Lone Star Technologies, Inc.* 121 6,251
Grey Wolf, Inc.* 765 5,913
Pride International, Inc.* 192 5,904
Helmerich & Payne, Inc. 90 5,572
Tidewater, Inc. 121 5,380
GulfMark Offshore, Inc.* 152 4,502
Patterson-UTI Energy, Inc. 132 4,349
NS Group, Inc.* 101 4,223
Veritas DGC, Inc.* 111 3,939
Rowan Cos., Inc. 60 2,138
Hydril Co.* 30 1,878
Global Industries, Ltd.* 130 1,476
Superior Energy Services* 60 1,263
Lufkin Industries, Inc. 10 499
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 53,287
-------------
TOTAL ENERGY 211,538
-------------
CONSUMER STAPLES 5.3%
FOOD PRODUCTS 1.7%
General Mills, Inc. 130 6,412
Dean Foods Co.* 162 6,101
Tyson Foods, Inc. -- Class A 351 6,002
Kellogg Co. 131 5,662
Del Monte Foods Co.* 522 5,444
Pilgrim's Pride Corp. 151 5,007
Kraft Foods, Inc. -- Class A 171 4,812
M&F Worldwide Corp.* 292 4,765
Chiquita Brands International, Inc. 192 3,842
Corn Products International, Inc. 41 980
Maui Land & Pineapple Co., Inc.* 10 339
-------------
TOTAL FOOD PRODUCTS 49,366
-------------
TOBACCO 1.1%
Altria Group, Inc. 281 20,996
Reynolds American, Inc. 60 5,720
Loews Corp. - Carolina Group 122 5,367
-------------
TOTAL TOBACCO 32,083
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 123
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 1.0%
Procter & Gamble Co. 270 $ 15,627
Kimberly-Clark Corp. 121 7,218
Energizer Holdings, Inc.* 91 4,531
Central Garden and Pet Co.* 20 919
-------------
TOTAL HOUSEHOLD PRODUCTS 28,295
-------------
BEVERAGES 0.9%
Coca-Cola Co. 322 12,980
PepsiCo, Inc. 100 5,908
Brown-Forman Corp. -- Class B 80 5,546
-------------
TOTAL BEVERAGES 24,434
-------------
FOOD & DRUG RETAILING 0.6%
Wal-Mart Stores, Inc. 170 7,956
Costco Wholesale Corp. 141 6,975
Longs Drug Stores Corp. 91 3,311
Sysco Corp. 10 311
-------------
TOTAL FOOD & DRUG RETAILING 18,553
-------------
PERSONAL PRODUCTS 0.0%
Playtex Products, Inc.* 10 137
-------------
TOTAL PERSONAL PRODUCTS 137
-------------
TOTAL CONSUMER STAPLES 152,868
-------------
MATERIALS 4.2%
CHEMICALS 1.6%
Dow Chemical Co. 201 8,808
Monsanto Co. 90 6,977
Air Products & Chemicals, Inc. 101 5,978
Ashland, Inc. 100 5,790
Lubrizol Corp. 130 5,646
CF Industries Holdings, Inc. 340 5,185
Lyondell Chemical Co. 211 5,026
Cytec Industries, Inc. 60 2,858
Terra Industries, Inc.* 10 56
-------------
TOTAL CHEMICALS 46,324
-------------
METALS & MINING 1.4%
Phelps Dodge Corp. 60 8,632
Freeport-McMoRan Copper &
Gold, Inc. -- Class B 140 7,532
Nucor Corp. 111 7,406
Roanoke Electric Steel Corp. 220 5,192
Carpenter Technology Corp. 50 3,524
Schnitzer Steel Industries, Inc. --
Class A 81 2,478
Ryerson Tull, Inc. 101 2,456
Reliance Steel & Aluminum Co. 20 1,222
Quanex Corp. 20 999
Cleveland-Cliffs, Inc. 10 886
-------------
TOTAL METALS & MINING 40,327
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONTAINERS & PACKAGING 0.4%
Greif, Inc. -- Class A 81 $ 5,369
Bemis Co. 192 5,351
Rock-Tenn Co. -- Class A 60 819
-------------
TOTAL CONTAINERS & PACKAGING 11,539
-------------
CONSTRUCTION MATERIALS 0.4%
Eagle Materials, Inc. 51 6,240
Texas Industries, Inc. 90 4,486
-------------
TOTAL CONSTRUCTION MATERIALS 10,726
-------------
PAPER & FOREST PRODUCTS 0.4%
Louisiana-Pacific Corp. 202 5,549
Weyerhaeuser Co. 70 4,644
-------------
TOTAL PAPER & FOREST PRODUCTS 10,193
-------------
TOTAL MATERIALS 119,109
-------------
UTILITIES 3.6%
MULTI-UTILITIES 1.7%
Duke Energy Corp. 271 7,439
Constellation Energy Group, Inc. 121 6,969
SCANA Corp. 150 5,907
NSTAR 201 5,769
NorthWestern Corp. 181 5,624
CenterPoint Energy, Inc. 424 5,448
Wisconsin Energy Corp. 130 5,078
WPS Resources Corp. 90 4,978
CMS Energy Corp.* 200 2,902
-------------
TOTAL MULTI-UTILITIES 50,114
-------------
ELECTRIC UTILITIES 1.5%
Edison International 190 8,286
Allegheny Energy, Inc.* 200 6,330
Entergy Corp. 91 6,247
Pepco Holdings, Inc. 271 6,062
Duquesne Light Holdings, Inc. 333 5,435
Cleco Corp. 242 5,046
Westar Energy, Inc. 230 4,945
Exelon Corp. 10 531
-------------
TOTAL ELECTRIC UTILITIES 42,882
-------------
GAS UTILITIES 0.4%
Nicor, Inc. 150 5,897
Oneok, Inc. 192 5,113
-------------
TOTAL GAS UTILITIES 11,010
-------------
TOTAL UTILITIES 104,006
-------------
TELECOMMUNICATION SERVICES 2.1%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.4%
AT&T, Inc. 502 12,294
BellSouth Corp. 362 9,810
Fairpoint Communications, Inc. 433 4,486
Golden Telecom, Inc. 171 4,439
Verizon Communications, Inc. 140 4,217
Arbinet-thexchange, Inc.* 392 2,748
SureWest Communications 71 1,872
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 39,866
-------------
124 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES 0.7%
Nextel Partners, Inc. -- Class A* 222 $ 6,203
Telephone & Data Systems, Inc. 161 5,801
U.S. Cellular Corp.* 90 4,446
Sprint Nextel Corp. 100 2,336
Wireless Facilities, Inc.* 332 1,693
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 20,479
-------------
TOTAL TELECOMMUNICATION SERVICES 60,345
-------------
TOTAL COMMON STOCKS
(Cost $2,796,431) 2,800,435
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENTS 0.9%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 6,104 6,104
3.39% due 01/03/06 6,282 6,282
3.30% due 01/03/06 6,282 6,282
2.90% due 01/03/06 6,282 6,282
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $24,950) 24,950
-------------
TOTAL INVESTMENTS 98.8%
(Cost $2,821,381) $ 2,825,385
=============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 1.2% $ 35,021
=============
NET ASSETS - 100.0% $ 2,860,406
* NON-INCOME PRODUCING SECURITY.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 125
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 97.3%
INDUSTRIALS 32.8%
AIRLINES 8.5%
Southwest Airlines Co.+ 60,516 $ 994,278
Ryanair Holdings PLC --
SP ADR*+ 15,428 863,814
Gol Linhas Aereas Inteligentes
SA -- SP ADR+ 24,230 683,528
AMR Corp.*+ 25,272 561,796
JetBlue Airways Corp.*+ 30,160 463,861
Lan Airlines SA - SP ADR 11,260 422,025
Continental Airlines, Inc. --
Class B*+ 16,620 354,006
AirTran Holdings, Inc.+ 20,046 321,337
SkyWest, Inc. 11,160 299,758
Alaska Air Group, Inc.*+ 7,700 275,044
-------------
TOTAL AIRLINES 5,239,447
-------------
ROAD & RAIL 8.4%
Burlington Northern Santa Fe
Corp. 10,355 733,341
Canadian National Railway Co. 8,000 639,920
Union Pacific Corp. 7,948 639,893
Norfolk Southern Corp. 12,908 578,666
CSX Corp. 8,900 451,853
Canadian Pacific Railway Ltd. 7,700 323,015
J.B. Hunt Transport Services, Inc. 11,734 265,658
CNF, Inc.+ 4,100 229,149
Yellow Roadway Corp.*+ 4,800 214,128
Landstar System, Inc. 5,000 208,700
Laidlaw International, Inc. 8,530 198,152
Kansas City Southern*+ 7,900 192,997
Knight Transportation, Inc. 9,250 191,752
Heartland Express, Inc.+ 7,800 158,262
Florida East Coast Industries, Inc. 3,664 155,244
-------------
TOTAL ROAD & RAIL 5,180,730
-------------
TRADING COMPANIES & DISTRIBUTORS 8.0%
W.W. Grainger, Inc. 11,535 820,139
Fastenal Co.+ 19,616 768,751
MSC Industrial Direct Co. --
Class A 13,314 535,489
United Rentals, Inc.*+ 19,710 461,017
Hughes Supply, Inc.+ 12,625 452,606
WESCO International, Inc.*+ 10,535 450,161
Watsco, Inc. 7,100 424,651
GATX Corp. 11,767 424,553
Applied Industrial Technologies,
Inc. 10,095 340,101
Beacon Roofing Supply, Inc.* 9,559 274,630
-------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 4,952,098
-------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING 7.9%
Fluor Corp. 10,523 $ 813,007
Jacobs Engineering Group, Inc.* 8,110 550,426
Shaw Group, Inc.* 16,134 469,338
McDermott International, Inc.* 10,251 457,297
Foster Wheeler, Ltd.* 10,498 386,116
URS Corp.* 9,970 374,972
Chicago Bridge & Iron NV Co. 14,842 374,167
Quanta Services, Inc.*+ 25,878 340,813
Washington Group International,
Inc.* 6,210 328,944
Granite Construction, Inc. 8,876 318,737
EMCOR Group, Inc.* 4,487 303,007
Insituform Technologies, Inc. --
Class A* 9,660 187,114
-------------
TOTAL CONSTRUCTION & ENGINEERING 4,903,938
-------------
TOTAL INDUSTRIALS 20,276,213
-------------
INFORMATION TECHNOLOGY 18.0%
INTERNET SOFTWARE & SERVICES 17.4%
Google, Inc. -- Class A*+ 8,300 3,443,338
Yahoo!, Inc.*+ 56,952 2,231,379
VeriSign, Inc.*+ 33,555 735,526
Akamai Technologies, Inc.*+ 26,121 520,591
CNET Networks, Inc.*+ 29,288 430,241
aQuantive, Inc.*+ 16,820 424,537
Websense, Inc.* 5,900 387,276
ValueClick, Inc.*+ 21,046 381,143
EarthLink, Inc.* 32,188 357,609
Digitas, Inc.* 27,722 347,079
Openwave Systems, Inc.* 18,927 330,655
Netease.com, Inc. -- SP ADR*+ 5,700 320,112
Sina Corp.* 13,225 319,516
Digital River, Inc.*+ 9,276 275,868
WebEx Communications, Inc.*+ 11,634 251,643
-------------
TOTAL INTERNET SOFTWARE & SERVICES 10,756,513
-------------
COMMUNICATIONS EQUIPMENT 0.6%
Dycom Industries, Inc.*+ 17,156 377,432
-------------
TOTAL COMMUNICATIONS EQUIPMENT 377,432
-------------
TOTAL INFORMATION TECHNOLOGY 11,133,945
-------------
HEALTH CARE 15.8%
HEALTH CARE PROVIDERS & SERVICES 8.2%
UnitedHealth Group, Inc. 11,660 724,552
WellPoint, Inc.* 7,000 558,530
Cardinal Health, Inc. 6,400 440,000
Aetna, Inc. 4,479 422,415
Caremark Rx, Inc.* 7,500 388,425
Express Scripts, Inc.*+ 4,300 360,340
McKesson Corp. 6,200 319,858
HCA, Inc. 6,200 313,100
CIGNA Corp. 2,800 312,760
Medco Health Solutions, Inc.* 5,000 279,000
126 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Quest Diagnostics, Inc.+ 4,379 $ 225,431
Coventry Health Care, Inc.* 3,780 215,309
Laboratory Corporation of
America Holdings*+ 3,900 210,015
Health Management Associates,
Inc. -- Class A+ 7,100 155,916
Patterson Cos., Inc.*+ 3,630 121,242
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 5,046,893
-------------
BIOTECHNOLOGY 7.6%
Genentech, Inc.*+ 8,995 832,037
Amgen, Inc.*+ 10,367 817,542
Gilead Sciences, Inc.* 7,800 410,514
Genzyme Corp.* 5,000 353,900
Biogen Idec, Inc.*+ 7,400 335,442
Celgene Corp.*+ 4,400 285,120
Medimmune, Inc.* 7,400 259,148
Chiron Corp.* 5,700 253,422
Applera Corp. - Applied
Biosystems Group+ 7,300 193,888
Amylin Pharmaceuticals, Inc.*+ 4,800 191,616
Protein Design Labs, Inc.*+ 5,900 167,678
ImClone Systems, Inc.* 4,700 160,928
Invitrogen Corp.*+ 2,400 159,936
Charles River Laboratories
International, Inc.*+ 3,511 148,761
Affymetrix, Inc.*+ 3,000 143,250
-------------
TOTAL BIOTECHNOLOGY 4,713,182
-------------
TOTAL HEALTH CARE 9,760,075
-------------
ENERGY 14.9%
ENERGY EQUIPMENT & SERVICES 7.9%
Schlumberger Ltd.+ 6,800 660,620
Halliburton Co.+ 7,579 469,595
Transocean, Inc.* 6,200 432,078
Baker Hughes, Inc. 6,300 382,914
Weatherford International Ltd.*+ 10,033 363,194
Nabors Industries Ltd.*+ 4,079 308,984
BJ Services Co. 8,300 304,361
Tenaris SA -- SP ADR+ 2,600 297,700
GlobalSantaFe Corp.+ 5,800 279,270
Diamond Offshore Drilling, Inc.+ 3,830 266,415
Noble Corp. 3,679 259,517
Smith International, Inc.+ 6,400 237,504
ENSCO International, Inc.+ 4,900 217,315
Patterson-UTI Energy, Inc. 6,000 197,700
Precision Drilling Trust+ 5,700 187,530
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 4,864,697
-------------
OIL & GAS 7.0%
Exxon Mobil Corp. 9,860 553,836
Royal Dutch Shell PLC -- SP ADR 7,943 488,415
BP PLC -- SP ADR+ 6,758 433,999
Total SA -- SP ADR+ 2,834 358,218
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
PetroChina Co. Ltd. -- SP ADR+ 4,233 $ 346,937
Chevron Corp. 5,485 311,383
ENI-Ente Nazionale Idrocarburi --
SP ADR+ 2,193 305,836
Petroleo Brasiliero SA --
Petrobras 3,971 283,013
ConocoPhillips+ 4,356 253,432
China Petroleum & Chemical
Corp. -- SP ADR+ 4,143 205,493
EnCana Corp. 4,113 185,743
Imperial Oil Ltd.+ 1,826 181,870
Repsol YPF SA -- SP ADR+ 6,008 176,695
Occidental Petroleum Corp. 2,192 175,097
Statoil ASA -- SP ADR 4,401 101,047
-------------
TOTAL OIL & GAS 4,361,014
-------------
TOTAL ENERGY 9,225,711
-------------
MATERIALS 8.1%
METALS & MINING 8.1%
BHP Billiton Ltd. -- SP ADR 19,943 666,495
Rio Tinto PLC -- SP ADR+ 3,000 548,370
Anglo American PLC -- ADR+ 14,200 493,876
Companhia Vale do Rio Doce --
SP ADR 10,773 443,201
Alcoa, Inc. 11,550 341,534
Newmont Mining Corp.+ 6,179 329,959
POSCO -- SP ADR+ 5,479 271,265
Mittal Steel NV Co. -- Class A 10,014 263,669
Barrick Gold Corp.+ 9,392 261,755
Alcan, Inc. 6,088 249,304
AngloGold Ashanti Ltd. --
SP ADR+ 4,988 246,058
Phelps Dodge Corp. 1,700 244,579
Nucor Corp.+ 3,188 212,703
Falconbridge Ltd. 7,167 212,358
Freeport-McMoRan Copper &
Gold, Inc. -- Class B 3,700 199,060
-------------
TOTAL METALS & MINING 4,984,186
-------------
TOTAL MATERIALS 4,984,186
-------------
FINANCIALS 7.7%
CAPITAL MARKETS 7.7%
UBS AG 5,600 532,840
Morgan Stanley 7,600 431,224
Merrill Lynch & Co., Inc. 6,300 426,699
Credit Suisse Group -- SP ADR 8,047 409,994
Goldman Sachs Group, Inc. 3,111 397,306
Deutsche Bank AG 3,930 380,699
Nomura Holdings, Inc. --
SP ADR+ 16,936 325,510
Lehman Brothers Holdings, Inc.+ 2,500 320,425
Bank of New York Co., Inc. 8,395 267,381
Franklin Resources, Inc. 2,600 244,426
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 127
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Charles Schwab Corp. 16,220 $ 237,947
State Street Corp. 4,079 226,140
Mellon Financial Corp. 6,000 205,500
Bear Stearns Cos., Inc.+ 1,600 184,848
Legg Mason, Inc. 1,500 179,535
-------------
TOTAL CAPITAL MARKETS 4,770,474
-------------
TOTAL FINANCIALS 4,770,474
-------------
TOTAL COMMON STOCKS
(Cost $54,380,833) 60,150,604
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 4.2%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 2,603,804 2,603,804
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $2,603,804) 2,603,804
-------------
SECURITIES LENDING COLLATERAL 21.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 13,177,339 13,177,339
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $13,177,339) 13,177,339
-------------
TOTAL INVESTMENTS 122.8%
(Cost $70,161,976) $ 75,931,747
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (22.8)% $ (14,097,499)
=============
NET ASSETS - 100.0% $ 61,834,248
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
128 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 61.8%
Farmer Mac*
4.12% due 02/16/06 $ 15,000,000 $ 14,924,467
Federal Farm Credit Bank*
4.20% due 02/03/06 25,000,000 24,909,583
Federal Home Loan Bank*
3.91% due 01/11/06 25,000,000 24,978,278
Freddie Mac*
4.12% due 02/14/06 25,000,000 24,879,833
4.13% due 02/14/06 25,000,000 24,879,542
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $114,571,703) 114,571,703
-------------
REPURCHASE AGREEMENTS 37.6%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 17,023,605 17,023,605
3.39% due 01/03/06 17,522,751 17,522,751
3.30% due 01/03/06 17,522,751 17,522,751
2.90% due 01/03/06 17,522,751 17,522,751
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $69,591,858) 69,591,858
-------------
TOTAL INVESTMENTS 99.4%
(Cost $184,163,561) $ 184,163,561
=============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 0.6% $ 1,200,974
=============
NET ASSETS - 100.0% $ 185,364,535
* 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 | 129
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
BANKING FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Bank of America Corp.+ 15,707 $ 724,881
J.P. Morgan Chase & Co. 18,198 722,279
Wells Fargo & Co. 10,229 642,688
Wachovia Corp. 10,515 555,823
U.S. Bancorp 14,532 434,361
Freddie Mac 6,180 403,863
Fannie Mae 8,252 402,780
Washington Mutual, Inc.+ 8,874 386,019
SunTrust Banks, Inc. 4,497 327,202
Golden West Financial Corp. 4,302 283,932
BB&T Corp. 6,693 280,504
Fifth Third Bancorp+ 7,133 269,057
Countrywide Financial Corp.+ 7,694 263,058
National City Corp.+ 7,479 251,070
KeyCorp+ 7,622 250,992
Regions Financial Corp.+ 6,610 225,798
PNC Financial Services Group, Inc. 3,601 222,650
M&T Bank Corp. 2,003 218,427
North Fork Bancorporation, Inc. 7,908 216,363
Zions Bancorporation 2,861 216,177
AmSouth Bancorp+ 7,810 204,700
Marshall & Ilsley Corp. 4,470 192,389
UnionBanCal Corp. 2,574 176,885
Comerica, Inc. 2,952 167,556
Sovereign Bancorp, Inc. 7,290 157,610
Hudson City Bancorp, Inc. 12,920 156,590
Radian Group, Inc.+ 2,493 146,065
Commerce Bancorp, Inc./NJ+ 4,049 139,326
Associated Banc-Corp.+ 4,164 135,538
MGIC Investment Corp.+ 2,000 131,640
First Horizon National Corp. 3,270 125,699
People's Bank/ Bridgeport CT+ 4,010 124,551
Mercantile Bankshares Corp. 2,200 124,168
Commerce Bancshares, Inc. 2,313 120,554
New York Community Bancorp, Inc.+ 7,290 120,431
TCF Financial Corp. 4,410 119,687
Westcorp 1,796 119,632
Independence Community Bank
Corp. 3,010 119,587
Synovus Financial Corp. 4,424 119,492
TD Banknorth, Inc. 4,010 116,490
Compass Bancshares, Inc. 2,400 115,896
Popular, Inc. 5,450 115,268
PMI Group, Inc.+ 2,690 110,478
Huntington Bancshares, Inc. 4,610 109,488
BOK Financial Corp. 2,400 109,032
Cullen/Frost Bankers, Inc.+ 2,000 107,360
Astoria Financial Corp. 3,524 103,606
Valley National Bancorp 4,210 101,461
Bank of Hawaii Corp. 1,940 99,988
Colonial BancGroup, Inc. 4,010 95,518
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
South Financial Group, Inc. 3,410 $ 93,911
Wilmington Trust Corp. 2,400 93,384
Gold Banc Corp., Inc. 5,110 93,104
IndyMac Bancorp, Inc.+ 2,360 92,087
Sky Financial Group, Inc. 3,210 89,302
City National Corp. 1,200 86,928
Fulton Financial Corp. 4,810 84,656
Webster Financial Corp. 1,800 84,420
Hudson United Bancorp 2,000 83,360
FirstMerit Corp.+ 3,210 83,171
Greater Bay Bancorp 3,210 82,240
East-West Bancorp, Inc. 2,200 80,278
SVB Financial Group*+ 1,679 78,644
Washington Federal, Inc.+ 3,410 78,396
Downey Financial Corp. 1,144 78,238
Fremont General Corp.+ 3,330 77,356
Brookline Bancorp, Inc.+ 5,410 76,660
Whitney Holding Corp. 2,710 74,688
International Bancshares Corp. 2,524 74,105
Texas Regional Bancshares, Inc. --
Class A 2,600 73,580
Sterling Financial Corp./WA 2,911 72,717
UCBH Holdings, Inc. 4,010 71,699
Susquehanna Bancshares, Inc. 3,010 71,277
United Bankshares, Inc. 2,000 70,480
First Midwest Bancorp, Inc./IL 2,000 70,120
NewAlliance Bancshares, Inc. 4,810 69,937
TrustCo Bank Corp./NY+ 5,410 67,192
Chittenden Corp.+ 2,400 66,744
Wintrust Financial Corp. 1,200 65,880
Central Pacific Financial Corp. Co. 1,820 65,374
Bankunited Financial Corp. --
Class A 2,400 63,768
Westamerica Bancorporation 1,200 63,684
Flagstar Bancorp, Inc. 4,410 63,504
Umpqua Holding Corp.+ 2,200 62,766
W Holding Co., Inc.+ 7,540 62,054
Provident Bankshares Corp. 1,800 60,786
Anchor BanCorp Wisconsin, Inc. 1,947 59,072
Sterling Bancshares, Inc./TX 3,810 58,826
MAF Bancorp, Inc. 1,400 57,932
First Republic Bank 1,500 55,515
Doral Financial Corp. 5,210 55,226
Republic Bancorp, Inc./MI 4,631 55,109
Boston Private Financial
Holdings, Inc. 1,800 54,756
FirstFed Financial Corp.* 979 53,375
Prosperity Bancshares, Inc. 1,800 51,732
Community Bank System, Inc. 2,200 49,610
First Bancorp Puerto Rico 3,991 49,528
-------------
TOTAL COMMON STOCKS
(Cost $13,329,602) 14,511,780
-------------
130 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
BANKING FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 56,935 $ 56,935
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $56,935) 56,935
-------------
SECURITIES LENDING COLLATERAL 13.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,020,877 2,020,877
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,020,877) 2,020,877
-------------
TOTAL INVESTMENTS 113.8%
(Cost $15,407,414) $ 16,589,592
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (13.8)% $ (2,009,801)
=============
NET ASSETS - 100.0% $ 14,579,791
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 131
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.8%
E.I. du Pont de Nemours and Co.+ 24,055 $ 1,022,338
Dow Chemical Co. 22,960 1,006,107
Alcoa, Inc. 28,525 843,484
Monsanto Co.+ 9,870 765,221
Newmont Mining Corp.+ 14,134 754,756
Praxair, Inc. 12,397 656,545
International Paper Co. 19,364 650,824
Weyerhaeuser Co. 8,970 595,070
Phelps Dodge Corp. 4,125 593,464
Air Products & Chemicals, Inc. 9,565 566,152
Rohm & Haas Co. 11,124 538,624
Southern Copper Corp.+ 7,740 518,425
Nucor Corp.+ 7,766 518,148
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 9,121 490,710
Ecolab, Inc. 13,508 489,935
PPG Industries, Inc. 8,089 468,353
Vulcan Materials Co. 5,599 379,332
United States Steel Corp.+ 7,841 376,917
Temple-Inland, Inc. 7,940 356,109
Sealed Air Corp.* 6,310 354,433
MeadWestvaco Corp. 12,320 345,330
The Mosaic Co.*+ 23,270 340,440
Smurfit-Stone Container Corp.* 23,623 334,738
Lyondell Chemical Co.+ 14,008 333,671
Ball Corp. 8,228 326,816
Eastman Chemical Co. 6,287 324,346
Ashland, Inc.+ 5,530 320,187
Sigma-Aldrich Corp.+ 4,900 310,121
Pactiv Corp.* 13,950 306,900
Allegheny Technologies, Inc.+ 8,430 304,154
Crown Holdings, Inc.* 15,423 301,211
Engelhard Corp. 9,900 298,485
Martin Marietta Materials, Inc.+ 3,670 281,562
Bemis Co.+ 9,930 276,749
Celanese Corp. 14,470 276,666
Huntsman Corp.* 16,030 276,037
Owens-Illinois, Inc.* 12,988 273,268
Lafarge North America, Inc.+ 4,910 270,148
Scotts Miracle-Gro Co. -- Class A 5,910 267,368
Sonoco Products Co.+ 9,090 267,246
Chemtura Corp. 20,866 264,998
Louisiana-Pacific Corp.+ 9,550 262,339
Lubrizol Corp. 5,973 259,407
International Flavors
& Fragrances, Inc. 7,740 259,290
Packaging Corporation of America 11,263 258,486
Airgas, Inc. 7,670 252,343
Valspar Corp.+ 10,160 250,647
Nalco Holding Co.* 13,829 244,912
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Florida Rock Industries, Inc. 4,829 $ 236,911
Commercial Metals Co. 6,265 235,188
Cytec Industries, Inc. 4,920 234,340
Cabot Corp. 6,540 234,132
Reliance Steel & Aluminum Co. 3,770 230,422
Valhi, Inc. 12,139 224,572
Carpenter Technology Corp.+ 3,120 219,866
Cleveland-Cliffs, Inc.+ 2,390 211,682
RPM International, Inc. 12,070 209,656
AptarGroup, Inc. 4,006 209,113
FMC Corp.* 3,881 206,353
Bowater, Inc.+ 6,710 206,131
Albemarle Corp. 5,307 203,523
Steel Dynamics, Inc.+ 5,375 190,866
Worthington Industries, Inc. 9,764 187,566
Potlatch Corp.+ 3,620 184,548
Olin Corp. 9,260 182,237
Headwaters, Inc.*+ 5,028 178,192
Georgia Gulf Corp.+ 5,680 172,786
Hercules, Inc.* 14,500 163,850
Aleris International, Inc.* 5,060 163,134
Longview Fibre Co. 7,729 160,840
Minerals Technologies, Inc. 2,840 158,728
Texas Industries, Inc. 3,095 154,255
Century Aluminum Co.*+ 5,710 149,659
H.B. Fuller Co. 4,600 147,522
Quanex Corp. 2,945 147,162
Arch Chemicals, Inc. 4,810 143,819
MacDermid, Inc. 5,140 143,406
RTI International Metals, Inc.* 3,631 137,796
Chaparral Steel Co.* 4,540 137,335
Ferro Corp. 7,220 135,447
Sensient Technologies Corp. 7,540 134,966
A. Schulman, Inc. 6,230 134,070
Deltic Timber Corp. 2,457 127,420
Ryerson Tull, Inc.+ 5,190 126,221
Amcol International Corp. 5,960 122,299
Myers Industries, Inc. 8,243 120,183
Glatfelter 8,430 119,622
PolyOne Corp.* 18,585 119,502
Wausau Paper Corp. 9,680 114,708
OM Group, Inc.* 5,680 106,557
Rock-Tenn Co. -- Class A 7,395 100,942
A.M. Castle & Co.* 4,552 99,416
Schweitzer-Mauduit
International, Inc. 3,940 97,633
Neenah Paper, Inc. 3,390 94,920
Steel Technologies, Inc. 3,370 94,326
Chesapeake Corp. 4,940 83,881
Brush Engineered Materials, Inc.* 5,250 83,475
Buckeye Technologies, Inc.* 10,269 82,665
Wellman, Inc. 10,800 73,224
132 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Quaker Chemical Corp. 3,570 $ 68,651
Caraustar Industries, Inc.* 7,730 67,174
Material Sciences Corp.* 4,700 66,270
Pope & Talbot, Inc. 6,030 50,230
Penford Corp. 3,881 47,348
-------------
TOTAL COMMON STOCKS
(Cost $23,893,245) 28,269,552
-------------
FACE
AMOUNT
-------------
SECURITIES LENDING COLLATERAL 14.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) $ 3,979,860 3,979,860
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,979,860) 3,979,860
-------------
TOTAL INVESTMENTS 113.9%
(Cost $27,873,105) $ 32,249,412
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (13.9)% $ (3,932,103)
=============
NET ASSETS - 100.0% $ 28,317,309
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 133
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Genentech, Inc.*+ 41,951 $ 3,880,468
Amgen, Inc.*+ 48,876 3,854,361
Gilead Sciences, Inc.*+ 37,510 1,974,151
Genzyme Corp.* 23,256 1,646,060
Biogen Idec, Inc.*+ 33,818 1,532,970
Celgene Corp.*+ 21,166 1,371,557
Medimmune, Inc.* 32,972 1,154,679
Chiron Corp.* 25,171 1,119,103
Applera Corp. - Applied Biosystems
Group+ 33,849 899,029
Amylin Pharmaceuticals, Inc.*+ 21,268 849,019
Cephalon, Inc.*+ 11,776 762,378
Invitrogen Corp.*+ 11,407 760,163
ImClone Systems, Inc.* 21,487 735,715
Protein Design Labs, Inc.*+ 24,422 694,073
Affymetrix, Inc.*+ 14,408 687,982
Charles River Laboratories
International, Inc.*+ 15,729 666,438
Vertex Pharmaceuticals, Inc.*+ 23,572 652,237
Millennium Pharmaceuticals, Inc.*+ 63,373 614,718
Neurocrine Biosciences, Inc.*+ 9,409 590,227
Medarex, Inc.*+ 41,921 580,606
Techne Corp.* 10,075 565,711
Abgenix, Inc.*+ 25,221 542,504
Alkermes, Inc.*+ 27,958 534,557
OSI Pharmaceuticals, Inc.*+ 18,107 507,720
United Therapeutics Corp.* 7,067 488,471
ICOS Corp.* 17,640 487,393
Myogen, Inc.* 15,171 457,557
Serologicals Corp.* 22,946 452,954
Nektar Therapeutics*+ 26,979 444,074
CV Therapeutics, Inc.* 17,292 427,631
Crucell -- SP ADR* 16,556 423,834
Human Genome Sciences, Inc.*+ 49,059 419,945
Viropharma, Inc.*+ 21,710 402,721
Cubist Pharmaceuticals, Inc.*+ 18,933 402,326
Angiotech Pharmaceuticals, Inc.*+ 30,082 395,578
Onyx Pharmaceuticals, Inc.* 13,440 386,534
Myriad Genetics, Inc.* 18,298 380,598
Martek Biosciences Corp.*+ 14,508 357,042
Ligand Pharmaceuticals, Inc. --
Class B*+ 32,010 356,912
Telik, Inc.*+ 20,758 352,678
Idenix Pharmaceuticals, Inc.*+ 19,603 335,407
QLT, Inc.*+ 48,846 310,661
Momenta Pharmaceuticals, Inc.*+ 13,940 307,238
Digene Corp.* 10,297 300,364
Pharmion Corp.*+ 15,530 275,968
Geron Corp.*+ 31,445 270,741
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Encysive Pharmaceuticals, Inc.* 27,222 $ 214,782
Keryx Biopharmaceuticals, Inc.* 2,646 38,737
Progenics Pharmaceuticals, Inc.* 1,470 36,765
Northfield Laboratories, Inc.*+ 519 6,955
Genitope Corp.* 871 6,924
Zymogenetics, Inc.* 2 34
-------------
TOTAL COMMON STOCKS
(Cost $31,529,012) 35,917,250
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 208,087 208,087
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $208,087) 208,087
-------------
SECURITIES LENDING COLLATERAL 32.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 11,680,787 11,680,787
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $11,680,787) 11,680,787
-------------
TOTAL INVESTMENTS 132.5%
(Cost $43,417,886) $ 47,806,124
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (32.5)% $ (11,720,187)
=============
NET ASSETS - 100.0% $ 36,085,937
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
134 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
COMMODITIES FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 42.5%
Fannie Mae*
4.07% due 01/30/06 $ 3,000,000 $ 2,990,842
Federal Farm Credit Bank*
3.50% due 01/05/06 3,000,000 2,999,417
Federal Home Loan Bank*
3.98% due 01/04/06 3,000,000 2,999,669
Freddie Mac*
4.07% due 01/30/06 3,000,000 2,990,842
-------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $11,980,770) 11,980,770
-------------
REPURCHASE AGREEMENTS 61.5%
Repurchase Agreement (Note 5)
3.45% due 01/03/06+ 2,385,050 2,385,050
3.40% due 01/03/06 3,659,367 3,659,367
3.39% due 01/03/06 3,766,663 3,766,663
3.30% due 01/03/06 3,766,663 3,766,663
2.90% due 01/03/06 3,766,663 3,766,663
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $17,344,406) 17,344,406
-------------
TOTAL INVESTMENTS 104.0%
(Cost $29,325,176) $ 29,325,176
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (4.0)% $ (1,138,131)
=============
NET ASSETS - 100.0% $ 28,187,045
- -------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
January 2006 Goldman Sachs Commodity
Index Futures Contracts
(Aggregate Market Value
of Contracts $1,511,475) 14 $ (5,681)
=============
UNITS
-------------
COMMODITY INDEX SWAP AGREEMENT
March 2006 Goldman Sachs Commodity
Index Swap, Maturing 03/29/06**
(Notional Market Value
$26,593,203) 4,012 $ 123,283
=============
* 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 GOLDMAN SACHS COMMODITY INDEX +/- FINANCING AT A
VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT DECEMBER 31, 2005.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 135
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Altria Group, Inc. 18,592 $ 1,389,194
Procter & Gamble Co. 22,649 1,310,924
PepsiCo, Inc. 18,833 1,112,654
Coca-Cola Co. 27,110 1,092,804
Kraft Foods, Inc. -- Class A 27,338 769,291
Anheuser-Busch Cos., Inc.+ 14,980 643,541
Kimberly-Clark Corp. 9,950 593,517
Colgate-Palmolive Co. 10,660 584,701
Sysco Corp.+ 15,550 482,827
Kellogg Co. 10,740 464,183
General Mills, Inc. 9,410 464,101
Archer-Daniels-Midland Co.+ 18,310 451,525
Sara Lee Corp. 23,010 434,889
WM Wrigley Jr Co.+ 6,340 421,547
Kroger Co.*+ 22,030 415,926
Reynolds American, Inc.+ 4,330 412,779
Avon Products, Inc.+ 14,057 401,327
Hershey Co. 7,206 398,131
Campbell Soup Co. 13,090 389,689
H.J. Heinz Co. 11,008 371,190
Safeway, Inc.+ 15,428 365,026
ConAgra Foods, Inc.+ 17,998 364,999
Whole Foods Market, Inc.+ 4,700 363,733
Coca-Cola Enterprises, Inc. 17,400 333,558
Clorox Co.+ 5,810 330,531
Brown-Forman Corp. -- Class B 4,590 318,179
Estee Lauder Cos., Inc. -- Class A 8,960 299,981
Albertson's, Inc.+ 13,990 298,686
Pepsi Bottling Group, Inc.+ 10,060 287,817
UST, Inc.+ 7,030 287,035
Tyson Foods, Inc. -- Class A 16,410 280,611
Constellation Brands, Inc. --
Class A* 10,435 273,710
Molson Coors Brewing Co. --
Class B+ 4,000 267,960
Dean Foods Co.* 6,792 255,787
Hormel Foods Corp. 7,254 237,061
Supervalu, Inc. 7,240 235,155
McCormick & Co., Inc. 7,369 227,849
Alberto-Culver Co. -- Class B 4,970 227,378
Energizer Holdings, Inc.* 4,170 207,624
Smithfield Foods, Inc.* 6,616 202,450
PepsiAmericas, Inc. 8,520 198,175
Loews Corp. - Carolina Group 4,390 193,116
J.M. Smucker Co. 4,030 177,320
Del Monte Foods Co.* 15,720 163,960
Church & Dwight Co., Inc. 4,900 161,847
Pilgrim's Pride Corp. 4,850 160,826
Corn Products International, Inc. 6,180 147,640
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Hansen Natural Corp.*+ 1,850 $ 145,799
Flowers Foods, Inc. 5,070 139,729
Tootsie Roll Industries, Inc. 4,730 136,839
Great Atlantic & Pacific Tea Co.* 4,040 128,391
Casey's General Stores, Inc.+ 5,000 124,000
Lancaster Colony Corp. 3,341 123,784
Ralcorp Holdings, Inc.* 2,980 118,932
Universal Corp./Richmond VA 2,710 117,506
Spectrum Brands, Inc.*+ 5,590 113,533
NBTY, Inc.* 6,980 113,425
Performance Food Group Co.*+ 3,940 111,778
United Natural Foods, Inc.* 4,230 111,672
Ruddick Corp. 5,220 111,082
Delta & Pine Land Co. 4,360 100,324
Hain Celestial Group, Inc.*+ 4,603 97,399
USANA Health Sciences, Inc.*+ 2,420 92,831
Sanderson Farms, Inc. 2,810 85,789
TreeHouse Foods, Inc.* 4,460 83,491
Lance, Inc. 4,480 83,462
J&J Snack Foods Corp. 1,376 81,748
WD-40 Co. 2,730 71,690
Peet's Coffee & Tea, Inc.* 2,330 70,716
Alliance One International, Inc. 18,030 70,317
Nash Finch Co. 2,564 65,331
Natures Sunshine Products, Inc. 3,233 58,453
American Italian Pasta Co. --
Class A+ 6,250 42,500
-------------
TOTAL COMMON STOCKS
(Cost $20,448,486) 22,073,275
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.2%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 45,961 45,961
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $45,961) 45,961
-------------
SECURITIES LENDING COLLATERAL 12.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,842,566 2,842,566
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,842,566) 2,842,566
-------------
TOTAL INVESTMENTS 112.6%
(Cost $23,337,013) $ 24,961,802
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (12.6)% $ (2,785,186)
=============
NET ASSETS - 100.0% $ 22,176,616
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
136 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
ELECTRONICS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Intel Corp. 35,473 $ 885,406
Texas Instruments, Inc. 15,610 500,613
Applied Materials, Inc. 22,051 395,595
Advanced Micro Devices, Inc.*+ 8,969 274,451
Broadcom Corp. -- Class A* 5,530 260,739
Analog Devices, Inc. 7,143 256,219
Linear Technology Corp. 6,461 233,048
Maxim Integrated Products, Inc.+ 6,260 226,862
KLA-Tencor Corp.+ 4,538 223,860
National Semiconductor Corp.+ 8,172 212,309
Micron Technology, Inc.*+ 15,359 204,428
Xilinx, Inc.+ 7,999 201,655
Freescale Semiconductor, Inc. --
Class B* 7,634 192,148
Microchip Technology, Inc. 5,945 191,132
Altera Corp.* 9,967 184,689
Nvidia Corp.* 5,006 183,019
Lam Research Corp.*+ 4,778 170,479
MEMC Electronic Materials, Inc.* 6,849 151,842
Intersil Corp. -- Class A 5,987 148,957
Integrated Device Technology, Inc.* 9,734 128,294
Novellus Systems, Inc.* 5,303 127,908
Agere Systems, Inc.* 9,426 121,595
LSI Logic Corp.*+ 14,209 113,672
Teradyne, Inc.* 7,793 113,544
Silicon Laboratories, Inc.* 3,001 110,017
Fairchild Semiconductor International,
Inc.* 6,400 108,224
Atmel Corp.* 34,478 106,537
Cree, Inc.*+ 3,929 99,168
Microsemi Corp.*+ 3,538 97,861
Cypress Semiconductor Corp.*+ 6,730 95,902
Varian Semiconductor Equipment
Associates, Inc.*+ 2,116 92,956
International Rectifier Corp.*+ 2,822 90,022
Semtech Corp.*+ 4,769 87,082
Cymer, Inc.* 2,403 85,331
PMC - Sierra, Inc.*+ 10,267 79,159
Micrel, Inc.* 6,263 72,651
RF Micro Devices, Inc.* 13,024 70,460
ATMI, Inc.* 2,483 69,450
Supertex, Inc.* 1,495 66,154
Triquint Semiconductor, Inc.* 14,230 63,323
Power Integrations, Inc.* 2,625 62,501
Cabot Microelectronics Corp.* 2,066 60,596
DSP Group, Inc.* 2,381 59,668
Applied Micro Circuits Corp.* 22,767 58,511
FEI Co.* 2,984 57,203
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Credence Systems Corp.* 7,955 $ 55,367
Skyworks Solutions, Inc.* 10,721 54,570
Standard Microsystems Corp.* 1,883 54,023
Veeco Instruments, Inc.* 3,085 53,463
Kulicke & Soffa Industries, Inc.* 6,046 53,447
Advanced Energy Industries, Inc.* 4,498 53,211
Brooks Automation, Inc.* 4,162 52,150
Lattice Semiconductor Corp.*+ 11,644 50,302
Photronics, Inc.*+ 3,291 49,562
Cohu, Inc. 2,162 49,445
Axcelis Technologies, Inc.* 9,904 47,242
Ultratech, Inc.* 2,803 46,025
Exar Corp.* 3,579 44,809
LTX Corp.* 8,619 38,786
Actel Corp.* 2,995 38,126
Kopin Corp.* 7,113 38,055
Rudolph Technologies, Inc.* 2,529 32,574
Pericom Semiconductor Corp.* 3,905 31,123
ESS Technologies, Inc.* 7,552 25,903
Taiwan Semiconductor Manufacturing
Co. Ltd. -- SP ADR 29 287
-------------
TOTAL COMMON STOCKS
(Cost $7,000,079) 8,263,710
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.7%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 56,891 56,891
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $56,891) 56,891
-------------
SECURITIES LENDING COLLATERAL 12.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,000,210 1,000,210
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,000,210) 1,000,210
-------------
TOTAL INVESTMENTS 112.2%
(Cost $8,057,180) $ 9,320,811
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (12.2)% $ (1,014,701)
=============
NET ASSETS - 100.0% $ 8,306,110
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
ADR -- AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 137
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
ENERGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Exxon Mobil Corp. 95,805 $ 5,381,367
BP PLC -- SP ADR+ 65,432 4,202,043
Total SA -- SP ADR+ 28,360 3,584,704
Royal Dutch Shell PLC -- SP ADR 51,300 3,154,437
Chevron Corp. 54,603 3,099,812
ConocoPhillips+ 41,738 2,428,317
Schlumberger Ltd.+ 23,038 2,238,142
Burlington Resources, Inc.+ 20,800 1,792,960
Repsol YPF SA -- SP ADR 57,836 1,700,957
Halliburton Co.+ 26,481 1,640,763
Occidental Petroleum Corp.+ 20,430 1,631,948
Devon Energy Corp. 24,783 1,549,929
Transocean, Inc.* 21,620 1,506,698
Valero Energy Corp. 28,480 1,469,568
Apache Corp. 20,478 1,403,152
Anadarko Petroleum Corp. 14,597 1,383,066
Baker Hughes, Inc.+ 22,562 1,371,318
Marathon Oil Corp. 22,311 1,360,302
EOG Resources, Inc.+ 17,008 1,247,877
XTO Energy, Inc. 26,056 1,144,901
Williams Cos., Inc.+ 45,810 1,061,418
Weatherford International Ltd.*+ 29,292 1,060,370
Nabors Industries Ltd.*+ 13,660 1,034,745
BJ Services Co. 27,575 1,011,175
Amerada Hess Corp. 7,740 981,587
Kinder Morgan, Inc. 10,520 967,314
Murphy Oil Corp.+ 17,895 966,151
Peabody Energy Corp. 11,700 964,314
Kerr-McGee Corp. 10,584 961,662
Sunoco, Inc. 12,206 956,706
Diamond Offshore Drilling, Inc.+ 13,651 949,563
National-Oilwell Varco, Inc.* 15,044 943,259
Noble Corp. 13,200 931,128
Chesapeake Energy Corp.+ 29,305 929,848
Smith International, Inc.+ 23,158 859,393
El Paso Corp.+ 67,400 819,584
Pioneer Natural Resources Co. 15,250 781,867
Noble Energy, Inc. 18,900 761,670
Newfield Exploration Co.* 15,099 756,007
ENSCO International, Inc.+ 16,580 735,323
Consol Energy, Inc. 11,100 723,498
Grant Prideco, Inc.*+ 16,334 720,656
Southwestern Energy Co.* 19,392 696,948
Patterson-UTI Energy, Inc. 20,301 668,918
Pride International, Inc.* 21,517 661,648
Cooper Cameron Corp.*+ 15,774 653,044
Arch Coal, Inc. 8,200 651,900
Tesoro Corp. 9,600 590,880
Rowan Cos., Inc. 16,450 586,278
Cimarex Energy Co.*+ 13,100 563,431
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Western Gas Resources, Inc. 11,900 $ 560,371
Range Resources Corp. 21,150 557,091
Vintage Petroleum, Inc. 10,323 550,526
Helmerich & Payne, Inc. 8,693 538,184
FMC Technologies, Inc.* 12,420 533,066
Quicksilver Resources, Inc.*+ 12,605 529,536
Cal Dive International, Inc.*+ 14,339 514,627
Plains Exploration & Production
Co.*+ 12,800 508,544
Forest Oil Corp.* 10,750 489,877
Pogo Producing Co.+ 9,800 488,138
Massey Energy Co.+ 12,500 473,375
Denbury Resources, Inc.* 20,700 471,546
Unit Corp.* 8,523 469,021
Tidewater, Inc.+ 10,100 449,046
St. Mary Land & Exploration Co.+ 11,665 429,389
Dresser-Rand Group, Inc.* 17,524 423,730
Maverick Tube Corp.*+ 10,600 422,516
Cabot Oil & Gas Corp. 9,300 419,430
Frontier Oil Corp. 11,100 416,583
Overseas Shipholding Group, Inc. 8,174 411,888
Lone Star Technologies, Inc.* 7,350 379,701
SEACOR Holdings, Inc.* 5,308 361,475
Hanover Compressor Co.* 25,458 359,212
Oceaneering International, Inc.*+ 6,700 333,526
Veritas DGC, Inc.*+ 9,388 333,180
Swift Energy Co.*+ 7,348 331,174
Atwood Oceanics, Inc.* 4,224 329,599
CARBO Ceramics, Inc. 5,800 327,816
Stone Energy Corp.* 6,900 314,157
Hydril Co.*+ 4,885 305,801
Penn Virginia Corp. 5,300 304,220
Tetra Technologies, Inc.* 9,967 304,193
Remington Oil & Gas Corp.* 8,190 298,935
World Fuel Services Corp. 8,300 279,876
Offshore Logistics, Inc.* 7,513 219,380
Petroleum Development Corp.* 6,306 210,242
Input/Output, Inc.*+ 29,000 203,870
-------------
TOTAL COMMON STOCKS
(Cost $58,878,708) 83,095,387
-------------
138 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
ENERGY FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.3%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 273,818 $ 273,818
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $273,818) 273,818
-------------
SECURITIES LENDING COLLATERAL 17.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 14,834,598 14,834,598
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $14,834,598) 14,834,598
-------------
TOTAL INVESTMENTS 117.7%
(Cost $73,987,124) $ 98,203,803
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (17.7)% $ (14,766,475)
=============
NET ASSETS - 100.0% $ 83,437,328
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
ADR -- AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 139
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Schlumberger Ltd.+ 75,023 $ 7,288,485
Halliburton Co.+ 86,293 5,346,714
Transocean, Inc.* 70,368 4,903,946
Baker Hughes, Inc.+ 73,358 4,458,699
Weatherford International Ltd.*+ 95,512 3,457,535
Nabors Industries Ltd.*+ 44,532 3,373,299
BJ Services Co.+ 89,693 3,289,042
Diamond Offshore Drilling, Inc.+ 44,423 3,090,064
National-Oilwell Varco, Inc.* 49,134 3,080,702
Noble Corp. 42,917 3,027,365
Smith International, Inc.+ 75,340 2,795,867
ENSCO International, Inc.+ 53,915 2,391,130
Grant Prideco, Inc.*+ 53,160 2,345,419
Patterson-UTI Energy, Inc. 66,242 2,182,674
Pride International, Inc.* 69,903 2,149,517
Cooper Cameron Corp.*+ 51,252 2,121,833
Rowan Cos., Inc. 53,520 1,907,453
Helmerich & Payne, Inc. 28,378 1,756,882
FMC Technologies, Inc.*+ 40,347 1,731,693
Cal Dive International, Inc.*+ 46,657 1,674,520
Unit Corp.* 27,604 1,519,048
Tidewater, Inc.+ 32,919 1,463,579
Maverick Tube Corp.*+ 34,714 1,383,700
Dresser-Rand Group, Inc.* 56,961 1,377,317
Lone Star Technologies, Inc.* 24,059 1,242,888
SEACOR Holdings, Inc.* 17,343 1,181,058
Hanover Compressor Co.* 82,827 1,168,689
Oceaneering International, Inc.*+ 21,746 1,082,516
Veritas DGC, Inc.*+ 30,495 1,082,268
Atwood Oceanics, Inc.*+ 13,655 1,065,500
CARBO Ceramics, Inc. 18,748 1,059,637
Hydril Co.*+ 15,993 1,001,162
Tetra Technologies, Inc.* 32,489 991,564
Offshore Logistics, Inc.* 24,396 712,363
Input/Output, Inc.*+ 94,344 663,238
-------------
TOTAL COMMON STOCKS
(Cost $54,759,514) 79,367,366
-------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.1%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 85,940 $ 85,940
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $85,940) 85,940
-------------
SECURITIES LENDING COLLATERAL 22.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 18,270,117 18,270,117
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $18,270,117) 18,270,117
-------------
TOTAL INVESTMENTS 122.6%
(Cost $73,115,571) $ 97,723,423
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (22.6)% $ (18,001,711)
=============
NET ASSETS - 100.0% $ 79,721,712
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
140 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
American International Group, Inc. 10,042 $ 685,166
Citigroup, Inc. 13,120 636,714
Bank of America Corp.+ 11,433 527,633
Wachovia Corp. 8,775 463,846
Capital One Financial Corp. 5,268 455,196
J.P. Morgan Chase & Co.+ 11,224 445,481
Freddie Mac 6,550 428,042
Fannie Mae 8,190 399,754
Goldman Sachs Group, Inc. 2,980 380,576
Bank of New York Co., Inc. 11,790 375,511
Morgan Stanley 6,600 374,484
PNC Financial Services Group, Inc. 5,890 364,179
Lehman Brothers Holdings, Inc.+ 2,756 353,237
National City Corp.+ 10,500 352,485
Wells Fargo & Co. 5,597 351,660
MBNA Corp. 12,773 346,787
U.S. Bancorp 11,520 344,333
Golden West Financial Corp. 5,140 339,240
Countrywide Financial Corp.+ 9,664 330,412
Prudential Financial, Inc. 4,460 326,427
CIT Group, Inc. 6,220 322,072
Mellon Financial Corp. 9,330 319,552
Regions Financial Corp.+ 9,330 318,713
State Street Corp. 5,730 317,671
SunTrust Banks, Inc. 4,326 314,760
Fifth Third Bancorp+ 8,190 308,927
Washington Mutual, Inc.+ 6,981 303,673
Bear Stearns Cos., Inc.+ 2,620 302,689
MetLife, Inc.+ 6,170 302,330
SLM Corp.+ 5,332 293,740
Hartford Financial Services Group,
Inc. 3,410 292,885
Huntington Bancshares, Inc. 12,120 287,850
AmeriCredit Corp.* 11,190 286,800
Allstate Corp. 5,210 281,705
Franklin Resources, Inc. 2,990 281,090
Nationwide Financial Services, Inc. 6,350 279,400
Comerica, Inc. 4,910 278,692
Fulton Financial Corp. 15,554 273,750
Sovereign Bancorp, Inc.+ 12,640 273,277
Moody's Corp. 4,420 271,476
Progressive Corp.+ 2,290 267,426
St. Paul Travelers Cos., Inc. 5,980 267,127
Federated Investors, Inc. -- Class B 7,200 266,688
American Express Co. 5,176 266,357
KKR Financial Corp. 10,970 263,170
Valley National Bancorp 10,810 260,521
Associated Banc-Corp.+ 7,890 256,819
Wilmington Trust Corp. 6,550 254,860
American Financial Group, Inc./OH+ 6,650 254,761
AFLAC, Inc. 5,400 250,668
Marsh & McLennan Cos., Inc.+ 7,860 249,634
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Charles Schwab Corp. 16,860 $ 247,336
Whitney Holding Corp. 8,860 244,182
Commerce Bancorp, Inc./NJ+ 7,040 242,246
Hudson City Bancorp, Inc. 19,810 240,097
Chubb Corp. 2,450 239,242
First Horizon National Corp. 6,220 239,097
PMI Group, Inc.+ 5,800 238,206
Raymond James Financial, Inc.+ 6,320 238,074
ACE Ltd. 4,450 237,808
BB&T Corp.+ 5,570 233,439
E*Trade Financial Corp.*+ 11,135 232,276
Loews Corp. 2,438 231,244
North Fork Bancorporation, Inc. 8,422 230,426
Merrill Lynch & Co., Inc. 3,390 229,605
Astoria Financial Corp. 7,710 226,674
TCF Financial Corp. 8,350 226,619
SEI Investments Co. 6,060 224,220
Northern Trust Corp. 4,260 220,753
Principal Financial Group, Inc. 4,650 220,549
KeyCorp+ 6,502 214,111
New York Community Bancorp,
Inc.+ 12,940 213,769
Conseco, Inc.*+ 9,170 212,469
Marshall & Ilsley Corp. 4,930 212,187
Aon Corp. 5,890 211,745
T. Rowe Price Group, Inc. 2,880 207,446
Chicago Mercantile Exchange
Holdings, Inc.+ 562 206,529
Glenborough Realty Trust, Inc. 11,130 201,453
Protective Life Corp. 4,590 200,904
Simon Property Group, Inc.+ 2,620 200,771
Legg Mason, Inc. 1,670 199,882
Colonial BancGroup, Inc. 8,350 198,897
Genworth Financial, Inc. -- Class A 5,730 198,143
Popular, Inc. 9,330 197,329
Arthur J. Gallagher & Co.+ 6,390 197,323
Ameritrade Holding Corp.*+ 8,080 193,920
Leucadia National Corp.+ 4,030 191,264
Ambac Financial Group, Inc. 2,460 189,568
Commerce Bancshares, Inc. 3,608 188,049
Jefferson-Pilot Corp. 3,270 186,161
Zions Bancorporation 2,440 184,366
UnumProvident Corp.+ 8,050 183,137
Radian Group, Inc.+ 3,108 182,098
Compass Bancshares, Inc. 3,770 182,053
SVB Financial Group*+ 3,886 182,020
Torchmark Corp. 3,270 181,812
CNA Financial Corp.* 5,530 180,997
General Growth Properties, Inc.+ 3,833 180,113
UnionBanCal Corp. 2,620 180,046
Brown & Brown, Inc. 5,890 179,881
Commercial Net Lease Realty 8,810 179,460
M&T Bank Corp. 1,640 178,842
Nuveen Investments, Inc. -- Class A 4,140 176,447
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 141
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
W.R. Berkley Corp. 3,690 $ 175,718
People's Bank/ Bridgeport CT+ 5,570 173,004
SAFECO Corp. 2,950 166,675
Mercantile Bankshares Corp. 2,950 166,498
XL Capital Ltd.+ 2,460 165,755
Lincoln National Corp.+ 3,110 164,923
Assurant, Inc.+ 3,770 163,957
Vornado Realty Trust+ 1,901 158,676
Westcorp 2,370 157,866
Host Marriott Corp.+ 8,140 154,253
Boston Properties, Inc. 2,030 150,484
Everest Re Group Ltd. 1,490 149,521
WFS Financial, Inc.* 1,960 149,254
Allied Capital Corp.+ 5,080 149,200
The St. Joe Co.+ 2,210 148,556
MBIA, Inc.+ 2,460 147,994
Equity Residential 3,770 147,482
CenterPoint Properties Trust 2,950 145,966
Markel Corp.* 460 145,843
Fidelity National Financial, Inc. 3,930 144,585
Public Storage, Inc. 2,130 144,244
Unitrin, Inc. 3,160 142,358
Equity Office Properties Trust+ 4,590 139,215
Cincinnati Financial Corp. 3,110 138,955
ProLogis 2,950 137,824
CB Richard Ellis Group, Inc. --
Class A* 2,333 137,297
Rayonier, Inc.+ 3,440 137,084
Archstone-Smith Trust 3,270 136,980
American Financial Realty Trust 11,300 135,600
Mercury General Corp.+ 2,290 133,324
AmSouth Bancorp+ 5,080 133,147
Essex Property Trust, Inc.+ 1,440 132,768
First American Corp.+ 2,920 132,276
Synovus Financial Corp. 4,750 128,297
AvalonBay Communities, Inc. 1,420 126,735
Macerich Co.+ 1,870 125,552
KIMCO Realty Corp. 3,900 125,112
New Century Financial Corp.+ 3,440 124,081
Erie Indemnity Co. -- Class A 2,290 121,828
HCC Insurance Holdings, Inc.+ 4,090 121,391
BRE Properties, Inc. -- Class A 2,620 119,158
Forest City Enterprises, Inc. --
Class A 3,110 117,962
Realty Income Corp. 5,400 116,748
Thornburg Mortgage, Inc.+ 4,420 115,804
SL Green Realty Corp. 1,470 112,293
Plum Creek Timber Co., Inc. (REIT) 3,110 112,115
Regency Centers Corp.+ 1,880 110,826
CBL & Associates Properties, Inc. 2,776 109,680
Trizec Properties, Inc.+ 4,750 108,870
Student Loan Corp. 520 108,800
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Federal Realty Investment Trust 1,770 $ 107,350
Global Signal, Inc. 2,460 106,174
Apartment Investment &
Management Co. -- Class A+ 2,780 105,279
United Dominion Realty Trust, Inc.+ 4,420 103,605
Old Republic International Corp. 3,930 103,202
Shurgard Storage Centers, Inc. --
Class A 1,800 102,078
Mills Corp.+ 2,390 100,237
Developers Diversified Realty Corp. 2,130 100,153
Duke Realty Corp. 2,950 98,530
Pan Pacific Retail Properties, Inc. 1,470 98,328
AMB Property Corp. 1,960 96,373
Camden Property Trust 1,640 94,989
Ventas, Inc.+ 2,950 94,459
Crescent Real Estate EQT Co. 4,750 94,145
Liberty Property Trust+ 1,960 83,986
iStar Financial, Inc. 2,320 82,708
Arden Realty, Inc. 1,800 80,694
Health Care Property Investors,
Inc.+ 3,110 79,492
Weingarten Realty Investors 1,960 74,108
Reckson Associates Realty Corp. 1,960 70,521
-------------
TOTAL COMMON STOCKS
(Cost $34,643,891) 36,654,476
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.3%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 131,013 131,013
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $131,013) 131,013
-------------
SECURITIES LENDING COLLATERAL 16.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 5,885,773 5,885,773
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,885,773) 5,885,773
-------------
TOTAL INVESTMENTS 115.8%
(Cost $40,660,677) $ 42,671,262
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (15.8)% $ (5,831,778)
=============
NET ASSETS - 100.0% $ 36,839,484
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
REIT -- REAL ESTATE INVESTMENT TRUST.
142 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
HEALTH CARE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Johnson & Johnson, Inc. 52,328 $ 3,144,913
Pfizer, Inc. 128,498 2,996,573
Genentech, Inc.*+ 20,940 1,936,950
Amgen, Inc.*+ 24,540 1,935,224
UnitedHealth Group, Inc. 30,109 1,870,973
Merck & Co., Inc. 47,945 1,525,130
Medtronic, Inc. 26,403 1,520,021
Eli Lilly & Co. 25,136 1,422,446
Abbott Laboratories 34,874 1,375,082
Wyeth 29,397 1,354,320
WellPoint, Inc.* 16,234 1,295,294
Bristol-Myers Squibb Co. 47,484 1,091,182
Schering-Plough Corp. 40,434 843,049
Cardinal Health, Inc. 11,432 785,950
Aetna, Inc. 7,892 744,295
Baxter International, Inc. 18,525 697,466
Gilead Sciences, Inc.*+ 12,931 680,559
HCA, Inc. 13,059 659,479
Caremark Rx, Inc.* 12,571 651,052
Guidant Corp. 9,257 599,391
Boston Scientific Corp.*+ 23,774 582,225
St. Jude Medical, Inc.* 11,268 565,654
Genzyme Corp.* 7,744 548,120
Stryker Corp. 12,219 542,890
Becton, Dickinson & Co. 8,850 531,708
Medco Health Solutions, Inc.* 9,386 523,739
Zimmer Holdings, Inc.* 7,570 510,521
McKesson Corp. 9,700 500,423
Biogen Idec, Inc.*+ 10,854 492,012
Allergan, Inc.+ 4,475 483,121
CIGNA Corp.+ 4,150 463,555
Forest Laboratories, Inc.* 11,098 451,467
Express Scripts, Inc.* 4,904 410,955
Celgene Corp.*+ 6,027 390,550
Quest Diagnostics, Inc. 7,110 366,023
Humana, Inc.*+ 6,255 339,834
Biomet, Inc.+ 9,100 332,787
Fisher Scientific International, Inc.* 5,212 322,414
Coventry Health Care, Inc.* 5,650 321,824
Medimmune, Inc.* 9,019 315,845
AmerisourceBergen Corp.+ 7,620 315,468
Chiron Corp.* 7,041 313,043
IVAX Corp.* 9,966 312,235
C.R. Bard, Inc. 4,444 292,948
Laboratory Corporation of
America Holdings*+ 5,334 287,236
Hospira, Inc.* 6,276 268,487
Omnicare, Inc.+ 4,663 266,817
Barr Pharmaceuticals, Inc.* 4,150 258,503
Varian Medical Systems, Inc.* 5,130 258,244
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Sepracor, Inc.*+ 4,700 $ 242,520
Health Net, Inc.*+ 4,676 241,048
IMS Health, Inc. 9,165 228,392
Health Management Associates,
Inc. -- Class A+ 9,730 213,671
Applera Corp. - Applied Biosystems
Group+ 7,921 210,382
DaVita, Inc.* 4,104 207,827
Patterson Cos., Inc.* 6,007 200,634
Mylan Laboratories, Inc. 9,800 195,608
Thermo Electron Corp.* 6,300 189,819
Waters Corp.* 4,993 188,735
Watson Pharmaceuticals, Inc.* 5,700 185,307
King Pharmaceuticals, Inc.* 10,830 183,244
Intuitive Surgical, Inc.*+ 1,560 182,941
Dade Behring Holdings, Inc. 4,220 172,556
Endo Pharmaceuticals Holdings,
Inc.* 5,700 172,482
Henry Schein, Inc.* 3,916 170,894
Bausch & Lomb, Inc. 2,510 170,429
Beckman Coulter, Inc. 2,966 168,765
Pharmaceutical Product
Development, Inc. 2,671 165,468
Cerner Corp.*+ 1,800 163,638
Lincare Holdings, Inc.* 3,900 163,449
Cephalon, Inc.*+ 2,520 163,145
Cytyc Corp.* 5,773 162,972
Tenet Healthcare Corp.*+ 21,234 162,652
Invitrogen Corp.*+ 2,414 160,869
Advanced Medical Optics, Inc.* 3,800 158,840
Millipore Corp.* 2,400 158,496
Triad Hospitals, Inc.* 4,020 157,705
Inamed Corp.* 1,760 154,317
Charles River Laboratories
International, Inc.*+ 3,621 153,422
Affymetrix, Inc.*+ 3,210 153,277
Community Health Systems, Inc.*+ 3,917 150,178
Protein Design Labs, Inc.*+ 5,238 148,864
Manor Care, Inc.+ 3,730 148,342
Hillenbrand Industries, Inc. 3,000 148,230
Renal Care Group, Inc.* 3,100 146,661
Millennium Pharmaceuticals, Inc.*+ 14,943 144,947
ImClone Systems, Inc.* 4,118 141,000
Covance, Inc.* 2,900 140,795
American Pharmaceutical Partners,
Inc.*+ 3,600 139,644
Kinetic Concepts, Inc.* 3,462 137,649
Emdeon Corp.* 16,100 136,206
Respironics, Inc.* 3,670 136,047
Vertex Pharmaceuticals, Inc.*+ 4,818 133,314
ResMed, Inc.*+ 3,400 130,254
Pediatrix Medical Group, Inc.* 1,400 123,998
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 143
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
HEALTH CARE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Kos Pharmaceuticals, Inc.* 2,300 $ 118,979
VCA Antech, Inc.* 4,200 118,440
Gen-Probe, Inc.* 2,400 117,096
Cooper Cos., Inc.+ 2,200 112,860
LifePoint Hospitals, Inc.* 3,000 112,500
Universal Health Services, Inc. --
Class B 2,400 112,176
Sierra Health Services, Inc.* 1,400 111,944
Mentor Corp. 2,400 110,592
Edwards Lifesciences Corp.* 2,600 108,186
Idexx Laboratories, Inc.* 1,500 107,970
Techne Corp.* 1,900 106,685
Steris Corp. 4,000 100,080
Valeant Pharmaceuticals
International 5,200 94,016
Medicis Pharmaceutical Corp. --
Class A+ 2,900 92,945
Hologic, Inc.* 2,400 91,008
Sybron Dental Specialties, Inc.* 2,270 90,369
American Healthways, Inc.* 1,900 85,975
OSI Pharmaceuticals, Inc.*+ 3,013 84,485
Perrigo Co. 5,600 83,496
United Surgical Partners
International, Inc.* 2,580 82,947
PerkinElmer, Inc. 3,500 82,460
Sunrise Senior Living, Inc.*+ 2,400 80,904
MGI Pharma, Inc.* 4,700 80,652
Chemed Corp. 1,600 79,488
American Medical Systems
Holdings, Inc.* 4,400 78,452
Diagnostic Products Corp. 1,600 77,680
Integra LifeSciences Holdings
Corp.* 2,100 74,466
Haemonetics Corp./MA* 1,500 73,290
Biosite, Inc.*+ 1,300 73,177
Apria Healthcare Group, Inc.* 3,003 72,402
Alpharma, Inc. -- Class A 2,500 71,275
Par Pharmaceutical Cos., Inc.*+ 2,200 68,948
Immucor, Inc.* 2,900 67,744
Owens & Minor, Inc. 2,400 66,072
Centene Corp.* 2,500 65,725
Invacare Corp. 2,000 62,980
AMERIGROUP Corp.* 3,200 62,272
LCA-Vision, Inc. 1,300 61,763
Regeneron Pharmaceuticals, Inc.* 3,800 60,610
Varian, Inc.* 1,500 59,685
ArthroCare Corp.*+ 1,400 58,996
Viasys Healthcare, Inc.* 2,200 56,540
Cyberonics, Inc.* 1,700 54,910
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Dionex Corp.* 1,100 $ 53,988
Dendrite International, Inc.* 3,700 53,317
Martek Biosciences Corp.*+ 2,100 51,681
Intermagnetics General Corp.* 1,600 51,040
SurModics, Inc.*+ 1,300 48,087
NDCHealth Corp.* 2,500 48,075
AmSurg Corp.* 2,100 48,006
Analogic Corp. 1,000 47,850
Vital Signs, Inc. 1,100 47,102
DJ Orthopedics, Inc.* 1,700 46,886
Parexel International Corp.* 2,300 46,598
Amedisys, Inc.*+ 1,100 46,464
Conmed Corp.* 1,900 44,954
ICU Medical, Inc.* 1,100 43,131
Odyssey HealthCare, Inc.* 2,200 41,008
PolyMedica Corp. 1,200 40,164
Datascope Corp. 1,200 39,660
Connetics Corp.*+ 2,600 37,570
Cambrex Corp. 2,000 37,540
Greatbatch, Inc.* 1,400 36,414
Laserscope* 1,610 36,161
Merit Medical Systems, Inc.* 2,800 33,992
RehabCare Group, Inc.* 1,500 30,300
Cross Country Healthcare, Inc.* 1,700 30,226
Gentiva Health Services, Inc.* 2,000 29,480
DENTSPLY International, Inc. 500 26,845
Kensey Nash Corp.* 1,200 26,436
SFBC International, Inc.*+ 1,600 25,616
Enzo Biochem, Inc.*+ 2,000 24,840
Savient Pharmaceuticals, Inc.* 6,500 24,310
CNS, Inc. 1,073 23,509
Arqule, Inc.* 3,500 21,420
Possis Medical, Inc.* 2,100 20,895
BioLase Technology, Inc.+ 2,400 19,176
Noven Pharmaceuticals, Inc.*+ 1,200 18,156
Symbion, Inc.* 740 17,020
Genesis HealthCare Corp.* 353 12,892
Bradley Pharmaceuticals, Inc.*+ 1,300 12,350
Osteotech, Inc.* 2,200 10,934
Theragenics Corp.* 3,600 10,872
CryoLife, Inc.* 3,100 10,354
Hooper Holmes, Inc. 3,200 8,160
Angiotech Pharmaceuticals, Inc.* 450 5,918
American Dental Partners, Inc.* 165 2,983
-------------
TOTAL COMMON STOCKS
(Cost $44,864,715) 51,433,250
-------------
144 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
HEALTH CARE FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 251,697 $ 251,697
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $251,697) 251,697
-------------
SECURITIES LENDING COLLATERAL 11.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 5,834,092 5,834,092
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,834,092) 5,834,092
-------------
TOTAL INVESTMENTS 111.3%
(Cost $50,950,504) $ 57,519,039
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (11.3)% $ (5,827,454)
=============
NET ASSETS - 100.0% $ 51,691,585
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 145
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
INTERNET FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Google, Inc. -- Class A*+ 3,852 $ 1,598,041
Cisco Systems, Inc.* 92,837 1,589,369
Time Warner, Inc. 76,918 1,341,450
Qualcomm, Inc. 29,888 1,287,575
Yahoo!, Inc.*+ 32,005 1,253,956
eBay, Inc.*+ 28,542 1,234,442
Amazon.com, Inc.*+ 15,018 708,099
Symantec Corp.* 35,898 628,215
Sun Microsystems, Inc.* 144,325 604,722
Qwest Communications
International, Inc.* 103,671 585,741
Juniper Networks, Inc.*+ 25,405 566,532
Broadcom Corp. -- Class A* 12,001 565,847
Research In Motion, Ltd.*+ 8,023 529,598
Intuit, Inc.*+ 9,917 528,576
IAC/InterActiveCorp*+ 18,375 520,196
E*Trade Financial Corp.*+ 22,990 479,571
Red Hat, Inc.*+ 14,391 392,011
VeriSign, Inc.*+ 17,469 382,920
Monster Worldwide, Inc.*+ 9,300 379,626
Siebel Systems, Inc.+ 33,636 355,869
CheckFree Corp.* 7,401 339,706
Adobe Systems, Inc. 9,113 336,816
Check Point Software Technologies
Ltd.* 15,997 321,540
BEA Systems, Inc.* 33,054 310,708
McAfee, Inc.*+ 11,263 305,565
F5 Networks, Inc.*+ 4,760 272,224
Emdeon Corp.* 27,234 230,400
Foundry Networks, Inc.*+ 16,675 230,282
Internet Security Systems, Inc.* 10,833 226,951
CNET Networks, Inc.*+ 15,294 224,669
aQuantive, Inc.*+ 8,790 221,860
Ciena Corp.* 73,460 218,176
Websense, Inc.* 3,282 215,430
RealNetworks, Inc.* 27,040 209,830
Palm, Inc.*+ 6,523 207,431
EarthLink, Inc.* 18,059 200,636
Netflix, Inc.*+ 6,984 188,987
TIBCO Software, Inc.* 24,723 184,681
Digital Insight Corp.* 5,710 182,834
Digital River, Inc.*+ 4,990 148,403
United Online, Inc. 10,318 146,722
WebEx Communications, Inc.* 6,750 146,003
webMethods, Inc.* 14,350 110,639
S1 Corp.* 21,466 93,377
Expedia, Inc.*+ 2,063 49,429
-------------
TOTAL COMMON STOCKS
(Cost $18,439,634) 20,855,655
-------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 129,100 $ 129,100
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $129,100) 129,100
-------------
SECURITIES LENDING COLLATERAL 23.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 4,947,937 4,947,937
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,947,937) 4,947,937
-------------
TOTAL INVESTMENTS 123.7%
(Cost $23,516,671) $ 25,932,692
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (23.7)% $ (4,973,834)
=============
NET ASSETS - 100.0% $ 20,958,858
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
146 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
LEISURE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Time Warner, Inc. 42,616 $ 743,223
The Walt Disney Co. 24,874 596,230
Viacom, Inc. -- Class B* 17,680 576,368
McDonald's Corp. 16,355 551,491
Carnival Corp.+ 10,000 534,700
News Corp. -- Class A 32,238 501,301
Starbucks Corp.* 15,026 450,930
Marriott International, Inc. --
Class A 5,475 366,661
Las Vegas Sands Corp.*+ 8,960 353,651
Yum! Brands, Inc. 7,275 341,052
Electronic Arts, Inc.*+ 6,285 328,768
Harrah's Entertainment, Inc. 4,479 319,308
Starwood Hotels & Resorts
Worldwide, Inc.+ 4,911 313,616
International Game Technology,
Inc.+ 10,066 309,832
Hilton Hotels Corp. 11,587 279,363
MGM Mirage, Inc.*+ 7,104 260,504
Wendy's International, Inc. 4,497 248,504
Darden Restaurants, Inc.+ 6,359 247,238
Pixar*+ 4,346 229,121
Wynn Resorts Ltd.*+ 4,099 224,830
Eastman Kodak Co.+ 9,195 215,163
Mattel, Inc. 13,594 215,057
Boyd Gaming Corp. 4,100 195,406
Hasbro, Inc.+ 9,543 192,578
Station Casinos, Inc. 2,740 185,772
Brunswick Corp. 4,540 184,596
Choice Hotels International, Inc. 4,124 172,218
Outback Steakhouse, Inc.+ 4,056 168,770
GTECH Holdings Corp. 5,204 165,175
Activision, Inc.*+ 11,463 157,502
Warner Music Group Corp. 7,810 150,499
Penn National Gaming, Inc.* 4,280 141,026
Brinker International, Inc. 3,550 137,243
Cheesecake Factory, Inc.* 3,670 137,221
SCP Pool Corp. 3,550 132,131
Panera Bread Co. -- Class A*+ 1,990 130,703
Scientific Games Corp. -- Class A*+ 4,730 129,034
Applebee's International, Inc. 5,680 128,311
CBRL Group, Inc.+ 3,650 128,298
Sonic Corp.* 4,300 126,850
Polaris Industries, Inc. 2,482 124,596
Ruby Tuesday, Inc. 4,540 117,541
Marvel Entertainment, Inc.*+ 6,939 113,661
Jack in the Box, Inc.*+ 3,205 111,951
THQ, Inc.* 4,659 111,117
Regal Entertainment Group --
Class A+ 5,820 110,696
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
P.F. Chang's China Bistro, Inc.*+ 2,170 $ 107,697
Pinnacle Entertainment, Inc.* 4,140 102,299
Rare Hospitality International, Inc.* 3,350 101,807
IHOP Corp. 2,170 101,795
CKX, Inc.* 7,300 94,900
CEC Entertainment, Inc.* 2,760 93,950
DreamWorks Animation SKG,
Inc. -- Class A* 3,750 92,100
Bob Evans Farms, Inc. 3,950 91,087
Papa John's International, Inc.* 1,527 90,566
Callaway Golf Co. 6,270 86,777
Take-Two Interactive Software,
Inc.*+ 4,890 86,553
Red Robin Gourmet Burgers, Inc.*+ 1,580 80,517
Jakks Pacific, Inc.*+ 3,804 79,656
WMS Industries, Inc.*+ 3,120 78,281
Aztar Corp.* 2,560 77,798
International Speedway Corp. --
Class A 1,580 75,682
Shuffle Master, Inc.*+ 2,960 74,414
Steak n Shake Co.* 4,340 73,563
Ryan's Restaurant Group, Inc.* 5,920 71,395
Nautilus, Inc.+ 3,350 62,511
O'Charleys, Inc.* 3,795 58,860
K2, Inc.* 5,720 57,829
Lone Star Steakhouse & Saloon, Inc. 2,370 56,264
Landry's Restaurants, Inc. 1,990 53,153
Bally Total Fitness Holding Corp.* 8,090 50,805
Krispy Kreme Doughnuts, Inc.*+ 8,545 49,048
Multimedia Games, Inc.*+ 4,770 44,123
4Kids Entertainment, Inc.* 2,564 40,229
Napster, Inc.* 8,880 31,258
Meade Instruments Corp.* 10,520 28,720
CKE Restaurants, Inc. 1,050 14,186
Domino's Pizza, Inc. 550 13,310
Gaylord Entertainment Co.* 280 12,205
-------------
TOTAL COMMON STOCKS
(Cost $11,916,154) 13,893,144
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 86,636 86,636
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $86,636) 86,636
-------------
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 147
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
LEISURE FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL 15.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) $ 2,203,343 $ 2,203,343
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,203,343) 2,203,343
-------------
TOTAL INVESTMENTS 115.9%
(Cost $14,206,133) $ 16,183,123
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (15.9)% $ (2,222,345)
=============
NET ASSETS - 100.0% $ 13,960,778
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
148 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.7%
Newmont Mining Corp.+ 177,038 $ 9,453,829
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 123,216 6,629,021
Placer Dome, Inc. 202,232 4,637,180
Barrick Gold Corp.+ 157,597 4,392,228
Goldcorp, Inc.+ 185,358 4,129,776
AngloGold Ashanti Ltd. --
SP ADR+ 74,033 3,652,048
Gold Fields Ltd. -- SP ADR+ 176,813 3,117,213
Glamis Gold Ltd.*+ 101,142 2,779,382
Harmony Gold Mining Co. Ltd. --
SP ADR*+ 192,433 2,511,251
Agnico-Eagle Mines Ltd.+ 118,453 2,340,631
Royal Gold, Inc.+ 67,318 2,337,954
Pan American Silver Corp.*+ 108,671 2,046,275
Crystallex International Corp.*+ 929,957 2,008,707
Coeur d'Alene Mines Corp.* 496,213 1,984,852
Meridian Gold, Inc.* 90,072 1,969,875
Kinross Gold Corp.* 207,496 1,913,113
Cia de Minas Buenaventura SA --
SP ADR 60,610 1,715,263
Bema Gold Corp.* 569,976 1,658,630
Silver Standard Resources, Inc.*+ 97,988 1,500,196
Randgold Resources Ltd. --
SP ADR*+ 92,997 1,500,042
Apex Silver Mines Ltd.* 82,788 1,316,329
Stillwater Mining Co.* 109,713 1,269,379
Hecla Mining Co.*+ 295,894 1,201,330
Golden Star Resources Ltd.*+ 369,481 979,125
Novagold Resources, Inc.* 106,826 972,117
-------------
TOTAL COMMON STOCKS
(Cost $50,184,304) 68,015,746
-------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.8%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 580,118 $ 580,118
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $580,118) 580,118
-------------
SECURITIES LENDING COLLATERAL 32.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 22,216,360 22,216,360
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $22,216,360) 22,216,360
-------------
TOTAL INVESTMENTS 133.1%
(Cost $72,980,782) $ 90,812,224
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (33.1)% $ (22,571,179)
=============
NET ASSETS - 100.0% $ 68,241,045
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
ADR -- AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 149
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.9%
Simon Property Group, Inc.+ 9,787 $ 749,978
Equity Residential+ 15,720 614,966
General Growth Properties, Inc.+ 12,886 605,513
Equity Office Properties Trust+ 19,599 594,438
Vornado Realty Trust+ 7,005 584,707
ProLogis 11,521 538,261
Archstone-Smith Trust 12,596 527,646
Boston Properties, Inc. 6,906 511,942
Public Storage, Inc. 7,479 506,478
Host Marriott Corp.+ 25,926 491,298
KIMCO Realty Corp. 15,286 490,375
AvalonBay Communities, Inc.+ 5,129 457,763
Plum Creek Timber Co., Inc. (REIT) 12,332 444,569
The St. Joe Co.+ 6,010 403,992
AMB Property Corp. 8,118 399,162
Developers Diversified Realty Corp. 8,458 397,695
Duke Realty Corp. 11,795 393,953
CB Richard Ellis Group, Inc. --
Class A* 6,658 391,823
Liberty Property Trust+ 8,271 354,412
Macerich Co.+ 5,150 345,771
SL Green Realty Corp. 4,416 337,338
Health Care Property Investors,
Inc.+ 13,144 335,961
Apartment Investment &
Management Co. -- Class A+ 8,818 333,938
Weingarten Realty Investors 8,829 333,824
Regency Centers Corp.+ 5,592 329,648
United Dominion Realty Trust, Inc.+ 13,988 327,879
Trizec Properties, Inc.+ 14,300 327,756
iStar Financial, Inc. 9,183 327,374
Reckson Associates Realty Corp. 9,092 327,130
Ventas, Inc.+ 10,015 320,680
Arden Realty, Inc. 7,141 320,131
Rayonier, Inc.+ 7,686 306,287
Federal Realty Investment Trust 5,038 305,555
Camden Property Trust 5,260 304,659
CenterPoint Properties Trust 5,977 295,742
Pan Pacific Retail Properties, Inc. 4,366 292,042
Global Signal, Inc. 6,743 291,028
Forest City Enterprises, Inc. --
Class A 7,653 290,278
BRE Properties, Inc. -- Class A 6,199 281,931
Mack-Cali Realty Corp. 6,525 281,880
Thornburg Mortgage, Inc.+ 10,744 281,493
Hospitality Properties Trust 7,007 280,981
Shurgard Storage Centers, Inc. --
Class A 4,783 271,244
CBL & Associates Properties, Inc. 6,720 265,507
New Plan Excel Realty Trust 11,276 261,378
Essex Property Trust, Inc.+ 2,831 261,018
Prentiss Properties Trust 6,192 251,891
New Century Financial Corp.+ 6,858 247,368
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Crescent Real Estate EQT Co. 12,382 $ 245,411
HRPT Properties Trust 23,626 244,529
KKR Financial Corp. 10,033 240,692
CarrAmerica Realty Corp. 6,852 237,285
Health Care REIT, Inc. 6,978 236,554
Taubman Centers, Inc.+ 6,717 233,416
First Industrial Realty Trust, Inc.+ 6,036 232,386
Kilroy Realty Corp. 3,728 230,763
Post Properties, Inc. 5,749 229,673
Alexandria Real Estate Equities, Inc. 2,780 223,790
Mills Corp.+ 5,262 220,688
Highwoods Properties, Inc. 7,726 219,805
Friedman Billings Ramsey Group,
Inc. -- Class A+ 22,189 219,671
Realty Income Corp. 10,094 218,232
Nationwide Health Properties, Inc. 10,080 215,712
Colonial Properties Trust 5,087 213,552
Corporate Office Properties Trust
SBI/MD 5,875 208,797
Home Properties, Inc.+ 5,111 208,529
Healthcare Realty Trust, Inc. 6,178 205,542
Washington Real Estate Investment
Trust 6,704 203,466
Commercial Net Lease Realty 9,972 203,130
Brandywine Realty Trust 7,278 203,129
Cousins Properties, Inc. 7,162 202,685
Heritage Property Investment Trust 6,048 202,003
FelCor Lodging Trust, Inc. 11,652 200,531
LaSalle Hotel Properties 5,441 199,794
Mid-America Apartment
Communities, Inc. 4,033 195,600
Senior Housing Properties Trust 11,465 193,873
American Financial Realty Trust 15,883 190,596
Annaly Mortgage Management, Inc. 17,095 187,019
Eastgroup Properties, Inc. 4,130 186,511
Lexington Corporate Properties
Trust+ 8,737 186,098
Pennsylvania Real Estate Investment
Trust 4,839 180,785
PS Business Parks, Inc. 3,582 176,234
AMLI Residential Properties Trust 4,585 174,459
Equity Lifestyle Properties, Inc. 3,875 172,438
Trustreet Properties, Inc. 11,569 169,139
Meristar Hospitality Corp.* 17,592 165,365
Entertainment Properties Trust 3,979 162,144
Innkeepers USA Trust 10,110 161,760
Inland Real Estate Corp. 10,755 159,066
Glimcher Realty Trust+ 6,288 152,924
Tanger Factory Outlet Centers, Inc. 5,319 152,868
Sovran Self Storage, Inc.+ 3,205 150,539
Equity Inns, Inc. 10,934 148,156
Town & Country Trust+ 4,377 147,986
National Health Investors, Inc. 5,387 139,847
Acadia Realty Trust 6,870 137,744
150 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Saul Centers, Inc. 3,780 $ 136,458
Sun Communities, Inc. 4,156 130,498
Glenborough Realty Trust, Inc. 6,766 122,465
LTC Properties, Inc. 5,800 121,974
Ramco-Gershenson Properties Trust 4,316 115,021
Parkway Properties, Inc./MD 2,805 112,593
CentraCore Properties Trust 3,703 99,500
Universal Health Realty Income Trust 3,130 98,094
Bedford Property Investors, Inc. 4,328 94,956
Urstadt Biddle Properties, Inc. 5,457 88,458
Winston Hotels, Inc. 8,344 82,606
Associated Estates Realty Corp. 8,217 74,282
Windrose Medical Properties Trust 4,295 63,824
American Land Lease, Inc. 2,572 60,879
Monmouth Reit -- Class A 6,519 52,282
-------------
TOTAL COMMON STOCKS
(Cost $22,831,341) 29,041,489
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.1%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 45,417 45,417
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $45,417) 45,417
-------------
SECURITIES LENDING COLLATERAL 14.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 4,290,906 4,290,906
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,290,906) 4,290,906
-------------
TOTAL INVESTMENTS 114.8%
(Cost $27,167,664) $ 33,377,812
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (14.8)% $ (4,303,538)
=============
NET ASSETS - 100.0% $ 29,074,274
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
REIT -- REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 151
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
RETAILING FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Wal-Mart Stores, Inc. 23,600 $ 1,104,480
Home Depot, Inc.+ 18,470 747,666
eBay, Inc.*+ 14,103 609,955
Lowe's Cos., Inc. 8,488 565,810
Target Corp. 9,883 543,269
Walgreen Co. 11,650 515,629
Costco Wholesale Corp.+ 8,370 414,064
Best Buy Co., Inc.+ 8,176 355,492
Amazon.com, Inc.*+ 7,338 345,987
CVS Corp. 12,992 343,249
Staples, Inc. 15,046 341,695
Federated Department Stores, Inc. 4,923 326,543
Sears Holdings Corp.*+ 2,812 324,870
J.C. Penney Holding Co., Inc. 5,664 314,918
Kohl's Corp.* 6,424 312,206
The Gap, Inc.+ 17,305 305,260
TJX Cos., Inc. 11,715 272,139
Nordstrom, Inc. 6,860 256,564
Office Depot, Inc.* 8,045 252,613
Limited Brands, Inc. 11,059 247,169
IAC/InterActiveCorp*+ 8,650 244,881
Bed Bath & Beyond, Inc.* 6,703 242,313
Chico's FAS, Inc.*+ 5,393 236,914
Expedia, Inc.*+ 9,875 236,605
AutoZone, Inc.*+ 2,475 227,081
Genuine Parts Co. 5,020 220,478
Abercrombie & Fitch Co. --
Class A+ 3,295 214,768
Sherwin-Williams Co. 4,550 206,661
AutoNation, Inc.* 9,340 202,958
Dollar General Corp.+ 9,780 186,505
Circuit City Stores, Inc.+ 8,190 185,012
Tiffany & Co.+ 4,720 180,729
Ross Stores, Inc. 6,240 180,336
Michaels Stores, Inc. 5,080 179,680
Advance Auto Parts, Inc.*+ 4,075 177,099
Family Dollar Stores, Inc. 7,130 176,753
Williams-Sonoma, Inc.*+ 3,950 170,443
Petsmart, Inc.+ 6,460 165,764
O'Reilly Automotive, Inc.* 4,960 158,770
Foot Locker, Inc. 6,360 150,032
American Eagle Outfitters, Inc.+ 6,361 146,176
Urban Outfitters, Inc.* 5,680 143,761
AnnTaylor Stores Corp.* 4,140 142,913
Claire's Stores, Inc. 4,720 137,918
Barnes & Noble, Inc. 3,220 137,397
Dollar Tree Stores, Inc.* 5,401 129,300
CarMax, Inc.* 4,640 128,435
RadioShack Corp. 6,070 127,652
Payless Shoesource, Inc.* 4,870 122,237
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Tractor Supply Co.*+ 2,260 $ 119,644
Dillard's, Inc. -- Class A 4,720 117,150
Saks, Inc.*+ 6,910 116,503
BJ's Wholesale Club, Inc.*+ 3,919 115,846
Pacific Sunwear of California, Inc.*+ 4,535 113,012
Children's Place Retail Stores, Inc.* 2,270 112,183
Dress Barn, Inc.*+ 2,700 104,247
Burlington Coat Factory Warehouse
Corp. 2,585 103,943
Aeropostale, Inc.*+ 3,950 103,885
Big Lots, Inc.* 8,570 102,926
Men's Wearhouse, Inc.* 3,490 102,746
Rite Aid Corp.* 28,804 100,238
Zale Corp.*+ 3,830 96,325
Select Comfort Corp.* 3,470 94,905
Rent-A-Center, Inc.* 4,820 90,905
Hibbett Sporting Goods, Inc.* 3,180 90,566
OfficeMax, Inc. 3,560 90,282
Dick's Sporting Goods, Inc.*+ 2,700 89,748
Borders Group, Inc. 4,100 88,847
Gymboree Corp.* 3,660 85,644
Longs Drug Stores Corp. 2,292 83,406
Guitar Center, Inc.* 1,640 82,016
Bebe Stores, Inc. 5,770 80,953
Aaron Rents, Inc. 3,660 77,153
Fred's, Inc. 4,720 76,794
Christopher & Banks Corp. 4,070 76,435
Group 1 Automotive, Inc.* 2,410 75,746
Genesco, Inc.* 1,910 74,089
Too, Inc.* 2,620 73,910
Finish Line, Inc. -- Class A 4,240 73,861
PEP Boys-Manny Moe & Jack+ 4,910 73,110
GameStop Corp. -- Class B* 2,510 72,539
99 Cents Only Stores*+ 6,880 71,965
Stage Stores, Inc. 2,400 71,472
Linens `N Things, Inc.* 2,600 69,160
Sonic Automotive, Inc. 2,990 66,617
Stein Mart, Inc. 3,590 65,159
Building Material Holding Corp. 948 64,663
HOT Topic, Inc.* 4,340 61,845
Pier 1 Imports, Inc. 6,940 60,586
J. Jill Group, Inc.* 3,080 58,612
Cato Corp. -- Class A 2,701 57,936
Goody's Family Clothing, Inc. 5,490 52,649
Cost Plus, Inc.*+ 2,890 49,564
Audiovox Corp. -- Class A* 3,110 43,105
Haverty Furniture Cos., Inc. 3,280 42,279
Jo-Ann Stores, Inc.* 3,080 36,344
Insight Enterprises, Inc.* 1,450 28,435
Hancock Fabrics, Inc./DE+ 4,320 17,582
-------------
TOTAL COMMON STOCKS
(Cost $14,086,786) 17,536,679
-------------
152 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
RETAILING FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL 15.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) $ 2,705,034 $ 2,705,034
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,705,034) 2,705,034
-------------
TOTAL INVESTMENTS 114.9%
(Cost $16,791,820) $ 20,241,713
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (14.9)% $ (2,626,117)
=============
NET ASSETS - 100.0% $ 17,615,596
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 153
SCHEDULE OF INVESTMENTS DECEMBER 31, 2005
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Microsoft Corp. 50,712 $ 1,326,119
Intel Corp. 33,701 841,177
International Business Machines
Corp.+ 9,186 755,089
Cisco Systems, Inc.* 37,313 638,799
Google, Inc. -- Class A*+ 1,326 550,104
Hewlett-Packard Co. 18,347 525,275
Qualcomm, Inc. 10,842 467,073
Dell, Inc.* 15,430 462,746
Apple Computer, Inc.* 6,224 447,443
Oracle Corp.* 35,288 430,866
Yahoo!, Inc.*+ 10,386 406,923
Motorola, Inc. 17,600 397,584
Texas Instruments, Inc. 11,535 369,927
First Data Corp. 6,340 272,683
EMC Corp./MA* 19,750 268,995
Applied Materials, Inc.+ 13,719 246,119
Corning, Inc.* 12,339 242,585
Adobe Systems, Inc. 6,403 236,655
Automatic Data Processing, Inc. 5,010 229,909
Symantec Corp.* 10,164 177,870
Computer Associates International,
Inc.+ 5,650 159,273
Agilent Technologies, Inc.* 4,770 158,793
Electronic Arts, Inc.*+ 2,880 150,653
Sun Microsystems, Inc.* 34,505 144,576
Paychex, Inc. 3,790 144,475
Xerox Corp.* 9,766 143,072
Broadcom Corp. -- Class A* 2,865 135,085
Analog Devices, Inc. 3,743 134,261
Advanced Micro Devices, Inc.*+ 4,334 132,620
Electronic Data Systems Corp. 5,440 130,778
Sandisk Corp.*+ 2,050 128,781
Juniper Networks, Inc.*+ 5,679 126,642
Maxim Integrated Products, Inc.+ 3,287 119,121
Lucent Technologies, Inc.*+ 44,143 117,420
Linear Technology Corp. 3,221 116,181
Network Appliance, Inc.*+ 4,140 111,780
Intuit, Inc.* 2,060 109,798
KLA-Tencor Corp.+ 2,167 106,898
Autodesk, Inc. 2,474 106,258
Computer Sciences Corp.* 2,080 105,331
National Semiconductor Corp.+ 3,838 99,711
Xilinx, Inc.+ 3,833 96,630
Micron Technology, Inc.*+ 7,055 93,902
Fiserv, Inc.* 2,130 92,165
Jabil Circuit, Inc.*+ 2,480 91,983
Affiliated Computer Services,
Inc. -- Class A* 1,440 85,219
Cognizant Technology Solutions
Corp.* 1,666 83,883
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Freescale Semiconductor, Inc. --
Class B* 3,292 $ 82,860
Scientific-Atlanta, Inc. 1,920 82,694
Microchip Technology, Inc. 2,560 82,304
Altera Corp.* 4,414 81,791
NCR Corp.*+ 2,310 78,401
Nvidia Corp.* 2,110 77,142
VeriSign, Inc.*+ 3,331 73,016
Harris Corp. 1,680 72,257
Iron Mountain, Inc.* 1,710 72,196
Siebel Systems, Inc. 6,665 70,516
Comverse Technology, Inc.*+ 2,574 68,443
Red Hat, Inc.*+ 2,463 67,092
Avaya, Inc.* 6,204 66,197
Lam Research Corp.* 1,854 66,151
Citrix Systems, Inc.* 2,290 65,906
Tellabs, Inc.* 5,887 64,168
DST Systems, Inc.* 1,060 63,505
Lexmark International, Inc.*+ 1,400 62,762
Cadence Design Systems, Inc.*+ 3,693 62,486
CDW Corp. 1,060 61,024
MEMC Electronic Materials, Inc.* 2,746 60,879
Western Digital Corp.* 3,240 60,296
CheckFree Corp.* 1,290 59,211
BMC Software, Inc.* 2,880 59,011
McAfee, Inc.* 2,116 57,407
Amphenol Corp. -- Class A 1,250 55,325
Intersil Corp. -- Class A 2,200 54,736
Ceridian Corp.* 2,150 53,427
Salesforce.com, Inc.*+ 1,660 53,203
JDS Uniphase Corp.* 22,507 53,117
NAVTEQ Corp.* 1,210 53,083
Arrow Electronics, Inc.* 1,650 52,849
Global Payments, Inc. 1,128 52,576
BEA Systems, Inc.* 5,515 51,841
Total System Services, Inc. 2,610 51,652
Activision, Inc.*+ 3,684 50,618
Novell, Inc.* 5,690 50,243
Solectron Corp.* 13,486 49,359
Avnet, Inc.*+ 2,050 49,077
Symbol Technologies, Inc. 3,802 48,742
Compuware Corp.* 5,420 48,617
Sabre Holdings Corp. 1,990 47,979
Novellus Systems, Inc.* 1,960 47,275
Ingram Micro, Inc. -- Class A* 2,360 47,035
Zebra Technologies Corp. --
Class A* 1,080 46,278
Akamai Technologies, Inc.* 2,210 44,045
Synopsys, Inc.* 2,170 43,530
LSI Logic Corp.*+ 5,404 43,232
QLogic Corp.* 1,319 42,881
Fair Isaac Corp. 970 42,845
Alliance Data Systems Corp.* 1,200 42,720
154 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Integrated Device Technology, Inc.* 3,190 $ 42,044
Diebold, Inc. 1,090 41,420
Teradyne, Inc.* 2,840 41,379
National Instruments Corp. 1,290 41,344
Molex, Inc. 1,530 39,703
AVX Corp. 2,740 39,675
ADC Telecommunications, Inc.* 1,770 39,542
Certegy, Inc. 960 38,938
Agere Systems, Inc.* 3,000 38,700
Vishay Intertechnology, Inc.* 2,750 37,840
Tektronix, Inc. 1,340 37,801
Mettler Toledo International, Inc.* 680 37,536
F5 Networks, Inc.*+ 650 37,173
MoneyGram International, Inc. 1,420 37,034
Tech Data Corp.*+ 930 36,902
Convergys Corp.* 2,280 36,138
Sanmina-SCI Corp.* 8,300 35,358
Hyperion Solutions Corp.* 980 35,104
ADTRAN, Inc. 1,175 34,944
Anteon International Corp.* 640 34,784
Acxiom Corp. 1,500 34,500
Avid Technology, Inc.* 630 34,499
Mercury Interactive Corp.* 1,230 34,182
Silicon Laboratories, Inc.* 930 34,094
Fairchild Semiconductor
International, Inc.*+ 2,010 33,989
Factset Research Systems, Inc. 820 33,751
International Rectifier Corp.* 1,020 32,538
Trimble Navigation Ltd.* 900 31,941
Micros Systems, Inc.* 660 31,891
Sybase, Inc.* 1,450 31,697
Cree, Inc.* 1,250 31,550
Unisys Corp.* 5,380 31,365
Cypress Semiconductor Corp.*+ 2,170 30,922
CIENA Corp.* 10,070 29,908
Microsemi Corp.*+ 1,077 29,790
Reynolds & Reynolds Co. -- Class A 1,060 29,754
Jack Henry & Associates, Inc. 1,540 29,383
CACI International, Inc. -- Class A* 510 29,264
Websense, Inc.* 443 29,079
Andrew Corp.* 2,710 29,078
BISYS Group, Inc.* 2,070 29,001
Atmel Corp.* 9,340 28,861
Varian Semiconductor Equipment
Associates, Inc.* 650 28,554
Imation Corp. 600 27,642
Parametric Technology Corp.* 4,492 27,401
Hewitt Associates, Inc. -- Class A* 960 26,890
THQ, Inc.*+ 1,117 26,640
Gartner, Inc. -- Class A*+ 2,040 26,316
Anixter International, Inc. 660 25,819
MPS Group, Inc.* 1,870 25,563
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Benchmark Electronics, Inc.* 760 $ 25,559
Polycom, Inc.* 1,670 25,551
Cognex Corp. 840 25,276
Flir Systems, Inc.* 1,130 25,233
Ansys, Inc.* 590 25,187
Semtech Corp.*+ 1,360 24,834
Powerwave Technologies, Inc.*+ 1,950 24,511
PMC - Sierra, Inc.*+ 3,130 24,132
3Com Corp.*+ 6,680 24,048
Cymer, Inc.* 676 24,005
Kronos, Inc./MA* 570 23,860
Wind River Systems, Inc.* 1,610 23,780
Plantronics, Inc. 840 23,772
Avocent Corp.* 860 23,383
Belden CDT, Inc.+ 917 22,402
Digital Insight Corp.* 680 21,774
Take-Two Interactive Software, Inc.* 1,230 21,771
SRA International, Inc. -- Class A* 710 21,683
eFunds Corp.* 920 21,565
CommScope, Inc.* 1,070 21,539
CSG Systems International, Inc.*+ 940 20,981
Plexus Corp.* 910 20,693
Talx Corp. 450 20,569
j2 Global Communications, Inc.* 480 20,515
Transaction Systems Architects,
Inc. -- Class A* 710 20,441
Progress Software Corp.* 710 20,150
Filenet Corp.* 770 19,905
ATMI, Inc.* 710 19,859
Serena Software, Inc.*+ 840 19,690
Micrel, Inc.* 1,690 19,604
RF Micro Devices, Inc.* 3,590 19,422
WebEx Communications, Inc.* 870 18,818
Utstarcom, Inc.*+ 2,310 18,619
Checkpoint Systems, Inc.* 750 18,488
Itron, Inc.* 460 18,418
Coherent, Inc.* 620 18,402
Advent Software, Inc.* 630 18,213
Internet Security Systems, Inc.* 866 18,143
Gateway, Inc.* 7,180 18,022
Mentor Graphics Corp.* 1,690 17,475
Paxar Corp.* 870 17,078
Black Box Corp. 360 17,057
Aeroflex, Inc.* 1,580 16,985
Global Imaging Systems, Inc.* 480 16,622
Macrovision Corp.* 990 16,563
MAXIMUS, Inc. 450 16,511
RSA Security, Inc.*+ 1,410 15,834
Adaptec, Inc.* 2,690 15,656
Hutchinson Technology, Inc.*+ 550 15,648
Applied Micro Circuits Corp.* 6,050 15,549
ViaSat, Inc.* 580 15,503
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 155
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
iPayment Holdings, Inc.* 370 $ 15,362
Scansource, Inc.* 280 15,310
Cabot Microelectronics Corp.* 520 15,252
Power Integrations, Inc.* 640 15,238
Technitrol, Inc. 890 15,219
Electro Scientific Industries, Inc.* 630 15,215
Skyworks Solutions, Inc.* 2,986 15,199
DSP Group, Inc.* 600 15,036
Supertex, Inc.* 330 14,603
MTS Systems Corp. 420 14,549
Triquint Semiconductor, Inc.* 3,230 14,374
Keane, Inc.* 1,290 14,203
Credence Systems Corp.* 2,040 14,198
Rogers Corp.* 360 14,105
Synaptics, Inc.* 570 14,090
FEI Co.* 730 13,994
Comtech Telecommunications
Corp.*+ 450 13,743
Daktronics, Inc. 460 13,602
Littelfuse, Inc.* 490 13,353
SPSS, Inc.* 430 13,300
Standard Microsystems Corp.* 460 13,197
Netgear, Inc.* 680 13,090
KEMET Corp.* 1,820 12,867
Photronics, Inc.*+ 851 12,816
Agilsys, Inc. 700 12,754
Manhattan Associates, Inc.* 620 12,698
Brooks Automation, Inc.* 1,000 12,530
Dolby Laboratories, Inc. -- Class A* 730 12,447
Newport Corp.* 900 12,186
Veeco Instruments, Inc.* 700 12,131
Park Electrochemical Corp. 460 11,951
Advanced Energy Industries, Inc.* 1,010 11,948
JDA Software Group, Inc.* 690 11,737
Mantech International Corp. --
Class A* 420 11,701
Inter-Tel, Inc. 590 11,546
Altiris, Inc.* 680 11,485
Cohu, Inc. 500 11,435
Lattice Semiconductor Corp.*+ 2,630 11,362
Kulicke & Soffa Industries, Inc.* 1,280 11,315
Axcelis Technologies, Inc.* 2,290 10,923
Intrado, Inc.* 460 10,589
Exar Corp.* 820 10,266
McData Corp. -- Class A*+ 2,600 9,880
Ultratech, Inc.* 600 9,852
Symmetricom, Inc.* 1,160 9,825
Ciber, Inc.* 1,470 9,702
CTS Corp. 870 9,622
Radiant Systems, Inc.* 770 9,363
Methode Electronics, Inc. -- Class A 900 8,973
MRO Software, Inc.* 620 8,705
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Radisys Corp.* 500 $ 8,670
Kopin Corp.* 1,610 8,614
Harmonic, Inc.* 1,760 8,536
Sonic Solutions, Inc.* 560 8,462
EPIQ Systems, Inc.* 440 8,158
Actel Corp.* 640 8,147
Photon Dynamics, Inc.* 440 8,043
Startek, Inc. 430 7,740
Ditech Communications Corp.* 920 7,682
LTX Corp.* 1,670 7,515
MapInfo Corp.* 570 7,188
Digi International, Inc.*+ 630 6,609
Bel Fuse, Inc. -- Class B 202 6,424
Gerber Scientific, Inc.* 670 6,412
Rudolph Technologies, Inc.* 480 6,182
C-COR, Inc.* 1,230 5,978
Catapult Communications Corp.* 400 5,916
Bell Microproducts, Inc.* 770 5,891
Pericom Semiconductor Corp.* 730 5,818
X-Rite, Inc. 580 5,800
Keithley Instruments, Inc. 410 5,732
Pegasus Solutions, Inc.* 620 5,561
PC-Tel, Inc.* 620 5,431
SBS Technologies, Inc.* 490 4,934
Tollgrade Communications, Inc.* 450 4,919
Napster, Inc.* 1,310 4,611
Phoenix Technologies, Ltd.* 730 4,570
MIVA, Inc.* 910 4,505
ESS Technologies, Inc.* 1,260 4,322
Planar Systems, Inc.* 490 4,101
Carreker Corp.* 740 3,693
Network Equipment Technologies,
Inc.* 830 3,652
Captaris, Inc.* 970 3,579
Zix Corp.* 1,430 2,731
-------------
TOTAL COMMON STOCKS
(Cost $16,165,422) 19,056,716
-------------
156 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2005
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.3%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 51,773 $ 51,773
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $51,773) 51,773
-------------
SECURITIES LENDING COLLATERAL 11.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,273,008 2,273,008
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,273,008) 2,273,008
-------------
TOTAL INVESTMENTS 111.7%
(Cost $18,490,203) $ 21,381,497
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (11.7)% $ (2,236,536)
=============
NET ASSETS - 100.0% $ 19,144,961
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 157
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Cisco Systems, Inc.* 59,056 $ 1,011,039
Vodafone Group PLC -- SP ADR+ 45,960 986,761
Nokia OYJ -- SP ADR+ 48,110 880,413
AT&T, Inc.+ 35,610 872,089
Verizon Communications, Inc.+ 27,300 822,276
Sprint Nextel Corp. 33,948 793,025
Qualcomm, Inc. 18,162 782,419
Motorola, Inc.+ 32,013 723,174
Telefonaktiebolaget LM Ericsson --
SP ADR+ 18,965 652,396
BellSouth Corp.+ 22,350 605,685
Corning, Inc.* 26,461 520,223
Alltel Corp. 6,651 419,678
Alcatel SA -- SP ADR*+ 31,940 396,056
Qwest Communications
International, Inc.* 59,010 333,406
Juniper Networks, Inc.*+ 14,451 322,257
American Tower Corp. -- Class A*+ 11,756 318,588
Lucent Technologies, Inc.*+ 108,973 289,868
Scientific-Atlanta, Inc. 6,173 265,871
NII Holdings, Inc. -- Class B* 5,690 248,539
Crown Castle International Corp.* 8,734 235,032
Telewest Global, Inc.* 9,860 234,865
Harris Corp.+ 5,438 233,888
Nextel Partners, Inc. -- Class A*+ 8,200 229,108
Avaya, Inc.* 20,969 223,739
CenturyTel, Inc.+ 6,520 216,203
MCI, Inc. 10,819 213,459
Tellabs, Inc.* 18,855 205,519
Comverse Technology, Inc.*+ 7,640 203,148
Alamosa Holdings, Inc.* 9,860 183,495
PanAmSat Holding Corp. 7,140 174,930
JDS Uniphase Corp.*+ 70,895 167,312
F5 Networks, Inc.*+ 2,840 162,420
ADC Telecommunications, Inc.* 6,880 153,699
Cincinnati Bell, Inc.* 43,650 153,212
ADTRAN, Inc.+ 4,754 141,384
U.S. Cellular Corp.* 2,860 141,284
Belden CDT, Inc.+ 5,257 128,429
CIENA Corp.* 41,690 123,819
Powerwave Technologies, Inc.*+ 9,090 114,261
Citizens Communications Co. 9,190 112,394
Andrew Corp.* 10,417 111,774
Telephone & Data Systems, Inc. 3,050 109,892
Polycom, Inc.* 7,050 107,865
Plantronics, Inc. 3,710 104,993
Avocent Corp.* 3,770 102,506
CommScope, Inc.*+ 4,980 100,247
Black Box Corp. 2,100 99,498
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Utstarcom, Inc.*+ 11,210 $ 90,353
ViaSat, Inc.* 3,330 89,011
3Com Corp.*+ 23,352 84,067
General Communication, Inc. --
Class A*+ 7,760 80,161
Commonwealth Telephone
Enterprises, Inc. 2,270 76,658
Comtech Telecommunications
Corp.*+ 2,370 72,380
Netgear, Inc.*+ 3,680 70,840
Symmetricom, Inc.* 7,738 65,541
Inter-Tel, Inc. 3,200 62,624
Ditech Communications Corp.* 6,380 53,273
Digi International, Inc.*+ 4,840 50,772
Tollgrade Communications, Inc.* 4,420 48,311
Harmonic, Inc.* 9,940 48,209
Bel Fuse, Inc. -- Class B 1,437 45,697
C-COR, Inc.* 4,770 23,182
Network Equipment Technologies,
Inc.* 4,766 20,970
UbiquiTel, Inc.* 1,750 17,308
KT Corp. -- SP ADR 800 17,240
Tele Norte Leste Participacoes SA --
ADR 940 16,845
SK Telecom Co., Ltd. -- SP ADR 780 15,826
Research In Motion, Ltd.*+ 220 14,522
Telefonica SA 300 13,506
-------------
TOTAL COMMON STOCKS
(Cost $13,179,017) 16,809,434
-------------
FACE
AMOUNT
-------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 95,540 95,540
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $95,540) 95,540
-------------
SECURITIES LENDING COLLATERAL 24.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 4,164,244 4,164,244
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,164,244) 4,164,244
-------------
TOTAL INVESTMENTS 124.7%
(Cost $17,438,801) $ 21,069,218
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (24.7)% $ (4,171,327)
=============
NET ASSETS - 100.0% $ 16,897,891
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
ADR -- AMERICAN DEPOSITORY RECEIPT.
158 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
TRANSPORTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.6%
United Parcel Service, Inc. --
Class B 39,701 $ 2,983,530
FedEx Corp.+ 24,360 2,518,580
Burlington Northern Santa Fe Corp. 32,814 2,323,887
Union Pacific Corp. 25,054 2,017,098
Norfolk Southern Corp. 42,522 1,906,261
Southwest Airlines Co.+ 95,602 1,570,741
CSX Corp. 28,365 1,440,091
Expeditors International
Washington, Inc.+ 17,900 1,208,429
CH Robinson Worldwide, Inc. 30,318 1,122,676
AMR Corp.*+ 50,247 1,116,991
J.B. Hunt Transport Services, Inc. 37,900 858,056
JetBlue Airways Corp.*+ 48,168 740,824
Ryder System, Inc. 17,887 733,725
CNF, Inc.+ 13,050 729,364
Yellow Roadway Corp.*+ 15,442 688,868
Landstar System, Inc. 15,792 659,158
Alexander & Baldwin, Inc.+ 11,954 648,385
EGL, Inc.* 17,223 647,068
Knight Transportation, Inc. 30,094 623,849
Laidlaw International, Inc. 26,740 621,170
Kansas City Southern*+ 24,501 598,559
Werner Enterprises, Inc.+ 28,140 554,358
AirTran Holdings, Inc.+ 34,460 552,394
Swift Transportation Co., Inc.*+ 26,609 540,163
SkyWest, Inc. 19,182 515,228
Heartland Express, Inc.+ 24,897 505,160
Arkansas Best Corp. 11,230 490,526
Kirby Corp.* 9,401 490,450
Alaska Air Group, Inc.*+ 12,762 455,859
Old Dominion Freight Line, Inc.* 16,870 455,153
Forward Air Corp. 12,209 447,460
Mesa Air Group, Inc.*+ 24,450 255,747
Frontier Airlines, Inc.*+ 25,120 232,109
-------------
TOTAL COMMON STOCKS
(Cost $24,740,651) 31,251,917
-------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 1.0%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 312,008 $ 312,008
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $312,008) 312,008
-------------
SECURITIES LENDING COLLATERAL 13.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 4,332,169 4,332,169
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,332,169) 4,332,169
-------------
TOTAL INVESTMENTS 114.4%
(Cost $29,384,828) $ 35,896,094
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (14.4)% $ (4,518,561)
=============
NET ASSETS - 100.0% $ 31,377,533
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 159
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
UTILITIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 99.8%
Exelon Corp.+ 26,304 $ 1,397,795
Dominion Resources, Inc./VA+ 15,544 1,199,997
Duke Energy Corp.+ 43,457 1,192,895
Southern Co.+ 33,938 1,171,879
TXU Corp. 22,668 1,137,707
FirstEnergy Corp.+ 19,351 948,006
Public Service Enterprise Group,
Inc.+ 14,331 931,085
FPL Group, Inc. 22,224 923,629
Edison International 20,045 874,162
PG&E Corp.+ 23,523 873,174
American Electric Power Co., Inc. 23,391 867,572
Entergy Corp. 12,584 863,892
Sempra Energy 17,663 792,009
Consolidated Edison, Inc.+ 17,024 788,722
Progress Energy, Inc.+ 17,634 774,485
Constellation Energy Group, Inc. 13,237 762,451
PPL Corp. 25,582 752,111
AES Corp.*+ 47,100 745,593
Ameren Corp.+ 14,455 740,674
Cinergy Corp. 16,409 696,726
DTE Energy Co. 14,749 637,009
Xcel Energy, Inc.+ 34,443 635,818
KeySpan Corp.+ 16,489 588,492
Questar Corp. 7,629 577,515
Allegheny Energy, Inc.*+ 17,630 557,990
NiSource, Inc.+ 24,939 520,228
Wisconsin Energy Corp. 12,920 504,655
SCANA Corp. 12,450 490,281
Pepco Holdings, Inc. 21,796 487,577
Equitable Resources, Inc. 12,994 476,750
NRG Energy, Inc.*+ 10,065 474,263
Pinnacle West Capital Corp.+ 11,300 467,255
MDU Resources Group, Inc. 14,002 458,426
CenterPoint Energy, Inc.+ 35,527 456,522
Aqua America, Inc. 16,500 450,450
TECO Energy, Inc. 25,467 437,523
Alliant Energy Corp. 15,410 432,096
DPL, Inc.+ 16,341 425,029
NSTAR 14,558 417,815
Energy East Corp. 18,267 416,488
CMS Energy Corp.*+ 28,170 408,747
Northeast Utilities 19,630 386,515
National Fuel Gas Co. 12,290 383,325
AGL Resources, Inc. 10,911 379,812
Southern Union Co.* 15,977 377,537
Energen Corp. 10,250 372,280
Reliant Energy, Inc.*+ 35,855 370,024
OGE Energy Corp.+ 13,752 368,416
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Oneok, Inc.+ 13,762 $ 366,482
WPS Resources Corp. 6,125 338,774
Atmos Energy Corp. 12,844 335,999
Vectren Corp. 12,296 333,959
Hawaiian Electric Industries, Inc. 12,876 333,488
Great Plains Energy, Inc. 11,842 331,102
Puget Energy, Inc. 15,890 324,474
Piedmont Natural Gas Co.+ 13,220 319,395
UGI Corp. 15,454 318,352
Westar Energy, Inc. 14,548 312,782
Nicor, Inc. 7,789 306,186
PNM Resources, Inc. 12,098 296,280
Sierra Pacific Resources*+ 22,145 288,771
Dynegy, Inc. -- Class A*+ 58,869 284,926
WGL Holdings, Inc. 9,190 276,251
Aquila, Inc.* 75,442 271,591
Peoples Energy Corp.+ 7,430 260,570
IDACORP, Inc.+ 8,883 260,272
Duquesne Light Holdings, Inc. 15,860 258,835
Allete, Inc.+ 5,690 250,360
New Jersey Resources Corp. 5,860 245,475
Unisource Energy Corp. 7,652 238,742
Cleco Corp. 11,275 235,084
Southwest Gas Corp. 8,710 229,944
El Paso Electric Co.* 10,927 229,904
Black Hills Corp. 6,520 225,657
Northwest Natural Gas Co. 6,550 223,879
Avista Corp.+ 12,227 216,540
CH Energy Group, Inc. 4,340 199,206
UIL Holding Corp. 4,060 186,719
Laclede Group, Inc. 5,802 169,476
Empire District Electric Co. 59 1,200
-------------
TOTAL COMMON STOCKS
(Cost $34,821,536) 39,864,077
-------------
160 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
UTILITIES FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
3.40% due 01/03/06 $ 161,359 $ 161,359
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $161,359) 161,359
-------------
SECURITIES LENDING COLLATERAL 20.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 8,048,916 8,048,916
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,048,916) 8,048,916
-------------
TOTAL INVESTMENTS 120.4%
(Cost $43,031,811) $ 48,074,352
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (20.4)% $ (8,130,970)
=============
NET ASSETS - 100.0% $ 39,943,382
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 8.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 161
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 135,972,521 $ 31,143,521 $ 120,586,231 $ 20,004,579
Segregated Cash with Broker 3,241,350 1,345,050 165,000 501,000
Receivable for Short Sale -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- 45,355 -- 369,747
Receivable for Futures Contracts Settlement (Note 1) -- 167,598 -- 38,410
Receivable for Securities Sold (Note 1) -- -- -- --
Receivable for Fund Shares Purchased 4,982,179 493,018 2,074,611 435,003
Investment Income Receivable (Note 1) 132,613 8,368 46,210 4,727
Receivable From Advisor (Note 4) -- -- -- 21,322
Other Assets 667 -- 2,374 --
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 144,329,330 33,202,910 122,874,426 21,374,788
============================================================================================================================
LIABILITIES
Short Sales at Market Value -- -- -- --
Payable for Equity Index Swap Settlement (Note 1) 246,377 -- 44,703 --
Payable for Futures Contracts Settlement (Note 1) 403,882 -- 12,650 --
Payable upon Return of Securities Loaned (Note 8) 10,543,447 -- 18,877,210 --
Payable for Securities Purchased (Note 1) 91,320 -- -- --
Liability for Fund Shares Redeemed 764,931 613,559 1,224,896 1,661,840
Investment Advisory Fees Payable (Note 3) 83,830 25,088 78,905 14,585
Transfer Agent and Administrative Fees Payable (Note 3) 27,943 6,969 26,302 4,051
Distribution and Service Fees Payable (Note 3) 27,943 6,969 26,302 4,051
Portfolio Accounting Fees Payable (Note 3) 11,177 2,788 10,521 1,621
Custody Fees Payable 2,683 669 2,550 453
Interest Payable -- -- -- --
Cash due to Custodian Bank -- -- -- --
Tax Expense Payable (Note 4) -- -- -- 21,322
Other Liabilities 107,705 41,475 83,344 18,538
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 12,311,238 697,517 20,387,383 1,726,461
============================================================================================================================
NET ASSETS $ 132,018,092 $ 32,505,393 $ 102,487,043 $ 19,648,327
============================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 227,465,426 $ 57,992,387 $ 473,887,738 $ 29,496,277
Undistributed Net Investment Income (Loss) 647,004 519,167 -- 478,824
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, and Futures Contracts (103,994,015) (26,543,572) (398,520,450) (10,787,407)
Net Unrealized Appreciation (Depreciation) on
Investments, Equity Index Swaps, and Futures Contracts 7,899,677 537,411 27,119,755 460,633
============================================================================================================================
NET ASSETS $ 132,018,092 $ 32,505,393 $ 102,487,043 $ 19,648,327
============================================================================================================================
SHARES OUTSTANDING 15,416,574 6,312,537 7,045,904 913,308
NET ASSET VALUES $ 8.56 $ 5.15 $ 14.55 $ 21.51
* THE COST OF SECURITIES AT VALUE IS $126,805,751, $31,143,521, $93,379,326,
$20,004,579, $24,358,797, $48,546,015, $55,125,810, $2,494,804,
$42,254,261, $10,029,712, $59,053,585 AND $50,552,241, RESPECTIVELY.
162 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
December 31, 2005
- --------------------------------------------------------------------------------
INVERSE
TITAN 500 VELOCITY 100 MEDIUS MID-CAP
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 26,361,002 $ 53,803,488 $ 57,952,901 $ 2,494,804
Segregated Cash with Broker 844,200 411,000 375,300 24,300
Receivable for Short Sale -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- 3,523
Receivable for Futures Contracts Settlement (Note 1) -- -- -- 3,240
Receivable for Securities Sold (Note 1) -- -- 5,983,205 --
Receivable for Fund Shares Purchased 3,286,094 993,817 -- 324,862
Investment Income Receivable (Note 1) 27,933 20,416 27,949 544
Receivable From Advisor (Note 4) -- -- -- --
Other Assets 140 696 425 --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 30,519,369 55,229,417 64,339,780 2,851,273
===========================================================================================================================
LIABILITIES
Short Sales at Market Value -- -- -- --
Payable for Equity Index Swap Settlement (Note 1) 118,939 1,553,873 248,586 --
Payable for Futures Contracts Settlement (Note 1) 105,190 31,510 50,040 --
Payable upon Return of Securities Loaned (Note 8) 2,130,166 7,258,246 7,735,014 --
Payable for Securities Purchased (Note 1) 17,800 -- -- --
Liability for Fund Shares Redeemed 2,698,040 1,986,817 5,014,214 2
Investment Advisory Fees Payable (Note 3) 20,876 35,807 40,568 1,728
Transfer Agent and Administrative Fees Payable (Note 3) 5,799 9,946 11,269 480
Distribution and Service Fees Payable (Note 3) 5,799 9,946 11,269 480
Portfolio Accounting Fees Payable (Note 3) 2,320 3,979 4,508 192
Custody Fees Payable 557 1,290 1,082 119
Interest Payable -- -- -- --
Cash due to Custodian Bank 131 -- -- --
Tax Expense Payable (Note 4) -- -- -- --
Other Liabilities 16,443 25,438 26,184 1,909
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 5,122,060 10,916,852 13,142,734 4,910
===========================================================================================================================
NET ASSETS $ 25,397,309 $ 44,312,565 $ 51,197,046 $ 2,846,363
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 25,806,060 $ 46,458,131 $ 42,515,179 $ 3,643,595
Undistributed Net Investment Income (Loss) 134,395 -- -- 1,649
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, and Futures Contracts (2,161,385) (6,322,721) 6,113,336 (825,044)
Net Unrealized Appreciation (Depreciation) on
Investments, Equity Index Swaps, and Futures Contracts 1,618,239 4,177,155 2,568,531 26,163
===========================================================================================================================
NET ASSETS $ 25,397,309 $ 44,312,565 $ 51,197,046 $ 2,846,363
===========================================================================================================================
SHARES OUTSTANDING 1,382,477 1,978,915 1,698,308 72,705
NET ASSET VALUES $ 18.37 $ 22.39 $ 30.15 $ 39.15
INVERSE U.S.
MEKROS SMALL-CAP GOVERNMENT JUNO
FUND FUND BOND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 45,667,043 $ 10,029,712 $ 60,512,991 $ 50,550,770
Segregated Cash with Broker 955,555 78,300 756,000 140,067
Receivable for Short Sale -- -- -- 140,566
Receivable for Equity Index Swap Settlement (Note 1) -- 179,362 -- --
Receivable for Futures Contracts Settlement (Note 1) -- 15,950 -- 39,656
Receivable for Securities Sold (Note 1) -- -- 108,787 --
Receivable for Fund Shares Purchased 302,475 1,562,106 167,163 219,033
Investment Income Receivable (Note 1) 47,595 2,191 281,932 10,794
Receivable From Advisor (Note 4) -- -- -- --
Other Assets 88,281 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 47,060,949 11,867,621 61,826,873 51,100,886
===========================================================================================================================
LIABILITIES
Short Sales at Market Value -- -- -- 19,707,410
Payable for Equity Index Swap Settlement (Note 1) 492,813 -- -- --
Payable for Futures Contracts Settlement (Note 1) 139,700 -- 209,281 --
Payable upon Return of Securities Loaned (Note 8) 3,910,059 -- -- --
Payable for Securities Purchased (Note 1) -- -- -- --
Liability for Fund Shares Redeemed 3,558,524 -- 1,375,370 1,290,088
Investment Advisory Fees Payable (Note 3) 42,594 6,279 25,514 28,149
Transfer Agent and Administrative Fees Payable (Note 3) 11,832 1,744 10,206 7,819
Distribution and Service Fees Payable (Note 3) 11,832 1,744 12,757 7,819
Portfolio Accounting Fees Payable (Note 3) 4,733 698 5,103 3,128
Custody Fees Payable 1,136 471 1,757 751
Interest Payable -- -- -- 358,343
Cash due to Custodian Bank 268,802 -- -- --
Tax Expense Payable (Note 4) -- -- -- --
Other Liabilities 29,486 6,475 27,286 26,559
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 8,471,511 17,411 1,667,274 21,430,066
===========================================================================================================================
NET ASSETS $ 38,589,438 $ 11,850,210 $ 60,159,599 $ 29,670,820
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 40,919,823 $ 16,137,353 $ 63,264,360 $ 39,000,486
Undistributed Net Investment Income (Loss) 15,708 7,457 -- --
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, and Futures Contracts (5,292,944) (4,489,629) (4,587,680) (9,806,820)
Net Unrealized Appreciation (Depreciation) on
Investments, Equity Index Swaps, and Futures Contracts 2,946,851 195,029 1,482,919 477,154
===========================================================================================================================
NET ASSETS $ 38,589,438 $ 11,850,210 $ 60,159,599 $ 29,670,820
===========================================================================================================================
SHARES OUTSTANDING 1,130,268 291,908 4,860,825 1,426,510
NET ASSET VALUES $ 34.14 $ 40.60 $ 12.38 $ 20.80
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 163
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) $ 26,091,953 $ 52,475,841 $ 12,218,586 $ 6,628,537
Segregated Cash with Broker -- 793,650 312,000 50,700
Receivable for Equity Index Swap Settlement (Note 1) -- 1,592,912 -- 163,123
Receivable for Futures Contracts Settlement (Note 1) -- -- -- 8,417
Receivable for Securities Sold (Note 1) -- -- 3,090,449 --
Receivable for Fund Shares Purchased 47,129 1,199,721 4,434 438,930
Investment Income Receivable (Note 1) 30,288 14,516 16,173 1,548
Other Assets -- -- 116 --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 26,169,370 56,076,640 15,641,758 7,291,255
===========================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) 71,730 -- 102,904 --
Payable for Futures Contracts Settlement (Note 1) -- 142,875 56,000 --
Payable upon Return of Securities Loaned (Note 8) -- -- 1,061,994 --
Payable for Securities Purchased (Note 1) -- -- -- --
Liability for Fund Shares Redeemed 89,988 629,164 1,474,416 21,168
Investment Advisory Fees Payable (Note 3) 21,734 39,388 11,298 5,244
Transfer Agent and Administrative Fees Payable (Note 3) 6,037 10,941 3,138 1,457
Distribution and Service Fees Payable (Note 3) 6,037 10,941 3,138 1,457
Portfolio Accounting Fees Payable (Note 3) 2,415 4,376 1,255 583
Custody Fees Payable 604 1,050 332 314
Other Liabilities 17,087 18,902 7,506 4,148
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 215,632 857,637 2,721,981 34,371
===========================================================================================================================
NET ASSETS $ 25,953,738 $ 55,219,003 $ 12,919,777 $ 7,256,884
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 25,542,072 $ 48,867,852 $ 12,677,437 $ 7,805,322
Undistributed Net Investment Income (Loss) 267,284 289,871 -- 5,406
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, Currency Index Swaps, and
Futures Contracts (1,047,723) 3,964,345 (189,858) (743,742)
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, Currency Index Swaps, and
Futures Contracts 1,192,105 2,096,935 432,198 189,898
===========================================================================================================================
NET ASSETS $ 25,953,738 $ 55,219,003 $ 12,919,777 $ 7,256,884
===========================================================================================================================
SHARES OUTSTANDING 1,088,632 1,652,432 559,266 167,977
NET ASSET VALUES $ 23.84 $ 33.42 $ 23.10 $ 43.20
* THE COST OF SECURITIES AT VALUE IS $24,828,118, $52,475,841, $11,592,011,
$6,628,537, $19,221,585, $15,577,212, $28,045,960, $25,394,732,
$59,171,398, $24,877,837, $1,487,010 AND $2,766,506, RESPECTIVELY.
164 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
December 31, 2005
- --------------------------------------------------------------------------------
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) $ 19,962,138 $ 15,938,309 $ 28,684,406 $ 26,836,348
Segregated Cash with Broker -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Futures Contracts Settlement (Note 1) -- -- -- --
Receivable for Securities Sold (Note 1) -- -- 354,117 --
Receivable for Fund Shares Purchased 576,331 145,540 -- 1,198,673
Investment Income Receivable (Note 1) 18,017 14,584 35,009 20,108
Other Assets 349 226 259 604
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 20,556,835 16,098,659 29,073,791 28,055,733
===========================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- -- --
Payable for Futures Contracts Settlement (Note 1) -- -- -- --
Payable upon Return of Securities Loaned (Note 8) 896,615 1,652,797 3,908,252 2,637,451
Payable for Securities Purchased (Note 1) 572,485 106,335 -- 524,689
Liability for Fund Shares Redeemed 17,589 69,321 576,352 535,703
Investment Advisory Fees Payable (Note 3) 13,087 12,036 16,271 18,868
Transfer Agent and Administrative Fees Payable (Note 3) 4,362 4,012 5,424 6,289
Distribution and Service Fees Payable (Note 3) 4,362 4,012 5,424 6,289
Portfolio Accounting Fees Payable (Note 3) 1,745 1,605 2,169 2,516
Custody Fees Payable 471 385 521 1,031
Other Liabilities 10,849 16,376 12,235 14,588
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,521,565 1,866,879 4,526,648 3,747,424
===========================================================================================================================
NET ASSETS $ 19,035,270 $ 14,231,780 $ 24,547,143 $ 24,308,309
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 17,750,362 $ 16,097,595 $ 23,644,969 $ 23,742,368
Undistributed Net Investment Income (Loss) -- -- 6,093 --
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, Currency Index Swaps, and
Futures Contracts 544,355 (2,226,912) 257,635 (875,675)
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, Currency Index Swaps, and
Futures Contracts 740,553 361,097 638,446 1,441,616
===========================================================================================================================
NET ASSETS $ 19,035,270 $ 14,231,780 $ 24,547,143 $ 24,308,309
===========================================================================================================================
SHARES OUTSTANDING 741,605 738,606 879,817 848,648
NET ASSET VALUES $ 25.67 $ 19.27 $ 27.90 $ 28.64
MID-CAP LARGE-CAP STRENGTHENING WEAKENING
GROWTH GROWTH DOLLAR DOLLAR
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 60,807,507 $ 25,232,475 $ 1,487,010 $ 2,766,506
Segregated Cash with Broker -- -- -- 1,100
Receivable for Equity Index Swap Settlement (Note 1) -- -- 27,294 --
Receivable for Futures Contracts Settlement (Note 1) -- -- -- --
Receivable for Securities Sold (Note 1) 316,066 146,226 -- --
Receivable for Fund Shares Purchased 546,639 385,366 -- 245,423
Investment Income Receivable (Note 1) 14,190 23,057 164 323
Other Assets 551 119 -- --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 61,684,953 25,787,243 1,514,468 3,013,352
===========================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- -- 54,345
Payable for Futures Contracts Settlement (Note 1) -- -- -- 110
Payable upon Return of Securities Loaned (Note 8) 7,752,932 2,584,493 -- --
Payable for Securities Purchased (Note 1) 774,690 598,215 -- --
Liability for Fund Shares Redeemed 55,626 24,654 261,521 --
Investment Advisory Fees Payable (Note 3) 28,021 16,604 1,248 2,131
Transfer Agent and Administrative Fees Payable (Note 3) 9,340 5,535 347 592
Distribution and Service Fees Payable (Note 3) 9,340 5,535 347 592
Portfolio Accounting Fees Payable (Note 3) 3,736 2,214 139 237
Custody Fees Payable 929 531 453 69
Other Liabilities 15,481 11,480 745 921
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 8,650,095 3,249,261 264,800 58,997
===========================================================================================================================
NET ASSETS $ 53,034,858 $ 22,537,982 $ 1,249,668 $ 2,954,355
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 52,198,981 $ 22,653,757 $ 1,226,557 $ 3,040,167
Undistributed Net Investment Income (Loss) -- -- 1,169 2,505
Accumulated Net Realized Gain (Loss) on Investments,
Equity Index Swaps, Currency Index Swaps, and
Futures Contracts (800,232) (470,413) 13,898 (78,938)
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, Currency Index Swaps, and
Futures Contracts 1,636,109 354,638 8,044 (9,379)
===========================================================================================================================
NET ASSETS $ 53,034,858 $ 22,537,982 $ 1,249,668 $ 2,954,355
===========================================================================================================================
SHARES OUTSTANDING 1,753,644 877,221 48,780 121,528
NET ASSET VALUES $ 30.24 $ 25.69 $ 25.62 $ 24.31
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 165
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
- --------------------------------------------------------------------------------
U.S.
CORE SECTOR GOVERNMENT
EQUITY ROTATION MONEY MARKET BANKING
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 2,825,385 $ 75,931,747 $ 184,163,561 $ 16,589,592
Segregated Cash with Broker -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Futures Contracts Settlement (Note 1) -- -- -- --
Receivable for Securities Sold (Note 1) -- -- -- --
Receivable for Fund Shares Purchased 35,890 469,036 4,062,632 203,352
Investment Income Receivable (Note 1) 3,217 36,918 25,102 27,875
Other Assets -- 1,163 -- 135
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 2,864,492 76,438,864 188,251,295 16,820,954
===========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) -- 13,177,339 -- 2,020,877
Payable for Securities Purchased (Note 1) -- 1,067,904 -- 185,504
Liability for Fund Shares Redeemed -- 237,309 2,601,010 7,029
Investment Advisory Fees Payable (Note 3) 1,759 48,389 79,603 10,842
Transfer Agent and Administrative Fees Payable (Note 3) 628 13,441 31,841 3,189
Distribution and Service Fees Payable (Note 3) 628 13,441 39,802 3,189
Portfolio Accounting Fees Payable (Note 3) 251 5,377 15,921 1,276
Custody Fees Payable 74 1,291 3,821 306
Cash due to Custodian Bank -- -- -- --
Other Liabilities 746 40,125 114,762 8,951
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,086 14,604,616 2,886,760 2,241,163
===========================================================================================================================
NET ASSETS $ 2,860,406 $ 61,834,248 $ 185,364,535 $ 14,579,791
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 2,860,120 $ 54,296,276 $ 185,358,585 $ 14,895,454
Undistributed Net Investment Income (Loss) 830 -- 7,496 219,732
Accumulated Net Realized Gain (Loss) on Investments and
Commodity Index Swaps (4,548) 1,768,201 (1,546) (1,717,573)
Net Unrealized Appreciation (Depreciation) on Investments
and Commodity Index Swaps 4,004 5,769,771 -- 1,182,178
===========================================================================================================================
NET ASSETS $ 2,860,406 $ 61,834,248 $ 185,364,535 $ 14,579,791
===========================================================================================================================
SHARES OUTSTANDING 114,253 4,875,618 185,378,194 491,020
NET ASSET VALUES $ 25.04 $ 12.68 $ 1.00 $ 29.69
* THE COST OF SECURITIES AT VALUE IS $2,821,381, $70,161,976, $184,163,561,
$15,407,414, $27,873,105, $43,417,886, $29,325,176, $23,337,013,
$8,057,180, $73,987,124, $73,115,571 AND $40,660,677, RESPECTIVELY.
166 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
December 31, 2005
- --------------------------------------------------------------------------------
BASIC BIO- CONSUMER
MATERIALS TECHNOLOGY COMMODITIES PRODUCTS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 32,249,412 $ 47,806,124 $ 29,325,176 $ 24,961,802
Segregated Cash with Broker -- -- 56,000 --
Receivable for Equity Index Swap Settlement (Note 1) -- -- 88,565 --
Receivable for Futures Contracts Settlement (Note 1) -- -- 15,225 --
Receivable for Securities Sold (Note 1) 1,437,029 429,426 -- --
Receivable for Fund Shares Purchased 8,147 -- 30,574 242,120
Investment Income Receivable (Note 1) 30,567 1,513 6,310 56,348
Other Assets 670,891 664 -- 285
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 34,396,046 48,237,727 29,521,850 25,260,555
===========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 3,979,860 11,680,787 -- 2,842,566
Payable for Securities Purchased (Note 1) -- -- -- 186,709
Liability for Fund Shares Redeemed 1,512,628 407,954 1,288,450 10,646
Investment Advisory Fees Payable (Note 3) 21,668 25,953 18,824 17,014
Transfer Agent and Administrative Fees Payable (Note 3) 6,373 7,633 6,275 5,004
Distribution and Service Fees Payable (Note 3) 6,373 7,633 6,275 5,004
Portfolio Accounting Fees Payable (Note 3) 2,549 3,053 2,510 2,002
Custody Fees Payable 862 816 1,475 639
Cash due to Custodian Bank 531,281 -- -- --
Other Liabilities 17,143 17,961 10,996 14,355
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 6,078,737 12,151,790 1,334,805 3,083,939
===========================================================================================================================
NET ASSETS $ 28,317,309 $ 36,085,937 $ 28,187,045 $ 22,176,616
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 25,173,334 $ 38,567,078 $ 30,326,729 $ 22,091,410
Undistributed Net Investment Income (Loss) 146,922 -- 26,083 127,914
Accumulated Net Realized Gain (Loss) on Investments and
Commodity Index Swaps (1,379,254) (6,869,379) (2,283,369) (1,667,497)
Net Unrealized Appreciation (Depreciation) on Investments
and Commodity Index Swaps 4,376,307 4,388,238 117,602 1,624,789
===========================================================================================================================
NET ASSETS $ 28,317,309 $ 36,085,937 $ 28,187,045 $ 22,176,616
===========================================================================================================================
SHARES OUTSTANDING 1,015,898 1,688,893 1,275,291 701,029
NET ASSET VALUES $ 27.87 $ 21.37 $ 22.10 $ 31.63
ENERGY FINANCIAL
ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 9,320,811 $ 98,203,803 $ 97,723,423 $ 42,671,262
Segregated Cash with Broker -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Futures Contracts Settlement (Note 1) -- -- -- --
Receivable for Securities Sold (Note 1) 799,819 2,257,433 1,017,166 2,255,615
Receivable for Fund Shares Purchased -- -- 23,507 --
Investment Income Receivable (Note 1) 423 44,992 25,910 86,510
Other Assets 102 1,041 1,183 662
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 10,121,155 100,507,269 98,791,189 45,014,049
===========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 1,000,210 14,834,598 18,270,117 5,885,773
Payable for Securities Purchased (Note 1) -- -- -- --
Liability for Fund Shares Redeemed 792,838 2,056,300 640,329 2,218,490
Investment Advisory Fees Payable (Note 3) 7,788 72,084 65,726 29,258
Transfer Agent and Administrative Fees Payable (Note 3) 2,291 21,201 19,331 8,605
Distribution and Service Fees Payable (Note 3) 2,291 21,201 19,331 8,605
Portfolio Accounting Fees Payable (Note 3) 916 8,481 7,732 3,442
Custody Fees Payable 220 2,084 1,856 826
Cash due to Custodian Bank -- -- -- --
Other Liabilities 8,491 53,992 45,055 19,566
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,815,045 17,069,941 19,069,477 8,174,565
===========================================================================================================================
NET ASSETS $ 8,306,110 $ 83,437,328 $ 79,721,712 $ 36,839,484
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 12,687,535 $ 51,271,382 $ 60,479,425 $ 35,208,014
Undistributed Net Investment Income (Loss) -- -- -- 287,113
Accumulated Net Realized Gain (Loss) on Investments and
Commodity Index Swaps (5,645,056) 7,949,267 (5,365,565) (666,228)
Net Unrealized Appreciation (Depreciation) on Investments
and Commodity Index Swaps 1,263,631 24,216,679 24,607,852 2,010,585
===========================================================================================================================
NET ASSETS $ 8,306,110 $ 83,437,328 $ 79,721,712 $ 36,839,484
===========================================================================================================================
SHARES OUTSTANDING 607,047 2,128,439 2,578,113 1,265,929
NET ASSET VALUES $ 13.68 $ 39.20 $ 30.92 $ 29.10
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 167
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
- --------------------------------------------------------------------------------
HEALTH PRECIOUS
CARE INTERNET LEISURE METALS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 57,519,039 $ 25,932,692 $ 16,183,123 $ 90,812,224
Receivable for Securities Sold (Note 1) 140,285 63,763 119,295 --
Receivable for Fund Shares Purchased 98,677 -- -- 2,001,757
Investment Income Receivable (Note 1) 40,752 2,724 15,996 219
Other Assets 519 127,485 520 6,693
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 57,799,272 26,126,664 16,318,934 92,820,893
===========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 5,834,092 4,947,937 2,203,343 22,216,360
Payable for Securities Purchased (Note 1) -- -- -- 2,189,988
Liability for Fund Shares Redeemed 173,153 181,461 122,851 53,251
Investment Advisory Fees Payable (Note 3) 39,731 15,539 11,183 41,235
Transfer Agent and Administrative Fees Payable (Note 3) 11,686 4,570 3,289 13,745
Distribution and Service Fees Payable (Note 3) 11,686 4,570 3,289 13,745
Portfolio Accounting Fees Payable (Note 3) 4,674 1,828 1,316 5,498
Custody Fees Payable 1,122 439 316 1,348
Cash due to Custodian Bank -- -- -- --
Other Liabilities 31,543 11,462 12,569 44,678
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 6,107,687 5,167,806 2,358,156 24,579,848
===========================================================================================================================
NET ASSETS $ 51,691,585 $ 20,958,858 $ 13,960,778 $ 68,241,045
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 48,042,569 $ 21,704,641 $ 12,132,781 $ 66,006,681
Undistributed Net Investment Income -- -- -- --
Accumulated Net Realized Gain (Loss) on Investments (2,919,519) (3,161,804) (148,993) (15,597,078)
Net Unrealized Appreciation (Depreciation) on Investments 6,568,535 2,416,021 1,976,990 17,831,442
===========================================================================================================================
NET ASSETS $ 51,691,585 $ 20,958,858 $ 13,960,778 $ 68,241,045
===========================================================================================================================
SHARES OUTSTANDING 1,835,149 1,421,949 635,715 6,584,539
NET ASSET VALUES $ 28.17 $ 14.74 $ 21.96 $ 10.36
* THE COST OF SECURITIES AT VALUE IS $50,950,504, $23,516,671, $14,206,133,
$72,980,782, $27,167,664, $16,791,820, $18,490,203, $17,438,801,
$29,384,828 AND $43,031,811, RESPECTIVELY.
168 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
December 31, 2005
- --------------------------------------------------------------------------------
REAL TELECOM-
ESTATE RETAILING TECHNOLOGY MUNICATIONS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 33,377,812 $ 20,241,713 $ 21,381,497 $ 21,069,218
Receivable for Securities Sold (Note 1) -- 278,043 1,854,197 970,845
Receivable for Fund Shares Purchased -- 726 8,694 82
Investment Income Receivable (Note 1) 163,482 13,410 5,946 38,460
Other Assets 550 83,019 12,078 516
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 33,541,844 20,616,911 23,262,412 22,079,121
===========================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 4,290,906 2,705,034 2,273,008 4,164,244
Payable for Securities Purchased (Note 1) 66,127 -- -- --
Liability for Fund Shares Redeemed 44,090 251,290 1,798,909 972,922
Investment Advisory Fees Payable (Note 3) 25,848 14,338 17,042 17,194
Transfer Agent and Administrative Fees Payable (Note 3) 7,602 4,217 5,012 5,057
Distribution and Service Fees Payable (Note 3) 7,602 4,217 5,012 5,057
Portfolio Accounting Fees Payable (Note 3) 3,041 1,687 2,005 2,023
Custody Fees Payable 744 405 481 526
Cash due to Custodian Bank -- 4,823 -- --
Other Liabilities 21,610 15,304 15,982 14,207
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,467,570 3,001,315 4,117,451 5,181,230
===========================================================================================================================
NET ASSETS $ 29,074,274 $ 17,615,596 $ 19,144,961 $ 16,897,891
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 24,931,197 $ 15,410,221 $ 19,249,377 $ 15,384,750
Undistributed Net Investment Income 627,909 -- -- 176,939
Accumulated Net Realized Gain (Loss) on Investments (2,694,980) (1,244,518) (2,995,710) (2,294,215)
Net Unrealized Appreciation (Depreciation) on Investments 6,210,148 3,449,893 2,891,294 3,630,417
===========================================================================================================================
NET ASSETS $ 29,074,274 $ 17,615,596 $ 19,144,961 $ 16,897,891
===========================================================================================================================
SHARES OUTSTANDING 721,527 632,504 1,375,718 898,578
NET ASSET VALUES $ 40.30 $ 27.85 $ 13.92 $ 18.81
TRANS-
PORTATION UTILITIES
FUND FUND
- ------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 35,896,094 $ 48,074,352
Receivable for Securities Sold (Note 1) -- 34,825
Receivable for Fund Shares Purchased 88,225 64,312
Investment Income Receivable (Note 1) 36,413 98,644
Other Assets 615 552
- ------------------------------------------------------------------------------------------
TOTAL ASSETS 36,021,347 48,272,685
==========================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 4,332,169 8,048,916
Payable for Securities Purchased (Note 1) 132,459 --
Liability for Fund Shares Redeemed 122,578 189,651
Investment Advisory Fees Payable (Note 3) 23,988 32,648
Transfer Agent and Administrative Fees Payable (Note 3) 7,055 9,602
Distribution and Service Fees Payable (Note 3) 7,055 9,602
Portfolio Accounting Fees Payable (Note 3) 2,822 3,841
Custody Fees Payable 691 922
Cash due to Custodian Bank -- --
Other Liabilities 14,997 34,121
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,643,814 8,329,303
==========================================================================================
NET ASSETS $ 31,377,533 $ 39,943,382
==========================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 26,257,293 $ 36,345,344
Undistributed Net Investment Income -- 872,857
Accumulated Net Realized Gain (Loss) on Investments (1,391,026) (2,317,360)
Net Unrealized Appreciation (Depreciation) on Investments 6,511,266 5,042,541
==========================================================================================
NET ASSETS $ 31,377,533 $ 39,943,382
==========================================================================================
SHARES OUTSTANDING 961,391 2,092,121
NET ASSET VALUES $ 32.64 $ 19.09
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 169
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 715,211 $ 1,121,838 $ 364,496 $ 1,005,121
Interest from Securities Lending, net (Note 8) 10,927 -- 32,558 --
Dividends, Net of Foreign Tax Withheld* (Note 1) 1,573,344 -- 457,798 --
Other Income 1,241 -- 241 --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 2,300,723 1,121,838 855,093 1,005,121
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 810,149 320,367 775,848 289,875
Transfer Agent and Administrative Fees (Note 3) 270,049 88,991 258,616 80,521
Audit and Outside Services (Note 1) 72,275 27,836 57,627 13,891
Portfolio Accounting Fees (Note 3) 108,020 35,596 103,447 32,208
Interest Expense -- -- -- --
Trustees' Fees** 4,703 2,314 6,111 2,445
Service Fees (Note 3) 270,049 88,991 258,616 80,521
Custody Fees 31,320 8,796 24,954 7,460
Tax Expense (Note 4) -- -- -- 21,322
Miscellaneous 87,154 29,780 72,101 19,376
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,653,719 602,671 1,557,320 547,619
- ---------------------------------------------------------------------------------------------------------------------------
Less Tax Expenses Reimbursed by
Advisor (Note 4) -- -- -- 21,322
- ---------------------------------------------------------------------------------------------------------------------------
Total Reimbursed Expenses -- -- -- 21,322
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 1,653,719 602,671 1,557,320 526,297
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 647,004 519,167 (702,227) 478,824
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 3,670,972 -- 15,894,813 --
Equity Index Swaps 438,200 5,493 476,205 (1,109,616)
Futures Contracts 5,119,115 (1,230,780) 2,199,481 (1,350,413)
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 9,228,287 (1,225,287) 18,570,499 (2,460,029)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (976,153) -- (19,839,841) --
Equity Index Swaps (246,377) 33,430 (44,703) 302,634
Futures Contracts (2,111,006) 911,030 (211,636) 156,086
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (3,333,536) 944,460 (20,096,180) 458,720
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 5,894,751 (280,827) (1,525,681) (2,001,309)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 6,541,755 $ 238,340 $ (2,227,908) $ (1,522,485)
===========================================================================================================================
* FOREIGN TAX WITHHELD OF $0, $0, $1,790, $0, $0, $655, $0, $0, $60, $0, $0,
AND $0, RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
170 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
Year Ended December 31, 2005
- --------------------------------------------------------------------------------
INVERSE
TITAN 500 VELOCITY 100 MEDIUS MID-CAP
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 202,141 $ 280,802 $ 262,820 $ 109,258
Interest from Securities Lending, net (Note 8) 1,757 7,781 4,345 --
Dividends, Net of Foreign Tax Withheld* (Note 1) 335,309 141,513 421,478 --
Other Income 308 -- 146 --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 539,515 430,096 688,789 109,258
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 220,666 313,404 390,477 29,966
Transfer Agent and Administrative Fees (Note 3) 61,296 87,057 108,466 8,324
Audit and Outside Services (Note 1) 11,571 17,709 18,604 1,462
Portfolio Accounting Fees (Note 3) 24,518 34,823 43,387 3,329
Interest Expense -- -- -- --
Trustees' Fees** 1,564 1,949 2,148 167
Service Fees (Note 3) 61,296 87,057 108,466 8,324
Custody Fees 8,224 10,320 12,674 844
Tax Expense (Note 4) -- -- -- --
Miscellaneous 15,985 23,267 28,152 2,063
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 405,120 575,586 712,374 54,479
- ---------------------------------------------------------------------------------------------------------------------------
Less Tax Expenses Reimbursed by
Advisor (Note 4) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Reimbursed Expenses -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 405,120 575,586 712,374 54,479
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 134,395 (145,490) (23,585) 54,779
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (63,894) (1,845,131) 3,527,041 --
Equity Index Swaps 263,272 (650,378) 2,181,429 (324,373)
Futures Contracts 60,141 (730,087) 1,287,249 (133,098)
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 259,519 (3,225,596) 6,995,719 (457,471)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 189,682 710,501 731,172 --
Equity Index Swaps (118,940) (1,263,650) (907,860) 40,044
Futures Contracts (778,107) (83,567) (450,379) 26,432
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (707,365) (636,716) (627,067) 66,476
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (447,846) (3,862,312) 6,368,652 (390,995)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (313,451) $ (4,007,802) $ 6,345,067 $ (336,216)
===========================================================================================================================
INVERSE U.S.
MEKROS SMALL-CAP GOVERNMENT JUNO
FUND FUND BOND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 336,354 $ 446,402 $ 2,331,419 $ 2,093,759
Interest from Securities Lending, net (Note 8) 18,414 -- -- --
Dividends, Net of Foreign Tax Withheld* (Note 1) 344,243 -- -- --
Other Income 544 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 699,555 446,402 2,331,419 2,093,759
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 373,023 129,130 260,301 394,324
Transfer Agent and Administrative Fees (Note 3) 103,617 35,869 104,120 109,534
Audit and Outside Services (Note 1) 20,873 4,986 20,429 19,195
Portfolio Accounting Fees (Note 3) 41,447 14,348 52,060 43,814
Interest Expense -- -- -- 1,522,936
Trustees' Fees** 2,802 845 3,458 2,736
Service Fees (Note 3) 103,617 35,869 130,150 109,534
Custody Fees 12,333 3,630 14,956 9,961
Tax Expense (Note 4) -- -- -- --
Miscellaneous 26,135 8,737 29,507 28,055
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 683,847 233,414 614,981 2,240,089
- ---------------------------------------------------------------------------------------------------------------------------
Less Tax Expenses Reimbursed by
Advisor (Note 4) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Reimbursed Expenses -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 683,847 233,414 614,981 2,240,089
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 15,708 212,988 1,716,438 (146,330)
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 598,845 -- 1,955,414 (13,973)
Equity Index Swaps (8,861) (1,345,711) -- --
Futures Contracts (1,180,636) (596,993) (78,522) (609,653)
Securities Sold Short -- -- -- (2,586,044)
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (590,652) (1,942,704) 1,876,892 (3,209,670)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (1,165,063) -- 216,996 (477)
Equity Index Swaps (1,662,601) 245,427 -- --
Futures Contracts (1,507,184) 53,085 (460,542) (201,972)
Securities Sold Short -- -- -- 118,337
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (4,334,848) 298,512 (243,546) (84,112)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (4,925,500) (1,644,192) 1,633,346 (3,293,782)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (4,909,792) $ (1,431,204) $ 3,349,784 $ (3,440,112)
===========================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 171
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) $ 492,964 $ 576,719 $ 75,986 $ 208,112
Interest from Securities Lending, net (Note 8) -- -- 1,299 --
Dividends, Net of Foreign Tax Withheld** (Note 1) 236,937 -- 161,361 --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 729,901 576,719 238,646 208,112
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 254,306 154,313 79,938 56,703
Transfer Agent and Administrative Fees (Note 3) 70,640 42,865 22,205 15,751
Audit and Outside Services (Note 1) 12,156 12,413 5,113 1,353
Portfolio Accounting Fees (Note 3) 28,256 17,146 8,882 6,300
Trustees' Fees*** 1,395 776 352 289
Service Fees (Note 3) 70,640 42,865 22,205 15,751
Custody Fees 6,575 4,021 2,743 1,618
Miscellaneous 18,649 12,449 6,312 5,680
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 462,617 286,848 147,750 103,445
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 267,284 289,871 90,896 104,667
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (479,799) -- (294,277) --
Equity/Currency Index Swaps (547,934) 3,575,602 271,669 (465,568)
Futures Contracts -- 679,603 40,512 (135,526)
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,027,733) 4,255,205 17,904 (601,094)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 1,263,835 -- 323,478 --
Equity/Currency Index Swaps (1,060,738) 690,783 (96,408) 191,541
Futures Contracts -- 546,795 (160,884) 117,588
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 203,097 1,237,578 66,186 309,129
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (824,636) 5,492,783 84,090 (291,965)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (557,352) $ 5,782,654 $ 174,986 $ (187,298)
===========================================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 30, 2005 -- STRENGTHENING
DOLLAR FUND AND WEAKENING DOLLAR FUND.
** FOREIGN TAX WITHHELD OF $18,946, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0
AND $0, RESPECTIVELY.
*** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
172 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
Period Ended December 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP
VALUE VALUE VALUE GROWTH
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 3,776 $ 4,874 $ 2,269 $ 3,311
Interest from Securities Lending, net (Note 8) 2,531 5,544 3,049 5,461
Dividends, Net of Foreign Tax Withheld** (Note 1) 237,040 542,376 370,755 145,579
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 243,347 552,794 376,073 154,351
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 138,138 238,548 124,509 148,476
Transfer Agent and Administrative Fees (Note 3) 46,046 79,516 41,503 49,492
Audit and Outside Services (Note 1) 7,704 12,297 8,462 10,096
Portfolio Accounting Fees (Note 3) 18,419 31,806 16,601 19,797
Trustees' Fees*** 899 1,477 676 862
Service Fees (Note 3) 46,046 79,516 41,503 49,492
Custody Fees 4,246 7,652 3,902 4,993
Miscellaneous 12,316 20,194 11,448 13,754
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 273,814 471,006 248,604 296,962
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (30,467) 81,788 127,469 (142,611)
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 3,253,908 3,667,245 1,052,365 1,800,090
Equity/Currency Index Swaps -- -- -- --
Futures Contracts (20,536) -- -- --
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 3,233,372 3,667,245 1,052,365 1,800,090
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (3,578,321) (1,100,126) (582,663) (1,775,372)
Equity/Currency Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (3,578,321) (1,100,126) (582,663) (1,775,372)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (344,949) 2,567,119 469,702 24,718
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (375,416) $ 2,648,907 $ 597,171 $ (117,893)
===========================================================================================================================
MID-CAP LARGE-CAP STRENGTHENING WEAKENING
GROWTH GROWTH DOLLAR DOLLAR
FUND FUND FUND* FUND*
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 3,012 $ 1,961 $ 17,597 $ 17,437
Interest from Securities Lending, net (Note 8) 2,394 762 -- --
Dividends, Net of Foreign Tax Withheld** (Note 1) 142,916 181,573 -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 148,322 184,296 17,597 17,437
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 136,354 92,751 4,013 3,898
Transfer Agent and Administrative Fees (Note 3) 45,451 30,917 1,115 1,083
Audit and Outside Services (Note 1) 10,329 7,765 491 569
Portfolio Accounting Fees (Note 3) 18,181 12,367 446 433
Trustees' Fees*** 636 464 8 5
Service Fees (Note 3) 45,451 30,917 1,115 1,083
Custody Fees 4,354 3,701 524 114
Miscellaneous 12,637 8,846 349 415
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 273,393 187,728 8,061 7,600
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (125,071) (3,432) 9,536 9,837
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 710,759 538,671 -- --
Equity/Currency Index Swaps -- -- 13,898 (79,820)
Futures Contracts -- -- -- 882
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 710,759 538,671 13,898 (78,938)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 220,933 (672,193) -- --
Equity/Currency Index Swaps -- -- 8,044 (9,415)
Futures Contracts -- -- -- 36
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 220,933 (672,193) 8,044 (9,379)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 931,692 (133,522) 21,942 (88,317)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 806,621 $ (136,954) $ 31,478 $ (78,480)
===========================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 173
STATEMENTS OF OPERATIONS (CONTINUED)
- --------------------------------------------------------------------------------
U.S.
CORE SECTOR GOVERNMENT
EQUITY ROTATION MONEY BANKING
FUND* FUND MARKET FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 682 $ 25,218 $ 7,514,259 $ 2,351
Interest from Securities Lending, net (Note 8) -- 13,103 -- 1,791
Dividends, Net of Foreign Tax Withheld** (Note 1) 4,326 479,822 -- 475,129
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 5,008 518,143 7,514,259 479,271
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 1,807 312,736 1,200,944 139,283
Transfer Agent and Administrative Fees (Note 3) 645 86,871 480,377 40,966
Audit and Outside Services (Note 1) 426 26,704 88,368 6,519
Portfolio Accounting Fees (Note 3) 258 34,748 237,207 16,386
Trustees' Fees*** -- 1,527 18,446 1,126
Service Fees (Note 3) 645 86,871 600,472 40,966
Custody Fees 76 8,884 55,223 4,299
Miscellaneous 321 28,145 132,387 9,994
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 4,178 586,486 2,813,424 259,539
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 830 (68,343) 4,700,835 219,732
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (4,360) 2,791,341 -- (959,804)
Commodity Index Swaps -- -- -- --
Futures Contracts (188) -- -- --
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (4,548) 2,791,341 -- (959,804)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 4,004 1,800,965 -- (270,743)
Commodity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 4,004 1,800,965 -- (270,743)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (544) 4,592,306 -- (1,230,547)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 286 $ 4,523,963 $ 4,700,835 $ (1,010,815)
===========================================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 30, 2005 -- COMMODITIES
FUND, NOVEMBER 29, 2005 -- CORE EQUITY FUND.
** FOREIGN TAX WITHHELD OF $0, $13,537, $0, $5,300, $3,457, $0, $0, $32, $51,
$54,074, $0 AND $4,875, RESPECTIVELY.
*** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
174 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
Period Ended December 31, 2005
- --------------------------------------------------------------------------------
BASIC BIO- CONSUMER
MATERIALS TECHNOLOGY COMMODITIES PRODUCTS
FUND FUND FUND* FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 4,762 $ 2,790 $ 191,874 $ 3,783
Interest from Securities Lending, net (Note 8) 6,767 3,919 -- 3,185
Dividends, Net of Foreign Tax Withheld** (Note 1) 703,581 3,523 -- 598,748
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 715,110 10,232 191,874 605,716
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 306,201 122,040 35,544 257,494
Transfer Agent and Administrative Fees (Note 3) 90,059 35,894 11,848 75,733
Audit and Outside Services (Note 1) 12,321 12,038 6,799 10,505
Portfolio Accounting Fees (Note 3) 36,024 14,358 4,739 30,293
Trustees' Fees*** 2,118 799 73 1,866
Service Fees (Note 3) 90,059 35,894 11,848 75,733
Custody Fees 8,569 3,561 1,991 7,575
Miscellaneous 22,837 10,949 4,906 18,603
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 568,188 235,533 77,748 477,802
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 146,922 (225,301) 114,126 127,914
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 438,695 (1,077,177) -- 1,129,327
Commodity Index Swaps -- -- (1,730,985) --
Futures Contracts -- -- (552,384) --
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 438,695 (1,077,177) (2,283,369) 1,129,327
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (1,893,780) 2,731,019 -- (1,291,415)
Commodity Index Swaps -- -- 123,283 --
Futures Contracts -- -- (5,681) --
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (1,893,780) 2,731,019 117,602 (1,291,415)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (1,455,085) 1,653,842 (2,165,767) (162,088)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (1,308,163) $ 1,428,541 $ (2,051,641) $ (34,174)
===========================================================================================================================
ENERGY FINANCIAL
ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 1,571 $ 12,291 $ 10,062 $ 4,056
Interest from Securities Lending, net (Note 8) 1,282 128,648 9,259 16,432
Dividends, Net of Foreign Tax Withheld** (Note 1) 33,715 1,222,976 238,074 750,384
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 36,568 1,363,915 257,395 770,872
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 82,544 735,672 498,017 258,622
Transfer Agent and Administrative Fees (Note 3) 24,278 216,374 146,476 76,065
Audit and Outside Services (Note 1) 6,046 38,956 31,458 13,676
Portfolio Accounting Fees (Note 3) 9,711 86,550 58,590 30,426
Trustees' Fees*** 585 4,241 2,491 1,656
Service Fees (Note 3) 24,278 216,374 146,476 76,065
Custody Fees 2,962 21,545 13,791 7,281
Miscellaneous 6,862 55,674 39,910 19,968
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 157,266 1,375,386 937,209 483,759
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (120,698) (11,471) (679,814) 287,113
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (1,865,668) 9,383,343 (1,689,593) (28,632)
Commodity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,865,668) 9,383,343 (1,689,593) (28,632)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 248,322 14,787,065 19,597,826 (132,312)
Commodity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
Securities Sold Short -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 248,322 14,787,065 19,597,826 (132,312)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (1,617,346) 24,170,408 17,908,233 (160,944)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (1,738,044) $ 24,158,937 $ 17,228,419 $ 126,169
===========================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 175
STATEMENTS OF OPERATIONS (CONCLUDED)
- --------------------------------------------------------------------------------
HEALTH PRECIOUS
CARE INTERNET LEISURE METALS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 7,546 $ 2,016 $ 4,462 $ 5,492
Interest from Securities Lending, net (Note 8) 5,076 10,296 34,205 45,972
Dividends, Net of Foreign Tax Withheld* (Note 1) 428,945 16,381 200,667 363,231
Other Income -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 441,567 28,693 239,334 414,695
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 386,131 96,208 261,260 234,255
Transfer Agent and Administrative Fees (Note 3) 113,568 28,297 76,841 78,085
Audit and Outside Services (Note 1) 22,578 7,476 9,395 29,035
Portfolio Accounting Fees (Note 3) 45,427 11,319 30,737 31,234
Trustees' Fees** 2,388 725 1,684 1,470
Service Fees (Note 3) 113,568 28,297 76,841 78,085
Custody Fees 10,435 2,583 7,065 7,468
Miscellaneous 29,462 8,586 19,407 28,263
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 723,557 183,491 483,230 487,895
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (281,990) (154,798) (243,896) (73,200)
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 3,078,597 1,240,923 1,463,777 (5,450,489)
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 3,078,597 1,240,923 1,463,777 (5,450,489)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities 2,066,699 (5,091,806) (3,609,943) 11,668,972
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 2,066,699 (5,091,806) (3,609,943) 11,668,972
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 5,145,296 (3,850,883) (2,146,166) 6,218,483
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 4,863,306 $ (4,005,681) $ (2,390,062) $ 6,145,283
===========================================================================================================================
* FOREIGN TAX WITHHELD OF $1,362, $0, $0, $14,234, $0, $0, $0, $5,643,
$1,217 AND $0, RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
176 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
s
Year Ended December 31, 2005
- --------------------------------------------------------------------------------
REAL TELECOM-
ESTATE RETAILING TECHNOLOGY MUNICATIONS
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 3,619 $ 4,841 $ 2,994 $ 2,373
Interest from Securities Lending, net (Note 8) 23,591 8,346 1,583 7,565
Dividends, Net of Foreign Tax Withheld* (Note 1) 1,144,278 177,299 64,853 455,691
Other Income -- -- -- 188
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 1,171,488 190,486 69,430 465,817
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 290,755 238,113 143,165 153,286
Transfer Agent and Administrative Fees (Note 3) 85,516 70,033 42,107 45,084
Audit and Outside Services (Note 1) 15,888 11,516 10,955 9,817
Portfolio Accounting Fees (Note 3) 34,207 28,013 16,843 18,034
Trustees' Fees** 1,719 1,538 903 969
Service Fees (Note 3) 85,516 70,033 42,107 45,084
Custody Fees 8,244 6,552 3,849 4,160
Miscellaneous 21,734 17,673 12,413 12,444
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 543,579 443,471 272,342 288,878
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 627,909 (252,985) (202,912) 176,939
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (367,084) 761,446 395,325 681,979
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (367,084) 761,446 395,325 681,979
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities 1,158,404 (379,811) 201,044 (1,228,903)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 1,158,404 (379,811) 201,044 (1,228,903)
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 791,320 381,635 596,369 (546,924)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 1,419,229 $ 128,650 $ 393,457 $ (369,985)
===========================================================================================================================
TRANS-
PORTATION UTILITIES
FUND FUND
- ------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 3,929 $ 5,403
Interest from Securities Lending, net (Note 8) 33,453 19,670
Dividends, Net of Foreign Tax Withheld* (Note 1) 210,072 1,624,418
Other Income -- 839
- ------------------------------------------------------------------------------------------
Total Income 247,454 1,650,330
- ------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 221,069 413,709
Transfer Agent and Administrative Fees (Note 3) 65,020 121,679
Audit and Outside Services (Note 1) 10,364 24,699
Portfolio Accounting Fees (Note 3) 26,008 48,672
Trustees' Fees** 1,314 2,178
Service Fees (Note 3) 65,020 121,679
Custody Fees 6,505 11,949
Miscellaneous 17,154 32,908
- ------------------------------------------------------------------------------------------
Total Expenses 412,454 777,473
- ------------------------------------------------------------------------------------------
Net Investment Income (Loss) (165,000) 872,857
==========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 986,215 (1,050,256)
- ------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 986,215 (1,050,256)
- ------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities (1,991,584) 2,775,884
- ------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (1,991,584) 2,775,884
- ------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (1,005,369) 1,725,628
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (1,170,369) $ 2,598,485
==========================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 177
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,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 647,004 $ 362,006 $ 519,167 $ (130,845)
Net Realized Gain (Loss) on Investments 9,228,287 8,220,111 (1,225,287) (10,748,044)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (3,333,536) 3,128,188 944,460 (29,346)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 6,541,755 11,710,305 238,340 (10,908,235)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (362,006) (40,441) -- --
Realized Gain on Investment -- -- -- --
Return of Capital -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (362,006) (40,441) -- --
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 525,436,344 677,100,271 296,790,050 468,800,872
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 362,006 40,441 -- --
COST OF SHARES REDEEMED (530,160,037) (640,426,112) (283,598,621) (456,638,548)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (4,361,687) 36,714,600 13,191,429 12,162,324
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 1,818,062 48,384,464 13,429,769 1,254,089
NET ASSETS--BEGINNING OF YEAR 130,200,030 81,815,566 19,075,624 17,821,535
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 132,018,092 $ 130,200,030 $ 32,505,393 $ 19,075,624
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 647,004 $ 362,006 $ 519,167 $ --
=======================================================================================================================
OTC FUND
- ---------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2005 2004
- ---------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (702,227) $ (226,946)
Net Realized Gain (Loss) on Investments 18,570,499 6,075,248
Net Change in Unrealized Appreciation
(Depreciation) on Investments (20,096,180) 2,159,542
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (2,227,908) 8,007,844
- ---------------------------------------------------------------------------------
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 464,820,799 839,741,462
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- --
COST OF SHARES REDEEMED (551,582,169) (784,108,500)
=================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (86,761,370) 55,632,962
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (88,989,278) 63,640,806
NET ASSETS--BEGINNING OF YEAR 191,476,321 127,835,515
- ---------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 102,487,043 $ 191,476,321
=================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ --
=================================================================================
+ VALUES HAVE BEEN RESTATED TO REFLECT RECLASSIFICATION FROM VALUE OF SHARES
PURCHASED THROUGH DIVIDEND REINVESTMENT TO PROCEEDS FROM SHARES PURCHASED.
THIS RECLASSIFICATION HAD NO EFFECT ON NET DECREASE IN NET ASSETS FROM
SHARE TRANSACTIONS.
178 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
ARKTOS FUND TITAN 500 FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 478,824 $ (154,079) $ 134,395 $ 24,721
Net Realized Gain (Loss) on Investments (2,460,029) (14,449,007) 259,519 1,966,051
Net Change in Unrealized Appreciation
(Depreciation) on Investments 458,720 1,366,638 (707,365) 103,201
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (1,522,485) (13,236,448) (313,451) 2,093,973
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- (24,721) --
Realized Gain on Investment -- -- (2,146,533) (3,242,906)
Return of Capital -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (2,171,254) (3,242,906)
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 423,296,526 1,086,893,530 201,720,009 324,034,914+
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- -- 2,171,254 3,242,906+
COST OF SHARES REDEEMED (426,053,411) (1,084,292,470) (205,061,903) (327,504,490)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (2,756,885) 2,601,060 (1,170,640) (226,670)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (4,279,370) (10,635,388) (3,655,345) (1,375,603)
NET ASSETS--BEGINNING OF YEAR 23,927,697 34,563,085 29,052,654 30,428,257
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 19,648,327 $ 23,927,697 $ 25,397,309 $ 29,052,654
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 478,824 $ -- $ 134,395 $ 24,721
=======================================================================================================================
VELOCITY 100 FUND MEDIUS FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (145,490) $ (90,044) $ (23,585) $ (101,397)
Net Realized Gain (Loss) on Investments (3,225,596) (1,679,334) 6,995,719 1,083,497
Net Change in Unrealized Appreciation
(Depreciation) on Investments (636,716) 902,463 (627,067) 1,521,709
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (4,007,802) (866,915) 6,345,067 2,503,809
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- (1,275,643) -- --
Realized Gain on Investment -- (75,105) (113,494) (1,999,114)
Return of Capital -- (411,759) -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (1,762,507) (113,494) (1,999,114)
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 363,014,039 502,274,497 367,015,570 304,396,862
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- 1,762,507 113,494 1,999,114
COST OF SHARES REDEEMED (372,292,474) (484,440,775) (356,325,134) (291,283,425)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (9,278,435) 19,596,229 10,803,930 15,112,551
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (13,286,237) 16,966,807 17,035,503 15,617,246
NET ASSETS--BEGINNING OF YEAR 57,598,802 40,631,995 34,161,543 18,544,297
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 44,312,565 $ 57,598,802 $ 51,197,046 $ 34,161,543
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ -- $ --
=======================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 179
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE
MID-CAP FUND MEKROS FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004* 2005 2004
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 54,779 $ (2,285) $ 15,708 $ (197,859)
Net Realized Gain (Loss) on Investments (457,471) (367,573) (590,652) (888,965)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 66,476 (40,313) (4,334,848) 3,839,510
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (336,216) (410,171) (4,909,792) 2,752,686
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (53,130) -- (1,372,293) --
Realized Gain on Investment -- -- -- (2,733,522)
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (53,130) -- (1,372,293) (2,733,522)
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 46,185,035 25,668,229 478,462,880 976,494,702
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 53,130 -- 1,372,293 2,733,522
COST OF SHARES REDEEMED (44,321,303) (23,939,211) (547,612,446) (989,593,393)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,916,862 1,729,018 (67,777,273) (10,365,169)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 1,527,516 1,318,847 (74,059,358) (10,346,005)
NET ASSETS--BEGINNING OF PERIOD 1,318,847 -- 112,648,796 122,994,801
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 2,846,363 $ 1,318,847 $ 38,589,438 $ 112,648,796
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 1,649 $ -- $ 15,708 $ 1,372,293
=======================================================================================================================
INVERSE
SMALL-CAP FUND
- ---------------------------------------------------------------------------------
YEAR PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2005 2004*
- ---------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 212,988 $ (30,312)
Net Realized Gain (Loss) on Investments (1,942,704) (2,546,925)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 298,512 (103,483)
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (1,431,204) (2,680,720)
- ---------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (205,531) --
Realized Gain on Investment -- --
- ---------------------------------------------------------------------------------
Total Distributions to Shareholders (205,531) --
=================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 220,021,876 160,480,852
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 205,531 --
COST OF SHARES REDEEMED (211,084,258) (153,456,336)
=================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 9,143,149 7,024,516
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 7,506,414 4,343,796
NET ASSETS--BEGINNING OF PERIOD 4,343,796 --
- ---------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 11,850,210 $ 4,343,796
=================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 7,457 $ --
=================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 3, 2004.
180 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial StatementS.
- --------------------------------------------------------------------------------
U.S. GOVERNMENT
BOND FUND JUNO FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 1,716,438 $ 1,854,888 $ (146,330) $ (1,440,384)
Net Realized Gain (Loss) on Investments 1,876,892 (3,325,624) (3,209,670) (6,676,389)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (243,546) 814,711 (84,112) 640,505
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 3,349,784 (656,025) (3,440,112) (7,476,268)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (1,716,438) (1,854,888) -- --
Realized Gain on Investment -- (2,222,111) -- (493,610)
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (1,716,438) (4,076,999) -- (493,610)
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 553,065,048 538,567,559 280,273,210 340,781,200
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 1,716,438 4,076,908 -- 493,610
COST OF SHARES REDEEMED (544,964,325) (554,560,732) (288,260,074) (314,561,977)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 9,817,161 (11,916,265) (7,986,864) 26,712,833
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 11,450,507 (16,649,289) (11,426,976) 18,742,955
NET ASSETS--BEGINNING OF PERIOD 48,709,092 65,358,381 41,097,796 22,354,841
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 60,159,599 $ 48,709,092 $ 29,670,820 $ 41,097,796
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ -- $ --
=======================================================================================================================
LARGE-CAP LARGE-CAP
EUROPE FUND JAPAN FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 267,284 $ (64,263) $ 289,871 $ (92,520)
Net Realized Gain (Loss) on Investments (1,027,733) 6,057,473 4,255,205 (6,780,607)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 203,097 (474,828) 1,237,578 369,019
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (557,352) 5,518,382 5,782,654 (6,504,108)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (85,714) (6,158,766) -- --
Realized Gain on Investment (124,961) (146,665) -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (210,675) (6,305,431) -- --
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 167,248,429 233,795,199 182,591,871 274,604,719
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 210,675 6,305,431 -- --
COST OF SHARES REDEEMED (195,731,588) (222,761,894) (147,383,613) (265,414,004)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (28,272,484) 17,338,736 35,208,258 9,190,715
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (29,040,511) 16,551,687 40,990,912 2,686,607
NET ASSETS--BEGINNING OF PERIOD 54,994,249 38,442,562 14,228,091 11,541,484
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 25,953,738 $ 54,994,249 $ 55,219,003 $ 14,228,091
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 267,284 $ 85,714 $ 289,871 $ --
=======================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 181
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
LONG DYNAMIC INVERSE DYNAMIC
DOW 30 FUND DOW 30 FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004* 2005 2004*
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 90,896 $ 23,922 $ 104,667 $ (1,756)
Net Realized Gain (Loss) on Investments 17,904 833,452 (601,094) (389,886)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 66,186 366,012 309,129 (119,231)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 174,986 1,223,386 (187,298) (510,873)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (93,894) (428,282) (99,261) --
Realized Gain on Investment (588,875) (44,981) -- (75,845)
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (682,769) (473,263) (99,261) (75,845)
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 131,880,583 104,259,013 71,955,250 28,429,636
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 682,769 473,263 99,261 75,845
COST OF SHARES REDEEMED (129,555,135) (95,063,056) (67,695,366) (24,734,465)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 3,008,217 9,669,220 4,359,145 3,771,016
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,500,434 10,419,343 4,072,586 3,184,298
NET ASSETS--BEGINNING OF PERIOD 10,419,343 -- 3,184,298 --
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 12,919,777 $ 10,419,343 $ 7,256,884 $ 3,184,298
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ 579 $ 5,406 $ --
=======================================================================================================================
SMALL-CAP
VALUE FUND
- ---------------------------------------------------------------------------------
YEAR PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2005 2004*
- ---------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (30,467) $ 12,108
Net Realized Gain (Loss) on Investments 3,233,372 642,562
Net Change in Unrealized Appreciation
(Depreciation) on Investments (3,578,321) 4,318,874
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (375,416) 4,973,544
- ---------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- (22,072)
Realized Gain on Investment (1,969,511) (1,321,637)
- ---------------------------------------------------------------------------------
Total Distributions to Shareholders (1,969,511) (1,343,709)
=================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 154,312,618 166,808,498
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 1,969,511 1,343,709
COST OF SHARES REDEEMED (182,175,448) (124,508,526)
=================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (25,893,319) 43,643,681
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (28,238,246) 47,273,516
NET ASSETS--BEGINNING OF PERIOD 47,273,516 --
- ---------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 19,035,270 $ 47,273,516
=================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ --
=================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 3, 2004.
182 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
MID-CAP LARGE-CAP
VALUE FUND VALUE FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004* 2005 2004*
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 81,788 $ 597 $ 127,469 $ 45,658
Net Realized Gain (Loss) on Investments 3,667,245 89,114 1,052,365 (113,593)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,100,126) 1,461,223 (582,663) 1,221,109
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 2,648,907 1,550,934 597,171 1,153,174
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (97,068) (2,716) (123,787) (43,247)
Realized Gain on Investment (4,952,655) (1,028,497) (558,155) (122,982)
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (5,049,723) (1,031,213) (681,942) (166,229)
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 363,932,503 145,080,951 82,963,538 112,952,676
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 5,049,723 1,031,213 681,942 166,229
COST OF SHARES REDEEMED (371,828,182) (127,153,333) (70,157,445) (102,961,971)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (2,845,956) 18,958,831 13,488,035 10,156,934
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (5,246,772) 19,478,552 13,403,264 11,143,879
NET ASSETS--BEGINNING OF PERIOD 19,478,552 -- 11,143,879 --
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 14,231,780 $ 19,478,552 $ 24,547,143 $ 11,143,879
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ 6,093 $ 2,411
=======================================================================================================================
SMALL-CAP MID-CAP
GROWTH FUND GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004* 2005 2004*
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (142,611) $ (116,105) $ (125,071) $ (43,395)
Net Realized Gain (Loss) on Investments 1,800,090 (404,399) 710,759 (1,385,920)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,775,372) 3,216,988 220,933 1,415,176
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (117,893) 2,696,484 806,621 (14,139)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- -- --
Realized Gain on Investment (1,624,213) (388,437) -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (1,624,213) (388,437) -- --
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 147,569,663 206,473,307 256,948,529 112,362,627
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 1,624,213 388,437 -- --
COST OF SHARES REDEEMED (153,412,827) (178,900,425) (225,422,324) (91,646,456)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (4,218,951) 27,961,319 31,526,205 20,716,171
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (5,961,057) 30,269,366 32,332,826 20,702,032
NET ASSETS--BEGINNING OF PERIOD 30,269,366 -- 20,702,032 --
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 24,308,309 $ 30,269,366 $ 53,034,858 $ 20,702,032
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ -- $ --
=======================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 183
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP STRENGTHENING WEAKENING
GROWTH FUND DOLLAR FUND DOLLAR FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004* 2005* 2005*
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (3,432) $ 111,669 $ 9,536 $ 9,837
Net Realized Gain (Loss) on Investments 538,671 (424,470) 13,898 (78,938)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (672,193) 1,026,831 8,044 (9,379)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (136,954) 714,030 31,478 (78,480)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (17,612) (107,055) (8,367) (7,332)
Realized Gain on Investment (442,416) (125,768) -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (460,028) (232,823) (8,367) (7,332)
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 138,034,497 110,437,239 6,070,999 5,011,248
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 460,028 232,823 8,367 7,332
COST OF SHARES REDEEMED (135,371,285) (91,139,545) (4,852,809) (1,978,413)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 3,123,240 19,530,517 1,226,557 3,040,167
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,526,258 20,011,724 1,249,668 2,954,355
NET ASSETS--BEGINNING OF PERIOD 20,011,724 -- -- --
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 22,537,982 $ 20,011,724 $ 1,249,668 $ 2,954,355
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ 4,614 $ 1,169 $ 2,505
=======================================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 3, 2004 -- LARGE-CAP GROWTH
FUND; SEPTEMBER 30, 2005 -- STRENGTHENING DOLLAR FUND AND WEAKENING DOLLAR
FUND; NOVEMBER 29, 2005 -- CORE EQUITY FUND.
184 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
CORE EQUITY SECTOR ROTATION
FUND FUND
- ----------------------------------------------------------------------------------------------------
PERIOD YEAR YEAR
ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005* 2005 2004
- ----------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 830 $ (68,343) $ (119,761)
Net Realized Gain (Loss) on Investments (4,548) 2,791,341 456,383
Net Change in Unrealized Appreciation
(Depreciation) on Investments 4,004 1,800,965 1,404,987
- ----------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 286 4,523,963 1,741,609
- ----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- --
Realized Gain on Investment -- -- --
- ----------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- --
====================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 3,104,617 60,423,868 46,275,706
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- -- --
COST OF SHARES REDEEMED (244,497) (30,861,025) (40,863,604)
====================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 2,860,120 29,562,843 5,412,102
- ----------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,860,406 34,086,806 7,153,711
NET ASSETS--BEGINNING OF PERIOD -- 27,747,442 20,593,731
- ----------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 2,860,406 $ 61,834,248 $ 27,747,442
====================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 830 $ -- $ --
====================================================================================================
U.S. GOVERNMENT
MONEY MARKET FUND BANKING FUND
- -----------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 4,700,835 $ 599,121 $ 219,732 $ 208,716
Net Realized Gain (Loss) on Investments -- -- (959,804) 1,845,200
Net Change in Unrealized Appreciation
(Depreciation) on Investments -- -- (270,743) 313,551
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 4,700,835 599,121 (1,010,815) 2,367,467
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (4,700,832) (599,121) (208,716) (87,982)
Realized Gain on Investment -- -- (2,141,474) (675,576)
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (4,700,832) (599,121) (2,350,190) (763,558)
=======================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 1,184,745,322 1,972,975,149 56,113,356 124,491,844
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 4,700,832 599,121 2,350,190 763,558
COST OF SHARES REDEEMED (1,171,759,619) (2,038,389,174) (62,442,489) (122,054,600)
=======================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 17,686,535 (64,814,904) (3,978,943) 3,200,802
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 17,686,538 (64,814,904) (7,339,948) 4,804,711
NET ASSETS--BEGINNING OF PERIOD 167,677,997 232,492,901 21,919,739 17,115,028
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 185,364,535 $ 167,677,997 $ 14,579,791 $ 21,919,739
=======================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 7,496 $ 7,493 $ 219,732 $ 208,716
=======================================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 185
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
BASIC BIOTECHNOLOGY COMMODITIES
MATERIALS FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004 2005*
- --------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 146,922 $ 95,937 $ (225,301) $ (254,024) $ 114,126
Net Realized Gain (Loss) on Investments 438,695 2,971,342 (1,077,177) (2,732,481) (2,283,369)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,893,780) 2,699,467 2,731,019 (376,774) 117,602
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (1,308,163) 5,766,746 1,428,541 (3,363,279) (2,051,641)
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (95,937) (15,788) -- -- (88,043)
Realized Gain on Investment (3,971,372) (896,336) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (4,067,309) (912,124) -- -- (88,043)
================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 92,190,282 183,981,709 119,737,084 199,318,738 45,650,039
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 4,067,309 912,123 -- -- 88,043
COST OF SHARES REDEEMED (108,726,587) (188,147,370) (91,668,019) (201,924,540) (15,411,353)
================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (12,468,996) (3,253,538) 28,069,065 (2,605,802) 30,326,729
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (17,844,468) 1,601,084 29,497,606 (5,969,081) 28,187,045
NET ASSETS--BEGINNING OF PERIOD 46,161,777 44,560,693 6,588,331 12,557,412 --
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 28,317,309 $ 46,161,777 $ 36,085,937 $ 6,588,331 $ 28,187,045
================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 146,922 $ 95,937 $ -- $ -- $ 26,083
================================================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 30, 2005.
186 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
CONSUMER ELECTRONICS
PRODUCTS FUND FUND
- ---------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 127,914 $ 98,701 $ (120,698) $ (113,401)
Net Realized Gain (Loss) on Investments 1,129,327 (1,467,922) (1,865,668) 452,350
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,291,415) 1,868,349 248,322 (1,990,020)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (34,174) 499,128 (1,738,044) (1,651,071)
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (98,701) (8,514) -- --
Realized Gain on Investment (595,563) (366,859) -- --
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (694,264) (375,373) -- --
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 83,987,436 164,280,345 111,112,719 127,993,084
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 694,264 375,373 -- --
COST OF SHARES REDEEMED (86,209,578) (149,165,001) (113,357,895) (141,970,932)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (1,527,878) 15,490,717 (2,245,176) (13,977,848)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (2,256,316) 15,614,472 (3,983,220) (15,628,919)
NET ASSETS--BEGINNING OF PERIOD 24,432,932 8,818,460 12,289,330 27,918,249
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 22,176,616 $ 24,432,932 $ 8,306,110 $ 12,289,330
===============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 127,914 $ 98,701 $ -- $ --
===============================================================================================================
ENERGY ENERGY SERVICES
FUND FUND
- ---------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (11,471) $ 16,641 $ (679,814) $ (240,027)
Net Realized Gain (Loss) on Investments 9,383,343 3,764,934 (1,689,593) (666,151)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 14,787,065 7,203,445 19,597,826 4,338,770
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 24,158,937 10,985,020 17,228,419 3,432,592
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (16,641) (2,902) -- --
Realized Gain on Investment (4,777,562) (19,777) -- --
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (4,794,203) (22,679) -- --
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 244,153,879 211,381,026 226,791,272 194,518,793
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 4,794,203 22,679 -- --
COST OF SHARES REDEEMED (245,376,150) (193,697,442) (193,614,464) (176,389,181)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 3,571,932 17,706,263 33,176,808 18,129,612
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 22,936,666 28,668,604 50,405,227 21,562,204
NET ASSETS--BEGINNING OF PERIOD 60,500,662 31,832,058 29,316,485 7,754,281
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 83,437,328 $ 60,500,662 $ 79,721,712 $ 29,316,485
===============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ 16,641 $ -- $ --
===============================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 187
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES HEALTH CARE
FUND FUND
- ---------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 287,113 $ 227,270 $ (281,990) $ (194,293)
Net Realized Gain (Loss) on Investments (28,632) 2,993,017 3,078,597 (4,048,919)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (132,312) 1,012,134 2,066,699 2,251,151
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 126,169 4,232,421 4,863,306 (1,992,061)
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (227,270) (56,477) -- --
Realized Gain on Investment (1,835,580) -- -- (280,656)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (2,062,850) (56,477) -- (280,656)
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 75,836,087 135,746,956 128,683,744 187,573,600
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 2,062,850 56,477 -- 280,656
COST OF SHARES REDEEMED (84,302,471) (110,380,869) (112,290,779) (183,025,743)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (6,403,534) 25,422,564 16,392,965 4,828,513
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (8,340,215) 29,598,508 21,256,271 2,555,796
NET ASSETS--BEGINNING OF YEAR 45,179,699 15,581,191 30,435,314 27,879,518
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 36,839,484 $ 45,179,699 $ 51,691,585 $ 30,435,314
===============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 287,113 $ 227,270 $ -- $ --
===============================================================================================================
INTERNET
FUND
- -----------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2005 2004
- -----------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (154,798) $ (384,937)
Net Realized Gain (Loss) on Investments 1,240,923 (1,703,305)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (5,091,806) 3,280,437
- -----------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (4,005,681) 1,192,195
- -----------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- --
Realized Gain on Investment (586,030) --
- -----------------------------------------------------------------------------
Total Distributions to Shareholders (586,030) --
=============================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 85,148,669 173,982,802
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 586,030 --
COST OF SHARES REDEEMED (97,106,055) (163,354,081)
=============================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (11,371,356) 10,628,721
- -----------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (15,963,067) 11,820,916
NET ASSETS--BEGINNING OF YEAR 36,921,925 25,101,009
- -----------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 20,958,858 $ 36,921,925
=============================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ --
=============================================================================
188 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
LEISURE PRECIOUS
FUND METALS FUND
- ---------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (243,896) $ (175,881) $ (73,200) $ (191,509)
Net Realized Gain (Loss) on Investments 1,463,777 2,075,047 (5,450,489) (4,346,436)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (3,609,943) 3,561,300 11,668,972 (7,741,810)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (2,390,062) 5,460,466 6,145,283 (12,279,755)
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- -- --
Realized Gain on Investment (2,102,243) (176,049) -- --
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (2,102,243) (176,049) -- --
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 54,494,972 142,260,736 155,123,238 227,819,060
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 2,102,243 176,049 -- --
COST OF SHARES REDEEMED (89,899,020) (125,982,350) (128,070,546) (225,101,989)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (33,301,805) 16,454,435 27,052,692 2,717,071
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (37,794,110) 21,738,852 33,197,975 (9,562,684)
NET ASSETS--BEGINNING OF YEAR 51,754,888 30,016,036 35,043,070 44,605,754
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 13,960,778 $ 51,754,888 $ 68,241,045 $ 35,043,070
===============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ -- $ --
===============================================================================================================
REAL ESTATE RETAILING
FUND FUND
- ---------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 627,909 $ 600,333 $ (252,985) $ (148,011)
Net Realized Gain (Loss) on Investments (367,084) (1,998,721) 761,446 (260,600)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 1,158,404 3,905,052 (379,811) 1,158,987
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 1,419,229 2,506,664 128,650 750,376
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (486,247) (114,086) -- --
Realized Gain on Investment -- (385,202) (373,394) (865,536)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (486,247) (499,288) (373,394) (865,536)
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 290,942,708 250,440,684 79,774,938 100,889,298
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT 486,247 499,288 373,394 865,536
COST OF SHARES REDEEMED (290,202,854) (238,214,879) (83,088,381) (95,988,454)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,226,101 12,725,093 (2,940,049) 5,766,380
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,159,083 14,732,469 (3,184,793) 5,651,220
NET ASSETS--BEGINNING OF YEAR 26,915,191 12,182,722 20,800,389 15,149,169
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 29,074,274 $ 26,915,191 $ 17,615,596 $ 20,800,389
===============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 627,909 $ 486,247 $ -- $ --
===============================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 189
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
TECHNOLOGY TELECOMMUNICATIONS
FUND FUND
- ---------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (202,912) $ (63,269) $ 176,939 $ (15,905)
Net Realized Gain (Loss) on Investments 395,325 (1,513,746) 681,979 (320,328)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 201,044 236,415 (1,228,903) 2,929,686
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 393,457 (1,340,600) (369,985) 2,593,453
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- -- --
Realized Gain on Investment -- (1,130,753) (1,560,307) --
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (1,130,753) (1,560,307) --
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 77,520,975 120,344,071 56,421,975 169,150,792
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT -- 1,130,753 1,560,307 --
COST OF SHARES REDEEMED (78,688,236) (119,725,789) (69,344,879) (156,096,553)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (1,167,261) 1,749,035 (11,362,597) 13,054,239
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (773,804) (722,318) (13,292,889) 15,647,692
NET ASSETS--BEGINNING OF YEAR 19,918,765 20,641,083 30,190,780 14,543,088
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 19,144,961 $ 19,918,765 $ 16,897,891 $ 30,190,780
===============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ 176,939 $ --
===============================================================================================================
190 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES
FUND FUND
- ---------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (165,000) $ (148,396) $ 872,857 $ 313,329
Net Realized Gain (Loss) on Investments 986,215 (1,111,192) (1,050,256) 1,405,192
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,991,584) 7,775,218 2,775,884 1,370,754
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (1,170,369) 6,515,630 2,598,485 3,089,275
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- (313,329) (265,543)
Realized Gain on Investment (645,384) (315,578) -- --
- ---------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (645,384) (315,578) (313,329) (265,543)
===============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 57,217,996 122,599,361 164,671,051 138,522,407
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT 645,384 315,578 313,329 265,543
COST OF SHARES REDEEMED (72,003,523) (89,813,713) (149,228,346) (133,139,508)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (14,140,143) 33,101,226 15,756,034 5,648,442
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (15,955,896) 39,301,278 18,041,190 8,472,174
NET ASSETS--BEGINNING OF YEAR 47,333,429 8,032,151 21,902,192 13,430,018
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $ 31,377,533 $ 47,333,429 $ 39,943,382 $ 21,902,192
===============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ 872,857 $ 313,329
===============================================================================================================
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 191
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET
INCREASE
NET (DECREASE)
REALIZED IN NET
AND ASSET DISTRIBUTIONS
NET ASSET NET UNREALIZED VALUE DISTRIBUTIONS FROM NET DISTRIBUTIONS
VALUE, INVESTMENT GAINS RESULTING FROM NET REALIZED FROM
BEGINNING INCOME (LOSSES) ON FROM INVESTMENT CAPITAL RETURN OF TOTAL
OF PERIOD (LOSS)+ SECURITIES OPERATIONS INCOME GAINS CAPITAL DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
NOVA FUND
DECEMBER 31, 2005 $ 8.26 $ .05 $ .28 $ .33 $ (.03) $ -- $ -- $ (.03)
December 31, 2004 7.21 .03 1.02 1.05 (--)ss. -- -- (--)ss.
December 31, 2003 5.18 .01 2.02 2.03 -- -- -- --
December 31, 2002 8.67 (.01) (3.07) (3.08) (.41) -- -- (.41)
December 31, 2001 13.88 .30 (3.81) (3.51) (1.70) -- -- (1.70)
URSA FUND
DECEMBER 31, 2005 5.19 .08 (.12) (.04) -- -- -- --
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) -- -- (.08)
December 31, 2001 6.09 .12 .88 1.00 (.80) -- -- (.80)
OTC FUND
DECEMBER 31, 2005 14.39 (.09) .25 .16 -- -- -- --
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) -- -- -- --
ARKTOS FUND
DECEMBER 31, 2005 21.24 .33 (.06) .27 -- -- -- --
December 31, 2004 24.09 (.08) (2.77) (2.85) -- -- -- --
December 31, 2003 39.04 (.22) (14.33) (14.55) -- (.40) -- (.40)
December 31, 2002 29.48 (.19) 10.22 10.03 (.47) -- -- (.47)
December 31, 2001* 25.00 .03 4.45 4.48 -- -- -- --
TITAN 500 FUND
DECEMBER 31, 2005 19.83 .10 .53 .63 (.02) (2.07) -- (2.09)
December 31, 2004 21.59 .02 2.98 3.00 -- (4.76) -- (4.76)
December 31, 2003 16.09 (.11) 8.95 8.84 -- (3.34) -- (3.34)
December 31, 2002 29.87 (.09) (13.65) (13.74) -- (.04) -- (.04)
December 31, 2001* 25.00 (.25) 5.12 4.87 -- -- -- --
VELOCITY 100 FUND
DECEMBER 31, 2005 23.09 (.09) (.61) (.70) -- -- -- --
December 31, 2004 21.73 (.06) 2.76 2.70 (.97) (.06) (.31) (1.34)
December 31, 2003 11.90 (.21) 11.95 11.74 -- (1.91) -- (1.91)
December 31, 2002 38.97 (.13) (26.94) (27.07) -- -- -- --
December 31, 2001* 25.00 (.59) 14.56 13.97 -- -- -- --
RATIOS TO
AVERAGE NET ASSETS:
------------------------------------
NET
INCREASE
(DECREASE) NET ASSET NET NET ASSETS,
IN VALUE, TOTAL INVESTMENT PORTFOLIO END OF
NET ASSET END OF INVESTMENT GROSS NET INCOME TURNOVER PERIOD (000'S
VALUE PERIOD RETURN EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- ------------------------------------------------------------------------------------------------------------------------------------
NOVA FUND
DECEMBER 31, 2005 $ .30 $ 8.56 3.97% 1.53% 1.53% 0.60% 381% $132,018
December 31, 2004 1.05 8.26 14.62% 1.46% 1.46% 0.41% 654% 130,200
December 31, 2003 2.03 7.21 39.19% 1.54% 1.54% 0.09% 729% 81,816
December 31, 2002 (3.49) 5.18 (35.72)% 1.72% 1.72% (0.14)% 570% 34,017
December 31, 2001 (5.21) 8.67 (23.58)% 1.45% 1.45% 2.61% -- 60,941
URSA FUND
DECEMBER 31, 2005 (.04) 5.15 (0.77)% 1.70% 1.70% 1.46% -- 32,505
December 31, 2004 (.58) 5.19 (10.05)% 1.62% 1.62% (0.28)% -- 19,076
December 31, 2003 (1.80) 5.77 (23.78)% 1.67% 1.67% (0.59)% -- 17,822
December 31, 2002 1.28 7.57 21.64% 1.79% 1.79% (0.24)% -- 36,195
December 31, 2001 .20 6.29 14.99% 1.89% 1.89% 1.85% -- 18,997
OTC FUND
DECEMBER 31, 2005 .16 14.55 1.11% 1.50% 1.50% (0.68)% 294% 102,487
December 31, 2004 1.23 14.39 9.35% 1.47% 1.47% (0.17)% 418% 191,476
December 31, 2003 4.11 13.16 45.41% 1.53% 1.53% (1.20)% 482% 127,836
December 31, 2002 (5.75) 9.05 (38.85)% 1.74% 1.74% (1.58)% 183% 77,635
December 31, 2001 (8.03) 14.80 (35.17)% 1.45% 1.45% (1.31)% 139% 164,619
ARKTOS FUND
DECEMBER 31, 2005 .27 21.51 1.27% 1.70% 1.63% 1.49% -- 19,648
December 31, 2004 (2.85) 21.24 (11.83)% 1.64% 1.64% (0.35)% -- 23,928
December 31, 2003 (14.95) 24.09 (37.37)% 1.68% 1.68% (0.73)% -- 34,563
December 31, 2002 9.56 39.04 33.85% 1.77% 1.77% (0.49)% -- 24,229
December 31, 2001* 4.48 29.48 17.92% 2.23%** 2.23%** 0.10%** -- 5,955
TITAN 500 FUND
DECEMBER 31, 2005 (1.46) 18.37 3.38% 1.65% 1.65% 0.55% 585% 25,397
December 31, 2004 (1.76) 19.83 16.90% 1.65% 1.65% 0.09% 974% 29,053
December 31, 2003 5.50 21.59 54.94% 1.69% 1.69% (0.55)% 1,085% 30,428
December 31, 2002 (13.78) 16.09 (46.00)% 1.74% 1.74% (0.49)% -- 2,122
December 31, 2001* 4.87 29.87 19.48% 2.22%** 2.22%** (1.11)%** -- 311
VELOCITY 100 FUND
DECEMBER 31, 2005 (.70) 22.39 (3.03)% 1.65% 1.65% (0.42)% 343% 44,313
December 31, 2004 1.36 23.09 14.21% 1.65% 1.65% (0.29)% 662% 57,599
December 31, 2003 9.83 21.73 98.63% 1.71% 1.71% (1.10)% 959% 40,632
December 31, 2002 (27.07) 11.90 (69.46)% 1.77% 1.77% (0.79)% -- 3,346
December 31, 2001* 13.97 38.97 55.88% 2.34%** 2.34%** (1.77)%** -- 477
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 21, 2001--ARKTOS FUND; OCTOBER
1, 2001--TITAN 500 FUND AND VELOCITY 100 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 = $.00378.
192 | 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
INCREASE
NET (DECREASE)
REALIZED IN NET
AND ASSET DISTRIBUTIONS
NET ASSET NET UNREALIZED VALUE DISTRIBUTIONS FROM NET NET INCREASE
VALUE, INVESTMENT GAINS RESULTING FROM NET REALIZED (DECREASE) IN
BEGINNING INCOME (LOSSES) ON FROM INVESTMENT CAPITAL TOTAL NET ASSET
OF PERIOD (LOSS)+ SECURITIES OPERATIONS INCOME GAINS DISTRIBUTIONS VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIUS FUND
DECEMBER 31, 2005 $26.50 $ (.02) $ 3.75 $ 3.73 $ -- $ (.08) $ (.08) $ 3.65
December 31, 2004 24.74 (.09) 4.96 4.87 -- (3.11) (3.11) 1.76
December 31, 2003 17.77 (.12) 9.44 9.32 -- (2.35) (2.35) 6.97
December 31, 2002 31.21 (.12) (7.18) (7.30) -- (6.14) (6.14) (13.44)
December 31, 2001* 25.00 (.20) 6.88 6.68 -- (.47) (.47) 6.21
INVERSE MID-CAP FUND
DECEMBER 31, 2005 44.03 .70 (4.31) (3.61) (1.27) -- (1.27) (4.88)
December 31, 2004* 50.00 (.06) (5.91) (5.97) -- -- -- (5.97)
MEKROS FUND
DECEMBER 31, 2005 33.65 .01 1.31 1.32 (.83) -- (.83) .49
December 31, 2004 29.75 (.10) 6.95 6.85 -- (2.95) (2.95) 3.90
December 31, 2003 20.11 (.18) 13.11 12.93 -- (3.29) (3.29) 9.64
December 31, 2002 31.91 (.17) (11.08) (11.25) -- (.55) (.55) (11.80)
December 31, 2001* 25.00 (.31) 7.56 7.25 -- (.34) (.34) 6.91
INVERSE SMALL-CAP FUND
DECEMBER 31, 2005 42.83 .65 (1.98) (1.33) (.90) -- (.90) (2.23)
December 31, 2004* 50.00 (.10) (7.07) (7.17) -- -- -- (7.17)
U.S. GOVERNMENT BOND FUND
DECEMBER 31, 2005 11.88 .41 .50 .91 (.41) -- (.41) .50
December 31, 2004 11.67 .40 .54 .94 (.40) (.33) (.73) .21
December 31, 2003 13.08 .41 (.52) (.11) (.41) (.89) (1.30) (1.41)
December 31, 2002 11.44 .44 1.64 2.08 (.44) -- (.44) 1.64
December 31, 2001 11.80 .37 (.36) .01 (.37) -- (.37) (.36)
JUNO FUND
DECEMBER 31, 2005 21.95 (.07) (1.08) (1.15) -- -- -- (1.15)
December 31, 2004 24.82 (.66) (1.98) (2.64) -- (.23) (.23) (2.87)
December 31, 2003* 25.00 (.13) (.05) (.18) -- -- -- (.18)
LARGE-CAP EUROPE FUND
DECEMBER 31, 2005 22.62 .21 1.23 1.44 (.09) (.13) (.22) 1.22
December 31, 2004 22.87 (.05) 3.71 3.66 (3.82) (.09) (3.91) (.25)
December 31, 2003 19.52 (.17) 8.58 8.41 -- (5.06) (5.06) 3.35
December 31, 2002 28.01 (.09) (7.84) (7.93) (.01) (.55) (.56) (8.49)
December 31, 2001* 25.00 (.16) 3.17 3.01 -- -- -- 3.01
LARGE-CAP JAPAN FUND
DECEMBER 31, 2005 27.77 .48 5.17 5.65 -- -- -- 5.65
December 31, 2004 25.17 (.14) 2.74 2.60 -- -- -- 2.60
December 31, 2003 18.29 (.16) 7.04 6.88 -- -- -- 6.88
December 31, 2002 21.91 (.08) (3.46) (3.54) -- (.08) (.08) (3.62)
December 31, 2001* 25.00 (.16) (2.93) (3.09) -- -- -- (3.09)
RATIOS TO
AVERAGE NET ASSETS:
--------------------------------------------------
NET ASSET NET NET ASSETS,
VALUE, TOTAL INVESTMENT PORTFOLIO END OF
END OF INVESTMENT GROSS NET OPERATING INCOME TURNOVER PERIOD (000'S
PERIOD RETURN EXPENSES EXPENSES EXPENSES++ (LOSS) RATE*** OMITTED)
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIUS FUND
DECEMBER 31, 2005 $ 30.15 14.07% 1.65% 1.65% 1.65% (0.05)% 573% $ 51,197
December 31, 2004 26.50 22.14% 1.64% 1.64% 1.64% (0.37)% 866% 34,162
December 31, 2003 24.74 52.43% 1.70% 1.70% 1.70% (0.54)% 1,665% 18,544
December 31, 2002 17.77 (24.44)% 1.75% 1.75% 1.75% (0.49)% 4,320% 6,707
December 31, 2001* 31.21 26.67% 2.27%** 2.27%** 2.27%** (0.87)%** 3,707% 754
INVERSE MID-CAP FUND
DECEMBER 31, 2005 39.15 (8.16)% 1.64% 1.64% 1.64% 1.65% -- 2,846
December 31, 2004* 44.03 (11.94)% 1.62%** 1.62%** 1.62%** (0.17)%** -- 1,319
MEKROS FUND
DECEMBER 31, 2005 34.14 3.91% 1.63% 1.63% 1.63% 0.04% 404% 38,589
December 31, 2004 33.65 25.20% 1.65% 1.65% 1.65% (0.32)% 1,171% 112,649
December 31, 2003 29.75 64.28% 1.70% 1.70% 1.70% (0.66)% 1,135% 122,995
December 31, 2002 20.11 (35.45)% 1.74% 1.74% 1.74% (0.70)% 1,940% 12,947
December 31, 2001* 31.91 28.97% 2.26%** 2.26%** 2.26%** (0.96)%** 848% 8,524
INVERSE SMALL-CAP FUND
DECEMBER 31, 2005 40.60 (3.07)% 1.63% 1.63% 1.63% 1.49% -- 11,850
December 31, 2004* 42.83 (14.34)% 1.65%** 1.65%** 1.65%** (0.29)%** -- 4,344
U.S. GOVERNMENT BOND FUND
DECEMBER 31, 2005 12.38 7.71% 1.18% 1.18% 1.18% 3.30% 1,284% 60,160
December 31, 2004 11.88 8.42% 1.21% 1.21% 1.21% 3.36% 1,318% 48,709
December 31, 2003 11.67 (0.64)% 1.23% 1.23% 1.23% 3.26% 1,272% 65,358
December 31, 2002 13.08 18.62% 1.24% 1.24% 1.24% 3.65% 1,239% 25,190
December 31, 2001 11.44 0.08% 2.37% 2.01% 2.01% 3.22% 1,247% 4,521
JUNO FUND
DECEMBER 31, 2005 20.80 (5.24)% 5.11% 5.11% 1.63% (0.33)% 589% 29,671
December 31, 2004 21.95 (10.67)% 5.02% 5.02% 1.63% (2.86)% -- 41,098
December 31, 2003* 24.82 (0.72)% 1.69%** 1.69%** 1.69%** (0.74)%** -- 22,355
LARGE-CAP EUROPE FUND
DECEMBER 31, 2005 23.84 6.36% 1.63% 1.63% 1.63% 0.94% 399% 25,954
December 31, 2004 22.62 16.15% 1.64% 1.64% 1.64% (0.23)% -- 54,994
December 31, 2003 22.87 43.08% 1.70% 1.70% 1.70% (0.75)% -- 38,443
December 31, 2002 19.52 (28.35)% 1.78% 1.78% 1.78% (0.41)% -- 3,082
December 31, 2001* 28.01 12.04% 2.17%** 2.17%** 2.17%** (0.55)%** -- 1,322
LARGE-CAP JAPAN FUND
DECEMBER 31, 2005 33.42 20.35% 1.70% 1.70% 1.70% 1.72% -- 55,219
December 31, 2004 27.77 10.33% 1.63% 1.63% 1.63% (0.50)% -- 14,228
December 31, 2003 25.17 37.62% 1.69% 1.69% 1.69% (0.75)% -- 11,541
December 31, 2002 18.29 (16.20)% 1.80% 1.80% 1.80% (0.38)% -- 3,590
December 31, 2001* 21.91 (12.36)% 2.23%** 2.23%** 2.23%** (0.62)%** -- 643
* SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 1, 2001--MEDIUS FUND, MEKROS
FUND, LARGE-CAP EUROPE FUND AND LARGE-CAP JAPAN FUND; MAY 1, 2003--JUNO
FUND; MAY 3, 2004--INVERSE MID-CAP FUND AND INVERSE SMALL-CAP 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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 193
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET
INCREASE
NET (DECREASE)
REALIZED IN
AND NET ASSET DISTRIBUTIONS
NET ASSET NET UNREALIZED VALUE DISTRIBUTIONS FROM NET
VALUE, INVESTMENT GAINS RESULTING FROM NET REALIZED
BEGINNING INCOME (LOSSES) ON FROM INVESTMENT CAPITAL
OF PERIOD (LOSS)+ SECURITIES OPERATIONS INCOME GAINS
- ----------------------------------------------------------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND
DECEMBER 31, 2005 $ 25.89 $ .24 $ (1.25) $ (1.01) $ (.17) $ (1.61)
December 31, 2004* 25.00 .14 2.03 2.17 (1.16) (.12)
INVERSE DYNAMIC DOW 30 FUND
DECEMBER 31, 2005 43.22 .74 (.06) .68 (.70) --
December 31, 2004* 50.00 (.03) (5.71) (5.74) -- (1.04)
SMALL-CAP VALUE FUND
DECEMBER 31, 2005 28.84 (.05) 1.13 1.08 -- (4.25)
December 31, 2004* 25.00 .01 4.50 4.51 (.01) (.66)
MID-CAP VALUE FUND
DECEMBER 31, 2005 27.08 .07 2.28 2.35 (.20) (9.96)
December 31, 2004* 25.00 -- 3.80 3.80 (--)ss. (1.72)
LARGE-CAP VALUE FUND
DECEMBER 31, 2005 27.68 .21 .95 1.16 (.15) (.79)
December 31, 2004* 25.00 .12 3.00 3.12 (.11) (.33)
SMALL-CAP GROWTH FUND
DECEMBER 31, 2005 28.55 (.21) 2.00 1.79 -- (1.70)
December 31, 2004* 25.00 (.17) 4.12 3.95 -- (.40)
MID-CAP GROWTH FUND
DECEMBER 31, 2005 27.13 (.20) 3.31 3.11 -- --
December 31, 2004* 25.00 (.13) 2.26 2.13 -- --
LARGE-CAP GROWTH FUND
DECEMBER 31, 2005 25.75 (.01) .47 .46 (.02) (.50)
December 31, 2004* 25.00 .36 .71 1.07 (.15) (.17)
STRENGTHENING DOLLAR FUND
DECEMBER 31, 2005* 25.00 .14 .65 .79 (.17) --
WEAKENING DOLLAR FUND
DECEMBER 31, 2005* 25.00 .15 (.78) (.63) (.06) --
CORE EQUITY FUND
DECEMBER 31, 2005* 25.00 .01 .03 .04 -- --
SECTOR ROTATION FUND
DECEMBER 31, 2005 11.16 (.02) 1.54 1.52 -- --
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, 2005 1.00 .02 -- .02 (.02) --
December 31, 2004 1.00 --ss.ss.ss.ss. -- -- (--)ss.ss.ss.ss. --
December 31, 2003 1.00 --ss.ss.ss. -- -- (--)ss.ss.ss. --
December 31, 2002 1.00 --ss.ss. -- -- (--)ss.ss. --
December 31, 2001 1.00 .03 -- .03 (.03) --
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------
NET
INCREASE
(DECREASE) NET ASSET NET
IN VALUE, TOTAL INVESTMENT
TOTAL NET ASSET END OF INVESTMENT GROSS NET INCOME
DISTRIBUTIONS VALUE PERIOD RETURN EXPENSES EXPENSES (LOSS)
- ---------------------------------------------------------------------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND
DECEMBER 31, 2005 $ (1.78) $ (2.79) $ 23.10 (3.81)% 1.67% 1.67% 1.03%
December 31, 2004* (1.28) .89 25.89 8.65% 1.63%** 1.63%** 0.91%**
INVERSE DYNAMIC DOW 30 FUND
DECEMBER 31, 2005 (.70) (.02) 43.20 1.63% 1.65% 1.65% 1.67%
December 31, 2004* (1.04) (6.78) 43.22 (11.47)% 1.62%** 1.62%** (0.09)%**
SMALL-CAP VALUE FUND
DECEMBER 31, 2005 (4.25) (3.17) 25.67 3.64% 1.47% 1.47% (0.16)%
December 31, 2004* (.67) 3.84 28.84 18.03% 1.46%** 1.46%** 0.07%**
MID-CAP VALUE FUND
DECEMBER 31, 2005 (10.16) (7.81) 19.27 8.32% 1.48% 1.48% 0.26%
December 31, 2004* (1.72) 2.08 27.08 15.20% 1.48%** 1.48%** 0.01%**
LARGE-CAP VALUE FUND
DECEMBER 31, 2005 (.94) .22 27.90 4.19% 1.50% 1.50% 0.77%
December 31, 2004* (.44) 2.68 27.68 12.49% 1.45%** 1.45%** 0.69%**
SMALL-CAP GROWTH FUND
DECEMBER 31, 2005 (1.70) .09 28.64 6.20% 1.50% 1.50% (0.72)%
December 31, 2004* (.40) 3.55 28.55 15.82% 1.46%** 1.46%** (0.93)%**
MID-CAP GROWTH FUND
DECEMBER 31, 2005 -- 3.11 30.24 11.46% 1.52% 1.52% (0.70)%
December 31, 2004* -- 2.13 27.13 8.52% 1.46%** 1.46%** (0.75)%**
LARGE-CAP GROWTH FUND
DECEMBER 31, 2005 (.52) (.06) 25.69 1.77% 1.52% 1.52% (0.03)%
December 31, 2004* (.32) .75 25.75 4.26% 1.46%** 1.46%** 2.12%**
STRENGTHENING DOLLAR FUND
DECEMBER 31, 2005* (.17) .62 25.62 3.16% 1.78%** 1.78%** 2.11%**
WEAKENING DOLLAR FUND
DECEMBER 31, 2005* (.06) (.69) 24.31 (2.53)% 1.76%** 1.76%** 2.28%**
CORE EQUITY FUND
DECEMBER 31, 2005* -- .04 25.04 0.16% 1.67%** 1.67%** 0.33%**
SECTOR ROTATION FUND
DECEMBER 31, 2005 -- 1.52 12.68 13.62% 1.70% 1.70% (0.20)%
December 31, 2004 -- 1.08 11.16 10.71% 1.63% 1.63% (0.52)%
December 31, 2003 -- 2.32 10.08 29.97% 1.70% 1.70% (0.78)%
December 31, 2002* -- (2.24) 7.76 (22.40)% 1.69%** 1.69%** (0.16)%**
U.S. GOVERNMENT MONEY MARKET FUND
DECEMBER 31, 2005 (.02) -- 1.00 2.00% 1.17% 1.17% 1.96%
December 31, 2004 (--)ss.ss.ss.ss. -- 1.00 0.23% 1.19% 1.10% 0.20%
December 31, 2003 (--)ss.ss.ss. -- 1.00 0.01% 1.22% 1.11% 0.01%
December 31, 2002 (--)ss.ss. -- 1.00 0.47% 1.23% 1.23% 0.44%
December 31, 2001 (.03) -- 1.00 2.77% 1.19% 1.19% 2.48%
NET ASSETS,
PORTFOLIO END OF
TURNOVER PERIOD (000'S
RATE*** OMITTED)
- --------------------------------------------------------------------
LONG DYNAMIC DOW 30 FUND
DECEMBER 31, 2005 666% $ 12,920
December 31, 2004* 907% 10,419
INVERSE DYNAMIC DOW 30 FUND
DECEMBER 31, 2005 -- 7,257
December 31, 2004* -- 3,184
SMALL-CAP VALUE FUND
DECEMBER 31, 2005 825% 19,035
December 31, 2004* 507% 47,274
MID-CAP VALUE FUND
DECEMBER 31, 2005 1,133% 14,232
December 31, 2004* 1,173% 19,479
LARGE-CAP VALUE FUND
DECEMBER 31, 2005 493% 24,547
December 31, 2004* 983% 11,144
SMALL-CAP GROWTH FUND
DECEMBER 31, 2005 737% 24,308
December 31, 2004* 733% 30,269
MID-CAP GROWTH FUND
DECEMBER 31, 2005 1,178% 53,035
December 31, 2004* 875% 20,702
LARGE-CAP GROWTH FUND
DECEMBER 31, 2005 1,111% 22,538
December 31, 2004* 1,087% 20,012
STRENGTHENING DOLLAR FUND
DECEMBER 31, 2005* -- 1,250
WEAKENING DOLLAR FUND
DECEMBER 31, 2005* -- 2,954
CORE EQUITY FUND
DECEMBER 31, 2005* 8% 2,860
SECTOR ROTATION FUND
DECEMBER 31, 2005 281% 61,834
December 31, 2004 333% 27,747
December 31, 2003 401% 20,594
December 31, 2002* 357% 6,669
U.S. GOVERNMENT MONEY MARKET FUND
DECEMBER 31, 2005 -- 185,365
December 31, 2004 -- 167,678
December 31, 2003 -- 232,493
December 31, 2002 -- 258,953
December 31, 2001 -- 96,515
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 1, 2002--SECTOR ROTATION
FUND; MAY 3, 2004--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 AND LARGE-CAP
GROWTH FUND; SEPTEMBER 30, 2005--STRENGTHENING DOLLAR FUND AND
WEAKENING DOLLAR FUND; NOVEMBER 29, 2005--CORE EQUITY 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 = $.00454.
ss.ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00471.
ss.ss.ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00011.
ss.ss.ss.ss. LESS THAN $.01 PER SHARE. ACTUAL AMOUNT = $.00199.
194 | 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 INCREASE
NET REALIZED (DECREASE) DISTRIBUTIONS
NET ASSET NET AND IN NET ASSET DISTRIBUTIONS FROM NET
VALUE, INVESTMENT UNREALIZED VALUE FROM NET REALIZED
BEGINNING INCOME GAINS (LOSSES) RESULTING FROM INVESTMENT CAPITAL
OF PERIOD (LOSS)+ ON SECURITIES OPERATIONS INCOME GAINS
- ---------------------------------------------------------------------------------------------------------------------------------
BANKING FUND
DECEMBER 31, 2005 $ 36.29 $ .44 $ (1.52) $ (1.08) $ (.49) $ (5.03)
December 31, 2004 32.50 .35 4.38 4.73 (.11) (.83)
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, 2005 32.66 .12 .80 0.92 (.13) (5.58)
December 31, 2004 27.69 .09 5.58 5.67 (.01) (.69)
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, 2005 19.31 (.31) 2.37 2.06 -- --
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) -- (.04)
December 31, 2001* 25.00 (.55) .22 (.33) -- --
COMMODITIES FUND
DECEMBER 31, 2005* 25.00 .14 (2.98) (2.84) (.06) --
CONSUMER PRODUCTS FUND
DECEMBER 31, 2005 32.95 .14 (.26) (0.12) (.17) (1.03)
December 31, 2004 29.39 .11 3.78 3.89 (.01) (.32)
December 31, 2003 24.36 .01 5.29 5.30 (.02) (.25)
December 31, 2002 25.32 .04 (.95) (.91) (.01) (.04)
December 31, 2001* 25.00 .05 .27 .32 -- --
ELECTRONICS FUND
DECEMBER 31, 2005 13.17 (.16) .67 .51 -- --
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) -- (.79)
December 31, 2001* 25.00 (.43) (3.93) (4.36) -- --
ENERGY FUND
DECEMBER 31, 2005 29.68 -- 11.44 11.44 (.01) (1.91)
December 31, 2004 22.45 .01 7.23 7.24 (--)ss. (.01)
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) -- --
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------
NET INCREASE NET ASSET NET
(DECREASE) IN VALUE, TOTAL INVESTMENT
TOTAL NET ASSET END OF INVESTMENT TOTAL INCOME
DISTRIBUTIONS VALUE PERIOD RETURN EXPENSES (LOSS)
- ---------------------------------------------------------------------------------------------------------------------------------
BANKING FUND
DECEMBER 31, 2005 $ (5.52) $ (6.60) $ 29.69 (2.77)% 1.58% 1.34%
December 31, 2004 (.94) 3.79 36.29 14.74% 1.59% 1.02%
December 31, 2003 (.33) 7.55 32.50 31.74% 1.65% 1.24%
December 31, 2002 (.07) (.26) 24.95 (0.78)% 1.67% 1.10%
December 31, 2001* -- .21 25.21 0.84% 1.99%** 1.80%**
BASIC MATERIALS FUND
DECEMBER 31, 2005 (5.71) (4.79) 27.87 4.04% 1.57% 0.41%
December 31, 2004 (.70) 4.97 32.66 20.83% 1.59% 0.30%
December 31, 2003 (.01) 6.62 27.69 31.46% 1.67% 0.17%
December 31, 2002 (.06) (3.14) 21.07 (12.75)% 1.75% 0.38%
December 31, 2001* -- (.79) 24.21 (3.16)% 1.95%** 0.85%**
BIOTECHNOLOGY FUND
DECEMBER 31, 2005 -- 2.06 21.37 10.67% 1.66% (1.59)%
December 31, 2004 -- .21 19.31 1.10% 1.59% (1.51)%
December 31, 2003 -- 5.66 19.10 42.11% 1.64% (1.61)%
December 31, 2002 (.04) (11.23) 13.44 (45.35)% 1.79% (1.76)%
December 31, 2001* -- (.33) 24.67 (1.32)% 2.27%** (2.24)%**
COMMODITIES FUND
DECEMBER 31, 2005* (.06) (2.90) 22.10 (11.34)% 1.64%** 2.41%**
CONSUMER PRODUCTS FUND
DECEMBER 31, 2005 (1.20) (1.32) 31.63 (0.40)% 1.58% 0.42%
December 31, 2004 (.33) 3.56 32.95 13.30% 1.59% 0.36%
December 31, 2003 (.27) 5.03 29.39 21.86% 1.63% 0.12%
December 31, 2002 (.05) (.96) 24.36 (3.61)% 1.72% 0.18%
December 31, 2001* -- 0.32 25.32 1.28% 2.07%** 0.19%**
ELECTRONICS FUND
DECEMBER 31, 2005 -- .51 13.68 3.87% 1.62% (1.24)%
December 31, 2004 -- (3.71) 13.17 (21.98)% 1.59% (1.34)%
December 31, 2003 -- 6.94 16.88 69.82% 1.65% (1.51)%
December 31, 2002 (.79) (10.70) 9.94 (48.21)% 1.84% (1.63)%
December 31, 2001* -- (4.36) 20.64 (17.44)% 2.36%** (2.13)%**
ENERGY FUND
DECEMBER 31, 2005 (1.92) 9.52 39.20 38.54% 1.59% (0.01)%
December 31, 2004 (.01) 7.23 29.68 32.27% 1.58% 0.04%
December 31, 2003 -- 4.20 22.45 23.01% 1.66% 0.04%
December 31, 2002 -- (2.85) 18.25 (13.51)% 1.72% (0.13)%
December 31, 2001* -- (3.90) 21.10 (15.60)% 2.05%** (0.50)%**
NET ASSETS,
PORTFOLIO END OF
TURNOVER PERIOD (000'S
RATE*** OMITTED)
- --------------------------------------------------------
BANKING FUND
DECEMBER 31, 2005 532% $ 14,580
December 31, 2004 884% 21,920
December 31, 2003 1,268% 17,115
December 31, 2002 1,813% 5,008
December 31, 2001* 605% 630
BASIC MATERIALS FUND
DECEMBER 31, 2005 364% 28,317
December 31, 2004 725% 46,162
December 31, 2003 1,175% 44,561
December 31, 2002 1,848% 901
December 31, 2001* 929% 929
BIOTECHNOLOGY FUND
DECEMBER 31, 2005 652% 36,086
December 31, 2004 1,169% 6,588
December 31, 2003 1,475% 12,557
December 31, 2002 3,483% 3,575
December 31, 2001* 720% 1,959
COMMODITIES FUND
DECEMBER 31, 2005* -- 28,187
CONSUMER PRODUCTS FUND
DECEMBER 31, 2005 357% 22,177
December 31, 2004 730% 24,433
December 31, 2003 936% 8,818
December 31, 2002 985% 6,153
December 31, 2001* 285% 1,305
ELECTRONICS FUND
DECEMBER 31, 2005 1,136% 8,306
December 31, 2004 1,325% 12,289
December 31, 2003 1,264% 27,918
December 31, 2002 2,685% 4,384
December 31, 2001* 466% 1,423
ENERGY FUND
DECEMBER 31, 2005 351% 83,437
December 31, 2004 542% 60,501
December 31, 2003 1,225% 31,832
December 31, 2002 1,341% 5,834
December 31, 2001* 478% 2,177
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 2, 2001--BANKING FUND, BASIC
MATERIALS FUND AND BIOTECHNOLOGY FUND; MAY 29, 2001--CONSUMER PRODUCTS
FUND AND ENERGY FUND; AUGUST 3, 2001--ELECTRONICS FUND; SEPTEMBER 30,
2005--COMMODITIES 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 | 195
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET INCREASE
NET REALIZED (DECREASE)
NET ASSET NET AND IN NET ASSET DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED VALUE FROM NET
BEGINNING INCOME GAINS (LOSSES) RESULTING FROM INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES OPERATIONS INCOME
- ------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND
DECEMBER 31, 2005 $ 20.85 $ (.30) $ 10.37 $ 10.07 $ --
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, 2005 30.38 .28 .67 .95 (.25)
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, 2005 25.46 (.16) 2.87 2.71 --
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, 2005 17.01 (.21) (.13) (.34) --
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, 2005 25.39 (.19) (1.03) (1.22) --
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) --
PRECIOUS METALS FUND
DECEMBER 31, 2005 8.57 (.02) 1.81 1.79 --
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 --
DISTRIBUTIONS
FROM NET NET INCREASE NET ASSET
REALIZED (DECREASE) IN VALUE, TOTAL
CAPITAL TOTAL NET ASSET END OF INVESTMENT
GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND
DECEMBER 31, 2005 $ -- $ -- $ 10.07 $ 30.92 48.30%
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, 2005 (1.98) (2.23) (1.28) 29.10 3.38%
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, 2005 -- -- 2.71 28.17 10.64%
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, 2005 (1.93) (1.93) (2.27) 14.74 (1.38)%
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, 2005 (2.21) (2.21) (3.43) 21.96 (4.87)%
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)%
PRECIOUS METALS FUND
DECEMBER 31, 2005 -- -- 1.79 10.36 20.89%
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%
RATIOS TO
AVERAGE NET ASSETS:
------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
TOTAL INCOME TURNOVER PERIOD (000'S
EXPENSES (LOSS) RATE*** OMITTED)
- --------------------------------------------------------------------------------------------
ENERGY SERVICES FUND
DECEMBER 31, 2005 1.61% (1.17)% 317% $ 79,722
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, 2005 1.59% 0.94% 549% 36,839
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, 2005 1.60% (0.62)% 330% 51,692
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, 2005 1.61% (1.36)% 676% 20,959
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, 2005 1.56% (0.79)% 369% 13,961
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
PRECIOUS METALS FUND
DECEMBER 31, 2005 1.57% (0.24)% 308% 68,241
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
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 2, 2001--ENERGY SERVICES FUND;
MAY 22, 2001--LEISURE FUND; MAY 24, 2001--INTERNET FUND; JUNE 19,
2001--HEALTH CARE FUND; JULY 20, 2001--FINANCIAL SERVICES 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.
196 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET INCREASE
NET REALIZED (DECREASE) DISTRIBUTIONS
NET ASSET NET AND IN NET ASSET DISTRIBUTIONS FROM NET
VALUE, INVESTMENT UNREALIZED VALUE FROM NET REALIZED
BEGINNING INCOME GAINS (LOSSES) RESULTING FROM INVESTMENT CAPITAL TOTAL
OF PERIOD (LOSS)+ ON SECURITIES OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE FUND
DECEMBER 31, 2005 $ 38.02 $ .71 $ 2.01 $ 2.72 $ (.44) $ -- $ (.44)
December 31, 2004 30.25 1.02 7.79 8.81 (.14) (.90) (1.04)
December 31, 2003 24.96 .94 6.62 7.56 (.85) (1.42) (2.27)
December 31, 2002 25.77 1.97 (2.26) (.29) (.48) (.04) (.52)
December 31, 2001* 25.00 1.44 (.42) 1.02 (.25) -- (.25)
RETAILING FUND
DECEMBER 31, 2005 26.65 (.25) 1.70 1.45 -- (.25) (.25)
December 31, 2004 25.99 (.22) 2.62 2.40 -- (1.74) (1.74)
December 31, 2003 19.29 (.25) 7.05 6.80 -- (.10) (.10)
December 31, 2002 25.65 (.27) (5.30) (5.57) -- (.79) (.79)
December 31, 2001* 25.00 (.38) 1.03 .65 -- -- --
TECHNOLOGY FUND
DECEMBER 31, 2005 13.50 (.16) .58 .42 -- -- --
December 31, 2004 14.88 (.05) .03 (.02) -- (1.36) (1.36)
December 31, 2003 9.92 (.18) 6.21 6.03 -- (1.07) (1.07)
December 31, 2002 18.61 (.18) (7.15) (7.33) -- (1.36) (1.36)
December 31, 2001* 25.00 (.39) (6.00) (6.39) -- -- --
TELECOMMUNICATIONS FUND
DECEMBER 31, 2005 20.53 .19 .06 .25 -- (1.97) (1.97)
December 31, 2004 18.22 (.02) 2.33 2.31 -- -- --
December 31, 2003 13.63 (.03) 4.62 4.59 -- (--)ss. (--)ss.
December 31, 2002 22.56 (.05) (8.88) (8.93) -- -- --
December 31, 2001* 25.00 (.36) (2.08) (2.44) -- -- --
TRANSPORTATION FUND
DECEMBER 31, 2005 31.45 (.19) 2.64 2.45 -- (1.26) (1.26)
December 31, 2004 25.97 (.20) 6.09 5.89 -- (.41) (.41)
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, 2005 17.34 .34 1.50 1.84 (.09) -- (.09)
December 31, 2004 14.96 .33 2.24 2.57 (.19) -- (.19)
December 31, 2003 12.24 .31 2.77 3.08 (.36) -- (.36)
December 31, 2002 18.23 .33 (6.31) (5.98) (.01) -- (.01)
December 31, 2001* 25.00 .33 (7.10) (6.77) -- -- --
RATIOS TO
AVERAGE NET ASSETS:
-------------------
NET INCREASE NET ASSET NET NET ASSETS,
(DECREASE) IN VALUE, TOTAL INVESTMENT PORTFOLIO END OF
NET ASSET END OF INVESTMENT TOTAL INCOME TURNOVER PERIOD (000'S
VALUE PERIOD RETURN EXPENSES (LOSS) RATE*** OMITTED)
- -----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE FUND
DECEMBER 31, 2005 $ 2.28 $ 40.30 7.15% 1.59% 1.84% 774% $ 29,074
December 31, 2004 7.77 38.02 29.54% 1.59% 3.06% 1,139% 26,915
December 31, 2003 5.29 30.25 30.31% 1.64% 3.26% 1,478% 12,183
December 31, 2002 (.81) 24.96 (1.12)% 1.68% 7.60% 1,927% 1,902
December 31, 2001* .77 25.77 4.09% 2.31%** 5.75%** 17% 162
RETAILING FUND
DECEMBER 31, 2005 1.20 27.85 5.48% 1.58% (0.90)% 421% 17,616
December 31, 2004 .66 26.65 10.06% 1.58% (0.83)% 609% 20,800
December 31, 2003 6.70 25.99 35.27% 1.64% (1.04)% 785% 15,149
December 31, 2002 (6.36) 19.29 (21.91)% 1.81% (1.23)% 1,668% 3,102
December 31, 2001* .65 25.65 2.60% 2.24%** (1.65)%** 740% 1,994
TECHNOLOGY FUND
DECEMBER 31, 2005 .42 13.92 3.11% 1.62% (1.21)% 541% 19,145
December 31, 2004 (1.38) 13.50 1.15% 1.58% (0.36)% 767% 19,919
December 31, 2003 4.96 14.88 61.32% 1.64% (1.39)% 1,302% 20,641
December 31, 2002 (8.69) 9.92 (39.11)% 1.71% (1.52)% 1,098% 5,021
December 31, 2001* (6.39) 18.61 (25.56)% 2.34%** (2.08)%** 490% 1,216
TELECOMMUNICATIONS FUND
DECEMBER 31, 2005 (1.72) 18.81 1.16% 1.60% 0.98% 362% 16,898
December 31, 2004 2.31 20.53 12.68% 1.58% (0.08)% 809% 30,191
December 31, 2003 4.59 18.22 33.68% 1.64% (0.19)% 974% 14,543
December 31, 2002 (8.93) 13.63 (39.58)% 1.69% (0.39)% 855% 6,106
December 31, 2001* (2.44) 22.56 (9.76)% 2.25%** (1.61)%** 1,316% 407
TRANSPORTATION FUND
DECEMBER 31, 2005 1.19 32.64 8.48% 1.58% (0.63)% 258% 31,378
December 31, 2004 5.48 31.45 22.99% 1.57% (0.71)% 473% 47,333
December 31, 2003 4.42 25.97 20.51% 1.64% (0.65)% 1,045% 8,032
December 31, 2002 (2.85) 21.55 (11.68)% 1.69% (0.63)% 1,435% 6,301
December 31, 2001* (.60) 24.40 (2.40)% 2.16%** (0.89)%** 609% 522
UTILITIES FUND
DECEMBER 31, 2005 1.75 19.09 10.56% 1.60% 1.80% 342% 39,943
December 31, 2004 2.38 17.34 17.31% 1.57% 2.06% 904% 21,902
December 31, 2003 2.72 14.96 25.40% 1.62% 2.29% 1,491% 13,430
December 31, 2002 (5.99) 12.24 (32.83)% 1.67% 2.54% 829% 23,846
December 31, 2001* (6.77) 18.23 (27.08)% 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 = $.00020.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 197
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Variable Trust (the "Trust"), a Delaware business trust, is registered
with the SEC under the Investment Company Act of 1940 (the "1940 Act") as a
non-diversified, open-ended investment company and is authorized to issue an
unlimited number of no par value shares. The Trust offers shares of the Funds to
insurance companies for their variable annuity and variable life insurance
contracts. At December 31, 2005, the Trust consisted of fifty operating Funds:
twenty-four Benchmark Funds, one Money Market Fund, one Absolute Return
Strategies Fund, one Hedged Equity Fund, nineteen Sector Funds, two Strategic
Funds and two Clarke Lanzen Skalla Investment Firm "CLS" AdvisorOne Funds. This
report covers the Benchmark, Money Market, Sector and Strategic Funds (the
"Funds"), while the Absolute Return Strategies Fund, the Hedged Equity Fund and
the CLS AdvisorOne Funds are contained in separate reports. Rydex Global
Advisors (the "Advisor") serves as investment advisor to the Funds. Rydex
Distributors, Inc. (the "Distributor") acts as principal underwriter for the
Trust.
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 the Official Settlement
Price listed by the exchange, usually as of 4:00 p.m., Eastern Time.
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. In the event that the exchange for a specific futures contract
closes earlier than 4:00 p.m., Eastern Time, the futures contract is valued at
the Official Settlement Price of the exchange. However, the underlying
securities from which the futures contract value is derived are monitored until
4:00 p.m., Eastern Time, to determine if fair valuation would provide a more
accurate valuation. Short-term securities, if any, are valued at amortized cost,
which approximates market value.
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, commodity index, and currency index swap
agreements entered into by the Funds are accounted for using the unrealized gain
or loss on the agreements that is determined by marking the agreements to the
price at which orders are being filled at the close of the NYSE, usually 4:00
p.m., Eastern Time. In the event that no order is filled at 4:00 p.m., Eastern
Time, the security dealer provides a fair value quote at which the swap
agreement is valued. The swap's market value is then adjusted to include
dividends accrued, financing charges and/or interest associated with the swap
agreements.
Investments, for which market quotations are not readily available, are valued
at fair value as determined in good faith by the Advisor under direction of the
Board of Trustees using methods established or ratified by the Board of
Trustees. These methods include, but are not limited to: (i) general information
as to how these securities and assets trade; (ii) in connection with futures
contracts and options thereupon, and other derivative investments, information
as to how (a) these contracts and other derivative investments trade in the
futures or other derivative markets, respectively, and (b) the securities
underlying these contracts and other derivative investments trade in the cash
market; and (iii) other information and considerations, including current values
in related markets.
B. Securities transactions are recorded on the trade date for financial
reporting purposes. Realized gains and losses from securities transactions are
recorded using the identified cost basis. 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. Net investment income is computed and dividends are declared daily in the
U.S. Government Bond Fund and the U.S. Government Money Market Fund. Income
dividends in these Funds are paid daily. Dividends are reinvested in additional
shares unless shareholders request payment in cash. Distributions of net
investment income in the remaining Benchmark Funds and distributions of net
realized capital gains in all funds are recorded on the ex-dividend date and 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 are not affected by these differences.
198 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 cash and/or securities as collateral
for short sales. The Fund is exposed to market risk based on the amount, if any,
that the market value of the security exceeds the market value of the securities
in the segregated account. Fees, if any, paid to brokers to borrow securities in
connection with short sales are considered part of the cost of short sale
transactions. In addition, the Fund must pay out the dividend rate of the equity
or coupon rate of the treasury obligation to the purchaser and records this as
an expense. Short Dividends or Interest Expense is a cost associated with the
investment objective of short sales transactions, rather than an operational
cost associated with the day-to-day management of any mutual fund.
E. Upon the purchase of an option by a Fund, the premium paid is recorded as an
investment, the value of which is marked-to-market daily. When a purchased
option expires, 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 the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
G. The Trust may enter into 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 Funds may also purchase American Depository Receipts, U.S. Government
securities, enter into repurchase agreements, and engage in futures, options and
equity swap transactions.
K. The Funds may leave Cash in Custodian Bank overnight in their cash account
with the custodian, U.S. Bank. Periodically, a Fund may have Cash Payable to
Custodian Bank as an overdraft balance. A fee is incurred on this overdraft,
calculated by multiplying the overdraft by a rate based on the federal funds
rate. Segregated Cash with the Broker is held as collateral for investments in
derivative instruments such as futures contracts and equity index swap
agreements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 199
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
L. Certain U.S. Government and Agency Obligations are traded on a discount
basis; the interest rates shown on the Schedules of Investments reflect the
discount rates paid at the time of purchase by the Funds. Other securities bear
interest at the rates shown, payable at fixed dates through maturity.
M. 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, options on futures, and swap
agreements. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amounts recognized in the Statements of Assets
and Liabilities.
In the normal course of business, the Funds enter into contracts that contain a
variety of representations and warranties, which provide general
indemnifications. The Funds' maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Funds
and/or its affiliates that have not yet occurred. However, based on experience,
the Funds expect the risk of loss to be remote.
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.
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 the Trust 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.
Short sales are transactions in which a 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.
In conjunction with the use of options, futures, options on futures, 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 and/or securities segregated at the custodian bank,
discount notes, or the repurchase agreements allocated to each Fund.
The risks inherent in the use of options, futures contracts, options on futures
contracts, swap agreements as well as short sales of securities include i)
adverse changes in the value of such instruments; ii) imperfect correlation
between the price of the instruments and movements in the price of the
underlying securities, indices, or futures contracts; iii) the possible absence
of a liquid secondary market for any particular instrument at any time; and iv)
the potential of counterparty default.
In addition to the inherent risks of derivative instruments discussed above, the
Internal Revenue Service (the "IRS") issued a Revenue Ruling pertaining to
commodity-linked swap agreements on December 16, 2005. The Revenue Ruling may
cause certain income derived from commodity-linked swap agreements to not be
considered qualifying income after June 30, 2006, and would therefore limit the
extent to which the Commodities Fund may invest in such instruments to a maximum
of 10 percent of its gross income.
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,
200 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
the Large-Cap Value Fund, the Small-Cap Growth Fund, the Mid-Cap Growth Fund,
the Large-Cap Growth Fund, the Commodities 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, the
Strengthening Dollar Fund, the Weakening Dollar Fund, and the Sector Rotation
Fund.
Also under the terms of the investment advisory contract, the Trustees voted to
implement a performance adjustment for the Core Equity Fund, adding or
subtracting a performance rate up to 0.20%, allowing the total fee to increase
to a maximum of 0.90% or decrease to a minimum of 0.50%, depending on the
investment performance of the Fund relative to the Russell 3000(R) Index (the
"Index"). The performance comparison will be made for a rolling 12-month period,
with performance adjustments made at the end of each month. Because the
performance adjustment is applied relative to the performance of the Index, the
Advisor could receive a positive performance adjustment even during periods
where the Fund's performance is negative. Based on the Fund's inception date, no
performance adjustment would be made until after November 30, 2006. At the
period ending December 31, 2005, the effective management fee was 0.70% of the
Fund's average daily net assets. 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 Strengthening Dollar Fund, the Weakening Dollar Fund,
the Core Equity Fund, the Sector Rotation Fund, the Banking Fund, the Basic
Materials Fund, the Biotechnology Fund, the Commodities 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 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 Servicer also provides other necessary services to the Trust, such as
auditing services, legal services, custody, printing and mailing, etc., on a
pass-through basis. Such expenses vary from Fund to Fund and are allocated to
the Funds based on relative net assets. Organizational and setup costs for new
funds are paid by the Trust.
The Trust has adopted an Investor Services Plan for which 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 itself for
shareholder services it performs.
4. FEDERAL INCOME TAX INFORMATION
The Funds intend to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute all net
investment income and capital gains to shareholders. Therefore, no Federal
income tax provision is required. The Commodities Fund has adopted a tax
year-end which is different from its fiscal year-end.
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 of America. These differences are primarily due to
differing treatments for derivatives, foreign currency transactions, losses
deferred due to wash sales, losses deferred due to post-October losses, and
excise tax regulations.
Permanent book and tax basis differences, if any, relating to shareholder
distributions will result in reclassifications to paid-in capital. This includes
net operating losses not utilized during the current period and capital loss
carryforward expired. These reclassifications have no effect on net assets or
net asset values per share. Any taxable gain remaining at fiscal year end is
distributed in the following year.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 201
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The Fund's tax basis capital gains and losses are determined only at the end of
each fiscal year. Tax basis capital losses in excess of capital gains are
carried forward to offset future net capital gains. For the year ended December
31, 2005, the following Funds offset net realized capital gains with capital
losses from previous years:
FUND AMOUNT
- --------------------------------------------------------------------------
Nova Fund $ 6,975,310
OTC Fund 4,983,284
U.S. Government Bond Fund 445,993
Mid-Cap Growth Fund 512,691
Sector Rotation Fund 797,106
Energy Services Fund 11,891
Health Care Fund 1,305,802
Real Estate Fund 627,076
Technology Fund 108,360
The tax character of distributions paid during 2005 was as follows:
LONG-TERM
FUND ORDINARY INCOME CAPITAL GAIN RETURN OF CAPITAL TOTAL DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------------
Nova Fund $ 362,006 $ -- $ -- $ 362,006
Ursa Fund -- -- -- --
OTC Fund -- -- -- --
Arktos Fund -- -- -- --
Titan 500 Fund 1,127,573 1,043,681 -- 2,171,254
Velocity 100 Fund -- -- -- --
Medius Fund -- 113,494 -- 113,494
Inverse Mid-Cap Fund 53,130 -- -- 53,130
Mekros Fund 1,372,293 -- -- 1,372,293
Inverse Small-Cap Fund 205,531 -- -- 205,531
U.S. Government Bond Fund 1,716,438 -- -- 1,716,438
Juno Fund -- -- -- --
Large-Cap Europe Fund 210,675 -- -- 210,675
Large-Cap Japan Fund -- -- -- --
Long Dynamic Dow 30 Fund 455,304 227,465 -- 682,769
Inverse Dynamic Dow 30 Fund 99,261 -- -- 99,261
Small-Cap Value Fund 1,700,056 269,455 -- 1,969,511
Mid-Cap Value Fund 4,448,848 585,595 15,280 5,049,723
Large-Cap Value Fund 629,610 52,333 -- 681,943
Small-Cap Growth Fund 1,571,693 52,519 -- 1,624,212
Mid-Cap Growth Fund -- -- -- --
Large-Cap Growth Fund 452,509 7,518 -- 460,027
Strengthening Dollar Fund 8,367 -- -- 8,367
Weakening Dollar Fund 7,332 -- -- 7,332
Core Equity Fund -- -- -- --
Sector Rotation Fund -- -- -- --
U.S. Government Money Market Fund 4,700,836 -- -- 4,700,836
Banking Fund 2,276,609 73,581 -- 2,350,190
Basic Materials Fund 4,000,873 66,436 -- 4,067,309
Biotechnology Fund -- -- -- --
Commodities Fund -- -- 88,043 88,043
Consumer Products Fund 357,566 336,698 -- 694,264
Electronics Fund -- -- -- --
Energy Fund 4,642,282 151,920 -- 4,794,202
Energy Services Fund -- -- -- --
Financial Services Fund 1,758,219 304,631 -- 2,062,850
Health Care Fund -- -- -- --
Internet Fund 479,497 106,533 -- 586,030
Leisure Fund 1,799,873 302,370 -- 2,102,243
Precious Metals Fund -- -- -- --
Real Estate 486,247 -- -- 486,247
Retailing Fund -- 373,393 -- 373,393
Technology Fund -- -- -- --
Telecommunications Fund 1,299,417 260,890 -- 1,560,307
Transportation Fund 645,383 -- -- 645,383
Utilities Fund 313,329 -- -- 313,329
202 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The tax character of distributions paid during 2004 was as follows:
LONG-TERM
FUND ORDINARY INCOME CAPITAL GAIN RETURN OF CAPITAL TOTAL 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 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 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 | 203
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The tax character of distributable earnings/(accumulated losses) at December 31,
2005 was a follows:
UNDISTRIBUTED UNDISTRIBUTED NET UNREALIZED
ORDINARY LONG-TERM APPRECIATION/ CAPITAL LOSS
FUND INCOME CAPITAL GAINS (DEPRECIATION) CARRYFORWARD
- -----------------------------------------------------------------------------------------------------------------------
Nova Fund $ 647,004 $ -- $ 3,160,447 $ 99,254,783(3)
Ursa Fund 519,168 -- (141,074) 25,865,087(3)
OTC Fund -- -- (6,749,300) 364,651,395(3)
Arktos Fund 478,824 -- 325,878 10,652,651(3)
Titan 500 Fund 134,395 -- (435,336) 107,811(1)
Velocity 100 Fund -- -- (173,616) 1,971,950(1)
Medius Fund 6,333,783 812,101 1,535,983 --
Inverse Mid-Cap Fund 1,650 -- 24,915 534,525(3)
Mekros Fund 15,708 -- 777,458 3,123,551(3)
Inverse Small-Cap Fund 7,457 -- 156,037 3,516,085(3)
U.S. Government Bond Fund -- -- (728,211) 2,376,550(2)
Juno Fund -- -- (2,005,340) 7,324,326(3)
Large-Cap Europe Fund 267,284 -- 425,563 281,182(1)
Large-Cap Japan Fund 4,356,032 476,739 1,518,380 --
Long Dynamic Dow 30 Fund 281,484 -- (39,142) --
Inverse Dynamic Dow 30 Fund 5,406 -- 178,116 261,996(1)
Small-Cap Value Fund 345,108 732,334 207,466 --
Mid-Cap Value Fund -- -- (1,357,936) --
Large-Cap Value Fund 59,889 827,010 15,276 --
Small-Cap Growth Fund 188,230 559,227 (181,515) --
Mid-Cap Growth Fund 185,820 173,211 476,845 --
Large-Cap Growth Fund 211,923 62,603 (390,300) --
Strengthening Dollar Fund 15,066 -- 8,044 --
Weakening Dollar Fund 2,505 -- (9,415) --
Core Equity Fund 1,099 -- (700) --
Sector Rotation Fund 422,244 1,704,613 5,411,115 --
U.S. Government Money Market Fund 7,493 -- -- 1,546(3)
Banking Fund 219,732 -- 321,687 857,082(1)
Basic Materials Fund 146,922 367,695 2,629,358 --
Biotechnology Fund -- -- 747,883 3,229,024(3)
Commodities Fund -- -- 123,283 514,834(1)
Consumer Products Fund 127,914 -- 140,217 182,926(1)
Electronics Fund -- -- (2,198,912) 2,182,513(3)
Energy Fund 7,458,354 3,158,693 21,548,901 --
Energy Services Fund 352,839 221,642 18,667,806 --
Financial Services Fund 287,114 -- 1,348,813 4,455(1)
Health Care Fund 740,152 -- 2,908,864 --
Internet Fund -- -- 1,143,719 1,889,501(1)
Leisure Fund 595,684 56,723 1,175,590 --
Precious Metals Fund -- -- 8,614,435 6,380,070(3)
Real Estate 988,985 493,916 2,660,176 --
Retailing Fund -- 263,280 1,942,096 --
Technology Fund -- -- 793,361 897,777(2)
Telecommunications Fund 546,455 -- 966,685 --
Transportation Fund -- -- 5,213,206 92,965(1)
Utilities Fund 872,857 -- 3,198,281 473,101(3)
(1) EXPIRES IN 2013
(2) EXPIRES IN 2012
(3) NOVA FUND: $42,322,083 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,
$10,777,389 EXPIRES IN 2012, AND $314,257 EXPIRES IN 2013
OTC FUND: $74,899,825 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,
$4,909,190 EXPIRES IN 2012, AND $2,303,942 EXPIRES IN 2013
INVERSE MID-CAP FUND: $392,757 EXPIRES IN 2012 AND $141,768 EXPIRES IN
2013
MEKROS FUND: $2,170,380 EXPIRES IN 2012 AND $953,171 EXPIRES IN 2013
INVERSE SMALL-CAP FUND: $2,561,018 EXPIRES IN 2012 AND $955,067 EXPIRES IN
2013
JUNO FUND: $5,005,075 EXPIRES IN 2012 AND $2,319,251 EXPIRES IN 2013
U.S. GOVERNMENT MONEY MARKET FUND: $1,127 EXPIRES IN 2008, $386 EXPIRES IN
2010, AND $33 EXPIRES IN 2012
BIOTECHNOLOGY FUND: $608,485 EXPIRES IN 2010, $1,880,980 EXPIRES IN 2012,
AND $739,559 EXPIRES IN 2013
ELECTRONICS FUND: $324,070 EXPIRES IN 2010, $549,313 EXPIRES IN 2012, AND
$1,309,130 EXPIRES IN 2013
PRECIOUS METALS FUND: $87,863 EXPIRES IN 2009, $2,309,649 EXPIRES IN 2012,
$3,982,558 EXPIRES IN 2013
UTILITIES FUND: $429,454 EXPIRES IN 2011 AND $43,647 EXPIRES IN 2013
204 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
At December 31, 2005, 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 $ 132,565,696 $ 5,142,341 $ (1,735,516) $ 3,406,825
Ursa Fund 31,318,025 -- (174,504) (174,504)
OTC Fund 127,290,828 -- (6,704,597) (6,704,597)
Arktos Fund 20,004,579 -- -- --
Titan 500 Fund 26,677,399 2,033 (318,430) (316,397)
Velocity 100 Fund 52,938,029 1,290,859 (425,400) 865,459
Medius Fund 56,264,017 2,227,848 (538,964) 1,688,884
Inverse Mid-Cap Fund 2,494,804 -- -- --
Mekros Fund 44,752,531 1,835,951 (921,439) 914,512
Inverse Small-Cap Fund 10,029,712 -- -- --
U.S. Government Bond Fund 61,241,202 -- (728,211) (728,211)
Juno Fund 53,262,743 478,625 (2,483,965) (2,005,340)
Large-Cap Europe Fund 25,594,660 643,716 (146,423) 497,293
Large-Cap Japan Fund 52,475,841 -- -- --
Long Dynamic Dow 30 Fund 12,170,899 238,584 (190,897) 47,687
Inverse Dynamic Dow 30 Fund 6,628,537 -- -- --
Small-Cap Value Fund 19,754,672 524,844 (317,378) 207,466
Mid-Cap Value Fund 17,296,245 -- (1,357,936) (1,357,936)
Large-Cap Value Fund 28,669,130 447,052 (431,776) 15,276
Small-Cap Growth Fund 27,017,863 275,836 (457,351) (181,515)
Mid-Cap Growth Fund 60,330,662 827,310 (350,465) 476,845
Large-Cap Growth Fund 25,622,775 39,652 (429,952) (390,300)
Strengthening Dollar Fund 1,487,010 -- -- --
Weakening Dollar Fund 2,766,506 -- -- --
Core Equity Fund 2,826,085 53,140 (53,840) (700)
Sector Rotation Fund 70,520,632 5,955,873 (544,758) 5,411,115
U.S. Government Money
Market Fund 184,163,561 -- -- --
Banking Fund 16,267,905 402,341 (80,654) 321,687
Basic Materials Fund 29,620,054 2,734,211 (104,853) 2,629,358
Biotechnology Fund 47,058,241 1,040,080 (292,197) 747,883
Commodities Fund 29,325,176 -- -- --
Consumer Products Fund 24,821,585 542,574 (402,357) 140,217
Electronics Fund 11,519,723 -- (2,198,912) (2,198,912)
Energy Fund 76,654,902 21,844,663 (295,762) 21,548,901
Energy Services Fund 79,055,617 18,816,381 (148,575) 18,667,806
Financial Services Fund 41,322,449 1,489,199 (140,386) 1,348,813
Health Care Fund 54,610,175 3,581,639 (672,775) 2,908,864
Internet Fund 24,788,973 1,291,184 (147,465) 1,143,719
Leisure Fund 15,007,533 1,369,831 (194,241) 1,175,590
Precious Metals Fund 82,197,789 8,709,686 (95,251) 8,614,435
Real Estate Fund 30,717,636 2,675,830 (15,654) 2,660,176
Retailing Fund 18,299,617 2,136,273 (194,177) 1,942,096
Technology Fund 20,588,136 1,041,876 (248,515) 793,361
Telecommunications Fund 20,102,533 1,128,340 (161,655) 966,685
Transportation Fund 30,682,888 5,213,206 -- 5,213,206
Utilities Fund 44,876,071 3,427,562 (229,281) 3,198,281
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, 2005, $289,271, $934,552, $469,964,
$507,879, $78,902, $113, and $889,317 of realized capital losses reflected in
the accompanying financial statements will not be recognized for federal income
tax purposes until 2006 for Inverse Mid-Cap Fund, Inverse Small-Cap Fund,
Inverse Dynamic Dow 30 Fund, Mid-Cap Value Fund, Weakening Dollar Fund,Core
Equity Fund, and Commodities Fund, respectively.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 205
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 102% of the delivery value of the repurchase agreements
at maturity.
The repurchase agreements executed by the joint account and outstanding as of
December 31, 2005, were as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ------------------------------------------------------------------------------------------------------------
Lehman Brothers, Inc. 3.40% due 01/03/06 $92,734,273 $ 92,734,273 $ 92,769,306
UBS Financial Services, Inc. 3.39% due 01/03/06 65,000,000 65,000,000 65,024,483
Morgan Stanley 3.30% due 01/03/06 65,000,000 65,000,000 65,023,833
Citigroup, Inc. 2.90% due 01/03/06 65,000,000 65,000,000 65,020,944
Credit Suisse First Boston 3.45% due 01/03/06 13,466,288 13,466,288 13,471,450
- ------------------------------------------------------------------------------------------------------------
$301,200,561 $301,310,016
- ------------------------------------------------------------------------------------------------------------
As of December 31, 2005, 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 3.625% - 8.125% $ 78,959,839 $105,939,494
U.S. Treasury Notes 3.000% - 6.000% 96,950,000 97,209,524
U.S. Treasury Bills 0.000% - 1.000% 105,355,000 104,091,570
- ------------------------------------------------------------------------------
$307,240,588
- ------------------------------------------------------------------------------
In the event of counterparty default, the Trust has the right to collect 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.
206 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
6. SECURITIES TRANSACTIONS
During the period ended December 31, 2005, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
INVERSE
NOVA URSA OTC ARKTOS TITAN 500 VELOCITY 100 MEDIUS MID-CAP
FUND FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
Purchases $344,958,802 $ -- $289,220,966 $ -- $103,982,032 $ 95,572,594 $228,810,544 $ --
Sales $347,420,140 $ -- $359,661,323 $ -- $104,639,145 $101,716,176 $216,578,597 $ --
INVERSE U.S. LARGE-CAP LARGE-CAP LONG INVERSE
MEKROS SMALL-CAP GOVERNMENT JUNO EUROPE JAPAN DYNAMIC DYNAMIC
FUND FUND BOND FUND FUND FUND FUND DOW 30 FUND DOW 30 FUND
- --------------------------------------------------------------------------------------------------------------------------------
Purchases $142,884,840 $ -- $480,783,979 $178,227,164 $77,812,803 $ -- $51,745,350 $ --
Sales $171,865,446 $ -- $491,820,145 $190,339,163 $61,673,609 $ -- $48,580,957 $ --
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP MID-CAP LARGE-CAP STRENGTHENING WEAKENING
VALUE VALUE VALUE GROWTH GROWTH GROWTH DOLLAR DOLLAR
FUND FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
Purchases $156,169,463 $362,115,245 $92,232,928 $146,027,771 $266,064,023 $144,974,392 $ -- $ --
Sales $183,891,685 $369,880,466 $79,187,190 $151,975,684 $234,792,481 $142,227,801 $ -- $ --
CORE SECTOR U.S. GOVERNMENT BASIC CONSUMER
EQUITY ROTATION MONEY MARKET BANKING MATERIALS BIOTECHNOLOGY COMMODITIES PRODUCTS
FUND FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
Purchases $3,021,867 $125,680,340 $ -- $88,888,102 $131,894,181 $120,274,790 $ -- $106,296,303
Sales $ 221,077 $ 96,235,546 $ -- $94,952,655 $148,097,827 $ 92,574,105 $ -- $108,369,312
ENERGY FINANCIAL HEALTH PRECIOUS
ELECTRONICS ENERGY SERVICES SERVICES CARE INTERNET LEISURE METALS
FUND FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
Purchases $104,498,452 $300,316,819 $215,032,332 $170,121,818 $164,232,222 $85,321,096 $113,611,780 $128,209,590
Sales $106,863,671 $301,536,816 $182,752,736 $178,165,717 $148,117,210 $97,358,745 $149,048,073 $101,218,976
REAL ESTATE RETAILING TECHNOLOGY TELECOMMUNICATIONS TRANSPORTATION UTILITIES
FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
Purchases $260,741,663 $113,501,684 $95,776,009 $67,299,826 $69,751,211 $177,292,030
Sales $258,651,465 $117,026,743 $97,122,112 $79,972,443 $84,635,358 $160,964,759
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 207
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
7. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the periods presented were:
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT
- ----------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------
Nova Fund 64,604,877 90,616,423 42,893 5,509
Ursa Fund 56,462,594 82,042,906 -- --
OTC Fund 33,524,705 63,676,586 -- --
Arktos Fund 18,896,892 44,660,602 -- --
Titan 500 Fund 10,753,404 15,611,147+ 120,025 178,835+
Velocity 100 Fund 17,391,189 24,569,991 -- 98,519
Medius Fund 13,570,582 12,074,008 3,878 90,131
Inverse Mid-Cap Fund 1,081,690 513,351* 1,374 --*
Mekros Fund 14,696,937 31,242,771 39,915 99,077
Inverse Small-Cap Fund 5,029,631 3,226,890* 5,152 --*
U.S. Government Bond Fund 44,613,634 45,444,606 138,550 348,904
Juno Fund 13,272,906 14,299,702 -- 21,754
Large-Cap Europe Fund 7,313,983 10,082,773 8,833 277,971
Large-Cap Japan Fund 6,613,935 10,263,349 -- --
Long Dynamic Dow 30 Fund 5,501,356 4,274,233* 29,625 18,209*
Inverse Dynamic Dow 30 Fund 1,601,436 563,094* 2,376 1,763*
Small-Cap Value Fund 5,500,180 6,233,134* 74,279 46,592*
Mid-Cap Value Fund 13,189,259 5,683,108* 257,189 38,010*
Large-Cap Value Fund 3,027,685 4,401,160* 24,288 5,999*
Small-Cap Growth Fund 5,097,826 7,927,790* 55,354 13,586*
Mid-Cap Growth Fund 9,052,414 4,476,551* -- --*
Large-Cap Growth Fund 5,395,902 4,453,786* 17,627 9,024*
Strengthening Dollar Fund 237,181** -- 330** --
Weakening Dollar Fund 202,554** -- 299** --
Core Equity Fund 123,980** -- --** --
Sector Rotation Fund 5,090,045 4,500,722 -- --
U.S. Government Money
Market Fund 1,184,745,323 1,972,975,071 4,700,832 599,199
Banking Fund 1,714,190 3,683,273 80,293 22,451
Basic Materials Fund 3,008,679 6,449,206 155,895 31,848
Biotechnology Fund 6,252,816 10,521,809 -- --
Commodities Fund 1,967,776** -- 4,016** --
Consumer Products Fund 2,555,036 5,283,129 21,655 12,332
Electronics Fund 8,616,616 9,292,973 -- --
Energy Fund 6,811,395 8,102,044 122,208 851
Energy Services Fund 8,970,738 10,663,226 -- --
Financial Services Fund 2,613,714 4,944,363 73,463 2,047
Health Care Fund 4,894,897 7,516,391 -- 11,670
Internet Fund 5,748,072 11,387,357 42,009 --
Leisure Fund 2,205,331 6,284,802 95,038 8,285
Precious Metals Fund 18,093,879 25,690,194 -- --
Real Estate Fund 7,550,283 7,575,845 11,971 14,517
Retailing Fund 2,915,142 3,884,919 13,677 36,444
Technology Fund 5,874,030 8,534,083 -- 95,745
Telecommunications Fund 2,934,645 8,754,908 82,512 --
Transportation Fund 1,910,651 4,554,584 23,240 11,895
Utilities Fund 8,794,132 8,779,497 15,527 16,775
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- ----------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------
Nova Fund (64,999,976) (86,199,014) (352,206) 4,422,918
Ursa Fund (53,824,674) (81,455,066) 2,637,920 587,840
OTC Fund (39,788,847) (60,083,217) (6,264,142) 3,593,369
Arktos Fund (19,110,033) (44,969,096) (213,141) (308,494)
Titan 500 Fund (10,956,161) (15,733,937) (82,732) 56,045
Velocity 100 Fund (17,906,423) (24,044,387) (515,234) 624,123
Medius Fund (13,165,084) (11,624,803) 409,376 539,336
Inverse Mid-Cap Fund (1,040,311) (483,399)* 42,753 29,952*
Mekros Fund (16,953,930) (32,129,037) (2,217,078) (787,189)
Inverse Small-Cap Fund (4,844,305) (3,125,460)* 190,478 101,430*
U.S. Government Bond Fund (43,992,584) (47,295,141) 759,600 (1,501,631)
Juno Fund (13,718,351) (13,350,258) (445,445) 971,198
Large-Cap Europe Fund (8,665,112) (9,610,609) (1,342,296) 750,135
Large-Cap Japan Fund (5,473,812) (10,209,517) 1,140,123 53,832
Long Dynamic Dow 30 Fund (5,374,208) (3,889,949)* 156,773 402,493*
Inverse Dynamic Dow 30 Fund (1,509,507) (491,185)* 94,305 73,672*
Small-Cap Value Fund (6,472,270) (4,640,310)* (897,811) 1,639,416*
Mid-Cap Value Fund (13,427,165) (5,001,795)* 19,283 719,323*
Large-Cap Value Fund (2,574,743) (4,004,572)* 477,230 402,587*
Small-Cap Growth Fund (5,364,707) (6,881,201)* (211,527) 1,060,175*
Mid-Cap Growth Fund (8,061,905) (3,713,416)* 990,509 763,135*
Large-Cap Growth Fund (5,313,354) (3,685,764)* 100,175 777,046*
Strengthening Dollar Fund (188,731)** -- 48,780** --
Weakening Dollar Fund (81,325)** -- 121,528** --
Core Equity Fund (9,727)** -- 114,253** --
Sector Rotation Fund (2,700,404) (4,057,096) 2,389,641 443,626
U.S. Government Money
Market Fund (1,171,759,619) (2,038,389,174) 17,686,536 (64,814,904)
Banking Fund (1,907,482) (3,628,353) (112,999) 77,371
Basic Materials Fund (3,562,294) (6,676,726) (397,720) (195,672)
Biotechnology Fund (4,905,156) (10,837,968) 1,347,660 (316,159)
Commodities Fund (696,501)** -- 1,275,291** --
Consumer Products Fund (2,617,145) (4,854,051) (40,454) 441,410
Electronics Fund (8,942,833) (10,013,806) (326,217) (720,833)
Energy Fund (6,843,617) (7,482,312) 89,986 620,583
Energy Services Fund (7,798,709) (9,754,684) 1,172,029 908,542
Financial Services Fund (2,908,326) (4,058,517) (221,149) 887,893
Health Care Fund (4,255,344) (7,480,537) 639,553 47,524
Internet Fund (6,539,341) (10,926,035) (749,260) 461,322
Leisure Fund (3,702,841) (5,697,860) (1,402,472) 595,227
Precious Metals Fund (15,600,147) (26,062,658) 2,493,732 (372,464)
Real Estate Fund (7,548,697) (7,285,153) 13,557 305,209
Retailing Fund (3,076,769) (3,723,686) (147,950) 197,677
Technology Fund (5,973,475) (8,542,253) (99,445) 87,575
Telecommunications Fund (3,589,345) (8,082,480) (572,188) 672,428
Transportation Fund (2,477,689) (3,370,608) (543,798) 1,195,871
Utilities Fund (7,980,979) (8,430,853) 828,680 365,419
* SINCE THE COMMENCEMENT OF OPERATIONS: 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, LARGE-CAP VALUE FUND,
SMALL-CAP GROWTH FUND, MID-CAP GROWTH FUND AND LARGE-CAP GROWTH FUND.
** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 30, 2005--STRENGTHENING
DOLLAR FUND, WEAKENING DOLLAR FUND, AND COMMODITIES FUND; NOVEMBER 29,
2005--CORE EQUITY FUND.
+ VALUES HAVE BEEN RESTATED TO REFLECT A RECLASSIFICATION FROM SHARES
PURCHASED THROUGH DIVIDEND REINVESTMENT TO SHARES PURCHASED. THIS
RECLASSIFICATION HAD NO EFFECT ON NET SHARES PURCHASED FOR THAT PERIOD.
208 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 100% 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, 2005, the pooled cash
collateral investments consisted of repurchase agreements (58.85%), commercial
paper (23.13%), and fixed income securities (18.02%). 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.
The following represents a breakdown of the collateral, its rates, and
maturities.
COLLATERAL TYPE RATES MATURITY
- ----------------------------------------------------------------------------------------------
Repurchase Agreements 4.250% - 4.350% 01/03/06
Commercial Paper 0.000% - 4.300% 01/03/06 - 04/11/06
Corporate Bonds, Notes, and Asset-Backed Securities 2.378% - 5.064% 01/20/06 - 12/12/25
Mutual Funds N/A N/A
At December 31, 2005 the following funds participated in securities lending and
received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- --------------------------------------------------------------------------------
Nova Fund $ 10,543,447 $ 10,160,799
OTC Fund 18,877,210 18,165,893
Titan 500 Fund 2,130,166 2,048,141
Velocity 100 Fund 7,258,246 6,941,901
Medius Fund 7,735,014 7,384,173
Mekros Fund 3,910,059 3,703,008
Long Dynamic Dow 30 Fund 1,061,994 1,023,770
Small-Cap Value Fund 896,615 834,538
Mid-Cap Value Fund 1,652,797 1,578,069
Large-Cap Value Fund 3,908,252 3,742,862
Small-Cap Growth Fund 2,637,451 2,496,061
Mid-Cap Growth Fund 7,752,932 7,444,150
Large-Cap Growth Fund 2,584,493 2,491,862
Sector Rotation Fund 13,177,339 12,722,793
Banking Fund 2,020,877 1,941,626
Basic Materials Fund 3,979,860 3,836,940
Biotechnology Fund 11,680,787 11,302,169
Consumer Products Fund 2,842,566 2,639,998
Electronics Fund 1,000,210 952,606
Energy Fund 14,834,598 14,437,653
Energy Services Fund 18,270,117 17,786,576
Financial Services Fund 5,885,773 5,669,656
Health Care Fund 5,834,092 5,652,021
Internet Fund 4,947,937 4,741,448
Leisure Fund 2,203,343 2,115,290
Precious Metals Fund 22,216,360 20,596,453
Real Estate Fund 4,290,906 4,118,110
Retailing Fund 2,705,034 2,594,033
Technology Fund 2,273,008 2,147,964
Telecommunications Fund 4,164,244 3,882,374
Transportation Fund 4,332,169 4,190,680
Utilities Fund 8,048,916 7,726,561
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 209
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
9. COMMODITIES FUND SUPPLEMENTAL INFORMATION
As discussed in Note 2 above, the IRS issued a Revenue Ruling (the "Ruling") on
December 16, 2005 that may cause certain income from commodity-linked swap
agreements in which the Commodities Fund currently invests to not be considered
qualifying income after June 30, 2006. The Ruling would limit the extent to
which the Commodities Fund may invest in such instruments and certain other
commodity-linked derivatives after June 30, 2006 to a maximum of 10 percent of
its gross income.
The Ruling has no immediate impact on the current operations of the Commodities
Fund. Absent contrary tax guidance from the IRS, the Advisor believes it can
continue to operate the Commodities Fund in a manner consistent with both the
Ruling and the fund's current investment objective by using (i) alternative
investments, and/or (ii) alternative structures within the fund. The Advisor
believes that these changes can be made prior to June 30, 2006. The use of
alternative investments and structures may negatively affect the fund's
investment return.
210 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
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,
Strengthening Dollar Fund, Weakening Dollar Fund, Core Equity Fund, Sector
Rotation Fund, U.S. Government Money Market Fund, Banking Fund, Basic Materials
Fund, Biotechnology Fund, Commodities 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-six of the funds of the Rydex Variable Trust,
hereafter referred to as the "Funds") at December 31, 2005, and 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 audits 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, 2005 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 27, 2006
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 211
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 Long Dynamic Dow
30 Fund, Mid-Cap Value Fund, Large-Cap Value Fund, and Large-Cap Growth Fund,
100%, 100%, 100%, and 0%, respectively, qualifies for the dividends received
deduction for corporations.
The Funds' distributions to shareholders included:
LARGE-CAP
TITAN 500 MEDIUS EURPOE
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
From short-term capital gains: $ 1,102,852 $ -- $ 124,961
From long-term capital gains,
subject to the 15% rate gains category: $ 1,043,681 $ 113,494 $ --
LONG
DYNAMIC SMALL CAP MID-CAP
DOW 30 VALUE VALUE
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
From short-term capital gains: $ 361,410 $1,700,056 $ 4,367,060
From long-term capital gains,
subject to the 15% rate gains category: $ 227,465 $ 269,455 $ 585,595
LARGE-CAP SMALL-CAP LARGE-CAP
VALUE GROWTH GROWTH
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
From short-term capital gains: $ 505,823 $1,571,693 $ 434,898
From long-term capital gains,
subject to the 15% rate gains category: $ 52,333 $ 52,519 $ 7,518
BASIC CONSUMER
BANKING MATERIALS PRODUCTS
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
From short-term capital gains: $ 2,067,893 $3,904,936 $ 258,865
From long-term capital gains,
subject to the 15% rate gains category: $ 73,581 $ 66,436 $ 336,698
FINANCIAL
ENERGY SERVICES INTERNET
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
From short-term capital gains: $ 4,625,641 $1,530,949 $ 479,497
From long-term capital gains,
subject to the 15% rate gains category: $ 151,920 $ 304,631 $ 106,533
LEISURE RETAILING TELECOMMUNICATIONS
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
From short-term capital gains: $ 1,799,873 $ -- $ 1,299,417
From long-term capital gains,
subject to the 15% rate gains category: $ 302,370 $ 373,393 $ 260,890
TRANSPORTATION
FUND
- ---------------------------------------------------------------
From short-term capital gains: $ 645,383
From long-term capital gains,
subject to the 15% rate gains category: $ --
212 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
OTHER INFORMATION (CONTINUED)
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's website at
http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
RYDEX INVESTMENTS BOARD REVIEW AND APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
The 1940 Act requires that the initial approval of, as well as the continuation
of, a fund's investment advisory agreement must be specifically approved (1) by
the vote of the trustees or by a vote of the shareholders of the fund, and (2)
by the vote of a majority of the trustees who are not parties to the investment
advisory agreement or "interested persons" of any party (the "Independent
Trustees"), cast in person at a meeting called for the purpose of voting on such
approval. In connection with such approvals, the fund's trustees must request
and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. In addition, the SEC takes the position that, as part of their
fiduciary duties with respect to fund fees, fund boards are required to evaluate
the material factors applicable to a decision to approve an investment advisory
agreement.
Consistent with these responsibilities, the Rydex Series Funds Board of Trustees
(the "Board") calls and holds one meeting each year that is dedicated to
considering whether to renew the investment advisory agreement (the "Advisory
Agreement") between the Trust and PADCO Advisors, Inc., which does business
under the name Rydex Investments ("Rydex Investments") with respect to existing
funds in the Trust, including the funds discussed in this Annual Report (each a
"Fund" and collectively, the "Funds"), and to reviewing certain other agreements
pursuant to which Rydex Investments provides investment advisory services to
certain other registered investment companies. In preparation for the meeting,
the Board requests and reviews a wide variety of materials provided by Rydex
Investments, including information about Rydex Investments' affiliates,
personnel and operations. The Board also receives data provided by third
parties. This information is in addition to the detailed information about the
Funds that the Board reviews during the course of each year, including
information that relates to Fund operations and performance. The Board also
receives a memorandum from Fund counsel regarding the responsibilities of the
Board for the approval of investment advisory agreements. In addition, the
Independent Trustees receive advice from independent counsel to the Independent
Trustees, meet in executive session outside the presence of fund management, if
necessary, and participate in question and answer sessions with representatives
of Rydex Investments.
At a meeting held on August 28 and 29, 2005, the Board approved the selection of
Rydex Investments and the continuance of the Advisory Agreement for an
additional one-year period, based on its review of qualitative and quantitative
information provided by Rydex Investments. The Board's approval of the Advisory
Agreement was based on consideration and evaluation of a variety of specific
factors discussed at that meeting and at prior meetings, including:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY RYDEX INVESTMENTS
The Board reviewed the scope of services to be provided by Rydex Investments
under the Advisory Agreement and noted that there would be no significant
differences between the scope of services required to be provided by Rydex
Investments for the past year and the scope of services required to be provided
by Rydex Investments for the upcoming year. In reviewing the scope of services
provided to the Funds by Rydex Investments, the Board reviewed and discussed
Rydex Investments' investment experience, noting that Rydex Investments and its
affiliates have committed significant resources over time to the support of the
Funds. The Board also considered Rydex Investments' compliance program and its
compliance record with respect to the Funds. In that regard, the Board noted
that Rydex Investments provides information regarding the portfolio management
and compliance to the Board on a periodic basis in connection with regularly
scheduled meetings of the Board. In addition to the above considerations, the
Board reviewed and considered Rydex Investments' investment processes and
strategies, and matters related to Rydex Investments' portfolio transaction
policies and procedures. In particular, the Board noted the substantial volume
of portfolio trades and shareholder transaction activity, in general, processed
by Rydex Investments due to the unlimited exchange policy of the majority of the
Funds. The Board further noted that the Funds had met their investment
objectives consistently since their relevant inception dates. Based on this
review, the Board concluded that the nature, extent and quality of services to
be provided by Rydex Investments to the Funds under the Advisory Agreement were
appropriate and continued to support the Board's original selection of Rydex
Investments as investment adviser to the Funds.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 213
OTHER INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
FUND EXPENSES AND PERFORMANCE OF THE FUNDS AND RYDEX INVESTMENTS
The Board reviewed statistical information prepared by Rydex Investments
regarding the expense ratio components, including actual advisory fees,
waivers/reimbursements, and gross and net total expenses of each Fund in
comparison with the same information for other funds registered under the 1940
Act determined by Rydex Investments to comprise each Fund's applicable peer
group. Because few funds seek to provide unlimited exchange privileges similar
to those of the Funds (other than the Core Equity Fund, Sector Rotation Fund,
Absolute Return Strategies Fund, and Hedged Equity Fund), each Fund's applicable
peer group is generally limited to the funds of two unaffiliated mutual fund
families. In addition, the Board reviewed statistical information prepared by
Rydex Investments relating to the performance of each Fund, as well as each
Fund's ability to successfully track its benchmark over time, and a comparison
of each Fund's performance to funds with similar investment objectives for the
same periods and to appropriate indices/benchmarks, in light of total return,
yield and market trends. The Board further noted that despite the unique nature
of the Funds, the peer fund information presented to the Board was meaningful
because the peer funds' investment objectives and strategies were closely
aligned with those of the Funds. The Board noted that most of the Funds either
outperformed their peer funds or performed in line with them over relevant
periods. The Board also noted that the investment advisory fees and overall
expenses for the Funds were generally lower than or in line with the investment
advisory fee rates and overall expenses of the peer funds. Based on this review,
the Board concluded that the investment advisory fees and expense levels and the
historical performance of the Funds, as managed by Rydex Investments, as
compared to the investment advisory fees and expense levels and performance of
the peer funds, were satisfactory for the purposes of approving the continuance
of the Advisory Agreement.
COSTS OF SERVICES PROVIDED TO THE FUNDS AND PROFITS REALIZED BY RYDEX
INVESTMENTS AND ITS AFFILIATES
The Board reviewed information about the profitability of the Funds to Rydex
Investments based on the advisory fees payable under the Advisory Agreement for
the last calendar year. Rydex Investments also presented the Board with material
discussing its methodology for determining the level of advisory fees assessable
to the Funds. The Board analyzed the Funds' expenses, including the investment
advisory fees paid to Rydex Investments. The Board also reviewed information
regarding direct revenue received by Rydex Investments and ancillary revenue
received by Rydex Investments and/or its affiliates in connection with the
services provided to the Funds by Rydex Investments (as discussed below). The
Board also discussed Rydex Investments' profit margin as reflected in Rydex
Investments' profitability analysis and reviewed information regarding economies
of scale (as discussed below). Based on this review, the Board concluded that
the profits to be realized by Rydex Investments and its affiliates under the
Advisory Agreement and from other relationships between the Funds and Rydex
Investments and/or its affiliates, if any, were within the range the Board
considered reasonable and appropriate.
ECONOMIES OF SCALE
In connection with its review of the Funds' profitability analysis, the Board
reviewed information regarding economies of scale or other efficiencies that may
result from increases in the Funds' asset levels. The Board noted that the
Advisory Agreement for the Funds did not provide for any breakpoints in the
investment advisory fee rates as a result of increases in the asset levels of
such Funds. The Board also noted that though Rydex Investments' assets under
management were significant, the amount is spread among more than 95 Funds.
Further limiting the realization of economies of scale, is the ability of
shareholders of a majority of the Funds to engage in unlimited trading. The
Board also reviewed Rydex Investments' historic profitability as investment
adviser to the Funds and determined that reductions in fee rates or additions of
breakpoints were not warranted at this juncture. Based on this review, the
Board, recognizing its responsibility to consider this issue at least annually,
concluded that there are limited economies of scale to share with the Funds'
shareholders.
OTHER BENEFITS TO RYDEX INVESTMENTS AND/OR ITS AFFILIATES
The Board noted that Rydex Investments reports its use of soft dollars to the
Board on a quarterly basis, as well as any portfolio transactions on behalf of
the Funds placed through an affiliate of the Funds or Rydex Investments pursuant
to Rule 17e-1 under the 1940 Act. The Board concluded that any such ancillary
benefits would not be disadvantageous to the Funds' shareholders.
Based on the above analysis, the Board determined that the Advisory Agreement,
including the investment advisory fee rates thereunder, are fair and reasonable
in light of all relevant circumstances and concluded that it is in the best
interest of the Funds and their shareholders to continue the Advisory Agreement.
214 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
INFORMATION ON BOARD OF TRUSTEES
AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling
1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- --------------------------- ----------------------------------------- --------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 114
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
Rydex Capital Partners SPhinX Fund - 2005
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)
-----------------------------------------
MICHAEL P. BYRUM* Rydex Series Funds - 2005 114
Trustee, Vice President and Rydex Variable Trust - 2005
Secretary (1970) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Secretary of Rydex Series Funds,
Rydex Variable Trust, and Rydex Dynamic Funds (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)
- --------------------------------------------------------------------------------
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 114
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
-----------------------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 114
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and
Investor, The Dalton Group
-----------------------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 114
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
-----------------------------------------
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 215
INFORMATION ON BOARD OF TRUSTEES
AND OFFICERS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------- ----------------------------------------- --------------
WERNER E. KELLER Rydex Series Funds - 2005 114
Trustee (1940) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2001 to present);
Chairman, Centurion Capital Management (1991 to 2001)
-----------------------------------------
THOMAS F. LYDON, JR. Rydex Series Funds - 2005 114
Trustee (1960) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
Investments
-----------------------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 114
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
-----------------------------------------
ROGER SOMERS Rydex Series Funds - 1993 114
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
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
Vice President and Treasurer (1963) Variable Trust, Rydex 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)
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Funds, Rydex Variable
Chief Compliance Officer and Trust, and Rydex Dynamic Funds (2004 to present); Assistant
Assistant Secretary (1967) Secretary of Rydex Series Funds, Rydex 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)
* 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.
216 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
- --------------------------------------------------------------------------------
This page intentionally left blank.
[LOGO] RYDEXINVESTMENTS
Essential for modern markets(TM)
9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVA-2-1205x1206
DECEMBER 31, 2005
RYDEX VARIABLE TRUST ANNUAL REPORT
ABSOLUTE RETURN STRATEGIES FUND
HEDGED EQUITY FUND
[LOGO] RYDEXINVESTMENTS
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
- --------------------------------------------------------------------------------
LETTER TO OUR SHAREHOLDERS ................................................ 2
ABOUT SHAREHOLDERS' FUND EXPENSES ......................................... 3
PERFORMANCE REPORTS AND FUND PROFILES ..................................... 5
SCHEDULES OF INVESTMENTS .................................................. 7
STATEMENTS OF ASSETS AND LIABILITIES ...................................... 22
STATEMENTS OF OPERATIONS .................................................. 23
STATEMENTS OF CHANGES IN NET ASSETS ....................................... 24
FINANCIAL HIGHLIGHTS ...................................................... 25
NOTES TO FINANCIAL STATEMENTS ............................................. 26
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ................... 32
OTHER INFORMATION ......................................................... 33
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS ............................. 36
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
Many will remember 2005 as a year of unfulfilled promise. The underpinnings were
in place for a robust year of stock market gains. Corporate earnings growth
continued to set new records, and interest rates, inflation and unemployment
remained low. Corporations had massive amounts of cash on hand to grow their
businesses and bolster stock prices through buybacks and dividend hikes. The
appetite for risk bounced back as well, judging by a near record volume of
merger and acquisition activity.
In spite of the positive fundamentals, the major equity indices remained
range-bound for much of the year with the bellwether S&P 500(R) Index trading
within a narrow 135 point range of 1,137.50 to 1,272.74. Investors were hoping
for a replay of 2004's year-end rally, but it was not to be, as a strong
November rally was unable to overcome the prior month's sell-off. As a result,
the Dow Jones Industrial Average(R) Index closed the year with fractional gains
of 1.72%, while the S&P 500 Index and Nasdaq 100(R) Index ended the year with
disappointing 4.91% and 1.90% gains, respectively.
For the first time in seven years, large-cap stocks outperformed small caps as
the Russell 1000(R) Index gained 6.27% compared to 4.55% for the Russell 2000(R)
Index. Mid-cap stocks outperformed both large and small-cap stocks as the
Russell Midcap Index gained 11.0%. Although value stocks slightly outperformed
their growth counterparts, it was a statistical dead heat between the two.
For equity investors, the real action in 2005 was in international stocks. The
MSCI EAFE Index gained 10.9% in dollar terms. Attractive valuations in European
stocks and what looked to be a sustainable economic recovery in Japan attracted
investor interest. The double-digit returns in the developed markets paled in
comparison to returns in emerging market stocks. The benchmark for emerging
market stocks, the MSCI EM Index, returned a whopping 30.3% during the year.
This volatile corner of the equity universe was driven by strong returns in
Latin American and Middle Eastern markets, among others.
Stock prices were buffeted by strong crosscurrents throughout the year. Although
long-term interest rates remained low, the specter of the Federal Reserve's
"Fed" interest rate tightening campaign weighed heavily on the market. Despite
the fact that job growth remained healthy and consumers used rising housing
prices as an excuse to turn their houses into ATMs to the tune of approximately
$800 billion, consumer confidence suffered its largest decline in 15 years in
the wake of hurricane Katrina and $70 per barrel oil. Neither the subsequent
strong rebound in consumer confidence as energy prices moderated, nor the four
consecutive quarters of double-digit earnings growth was enough to kick stock
prices higher.
The rise in short-term interest rates held stocks back in 2005. During the
course of the year, the Fed increased interest rates eight times, bringing the
closely watched Fed Funds Target Rate to 4.25%. It was widely assumed that
long-term interest rates would follow suit--an expectation that held stocks in
check. Long-term interest rates ended the year little changed. While the yield
on the 30-year Treasury Bond fell nearly 30 basis points to 4.53%, the yield on
the benchmark 10-year Treasury Note ended the year at 4.39%--only 18 basis
points higher than its starting point. A combination of foreign buying, low
inflation and demand from both public and private pensions for long maturity
assets conspired to keep long-term rates low throughout the year.
By year-end, the potent combination of steadily rising short-term interest rates
and static long-term rates gave rise to the dreaded inverted yield curve as the
two-year Treasury Note yielded 4.40%, one basis point higher than the 10-year
Note. Traditionally, an inverted yield curve portends an economic slowdown.
We base our 2006 outlook on two factors--the economy and interest rates. But if
the threat of rising interest rates keeps the market range bound, we believe
opportunities exist in three areas during 2006: energy, technology and health
care. Although energy prices experienced a run-up of historic proportions in
2005, the sector still exhibits favorable supply/demand characteristics. There
is too much demand and not enough supply--a situation that is likely to be in
place for the foreseeable future. Technology's relatively low valuations and the
possibility of an earnings-driven technology replacement cycle may provide
opportunity for the technology sector. And lastly, the defensive nature of
health care stocks will serve investors well should economic growth slow
appreciably.
We appreciate the trust you have placed in our firm by investing with us.
Sincerely,
/s/ Carl G. Verboncoeur
Carl G. Verboncoeur
President
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
All mutual funds have operating expenses and it is important for our
shareholders to understand the impact of costs on their investments. As a
shareholder of the Fund, you incur two types of costs: (i) transaction costs,
including sales charges (loads) on purchase payments, reinvested dividends, or
other distributions; redemption fees; and exchange fees; and (ii) ongoing costs,
including management fees, administrative services, and shareholder reports,
among others. These ongoing costs, or operating expenses, are deducted from a
fund's gross income and reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets, which
is known as the expense ratio. The following examples are intended to help 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, 2005 and
ending December 31, 2005.
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."
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you
compare your fund's cost with those of other mutual funds. The table
provides information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid during the
period. The example is useful in making comparisons because the U.S.
Securities and Exchange Commission (the "SEC") requires all mutual funds to
calculate expenses based on the 5% return. You can assess your fund's costs
by comparing this hypothetical example with the hypothetical examples that
appear in shareholder reports of other funds.
The calculations 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 the Fund. These costs may include, but are not limited to, sales
charges (loads), redemption fees, and exchange fees.
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.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 3
ABOUT SHAREHOLDERS' FUND EXPENSES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ JUNE 30, 2005 DECEMBER 31, 2005 PERIOD*
- ------------------------------------------------------------------------------------------------------------------
TABLE 1. BASED ON ACTUAL FUND RETURN
ABSOLUTE RETURN STRATEGIES FUND** 1.45% $1,000.00 $1,008.00 $7.30
HEDGED EQUITY FUND** 1.96% 1,000.00 1,009.40 9.87
- ------------------------------------------------------------------------------------------------------------------
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
ABSOLUTE RETURN STRATEGIES FUND** 1.45% 1,000.00 1,017.71 7.36
HEDGED EQUITY FUND** 1.96% 1,000.00 1,015.12 9.95
* 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. EXPENSES
SHOWN DO NOT INCLUDE ADDITIONAL FEES CHARGED BY INSURANCE COMPANIES
** SINCE THE COMMENCEMENT OF OPERATIONS: NOVEMBER 29, 2005.
+ ANNUALIZED
4 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED)
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
OBJECTIVE: To provide capital appreciation consistent with the return and risk
characteristics of the hedge fund universe. The secondary objective is to
achieve these returns with low correlation to and less volatility than equity
indices.
Inception: November 29, 2005
Rydex Absolute Return Strategies Fund increased 0.80% since its inception on
November 29, 2005. The Fund benefited from its exposure to commodities and
10-year Treasury bonds. The Fund's market neutral positions, such as value,
momentum and size, also contributed to its positive return whereas the Fund's
market neutral positions in growth stocks were a small drag to performance.
CUMULATIVE FUND PERFORMANCE:
NOVEMBER 29, 2005 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Absolute Return
Date Strategies Fund S&P Hedge Fund Index
11/29/05 10,000 10,000
11/30/05 9,996 9,967
12/01/05 10,044 9,998
12/02/05 10,056 10,021
12/03/05 10,056 10,021
12/04/05 10,056 10,021
12/05/05 10,056 10,032
12/06/05 10,056 10,024
12/07/05 10,036 10,031
12/08/05 10,072 10,010
12/09/05 10,072 10,018
12/10/05 10,072 10,018
12/11/05 10,072 10,018
12/12/05 10,100 10,030
12/13/05 10,112 10,023
12/14/05 10,132 9,999
12/15/05 10,112 10,000
12/16/05 10,104 9,995
12/17/05 10,104 9,995
12/18/05 10,104 9,995
12/19/05 10,060 9,980
12/20/05 10,056 9,990
12/21/05 10,084 10,005
12/22/05 10,108 10,010
12/23/05 10,120 10,013
12/24/05 10,120 10,013
12/25/05 10,120 10,013
12/26/05 10,120 10,013
12/27/05 10,076 9,992
12/28/05 10,100 10,001
12/29/05 10,092 10,022
12/30/05 10,080 9,993
12/31/05 10,080 9,993
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(11/29/05)
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND 0.80%
S&P HEDGE FUND INDEX -0.07%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P HEDGE FUND 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.]
Absolute Absolute
Return Strategies Return Strategies
Fund Long Holdings Fund Short Holdings
Consumer Discretionary 4.2% -2.9%
Consumer Staples 3.3% -2.6%
Energy 4.0% -2.6%
Financials 8.1% -6.3%
Health Care 6.3% -4.1%
Industrials 6.3% -3.1%
Information Technology 7.2% -0.8%
Materials 1.6% -1.1%
Telecommunication Services 1.4% -2.3%
Utilities 1.3% -1.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST LONG HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Goldman Sachs Group, Inc. 1.1%
Valero Energy Corp. 1.0%
Northrop Grumman Corp. 1.0%
Williams Cos., Inc. 0.9%
Yahoo!, Inc. 0.9%
Archer-Daniels-Midland Co. 0.7%
Aetna, Inc. 0.7%
Norfolk Southern Corp. 0.7%
Costco Wholesale Corp. 0.7%
Guidant Corp. 0.7%
- --------------------------------------------------------------------------------
Top Ten Total 8.4%
- --------------------------------------------------------------------------------
"Ten Largest Long Holdings" exclude any temporary cash or derivative
investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
OBJECTIVE: To provide capital appreciation consistent with the return and risk
characteristics of the long/short hedge fund universe. The secondary objective
is to achieve these returns with low correlation to and less volatility than
equity indices.
Inception: November 29, 2005
Rydex Hedged Equity Fund rose 0.94% since its November 29, 2005 inception date.
The Fund benefited from its exposure to equities. Its market neutral positions
all contributed to the Fund's positive return since inception. The Fund has
various market neutral positions that are long and short equities and are
designed to capture the value, momentum, size and growth premiums that exist in
the financial markets.
CUMULATIVE FUND PERFORMANCE:
NOVEMBER 29, 2005 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.]
Date Hedged Equity Fund S&P Equity Long/Short Index
11/29/05 10,000 10,000
11/30/05 9,980 10,023
12/01/05 10,092 10,111
12/02/05 10,084 10,116
12/03/05 10,084 10,116
12/04/05 10,084 10,116
12/05/05 10,080 10,089
12/06/05 10,092 10,101
12/07/05 10,064 10,080
12/08/05 10,080 10,101
12/09/05 10,092 10,113
12/10/05 10,092 10,113
12/11/05 10,092 10,113
12/12/05 10,100 10,134
12/13/05 10,112 10,130
12/14/05 10,132 10,148
12/15/05 10,124 10,146
12/16/05 10,104 10,133
12/17/05 10,104 10,133
12/18/05 10,104 10,133
12/19/05 10,044 10,078
12/20/05 10,064 10,093
12/21/05 10,120 10,121
12/22/05 10,158 10,152
12/23/05 10,174 10,166
12/24/05 10,174 10,166
12/25/05 10,174 10,166
12/26/05 10,174 10,166
12/27/05 10,106 10,102
12/28/05 10,142 10,120
12/29/05 10,122 10,119
12/30/05 10,094 10,109
12/31/05 10,094 10,109
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
INCEPTION
(11/29/05)
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND 0.94%
S&P EQUITY LONG/SHORT INDEX 1.09%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P EQUITY LONG/SHORT 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.]
Hedged Equity Fund Hedged Equity Fund
Long Holdings Short Holdings
Other 3.5% 0.0%
Consumer Discretionary 5.1% -10.7%
Consumer Staples 6.7% -9.7%
Energy 8.3% -9.8%
Financials 11.0% -19.7%
Health Care 10.3% -13.6%
Industrials 14.1% -12.1%
Information Technology 9.3% -2.2%
Materials 3.4% -3.6%
Telecommunication Services 1.6% -7.8%
Utilities 1.9% -3.6%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST LONG HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Goldman Sachs Group, Inc. 2.0%
Northrop Grumman Corp. 2.0%
Valero Energy Corp. 1.8%
Williams Cos., Inc. 1.7%
Pfizer, Inc. 1.6%
Archer-Daniels-Midland Co. 1.5%
Yahoo!, Inc. 1.4%
Google, Inc. -- Class A 1.3%
Norfolk Southern Corp. 1.3%
Aetna, Inc. 1.3%
- --------------------------------------------------------------------------------
Top Ten Total 15.9%
- --------------------------------------------------------------------------------
"Ten Largest Long Holdings" exclude any temporary cash or derivative
investments.
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 43.8%
FINANCIALS 8.1%
INSURANCE 2.3%
Prudential Financial, Inc. 299 $ 21,884
AFLAC, Inc. 299 13,879
Chubb Corp. 80 7,812
XL Capital Ltd. 110 7,412
ACE Ltd. 120 6,413
Loews Corp. 60 5,691
UICI 160 5,681
MBIA, Inc. 60 3,610
SAFECO Corp. 50 2,825
-----------
TOTAL INSURANCE 75,207
-----------
CAPITAL MARKETS 2.1%
Goldman Sachs Group, Inc. 289 36,908
Franklin Resources, Inc. 100 9,401
E*Trade Financial Corp.* 330 6,884
Credit Suisse Group -- SP ADR 40 2,038
Merrill Lynch & Co., Inc. 30 2,032
Deutsche Bank AG 20 1,937
UBS AG 20 1,903
Morgan Stanley 30 1,702
Nomura Holdings, Inc. -- SP ADR 80 1,538
Lehman Brothers Holdings, Inc. 10 1,282
Bank of New York Co., Inc. 40 1,274
Legg Mason, Inc. 10 1,197
Bear Stearns Cos., Inc. 10 1,155
State Street Corp. 20 1,109
Mellon Financial Corp. 30 1,027
-----------
TOTAL CAPITAL MARKETS 71,387
-----------
REAL ESTATE 1.3%
Criimi MAE, Inc.* 290 5,742
AMLI Residential Properties Trust 150 5,708
Prentiss Properties Trust 140 5,695
Shurgard Storage Centers, Inc. --
Class A 100 5,671
CenterPoint Properties Trust 100 4,948
Arden Realty, Inc. 110 4,931
Town & Country Trust 140 4,734
Plum Creek Timber Co., Inc.
(REIT) 110 3,966
Archstone-Smith Trust 60 2,513
-----------
TOTAL REAL ESTATE 43,908
-----------
BANKS 1.1%
National City Corp. 270 9,064
Westcorp 90 5,995
Central Coast Bancorp* 230 5,690
Unizan Financial Corp. 210 5,578
Hudson United Bancorp 130 5,418
Main Street Banks, Inc. 170 4,629
-----------
TOTAL BANKS 36,374
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE 0.7%
Fannie Mae 359 $ 17,523
Independence Community Bank
Corp 140 5,562
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 23,085
-----------
CONSUMER FINANCE 0.5%
MBNA Corp. 210 5,701
WFS Financial, Inc.* 70 5,331
Collegiate Funding Services LLC* 240 4,740
-----------
TOTAL CONSUMER FINANCE 15,772
-----------
DIVERSIFIED FINANCIALS 0.1%
CIT Group, Inc. 90 4,660
-----------
TOTAL DIVERSIFIED FINANCIALS 4,660
-----------
TOTAL FINANCIALS 270,393
-----------
INFORMATION TECHNOLOGY 7.2%
INTERNET SOFTWARE & SERVICES 2.1%
Yahoo!, Inc.* 749 29,346
Google, Inc. -- Class A* 40 16,594
VeriSign, Inc.* 150 3,288
Akamai Technologies, Inc.* 120 2,392
aQuantive, Inc.* 80 2,019
Websense, Inc.* 30 1,969
CNET Networks, Inc.* 130 1,910
ValueClick, Inc.* 100 1,811
Netease.com, Inc. -- SP ADR* 30 1,685
EarthLink, Inc.* 150 1,666
Digitas, Inc.* 130 1,628
Openwave Systems, Inc.* 90 1,572
Sina Corp.* 60 1,450
Digital River, Inc.* 40 1,190
WebEx Communications, Inc.* 50 1,081
-----------
TOTAL INTERNET SOFTWARE & SERVICES 69,601
-----------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.4%
Broadcom Corp. -- Class A* 300 14,145
Texas Instruments, Inc. 350 11,225
Advanced Micro Devices, Inc.* 269 8,231
Micron Technology, Inc.* 419 5,577
Freescale Semiconductor, Inc. --
Class B* 160 4,027
Novellus Systems, Inc.* 100 2,412
Teradyne, Inc.* 140 2,040
LSI Logic Corp.* 80 640
-----------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 48,297
-----------
SOFTWARE 1.4%
Captiva Software Corp.* 260 5,785
CCC Information Services Group* 220 5,768
Intellisync Corp.* 1,109 5,722
Geac Computer Corp. Ltd.* 520 5,668
Serena Software, Inc.* 240 5,626
Cyberguard Corp.* 620 5,475
Micromuse, Inc.* 490 4,846
Jamdat Mobile, Inc.* 180 4,784
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Parametric Technology Corp.* 190 $ 1,159
Compuware Corp.* 80 718
-----------
TOTAL SOFTWARE 45,551
-----------
COMMUNICATIONS EQUIPMENT 0.9%
Corning, Inc.* 829 16,298
Enterasys Networks, Inc.* 430 5,710
Scientific-Atlanta, Inc. 130 5,599
Dycom Industries, Inc.* 80 1,760
-----------
TOTAL COMMUNICATIONS EQUIPMENT 29,367
-----------
COMPUTERS & PERIPHERALS 0.7%
Apple Computer, Inc.* 289 20,776
Maxtor Corp.* 690 4,789
-----------
TOTAL COMPUTERS & PERIPHERALS 25,565
-----------
IT CONSULTING & SERVICES 0.6%
iPayment Holdings, Inc.* 140 5,813
Acxiom Corp. 250 5,750
Anteon International Corp.* 90 4,891
Computer Sciences Corp.* 30 1,519
Affiliated Computer Services,
Inc. -- Class A* 20 1,184
Sabre Holdings Corp. 20 482
Convergys Corp.* 20 317
-----------
TOTAL IT CONSULTING & SERVICES 19,956
-----------
OFFICE ELECTRONICS 0.1%
Xerox Corp.* 160 2,344
-----------
TOTAL OFFICE ELECTRONICS 2,344
-----------
TOTAL INFORMATION TECHNOLOGY 240,681
-----------
HEALTH CARE 6.3%
HEALTH CARE PROVIDERS & SERVICES 2.8%
Aetna, Inc. 240 22,634
CIGNA Corp. 70 7,819
McKesson Corp. 120 6,191
Medco Health Solutions, Inc.* 110 6,138
NDCHealth Corp.* 300 5,769
IDX Systems Corp.* 130 5,710
Renal Care Group, Inc.* 120 5,677
Specialty Laboratories, Inc.* 430 5,611
Beverly Enterprises, Inc.* 480 5,602
HCA, Inc. 80 4,040
AmerisourceBergen Corp. 80 3,312
WellPoint, Inc.* 36 2,899
Humana, Inc.* 50 2,716
Cardinal Health, Inc. 30 2,062
Caremark Rx, Inc.* 30 1,554
Health Management Associates,
Inc. -- Class A 60 1,318
Coventry Health Care, Inc.* 20 1,139
Laboratory Corporation of
America Holdings* 20 1,077
Patterson Cos., Inc.* 20 668
Manor Care, Inc. 10 398
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 92,334
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.7%
Guidant Corp. 339 $ 21,950
Boston Scientific Corp.* 529 12,955
Micro Therapeutics, Inc.* 940 6,514
Fisher Scientific International, Inc.* 90 5,568
Animas Corp.* 200 4,830
Waters Corp.* 90 3,402
PerkinElmer, Inc. 100 2,356
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 57,575
-----------
BIOTECHNOLOGY 0.9%
Gilead Sciences, Inc.* 210 11,052
Abgenix, Inc.* 220 4,732
Amgen, Inc.* 50 3,943
Genentech, Inc.* 40 3,700
Genzyme Corp.* 20 1,416
Celgene Corp.* 20 1,296
Protein Design Labs, Inc.* 30 853
Charles River Laboratories
International, Inc.* 20 847
Amylin Pharmaceuticals, Inc.* 20 798
Applera Corp. - Applied
Biosystems Group 30 797
ImClone Systems, Inc.* 20 685
Invitrogen Corp.* 10 666
Affymetrix, Inc.* 10 478
-----------
TOTAL BIOTECHNOLOGY 31,263
-----------
PHARMACEUTICALS 0.9%
Pfizer, Inc. 869 20,265
Merck & Co., Inc. 260 8,271
-----------
TOTAL PHARMACEUTICALS 28,536
-----------
TOTAL HEALTH CARE 209,708
-----------
INDUSTRIALS 6.2%
ROAD & RAIL 1.4%
Norfolk Southern Corp. 499 22,370
Burlington Northern Santa Fe
Corp 120 8,498
Canadian National Railway Co. 40 3,200
CSX Corp. 40 2,031
Canadian Pacific Railway Ltd. 40 1,678
J.B. Hunt Transport Services, Inc. 50 1,132
CNF, Inc. 20 1,118
Kansas City Southern* 40 977
Knight Transportation, Inc. 45 933
Laidlaw International, Inc. 40 929
Yellow Roadway Corp.* 20 892
Florida East Coast Industries, Inc. 20 847
Landstar System, Inc. 20 835
Heartland Express, Inc. 30 609
-----------
TOTAL ROAD & RAIL 46,049
-----------
MACHINERY 1.1%
Ingersoll-Rand Co. -- Class A 369 14,897
Cummins, Inc. 70 6,281
Titan International, Inc. 330 5,692
See Notes to Financial Statements.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Lancer Corp./TX* 260 $ 5,681
Parker Hannifin Corp. 50 3,298
-----------
TOTAL MACHINERY 35,849
-----------
AEROSPACE & DEFENSE 1.0%
Northrop Grumman Corp. 539 32,399
Goodrich Corp. 20 822
-----------
TOTAL AEROSPACE & DEFENSE 33,221
-----------
COMMERCIAL SERVICES & SUPPLIES 0.7%
Cendant Corp. 440 7,590
Waste Management, Inc. 240 7,284
Monster Worldwide, Inc.* 130 5,307
Robert Half International, Inc. 130 4,926
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 25,107
-----------
CONSTRUCTION & ENGINEERING 0.7%
Fluor Corp. 50 3,863
Jacobs Engineering Group, Inc.* 40 2,715
McDermott International, Inc.* 50 2,230
Shaw Group, Inc.* 70 2,036
URS Corp.* 50 1,881
Foster Wheeler, Ltd.* 50 1,839
Chicago Bridge & Iron NV Co. 70 1,765
Washington Group International,
Inc.* 30 1,589
Quanta Services, Inc.* 120 1,580
Granite Construction, Inc. 40 1,436
EMCOR Group, Inc.* 20 1,351
Insituform Technologies, Inc. --
Class A* 40 775
-----------
TOTAL CONSTRUCTION & ENGINEERING 23,060
-----------
TRADING COMPANIES & DISTRIBUTORS 0.7%
W.W. Grainger, Inc. 50 3,555
Fastenal Co. 90 3,527
MSC Industrial Direct Co. --
Class A 60 2,413
Hughes Supply, Inc. 60 2,151
WESCO International, Inc.* 50 2,137
United Rentals, Inc.* 90 2,105
GATX Corp. 50 1,804
Watsco, Inc. 30 1,794
Applied Industrial Technologies,
Inc. 50 1,685
Beacon Roofing Supply, Inc.* 40 1,149
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 22,320
-----------
AIRLINES 0.6%
Ryanair Holdings PLC -- SP ADR* 70 3,919
Gol Linhas Aereas Inteligentes
SA -- SP ADR 110 3,103
AMR Corp.* 110 2,445
JetBlue Airways Corp.* 135 2,076
Lan Airlines SA-SP ADR 50 1,874
Continental Airlines, Inc. --
Class B* 80 1,704
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
AirTran Holdings, Inc. 90 $ 1,443
SkyWest, Inc. 50 1,343
Alaska Air Group, Inc.* 30 1,072
-----------
TOTAL AIRLINES 18,979
-----------
ELECTRICAL EQUIPMENT 0.0%
American Power Conversion Corp. 40 880
-----------
TOTAL ELECTRICAL EQUIPMENT 880
-----------
AIR FREIGHT & COURIERS 0.0%
Ryder System, Inc. 20 821
-----------
TOTAL AIR FREIGHT & COURIERS 821
-----------
TOTAL INDUSTRIALS 206,286
-----------
CONSUMER DISCRETIONARY 4.2%
MEDIA 1.4%
Comcast Corp. -- Class A* 709 18,406
The Walt Disney Co. 659 15,796
Dex Media, Inc. 210 5,689
Liberty Corp. 120 5,617
-----------
TOTAL MEDIA 45,508
-----------
HOTELS, RESTAURANTS & LEISURE 0.7%
La Quinta Corp.* 520 5,793
MTR Gaming Group, Inc.* 470 4,893
Dave & Buster's, Inc.* 270 4,755
Marriott International, Inc. --
Class A 70 4,688
Harrah's Entertainment, Inc. 40 2,851
Hilton Hotels Corp. 30 723
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 23,703
-----------
TEXTILES & APPAREL 0.5%
Reebok International Ltd. 130 7,570
Tommy Hilfiger Corp.* 300 4,872
VF Corp. 30 1,660
Jones Apparel Group, Inc. 40 1,229
-----------
TOTAL TEXTILES & APPAREL 15,331
-----------
SPECIALTY RETAIL 0.4%
Linens `N Things, Inc.* 220 5,852
Goody's Family Clothing, Inc. 610 5,850
Office Depot, Inc.* 60 1,884
Circuit City Stores, Inc. 60 1,355
-----------
TOTAL SPECIALTY RETAIL 14,941
-----------
MULTILINE RETAIL 0.4%
Federated Department Stores,
Inc. 90 5,970
J.C. Penney Holding Co., Inc. 50 2,780
Sears Holdings Corp.* 20 2,310
Dillard's, Inc. -- Class A 50 1,241
Family Dollar Stores, Inc. 30 744
-----------
TOTAL MULTILINE RETAIL 13,045
-----------
INTERNET & CATALOG RETAIL 0.3%
J. Jill Group, Inc.* 300 5,709
Provide Commerce, Inc.* 140 4,635
-----------
TOTAL INTERNET & CATALOG RETAIL 10,344
-----------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
AUTOMOBILES 0.2%
General Motors Corp. 170 $ 3,302
Ford Motor Co. 389 3,003
-----------
TOTAL AUTOMOBILES 6,305
-----------
HOUSEHOLD DURABLES 0.2%
Pulte Homes, Inc. 130 5,117
-----------
TOTAL HOUSEHOLD DURABLES 5,117
-----------
AUTO COMPONENTS 0.1%
Johnson Controls, Inc. 60 4,375
Goodyear Tire & Rubber Co.* 30 521
Delphi Corp. 180 52
-----------
TOTAL AUTO COMPONENTS 4,948
-----------
LEISURE EQUIPMENT & PRODUCTS 0.0%
Brunswick Corp. 30 1,220
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 1,220
-----------
TOTAL CONSUMER DISCRETIONARY 140,462
-----------
ENERGY 4.0%
OIL & GAS 3.2%
Valero Energy Corp. 659 34,005
Williams Cos., Inc. 1,299 30,098
ConocoPhillips 180 10,473
Vintage Petroleum, Inc. 110 5,866
General Maritime Corp. 120 4,445
Exxon Mobil Corp. 50 2,809
Amerada Hess Corp. 20 2,536
Royal Dutch Shell PLC -- SP ADR 40 2,460
BP PLC -- SP ADR 30 1,927
Kerr-McGee Corp. 20 1,817
PetroChina Co. Ltd. -- SP ADR 20 1,639
Petroleo Brasiliero SA -- Petrobras 20 1,425
ENI-Ente Nazionale Idrocarburi --
SP ADR 10 1,395
Total SA -- SP ADR 10 1,264
Chevron Corp. 20 1,135
Imperial Oil Ltd. 10 996
China Petroleum & Chemical
Corp. -- SP ADR 20 992
EnCana Corp. 20 903
Repsol YPF SA -- SP ADR 30 882
Statoil ASA -- SP ADR 20 459
-----------
TOTAL OIL & GAS 107,526
-----------
ENERGY EQUIPMENT & SERVICES 0.8%
Rowan Cos., Inc. 140 4,990
Schlumberger Ltd. 30 2,914
Transocean, Inc.* 30 2,091
Baker Hughes, Inc. 30 1,823
Weatherford International Ltd.* 50 1,810
Nabors Industries Ltd.* 20 1,515
BJ Services Co. 40 1,467
GlobalSantaFe Corp. 30 1,444
Noble Corp. 20 1,411
Diamond Offshore Drilling, Inc. 20 1,391
Tenaris SA -- SP ADR 10 1,145
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Smith International, Inc. 30 $ 1,113
Patterson-UTI Energy, Inc. 30 989
Precision Drilling Trust 30 987
ENSCO International, Inc. 20 887
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 25,977
-----------
TOTAL ENERGY 133,503
-----------
CONSUMER STAPLES 3.3%
FOOD PRODUCTS 1.4%
Archer-Daniels-Midland Co. 999 24,635
Hershey Co. 230 12,708
General Mills, Inc. 190 9,371
-----------
TOTAL FOOD PRODUCTS 46,714
-----------
FOOD & DRUG RETAILING 1.1%
Costco Wholesale Corp. 449 22,212
Safeway, Inc. 419 9,914
Supervalu, Inc. 80 2,598
-----------
TOTAL FOOD & DRUG RETAILING 34,724
-----------
TOBACCO 0.8%
Altria Group, Inc. 180 13,450
Reynolds American, Inc. 70 6,673
UST, Inc. 150 6,124
-----------
TOTAL TOBACCO 26,247
-----------
BEVERAGES 0.0%
Molson Coors Brewing Co. --
Class B 20 1,340
-----------
TOTAL BEVERAGES 1,340
-----------
TOTAL CONSUMER STAPLES 109,025
-----------
MATERIALS 1.6%
METALS & MINING 1.3%
Phelps Dodge Corp. 60 8,632
Roanoke Electric Steel Corp. 240 5,664
Nucor Corp. 80 5,338
United States Steel Corp. 90 4,326
BHP Billiton Ltd. -- SP ADR 90 3,008
Anglo American PLC -- ADR 60 2,087
Companhia Vale do Rio Doce --
SP ADR 50 2,057
Rio Tinto PLC -- SP ADR 10 1,828
Newmont Mining Corp. 30 1,602
Alcoa, Inc. 50 1,478
Mittal Steel NV Co. -- Class A 50 1,316
Alcan, Inc. 30 1,229
Barrick Gold Corp. 40 1,115
POSCO -- SP ADR 20 990
AngloGold Ashanti Ltd. --
SP ADR 20 987
Falconbridge Ltd. 30 889
-----------
TOTAL METALS & MINING 42,546
-----------
PAPER & FOREST PRODUCTS 0.2%
Weyerhaeuser Co. 60 3,980
MeadWestvaco Corp. 100 2,803
Louisiana-Pacific Corp. 30 824
-----------
TOTAL PAPER & FOREST PRODUCTS 7,607
-----------
See Notes to Financial Statements.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS 0.1%
Vulcan Materials Co. 40 $ 2,710
-----------
TOTAL CONSTRUCTION MATERIALS 2,710
-----------
TOTAL MATERIALS 52,863
-----------
TELECOMMUNICATION SERVICES 1.6%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.0%
BellSouth Corp. 310 8,401
Telewest Global, Inc.* 250 5,955
PanAmSat Holding Corp. 230 5,635
New Skies Satellites Holdings Ltd. 220 4,789
AT&T, Inc. 150 3,674
Verizon Communications, Inc. 120 3,614
CenturyTel, Inc. 20 663
-----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 32,731
-----------
WIRELESS TELECOMMUNICATION SERVICES 0.6%
Alltel Corp. 130 8,203
Alamosa Holdings, Inc.* 310 5,769
Nextel Partners, Inc. -- Class A* 170 4,750
-----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 18,722
-----------
TOTAL TELECOMMUNICATION SERVICES 51,453
-----------
UTILITIES 1.3%
MULTI-UTILITIES 0.7%
Constellation Energy Group, Inc. 130 7,488
Public Service Enterprise Group,
Inc. 90 5,847
NorthWestern Corp. 180 5,593
PG&E Corp. 60 2,227
Duke Energy Corp. 40 1,098
NiSource, Inc. 50 1,043
-----------
TOTAL MULTI-UTILITIES 23,296
-----------
ELECTRIC UTILITIES 0.6%
Cinergy Corp. 140 5,945
Exelon Corp. 80 4,251
Entergy Corp. 40 2,746
American Electric Power Co., Inc. 70 2,596
Allegheny Energy, Inc.* 70 2,216
Pinnacle West Capital Corp. 20 827
-----------
TOTAL ELECTRIC UTILITIES 18,581
-----------
TOTAL UTILITIES 41,877
-----------
TOTAL COMMON STOCKS
(Cost $1,460,455) 1,456,251
-----------
CONTRACTS
---------
OPTIONS PURCHASED 0.0%
Put Options on:
January 2006 S&P 500 Index
Futures Contracts
Expiring January 2006 with
strike price of 1160 1 125
-----------
TOTAL OPTIONS PURCHASED
(Cost $204) 125
-----------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 54.3%
Repurchase Agreement (Note 6)
3.40% due 01/03/06 $441,076 $ 441,076
3.39% due 01/03/06 454,010 454,010
3.30% due 01/03/06 454,010 454,010
2.90% due 01/03/06 454,010 454,010
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,803,106) 1,803,106
-----------
TOTAL LONG SECURITIES 98.1%
(Cost $3,263,765) 3,259,482
-----------
SHARES
------
COMMON STOCKS SOLD SHORT (26.7)%
INFORMATION TECHNOLOGY (0.8)%
IT CONSULTING & SERVICES 0.0%
Unisys Corp.* 40 (233)
-----------
TOTAL IT CONSULTING & SERVICES (233)
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.0%
Symbol Technologies, Inc. 30 (385)
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS (385)
-----------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 0.0%
Nvidia Corp.* 20 (731)
-----------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT (731)
-----------
COMPUTERS & PERIPHERALS (0.2)%
NCR Corp.* 20 (679)
Seagate Technology* 240 (4,797)
-----------
TOTAL COMPUTERS & PERIPHERALS (5,476)
-----------
COMMUNICATIONS EQUIPMENT (0.2)%
Comverse Technology, Inc.* 70 (1,861)
ADC Telecommunications, Inc.* 260 (5,809)
-----------
TOTAL COMMUNICATIONS EQUIPMENT (7,670)
-----------
SOFTWARE (0.4)%
Symantec Corp.* 90 (1,575)
Adobe Systems, Inc. 60 (2,218)
Autodesk, Inc. 80 (3,436)
Secure Computing Corp.* 440 (5,394)
-----------
TOTAL SOFTWARE (12,623)
-----------
TOTAL INFORMATION TECHNOLOGY (27,118)
-----------
UTILITIES (1.0)%
MULTI-UTILITIES (0.1)%
KeySpan Corp. 20 (713)
TECO Energy, Inc. 60 (1,031)
-----------
TOTAL MULTI-UTILITIES (1,744)
-----------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES (0.9)%
PPL Corp. 50 $ (1,470)
FPL Group, Inc. 170 (7,065)
TXU Corp. 460 (23,088)
-----------
TOTAL ELECTRIC UTILITIES (31,623)
-----------
TOTAL UTILITIES (33,367)
-----------
MATERIALS (1.1)%
CONTAINERS & PACKAGING 0.0%
Pactiv Corp.* 20 (440)
Temple-Inland, Inc. 20 (897)
-----------
TOTAL CONTAINERS & PACKAGING (1,337)
-----------
PAPER & FOREST PRODUCTS (0.1)%
International Paper Co. 70 (2,353)
-----------
TOTAL PAPER & FOREST PRODUCTS (2,353)
-----------
METALS & MINING (1.0)%
Steel Dynamics, Inc. 160 (5,681)
Allegheny Technologies, Inc. 170 (6,134)
Freeport-McMoRan Copper &
Gold, Inc. -- Class B 370 (19,906)
-----------
TOTAL METALS & MINING (31,721)
-----------
TOTAL MATERIALS (35,411)
-----------
TELECOMMUNICATION SERVICES (2.3)%
DIVERSIFIED TELECOMMUNICATION SERVICES (0.1)%
Valor Communications Group, Inc. 420 (4,788)
-----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES (4,788)
-----------
WIRELESS TELECOMMUNICATION SERVICES (2.2)%
Sprint Nextel Corp. 3,100 (72,416)
-----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES (72,416)
-----------
TOTAL TELECOMMUNICATION SERVICES (77,204)
-----------
ENERGY (2.5)%
OIL & GAS (0.2)%
Sunoco, Inc. 10 (784)
Devon Energy Corp. 50 (3,127)
Occidental Petroleum Corp. 60 (4,793)
-----------
TOTAL OIL & GAS (8,704)
-----------
ENERGY EQUIPMENT & SERVICES (2.3)%
Halliburton Co. 1,230 (76,211)
-----------
TOTAL ENERGY EQUIPMENT & SERVICES (76,211)
-----------
TOTAL ENERGY (84,915)
-----------
CONSUMER STAPLES (2.6)%
PERSONAL PRODUCTS (0.1)%
Avon Products, Inc. 110 (3,141)
-----------
TOTAL PERSONAL PRODUCTS (3,141)
-----------
FOOD & DRUG RETAILING (0.2)%
Albertson's, Inc. 90 (1,921)
CVS Corp. 190 (5,020)
-----------
TOTAL FOOD & DRUG RETAILING (6,941)
-----------
BEVERAGES (0.6)%
Brown-Forman Corp. -- Class B 40 (2,773)
Coca-Cola Enterprises, Inc. 840 (16,103)
-----------
TOTAL BEVERAGES (18,876)
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
FOOD PRODUCTS (1.7)%
WM Wrigley Jr Co. 80 $ (5,319)
Campbell Soup Co. 730 (21,732)
Sara Lee Corp. 1,590 (30,051)
-----------
TOTAL FOOD PRODUCTS (57,102)
-----------
TOTAL CONSUMER STAPLES (86,060)
-----------
CONSUMER DISCRETIONARY (2.9)%
HOUSEHOLD DURABLES 0.0%
Maytag Corp. 30 (565)
-----------
TOTAL HOUSEHOLD DURABLES (565)
-----------
LEISURE EQUIPMENT & PRODUCTS 0.0%
Eastman Kodak Co. 30 (702)
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS (702)
-----------
INTERNET & CATALOG RETAIL 0.0%
eBay, Inc.* 20 (865)
-----------
TOTAL INTERNET & CATALOG RETAIL (865)
-----------
AUTO COMPONENTS 0.0%
Cooper Tire & Rubber Co. 30 (460)
Dana Corp. 80 (574)
-----------
TOTAL AUTO COMPONENTS (1,034)
-----------
SPECIALTY RETAIL (0.1)%
Tiffany & Co. 30 (1,149)
-----------
TOTAL SPECIALTY RETAIL (1,149)
-----------
COMMERCIAL SERVICES & SUPPLIES (0.1)%
H&R Block, Inc. 30 (737)
Apollo Group, Inc. -- Class A* 40 (2,418)
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES (3,155)
-----------
MULTILINE RETAIL (0.1)%
Big Lots, Inc.* 50 (600)
Nordstrom, Inc. 70 (2,618)
-----------
TOTAL MULTILINE RETAIL (3,218)
-----------
HOTELS, RESTAURANTS & LEISURE (0.3)%
International Game Technology,
Inc 120 (3,693)
Starbucks Corp.* 190 (5,702)
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE (9,395)
-----------
MEDIA (2.3)%
Dow Jones & Co., Inc. 20 (710)
Interpublic Group of Cos., Inc.* 170 (1,640)
McGraw-Hill Cos., Inc. 40 (2,065)
News Corp. -- Class A 310 (4,821)
RH Donnelley Corp.* 90 (5,546)
NTL, Inc.* 90 (6,127)
Viacom, Inc. -- Class B* 650 (21,190)
Time Warner, Inc. 1,930 (33,659)
-----------
TOTAL MEDIA (75,758)
-----------
TOTAL CONSUMER DISCRETIONARY (95,841)
-----------
INDUSTRIALS (3.1)%
BUILDING PRODUCTS (0.1)%
Masco Corp. 60 (1,811)
-----------
TOTAL BUILDING PRODUCTS (1,811)
-----------
See Notes to Financial Statements.
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.2)%
Avery Dennison Corp. 10 $ (553)
Allied Waste Industries, Inc.* 680 (5,943)
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES (6,496)
-----------
AEROSPACE & DEFENSE (0.4)%
Boeing Co. 90 (6,322)
United Technologies Corp. 150 (8,386)
-----------
TOTAL AEROSPACE & DEFENSE (14,708)
-----------
MACHINERY (0.5)%
Caterpillar, Inc. 300 (17,331)
-----------
TOTAL MACHINERY (17,331)
-----------
AIRLINES (0.7)%
Southwest Airlines Co. 1,330 (21,852)
-----------
TOTAL AIRLINES (21,852)
-----------
ROAD & RAIL (1.2)%
Union Pacific Corp. 500 (40,255)
-----------
TOTAL ROAD & RAIL (40,255)
-----------
TOTAL INDUSTRIALS (102,453)
-----------
HEALTH CARE (4.1)%
BIOTECHNOLOGY (0.2)%
Biogen Idec, Inc.* 10 (453)
Medimmune, Inc.* 210 (7,354)
-----------
TOTAL BIOTECHNOLOGY (7,807)
-----------
HEALTH CARE PROVIDERS & SERVICES (0.5)%
Quest Diagnostics, Inc. 10 (515)
Tenet Healthcare Corp.* 290 (2,221)
WellPoint, Inc.* 40 (3,192)
Express Scripts, Inc.* 40 (3,352)
Per-Se Technologies, Inc.* 230 (5,373)
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES (14,653)
-----------
HEALTH CARE EQUIPMENT & SUPPLIES (1.1)%
Biomet, Inc. 30 (1,097)
St. Jude Medical, Inc.* 50 (2,510)
Mentor Corp. 120 (5,530)
ev3, Inc.* 440 (6,486)
Stryker Corp. 160 (7,109)
Baxter International, Inc. 390 (14,683)
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES (37,415)
-----------
PHARMACEUTICALS (2.3)%
Medicis Pharmaceutical Corp. --
Class A 170 (5,448)
Schering-Plough Corp. 1,490 (31,067)
Eli Lilly & Co. 700 (39,613)
-----------
TOTAL PHARMACEUTICALS (76,128)
-----------
TOTAL HEALTH CARE (136,003)
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
FINANCIALS (6.3)%
CAPITAL MARKETS (0.4)%
T. Rowe Price Group, Inc. 30 $ (2,161)
Janus Capital Group, Inc. 130 (2,422)
Charles Schwab Corp. 230 (3,374)
Northern Trust Corp. 120 (6,218)
-----------
TOTAL CAPITAL MARKETS (14,175)
-----------
INSURANCE (0.5)%
Ambac Financial Group, Inc. 20 (1,541)
Marsh & McLennan Cos., Inc. 120 (3,811)
UnumProvident Corp. 170 (3,868)
Aon Corp. 180 (6,471)
-----------
TOTAL INSURANCE (15,691)
-----------
THRIFTS & MORTGAGE FINANCE (0.7)%
MGIC Investment Corp. 20 (1,316)
Golden West Financial Corp. 70 (4,620)
Freddie Mac 110 (7,189)
Countrywide Financial Corp. 340 (11,625)
-----------
TOTAL THRIFTS & MORTGAGE FINANCE (24,750)
-----------
REAL ESTATE (0.8)%
Simon Property Group, Inc. 50 (3,831)
ProLogis 100 (4,672)
Public Storage, Inc. 80 (5,418)
Brandywine Realty Trust 200 (5,582)
Equity Office Properties Trust 240 (7,279)
-----------
TOTAL REAL ESTATE (26,782)
-----------
BANKS (1.0)%
First Horizon National Corp. 30 (1,153)
North Fork Bancorporation, Inc. 100 (2,736)
BB&T Corp. 120 (5,029)
TD Banknorth, Inc. 190 (5,520)
Bank of America Corp. 120 (5,538)
Huntington Bancshares, Inc. 240 (5,700)
Wachovia Corp. 110 (5,815)
-----------
TOTAL BANKS (31,491)
-----------
DIVERSIFIED FINANCIALS (2.9)%
Moody's Corp. 230 (14,126)
J.P. Morgan Chase & Co. 2,040 (80,968)
-----------
TOTAL DIVERSIFIED FINANCIALS (95,094)
-----------
TOTAL FINANCIALS (207,983)
-----------
TOTAL COMMON STOCKS SOLD SHORT
(Proceeds $899,057) (886,355)
-----------
TOTAL SHORT SALES (26.7)%
(Proceeds $899,057) (886,355)
-----------
TOTAL INVESTMENTS 71.4%
(Cost $2,364,708) $ 2,373,127
===========
OTHER ASSET IN EXCESS
OF LIABILITIES - 28.6% $ 950,027
===========
NET ASSETS - 100.0% $ 3,323,154
================================================================================
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACT PURCHASED
March 2006 U.S. 10-Year
Treasury Note Index Futures Contracts
(Aggregate Market Value of
Contracts $328,218) 3 $ 2,985
January 2006 Goldman Sachs
Commodity Index Futures Contracts
(Aggregate Market Value of
Contracts $107,963) 1 (1,946)
March 2006 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $187,838) 3 (2,922)
March 2006 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $222,630) 3 (3,100)
March 2006 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $202,410) 3 (5,503)
-----------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $1,049,059) $ (10,486)
===========
FUTURES CONTRACTS SOLD SHORT
March 2006 U.S. Dollar Index
Futures Contracts
(Aggregate Market Value of
Contracts $454,800) 5 $ --
-----------
* NON-INCOME PRODUCING SECURITY.
ADR--AMERICAN DEPOSITORY RECEIPT.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 71.7%
INDUSTRIALS 13.6%
ROAD & RAIL 3.1%
Norfolk Southern Corp. 968 $ 43,395
Burlington Northern Santa Fe
Corp 269 19,051
Canadian National Railway Co. 100 7,999
CSX Corp. 119 6,042
Canadian Pacific Railway Ltd. 100 4,195
J.B. Hunt Transport Services, Inc. 149 3,373
CNF, Inc. 50 2,795
Yellow Roadway Corp.* 60 2,677
Laidlaw International, Inc. 109 2,532
Landstar System, Inc. 60 2,504
Kansas City Southern* 100 2,443
Knight Transportation, Inc. 110 2,280
Florida East Coast Industries, Inc. 49 2,076
Heartland Express, Inc. 99 2,009
-----------
TOTAL ROAD & RAIL 103,371
-----------
AEROSPACE & DEFENSE 2.0%
Northrop Grumman Corp. 1,108 66,602
Goodrich Corp. 40 1,644
-----------
TOTAL AEROSPACE & DEFENSE 68,246
-----------
TRADING COMPANIES & DISTRIBUTORS 1.9%
W.W. Grainger, Inc. 149 10,594
Fastenal Co. 249 9,758
MSC Industrial Direct Co. --
Class A 169 6,797
United Rentals, Inc.* 249 5,824
Hughes Supply, Inc. 159 5,700
WESCO International, Inc.* 130 5,555
GATX Corp. 149 5,376
Watsco, Inc. 89 5,323
Applied Industrial Technologies,
Inc 129 4,346
Beacon Roofing Supply, Inc.* 120 3,448
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 62,721
-----------
CONSTRUCTION & ENGINEERING 1.8%
Fluor Corp. 130 10,044
Jacobs Engineering Group, Inc.* 100 6,787
Shaw Group, Inc.* 209 6,080
McDermott International, Inc.* 130 5,799
URS Corp.* 129 4,852
Foster Wheeler, Ltd.* 130 4,781
Chicago Bridge & Iron NV Co. 189 4,765
Quanta Services, Inc.* 329 4,333
Washington Group International,
Inc.* 79 4,185
EMCOR Group, Inc.* 59 3,984
Granite Construction, Inc. 110 3,950
Insituform Technologies, Inc. --
Class A* 120 2,324
-----------
TOTAL CONSTRUCTION & ENGINEERING 61,884
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES 1.7%
Cendant Corp. 1,177 $ 20,303
Waste Management, Inc. 629 19,090
Monster Worldwide, Inc.* 239 9,756
Robert Half International, Inc. 199 7,540
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 56,689
-----------
AIRLINES 1.6%
Ryanair Holdings PLC --
SP ADR* 199 11,142
Gol Linhas Aereas Inteligentes
SA -- SP ADR 309 8,717
AMR Corp.* 319 7,091
JetBlue Airways Corp.* 379 5,829
Lan Airlines SA-SP ADR 140 5,247
Continental Airlines, Inc. --
Class B* 209 4,452
AirTran Holdings, Inc. 249 3,992
SkyWest, Inc. 140 3,760
Alaska Air Group, Inc.* 90 3,215
-----------
TOTAL AIRLINES 53,445
-----------
MACHINERY 1.4%
Ingersoll-Rand Co. -- Class A 668 26,967
Cummins, Inc. 139 12,472
Parker Hannifin Corp. 130 8,575
-----------
TOTAL MACHINERY 48,014
-----------
AIR FREIGHT & COURIERS 0.1%
Ryder System, Inc. 50 2,051
-----------
TOTAL AIR FREIGHT & COURIERS 2,051
-----------
ELECTRICAL EQUIPMENT 0.0%
American Power Conversion
Corp 70 1,540
-----------
TOTAL ELECTRICAL EQUIPMENT 1,540
-----------
TOTAL INDUSTRIALS 457,961
-----------
FINANCIALS 11.0%
INSURANCE 4.4%
Prudential Financial, Inc. 549 40,181
AFLAC, Inc. 539 25,020
Chubb Corp. 229 22,362
ACE Ltd. 329 17,582
XL Capital Ltd. 249 16,778
Loews Corp. 109 10,339
MBIA, Inc. 150 9,024
SAFECO Corp. 149 8,418
-----------
TOTAL INSURANCE 149,704
-----------
CAPITAL MARKETS 4.1%
Goldman Sachs Group, Inc. 539 68,836
E*Trade Financial Corp.* 609 12,704
Franklin Resources, Inc. 80 7,521
UBS AG 70 6,660
Morgan Stanley 99 5,617
Merrill Lynch & Co., Inc. 80 5,418
Credit Suisse Group -- SP ADR 100 5,095
Deutsche Bank AG 50 4,843
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Nomura Holdings, Inc. -- SP ADR 219 $ 4,209
Lehman Brothers Holdings, Inc. 30 3,845
Bank of New York Co., Inc. 109 3,472
State Street Corp. 50 2,772
Mellon Financial Corp. 79 2,706
Legg Mason, Inc. 20 2,394
Bear Stearns Cos., Inc. 20 2,311
-----------
TOTAL CAPITAL MARKETS 138,403
-----------
THRIFTS & MORTGAGE FINANCE 1.0%
Fannie Mae 629 30,702
Freddie Mac 60 3,921
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 34,623
-----------
BANKS 0.7%
National City Corp. 728 24,439
-----------
TOTAL BANKS 24,439
-----------
DIVERSIFIED FINANCIALS 0.4%
CIT Group, Inc. 239 12,375
-----------
TOTAL DIVERSIFIED FINANCIALS 12,375
-----------
REAL ESTATE 0.4%
Plum Creek Timber Co., Inc.
(REIT) 199 7,174
Archstone-Smith Trust 110 4,608
-----------
TOTAL REAL ESTATE 11,782
-----------
TOTAL FINANCIALS 371,326
-----------
HEALTH CARE 10.3%
HEALTH CARE PROVIDERS & SERVICES 4.1%
Aetna, Inc. 459 43,288
CIGNA Corp. 150 16,755
McKesson Corp. 259 13,362
Medco Health Solutions, Inc.* 229 12,778
HCA, Inc. 219 11,060
AmerisourceBergen Corp. 180 7,452
WellPoint, Inc.* 89 7,101
Cardinal Health, Inc. 80 5,500
Humana, Inc.* 99 5,379
Caremark Rx, Inc.* 99 5,127
Health Management Associates,
Inc. -- Class A 169 3,711
Coventry Health Care, Inc.* 50 2,848
Laboratory Corporation of
America Holdings* 50 2,693
Patterson Cos., Inc.* 49 1,637
Manor Care, Inc. 30 1,193
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 139,884
-----------
PHARMACEUTICALS 2.3%
Pfizer, Inc. 2,334 54,429
Merck & Co., Inc. 698 22,203
-----------
TOTAL PHARMACEUTICALS 76,632
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 2.2%
Guidant Corp. 459 29,720
Boston Scientific Corp.* 948 23,217
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Fisher Scientific International,
Inc.* 170 $ 10,516
Waters Corp.* 160 6,048
PerkinElmer, Inc. 180 4,241
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 73,742
-----------
BIOTECHNOLOGY 1.7%
Gilead Sciences, Inc.* 269 14,158
Amgen, Inc.* 130 10,252
Genentech, Inc.* 110 10,175
Genzyme Corp.* 60 4,247
Celgene Corp.* 59 3,823
Amylin Pharmaceuticals, Inc.* 60 2,395
Applera Corp. - Applied
Biosystems Group 90 2,391
ImClone Systems, Inc.* 60 2,054
Invitrogen Corp.* 30 1,999
Protein Design Labs, Inc.* 70 1,989
Affymetrix, Inc.* 40 1,910
Charles River Laboratories
International, Inc.* 40 1,695
Chiron Corp.* 20 889
Biogen Idec, Inc.* 10 453
-----------
TOTAL BIOTECHNOLOGY 58,430
-----------
TOTAL HEALTH CARE 348,688
-----------
INFORMATION TECHNOLOGY 9.3%
INTERNET SOFTWARE & SERVICES 4.6%
Yahoo!, Inc.* 1,198 46,938
Google, Inc. -- Class A* 109 45,220
VeriSign, Inc.* 429 9,404
Akamai Technologies, Inc.* 329 6,557
CNET Networks, Inc.* 369 5,421
aQuantive, Inc.* 210 5,300
ValueClick, Inc.* 269 4,872
Websense, Inc.* 70 4,595
EarthLink, Inc.* 409 4,544
Digitas, Inc.* 349 4,369
Openwave Systems, Inc.* 239 4,175
Sina Corp.* 169 4,083
Netease.com, Inc. -- SP ADR* 70 3,931
Digital River, Inc.* 119 3,539
WebEx Communications, Inc.* 149 3,223
-----------
TOTAL INTERNET SOFTWARE & SERVICES 156,171
-----------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.7%
Broadcom Corp. -- Class A* 559 26,357
Texas Instruments, Inc. 659 21,134
Advanced Micro Devices, Inc.* 499 15,270
Micron Technology, Inc.* 768 10,222
Freescale Semiconductor, Inc. --
Class B* 349 8,784
Novellus Systems, Inc.* 170 4,100
Teradyne, Inc.* 249 3,628
LSI Logic Corp.* 159 1,272
-----------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 90,767
-----------
See Notes to Financial Statements.
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT 0.8%
Corning, Inc.* 1,098 $ 21,587
Dycom Industries, Inc.* 219 4,818
-----------
TOTAL COMMUNICATIONS EQUIPMENT 26,405
-----------
COMPUTERS & PERIPHERALS 0.6%
Apple Computer, Inc.* 279 20,057
-----------
TOTAL COMPUTERS & PERIPHERALS 20,057
-----------
IT CONSULTING & SERVICES 0.3%
Computer Sciences Corp.* 80 4,051
Affiliated Computer Services,
Inc. -- Class A* 60 3,551
Sabre Holdings Corp. 60 1,447
Convergys Corp.* 60 951
-----------
TOTAL IT CONSULTING & SERVICES 10,000
-----------
OFFICE ELECTRONICS 0.2%
Xerox Corp.* 439 6,431
-----------
TOTAL OFFICE ELECTRONICS 6,431
-----------
SOFTWARE 0.1%
Parametric Technology Corp.* 339 2,068
Compuware Corp.* 159 1,426
-----------
TOTAL SOFTWARE 3,494
-----------
TOTAL INFORMATION TECHNOLOGY 313,325
-----------
ENERGY 8.3%
OIL & GAS 6.4%
Valero Energy Corp. 1,188 61,301
Williams Cos., Inc. 2,405 55,724
ConocoPhillips 589 34,268
Exxon Mobil Corp. 129 7,246
Amerada Hess Corp. 50 6,341
Kerr-McGee Corp. 69 6,269
Royal Dutch Shell PLC -- SP ADR 100 6,149
BP PLC -- SP ADR 80 5,138
Total SA -- SP ADR 39 4,930
ENI-Ente Nazionale Idrocarburi --
SP ADR 30 4,184
PetroChina Co. Ltd. -- SP ADR 50 4,098
Chevron Corp. 70 3,974
Petroleo Brasiliero SA --
Petrobras 50 3,563
China Petroleum & Chemical
Corp. -- SP ADR 50 2,480
Occidental Petroleum Corp. 30 2,396
Repsol YPF SA -- SP ADR 79 2,323
EnCana Corp. 50 2,258
Imperial Oil Ltd. 20 1,992
Statoil ASA -- SP ADR 59 1,355
-----------
TOTAL OIL & GAS 215,989
-----------
ENERGY EQUIPMENT & SERVICES 1.9%
Rowan Cos., Inc. 249 8,874
Schlumberger Ltd. 89 8,646
Transocean, Inc.* 79 5,506
Baker Hughes, Inc. 80 4,862
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Weatherford International Ltd.* 129 $ 4,670
Nabors Industries Ltd.* 50 3,787
BJ Services Co. 100 3,667
Diamond Offshore Drilling, Inc. 50 3,478
Noble Corp. 49 3,456
Tenaris SA -- SP ADR 30 3,435
GlobalSantaFe Corp. 70 3,371
Smith International, Inc. 80 2,969
ENSCO International, Inc. 60 2,661
Patterson-UTI Energy, Inc. 79 2,603
Precision Drilling Trust 70 2,303
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 64,288
-----------
TOTAL ENERGY 280,277
-----------
CONSUMER STAPLES 6.7%
FOOD PRODUCTS 2.9%
Archer-Daniels-Midland Co. 2,105 51,909
General Mills, Inc. 499 24,611
Hershey Co. 419 23,150
-----------
TOTAL FOOD PRODUCTS 99,670
-----------
FOOD & DRUG RETAILING 1.9%
Costco Wholesale Corp. 818 40,467
Safeway, Inc. 768 18,171
Supervalu, Inc. 209 6,788
-----------
TOTAL FOOD & DRUG RETAILING 65,426
-----------
TOBACCO 1.7%
Altria Group, Inc. 349 26,077
Reynolds American, Inc. 199 18,971
UST, Inc. 279 11,391
-----------
TOTAL TOBACCO 56,439
-----------
BEVERAGES 0.2%
Molson Coors Brewing Co. --
Class B 80 5,359
-----------
TOTAL BEVERAGES 5,359
-----------
TOTAL CONSUMER STAPLES 226,894
-----------
CONSUMER DISCRETIONARY 5.1%
MEDIA 1.9%
Comcast Corp. -- Class A* 1,287 33,410
The Walt Disney Co. 1,207 28,932
-----------
TOTAL MEDIA 62,342
-----------
MULTILINE RETAIL 1.0%
Federated Department Stores,
Inc 209 13,863
Sears Holdings Corp.* 79 9,127
J.C. Penney Holding Co., Inc. 99 5,504
Dillard's, Inc. -- Class A 119 2,954
Family Dollar Stores, Inc. 109 2,702
-----------
TOTAL MULTILINE RETAIL 34,150
-----------
AUTOMOBILES 0.5%
Ford Motor Co. 1,188 9,171
General Motors Corp. 469 9,108
-----------
TOTAL AUTOMOBILES 18,279
-----------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE 0.4%
Marriott International, Inc. --
Class A 129 $ 8,639
Harrah's Entertainment, Inc. 70 4,990
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 13,629
-----------
AUTO COMPONENTS 0.4%
Johnson Controls, Inc. 159 11,593
Goodyear Tire & Rubber Co.* 69 1,199
Delphi Corp. 329 96
-----------
TOTAL AUTO COMPONENTS 12,888
-----------
TEXTILES & APPAREL 0.3%
VF Corp. 90 4,981
Reebok International Ltd. 60 3,494
Jones Apparel Group, Inc. 99 3,041
-----------
TOTAL TEXTILES & APPAREL 11,516
-----------
HOUSEHOLD DURABLES 0.3%
Pulte Homes, Inc. 249 9,801
-----------
TOTAL HOUSEHOLD DURABLES 9,801
-----------
SPECIALTY RETAIL 0.2%
Office Depot, Inc.* 119 3,737
Circuit City Stores, Inc. 109 2,462
-----------
TOTAL SPECIALTY RETAIL 6,199
-----------
LEISURE EQUIPMENT & PRODUCTS 0.1%
Brunswick Corp. 80 3,253
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 3,253
-----------
TOTAL CONSUMER DISCRETIONARY 172,057
-----------
MATERIALS 3.4%
METALS & MINING 2.7%
Phelps Dodge Corp. 120 17,264
Nucor Corp. 159 10,608
United States Steel Corp. 189 9,085
BHP Billiton Ltd. -- SP ADR 249 8,322
Rio Tinto PLC -- SP ADR 40 7,312
Anglo American PLC -- ADR 179 6,226
Companhia Vale do Rio Doce --
SP ADR 139 5,718
Alcoa, Inc. 149 4,406
Newmont Mining Corp. 80 4,272
POSCO -- SP ADR 70 3,466
Mittal Steel NV Co. -- Class A 129 3,397
Barrick Gold Corp. 119 3,316
Alcan, Inc. 79 3,235
AngloGold Ashanti Ltd. --
SP ADR 60 2,960
Falconbridge Ltd. 90 2,667
-----------
TOTAL METALS & MINING 92,254
-----------
PAPER & FOREST PRODUCTS 0.5%
Weyerhaeuser Co. 150 9,951
MeadWestvaco Corp. 189 5,297
Louisiana-Pacific Corp. 70 1,923
-----------
TOTAL PAPER & FOREST PRODUCTS 17,171
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS 0.2%
Vulcan Materials Co. 79 $ 5,352
-----------
TOTAL CONSTRUCTION MATERIALS 5,352
-----------
TOTAL MATERIALS 114,777
-----------
TELECOMMUNICATION SERVICES 2.1%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.8%
BellSouth Corp. 838 22,710
Verizon Communications, Inc. 608 18,313
AT&T, Inc. 719 17,608
CenturyTel, Inc. 60 1,990
-----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 60,621
-----------
WIRELESS TELECOMMUNICATION SERVICES 0.3%
Alltel Corp. 149 9,402
-----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 9,402
-----------
TOTAL TELECOMMUNICATION SERVICES 70,023
-----------
UTILITIES 1.9%
ELECTRIC UTILITIES 1.1%
Exelon Corp. 339 18,015
Entergy Corp. 99 6,796
American Electric Power Co., Inc. 179 6,639
Allegheny Energy, Inc.* 130 4,115
Pinnacle West Capital Corp. 49 2,026
-----------
TOTAL ELECTRIC UTILITIES 37,591
-----------
MULTI-UTILITIES 0.8%
Duke Energy Corp. 469 12,874
PG&E Corp. 169 6,273
Constellation Energy Group, Inc. 90 5,184
NiSource, Inc. 120 2,503
-----------
TOTAL MULTI-UTILITIES 26,834
-----------
TOTAL UTILITIES 64,425
-----------
TOTAL COMMON STOCKS
(Cost $2,405,809) 2,419,753
-----------
CONTRACTS
---------
OPTIONS PURCHASED 0.0%
Put Options on:
January 2006 S&P 500 Index
Futures Contracts
Expiring January 2006 with
strike price of 1160 4 500
-----------
TOTAL OPTIONS PURCHASED
(Cost $816) 500
-----------
See Notes to Financial Statements.
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 26.8%
Repurchase Agreement (Note 6)
3.40% due 01/03/06 $221,028 $ 221,028
3.39% due 01/03/06 227,508 227,508
3.30% due 01/03/06 227,508 227,508
2.90% due 01/03/06 227,508 227,508
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $903,552) 903,552
-----------
TOTAL LONG SECURITIES 98.5%
(Cost $3,310,177) 3,323,805
-----------
SHARES
--------
COMMON STOCKS SOLD SHORT (46.4)%
INFORMATION TECHNOLOGY (1.1)%
IT CONSULTING & SERVICES 0.0%
Unisys Corp.* 80 (466)
-----------
TOTAL IT CONSULTING & SERVICES (466)
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.0%
Symbol Technologies, Inc. 60 (769)
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS (769)
-----------
COMPUTERS & PERIPHERALS 0.0%
NCR Corp.* 40 (1,358)
-----------
TOTAL COMPUTERS & PERIPHERALS (1,358)
-----------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT (0.1)%
Nvidia Corp.* 80 (2,925)
-----------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT (2,925)
-----------
COMMUNICATIONS EQUIPMENT (0.5)%
Comverse Technology, Inc.* 180 (4,786)
ADC Telecommunications, Inc.* 500 (11,170)
-----------
TOTAL COMMUNICATIONS EQUIPMENT (15,956)
-----------
SOFTWARE (0.5)%
Symantec Corp.* 170 (2,975)
Adobe Systems, Inc. 120 (4,435)
Autodesk, Inc. 210 (9,020)
-----------
TOTAL SOFTWARE (16,430)
-----------
TOTAL INFORMATION TECHNOLOGY (37,904)
-----------
UTILITIES (1.8)%
MULTI-UTILITIES (0.2)%
KeySpan Corp. 50 (1,784)
TECO Energy, Inc. 170 (2,921)
-----------
TOTAL MULTI-UTILITIES (4,705)
-----------
ELECTRIC UTILITIES (1.6)%
PPL Corp. 100 (2,940)
FPL Group, Inc. 100 (4,156)
TXU Corp. 960 (48,182)
-----------
TOTAL ELECTRIC UTILITIES (55,278)
-----------
TOTAL UTILITIES (59,983)
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
MATERIALS (1.8)%
CONTAINERS & PACKAGING (0.1)%
Pactiv Corp.* 40 $ (880)
Temple-Inland, Inc. 30 (1,345)
-----------
TOTAL CONTAINERS & PACKAGING (2,225)
-----------
PAPER & FOREST PRODUCTS (0.1)%
International Paper Co. 130 (4,369)
-----------
TOTAL PAPER & FOREST PRODUCTS (4,369)
-----------
METALS & MINING (1.6)%
Allegheny Technologies, Inc. 370 (13,350)
Freeport-McMoRan Copper &
Gold, Inc. -- Class B 760 (40,888)
-----------
TOTAL METALS & MINING (54,238)
-----------
TOTAL MATERIALS (60,832)
-----------
TELECOMMUNICATION SERVICES (3.9)%
WIRELESS TELECOMMUNICATION SERVICES (3.9)%
Sprint Nextel Corp. 5,630 (131,517)
-----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES (131,517)
-----------
TOTAL TELECOMMUNICATION SERVICES (131,517)
-----------
CONSUMER STAPLES (4.9)%
PERSONAL PRODUCTS (0.2)%
Avon Products, Inc. 210 (5,996)
-----------
TOTAL PERSONAL PRODUCTS (5,996)
-----------
FOOD & DRUG RETAILING (0.4)%
Albertson's, Inc. 160 (3,416)
CVS Corp. 360 (9,511)
-----------
TOTAL FOOD & DRUG RETAILING (12,927)
-----------
BEVERAGES (1.1)%
Brown-Forman Corp. -- Class B 110 (7,625)
Coca-Cola Enterprises, Inc. 1,530 (29,330)
-----------
TOTAL BEVERAGES (36,955)
-----------
FOOD PRODUCTS (3.2)%
WM Wrigley Jr Co. 210 (13,963)
Campbell Soup Co. 1,330 (39,594)
Sara Lee Corp. 2,900 (54,810)
-----------
TOTAL FOOD PRODUCTS (108,367)
-----------
TOTAL CONSUMER STAPLES (164,245)
-----------
ENERGY (4.9)%
OIL & GAS (0.2)%
Sunoco, Inc. 30 (2,351)
Devon Energy Corp. 90 (5,629)
-----------
TOTAL OIL & GAS (7,980)
-----------
ENERGY EQUIPMENT & SERVICES (4.7)%
Halliburton Co. 2,540 (157,378)
-----------
TOTAL ENERGY EQUIPMENT & SERVICES (157,378)
-----------
TOTAL ENERGY (165,358)
-----------
CONSUMER DISCRETIONARY (5.3)%
HOUSEHOLD DURABLES 0.0%
Maytag Corp. 60 (1,129)
-----------
TOTAL HOUSEHOLD DURABLES (1,129)
-----------
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS 0.0%
Eastman Kodak Co. 50 $ (1,170)
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS (1,170)
-----------
AUTO COMPONENTS (0.1)%
Cooper Tire & Rubber Co. 50 (766)
Dana Corp. 140 (1,005)
-----------
TOTAL AUTO COMPONENTS (1,771)
-----------
SPECIALTY RETAIL (0.1)%
Tiffany & Co. 90 (3,446)
-----------
TOTAL SPECIALTY RETAIL (3,446)
-----------
MULTILINE RETAIL (0.2)%
Big Lots, Inc.* 80 (961)
Nordstrom, Inc. 180 (6,732)
-----------
TOTAL MULTILINE RETAIL (7,693)
-----------
COMMERCIAL SERVICES & SUPPLIES (0.3)%
H&R Block, Inc. 60 (1,473)
Apollo Group, Inc. -- Class A* 120 (7,255)
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES (8,728)
-----------
INTERNET & CATALOG RETAIL (0.4)%
eBay, Inc.* 340 (14,705)
-----------
TOTAL INTERNET & CATALOG RETAIL (14,705)
-----------
HOTELS, RESTAURANTS & LEISURE (0.7)%
Hilton Hotels Corp. 30 (724)
International Game Technology,
Inc 290 (8,926)
Starbucks Corp.* 510 (15,305)
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE (24,955)
-----------
MEDIA (3.5)%
Dow Jones & Co., Inc. 50 (1,774)
Interpublic Group of Cos., Inc.* 310 (2,992)
McGraw-Hill Cos., Inc. 70 (3,614)
News Corp. -- Class A 590 (9,175)
Viacom, Inc. -- Class B* 1,180 (38,468)
Time Warner, Inc. 3,500 (61,040)
-----------
TOTAL MEDIA (117,063)
-----------
TOTAL CONSUMER DISCRETIONARY (180,660)
-----------
INDUSTRIALS (6.1)%
BUILDING PRODUCTS (0.1)%
Masco Corp. 120 (3,623)
-----------
TOTAL BUILDING PRODUCTS (3,623)
-----------
COMMERCIAL SERVICES & SUPPLIES (0.4)%
Avery Dennison Corp. 30 (1,658)
Allied Waste Industries, Inc.* 1,220 (10,663)
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES (12,321)
-----------
AIRLINES (1.0)%
Southwest Airlines Co. 2,150 (35,324)
-----------
TOTAL AIRLINES (35,324)
-----------
AEROSPACE & DEFENSE (1.2)%
United Technologies Corp. 280 (15,655)
Boeing Co. 350 (24,584)
-----------
TOTAL AEROSPACE & DEFENSE (40,239)
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
MACHINERY (1.3)%
Caterpillar, Inc. 730 $ (42,172)
-----------
TOTAL MACHINERY (42,172)
-----------
ROAD & RAIL (2.1)%
Union Pacific Corp. 880 (70,849)
-----------
TOTAL ROAD & RAIL (70,849)
-----------
TOTAL INDUSTRIALS (204,528)
-----------
HEALTH CARE (6.8)%
BIOTECHNOLOGY (0.5)%
Medimmune, Inc.* 440 (15,409)
-----------
TOTAL BIOTECHNOLOGY (15,409)
-----------
HEALTH CARE PROVIDERS & SERVICES (0.7)%
Tenet Healthcare Corp.* 530 (4,060)
Express Scripts, Inc.* 100 (8,380)
UnitedHealth Group, Inc. 160 (9,942)
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES (22,382)
-----------
HEALTH CARE EQUIPMENT & SUPPLIES (1.5)%
Biomet, Inc. 60 (2,194)
St. Jude Medical, Inc.* 90 (4,518)
Stryker Corp. 420 (18,661)
Baxter International, Inc. 700 (26,355)
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES (51,728)
-----------
PHARMACEUTICALS (4.1)%
Schering-Plough Corp. 3,200 (66,720)
Eli Lilly & Co. 1,280 (72,435)
-----------
TOTAL PHARMACEUTICALS (139,155)
-----------
TOTAL HEALTH CARE (228,674)
-----------
FINANCIALS (9.8)%
BANKS (0.2)%
First Horizon National Corp. 50 (1,922)
North Fork Bancorporation, Inc. 200 (5,472)
-----------
TOTAL BANKS (7,394)
-----------
INSURANCE (0.9)%
Ambac Financial Group, Inc. 40 (3,082)
Marsh & McLennan Cos., Inc. 220 (6,987)
UnumProvident Corp. 310 (7,053)
Aon Corp. 330 (11,864)
-----------
TOTAL INSURANCE (28,986)
-----------
THRIFTS & MORTGAGE FINANCE (1.0)%
MGIC Investment Corp. 40 (2,633)
Golden West Financial Corp. 130 (8,580)
Countrywide Financial Corp. 620 (21,198)
-----------
TOTAL THRIFTS & MORTGAGE FINANCE (32,411)
-----------
REAL ESTATE (1.2)%
ProLogis 270 (12,614)
Equity Office Properties Trust 430 (13,042)
Simon Property Group, Inc. 190 (14,560)
-----------
TOTAL REAL ESTATE (40,216)
-----------
See Notes to Financial Statements.
20 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
CAPITAL MARKETS (1.2)%
Janus Capital Group, Inc. 240 $ (4,471)
T. Rowe Price Group, Inc. 110 (7,923)
Charles Schwab Corp. 920 (13,497)
Northern Trust Corp. 310 (16,064)
-----------
TOTAL CAPITAL MARKETS (41,955)
-----------
DIVERSIFIED FINANCIALS (5.3)%
Moody's Corp. 560 (34,395)
J.P. Morgan Chase & Co. 3,690 (146,456)
-----------
TOTAL DIVERSIFIED FINANCIALS (180,851)
-----------
TOTAL FINANCIALS (331,813)
-----------
TOTAL COMMON STOCKS SOLD SHORT
(Proceeds $1,570,921) (1,565,514)
-----------
CONTRACTS
---------
OPTIONS WRITTEN 0.0%
Call Options Written on:
January 2006 S&P 500 Index
Futures Contracts
Expiring January 2006
with strike price of 1285 1 (513)
-----------
TOTAL OPTIONS WRITTEN
(Premiums Received $3,321) (513)
-----------
TOTAL INVESTMENTS 52.1%
(Cost $1,735,935) $ 1,757,778
===========
OTHER ASSETS IN EXCESS OF
LIABILITIES - 47.9% $ 1,618,135
===========
NET ASSETS - 100.0% $ 3,375,913
===============================================================================
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
March 2006 S&P 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $337,350) 5 $ (3,586)
March 2006 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $296,840) 4 (4,932)
March 2006 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $563,513) 9 (9,115)
-----------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $1,197,703) $ (17,633)
===========
* NON-INCOME PRODUCING SECURITY.
ADR--AMERICAN DEPOSITORY RECEIPT.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21
STATEMENTS OF ASSETS AND LIABILITIES December 31, 2005
- -----------------------------------------------------------------------------------
ABSOLUTE RETURN HEDGED
STRATEGIES EQUITY
FUND FUND
- -----------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 3 and 6) $ 3,259,482 $ 3,323,805
Segregated Cash with Broker 42,824 47,949
Receivable for Securities Sold (Note 1) 899,057 1,570,921
Receivable for Fund Shares Purchased -- 462
Investment Income Receivable (Note 1) 3,052 6,038
Other Assets 14,312 7,201
- -----------------------------------------------------------------------------------
TOTAL ASSETS 4,218,727 4,956,376
===================================================================================
LIABILITIES
Short Sales at Market Value (Notes 1 and 2)** 886,355 1,565,514
Written Options at Market Value (Note 3)*** -- 513
Payable for Futures Contracts Settlement (Note 1) 3,886 7,722
Payable for Securities Purchased (Note 1) -- 2,438
Liability for Fund Shares Redeemed 1,792 --
Investment Advisory Fees Payable (Note 4) 3,032 3,019
Short Sales Dividends Payable 508 1,257
- -----------------------------------------------------------------------------------
TOTAL LIABILITIES 895,573 1,580,463
===================================================================================
NET ASSETS $ 3,323,154 $ 3,375,913
===================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 3,308,460 $ 3,359,675
Undistributed Net Investment Income 5,902 893
Accumulated Net Realized Gain on Investments
and Futures Contracts 10,859 11,135
Net Unrealized Appreciation (Depreciation) on
Investments, and Futures Contracts (2,067) 4,210
===================================================================================
NET ASSETS $ 3,323,154 $ 3,375,913
===================================================================================
SHARES OUTSTANDING 131,883 133,919
NET ASSET VALUES $ 25.20 $ 25.21
* THE COST OF SECURITIES AT VALUE IS $3,263,765 AND $3,310,177,
RESPECTIVELY.
** THE PROCEEDS OF SHORT SALES AT MARKET VALUE ARE $899,057 AND $1,570,921,
RESPECTIVELY.
*** THE PREMIUMS RECEIVED FOR WRITTEN OPTIONS AT MARKET VALUE ARE $0 AND
$3,321, RESPECTIVELY.
See Notes to Financial Statements.
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
STATEMENTS OF OPERATIONS Period Ended December 31, 2005
- --------------------------------------------------------------------------------------------
ABSOLUTE RETURN HEDGED
STRATEGIES EQUITY
FUND* FUND*
- --------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 8,596 $ 6,926
Dividends, Net of Foreign Tax Withheld** (Note 1) 1,055 2,366
- --------------------------------------------------------------------------------------------
Total Income 9,651 9,292
- --------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 3,094 3,082
Short Sales Dividend Expense (Note 1) 655 2,012
- --------------------------------------------------------------------------------------------
Total Expenses 3,749 5,094
- --------------------------------------------------------------------------------------------
Net Investment Income 5,902 4,198
============================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE1)
Net Realized Gain (Loss) on:
Investment Securities (6,132) 9,348
Futures Contracts 10,091 1,599
Securities Sold Short 6,900 188
- --------------------------------------------------------------------------------------------
Total Net Realized Gain 10,859 11,135
- --------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (4,283) 13,628
Futures Contracts (10,486) (17,633)
Securities Sold Short 12,702 8,215
- --------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (2,067) 4,210
- --------------------------------------------------------------------------------------------
Net Gain on Investments 8,792 15,345
- --------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 14,694 $ 19,543
============================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: NOVEMBER 29, 2005.
** FOREIGN TAX WITHHELD OF $3 AND $6, RESPECTIVELY.
See Notes to Financial Statements.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------
ABSOLUTE RETURN HEDGED
STRATEGIES EQUITY
FUND FUND
- ------------------------------------------------------------------------------------------------
PERIOD PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2005* 2005*
- ------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income $ 5,902 $ 4,198
Net Realized Gain on Investments 10,859 11,135
Net Change in Unrealized Appreciation (Depreciation)
on Investments (2,067) 4,210
- ------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 14,694 19,543
- ------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- (3,305)
- ------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (3,305)
================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 4,216,390 4,399,783
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT -- 3,305
COST OF SHARES REDEEMED (907,930) (1,043,413)
================================================================================================
NET INCREASE IN NET ASSETS
FROM SHARE TRANSACTIONS 3,308,460 3,359,675
- ------------------------------------------------------------------------------------------------
Net Increase in Net Assets 3,323,154 3,375,913
NET ASSETS--BEGINNING OF PERIOD -- --
================================================================================================
NET ASSETS--END OF PERIOD $ 3,323,154 $ 3,375,913
================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 5,902 $ 893
================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: NOVEMBER 29, 2005.
See Notes to Financial Statements.
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented .
NET
INCREASE IN
NET REALIZED NET ASSET DISTRIBUTIONS NET
NET ASSET AND VALUE DISTRIBUTIONS FROM NET INCREASE
VALUE, NET UNREALIZED RESULTING FROM NET REALIZED IN NET
BEGINNING INVESTMENT GAINS ON FROM INVESTMENT CAPITAL TOTAL ASSET
OF PERIOD INCOME+ SECURITIES OPERATIONS INCOME GAINS DISTRIBUTIONS VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
DECEMBER 31, 2005* $25.00 $ .05 $ .15 $ .20 $ -- $ -- $ -- $ .20
HEDGED EQUITY FUND
DECEMBER 31, 2005* 25.00 .04 .20 .24 (.03) -- (.03) .21
RATIOS TO AVERAGE NET ASSETS:
------------------------------------------------
NET
ASSET NET ASSETS,
VALUE, TOTAL NET PORTFOLIO END OF
END OF INVESTMENT GROSS NET OPERATING INVESTMENT TURNOVER PERIOD (000'S
PERIOD RETURN EXPENSES EXPENSES EXPENSES++ INCOME RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
DECEMBER 31, 2005* $25.20 0.80% 1.45%** 1.45%** 1.20%** 2.28%** 19% $3,323
HEDGED EQUITY FUND
DECEMBER 31, 2005* 25.21 0.94% 1.96%** 1.96%** 1.19%** 1.62%** 10% 3,376
* SINCE THE COMMENCEMENT OF OPERATIONS: NOVEMBER 29, 2005.
** 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 SHORT DIVIDENDS EXPENSE.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 25
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Variable Trust (the "Trust"), a Delaware business trust, is registered
with the SEC under the Investment Company Act of 1940 (the "1940 Act") as a
non-diversified, open-ended investment company and is authorized to issue an
unlimited number of no par value shares. At December 31, 2005, the Trust
consisted of fifty operating Funds: twenty-four Benchmark Funds, one Money
Market Fund, one Absolute Return Strategies Fund, one Hedged Equity Fund,
nineteen Sector Funds, two Strategic Funds, and two Clarke Lanzen Skalla
Investment Firm "CLS" AdvisorOne Funds. This report covers the Absolute Return
Strategies Fund and the Hedged Equity Fund (the "Funds"), while the Benchmark
Funds, the Money Market Fund, the Sector Funds, the Strategic Funds, and the CLS
AdvisorOne Funds are contained in separate reports. Rydex Global Advisors (the
"Advisor") serves as investment advisor to the Funds. Rydex Distributors, Inc.
(the "Distributor") acts as principal underwriter for the Trust.
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 the Official Settlement
Price listed by the exchange, usually as of 4:00 p.m., Eastern Time. In the
event that a settlement price is not available, fair valuation is enacted.
Over-the-counter options held by the Trust are valued using the average bid
price 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. In the event that the exchange for a specific futures contract
closes earlier than 4:00 p.m., Eastern Time, the futures contract is valued at
the Official Settlement Price of the exchange. However, the underlying
securities from which the futures contract value is derived are monitored until
4:00 p.m., Eastern Time, to determine if fair valuation would provide a more
accurate valuation. Short-term securities, if any, are valued at amortized cost,
which approximates market value.
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.
Investments, for which market quotations are not readily available, are valued
at fair value as determined in good faith by the Advisor under direction of the
Board of Trustees using methods established or ratified by the Board of
Trustees. These methods include, but are not limited to: (i) general information
as to how these securities and assets trade; (ii) in connection with futures
contracts and options thereupon, and other derivative investments, information
as to how (a) these contracts and other derivative investments trade in the
futures or other derivative markets, respectively, and (b) the securities
underlying these contracts and other derivative investments trade in the cash
market; and (iii) other information and considerations, including current values
in related markets.
B. Securities transactions are recorded on the trade date for financial
reporting purposes. Realized gains and losses from securities transactions are
recorded using the identified cost basis. 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 of net investment income and net realized capital gains are
recorded on the ex-dividend date and 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 are 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.
A segregated account of cash and/or securities is maintained as collateral for
short sales. The Fund is exposed to market risk based on the amount, if any,
that the market value of the security exceeds the market value of the securities
in the segregated account. Fees, if any, paid to brokers to borrow securities in
26 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
connection with short sales are considered part of the cost of short sale
transactions. In addition, the Fund must pay out the dividend rate of the equity
or coupon rate of the treasury obligation to the purchaser and records this as
an expense. Short Dividends or Interest Expense is a cost associated with the
investment objective of short sales transactions, rather than an operational
cost associated with the day-to-day management of any mutual fund.
E. Upon the purchase of an option by a Fund, the premium paid is recorded as an
investment, the value of which is marked-to-market daily. When a purchased
option expires, 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 the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
G. The Trust may enter into 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. The Funds may also purchase American Depository Receipts, U.S. Government
securities, enter into repurchase agreements, and engage in futures, options and
equity swap transactions.
I. The Fund may leave Cash in Custodian Bank overnight in its cash account with
the custodian, U.S. Bank. Periodically, a Fund may have Cash Payable to
Custodian Bank as an overdraft balance. A fee is incurred on this overdraft,
calculated by multiplying the overdraft by a rate based on the federal funds
rate. Segregated Cash with the Broker is held as collateral for investments in
derivative instruments such as futures contracts and equity index swap
agreements.
J. Certain U.S. Government and Agency Obligations are traded on a discount
basis; the interest rates shown on the Schedules of Investments reflect the
discount rates paid at the time of purchase by the Fund. Other securities bear
interest at the rates shown, payable at fixed dates through maturity.
K. 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, options on futures, and swap
agreements. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amounts recognized in the Statements of Assets
and Liabilities.
In the normal course of business, the Funds enter into contracts that contain a
variety of representations and warranties, which provide general
indemnifications. The Funds' maximum exposure under these arrangements is
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 27
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
unknown, as this would involve future claims that may be made against the Funds
and/or its affiliates that have not yet occurred. However, based on experience,
the Funds expect the risk of loss to be remote.
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.
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 the Trust 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.
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.
In conjunction with the use of options, futures, options on futures, 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 and/or securities segregated at the custodian bank,
discount notes, or the repurchase agreements allocated to each Fund.
The risks inherent in the use of options, futures contracts, options on futures
contracts, swap agreements as well as short sales of securities include i)
adverse changes in the value of such instruments; ii) imperfect correlation
between the price of the instruments and movements in the price of the
underlying securities, indices, or futures contracts; iii) the possible absence
of a liquid secondary market for any particular instrument at any time; and iv)
the potential of counterparty default.
3. CALL OPTIONS WRITTEN
As of December 31, 2005, S&P 500 Index Mini Futures Contracts were held in the
Fund as cover for call options written by the Fund.
Transactions in options written during the period ended December 31, 2005, were
as follows:
NUMBER OF PREMIUMS
HEDGED EQUITY FUND CONTRACTS RECEIVED
- --------------------------------------------------------------------------------
Options outstanding at
November 29, 2005 -- $ --
Options written 1 3,321
- --------------------------------------------------------------------------------
Options outstanding at
December 31, 2005 1 $3,321
4. 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 1.15% of the average daily net assets of the Funds. The Advisor has
contractually agreed to pay all operating expenses of the Fund, excluding
interest expense and taxes (expected to be de minimis), brokerage commissions
and other expenses connected with the execution of portfolio transactions, short
dividend expenses, and extraordinary expenses. Organizational and setup costs
for new funds are paid by the Trust. Certain officers and trustees of the Trust
are also officers of the Advisor.
5. FEDERAL INCOME TAX INFORMATION
The Funds intend to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute all net
investment income and capital gains to shareholders. Therefore, no Federal
income tax provision is required. The Absolute Return Strategies Fund has
adopted a tax year-end which is different from its fiscal year-end.
28 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 of America. These differences are primarily due to
differing treatments for derivatives, foreign currency transactions, losses
deferred due to wash sales, losses deferred due to post-October losses, and
excise tax regulations.
The tax character of distributions paid during the current period was as
follows:
FUND ORDINARY INCOME LONG-TERM CAPITAL GAIN TOTAL DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------------------------
Absolute Return Strategies Fund $ -- $ -- $ --
Hedged Equity Fund 3,305 -- 3,305
The tax character of distributable earnings/(accumulated losses) at December 31,
2005, was a follows:
UNDISTRIBUTED
ORDINARY UNDISTRIBUTED NET UNREALIZED CAPITAL LOSS
FUND INCOME LONG-TERM CAPITAL GAINS APPRECIATION CARRYFORWARD
- ------------------------------------------------------------------------------------------------------------------
Absolute Return Strategies Fund $ 9,507 $ -- $ 5,525 $ --
Hedged Equity Fund 2,905 -- 16,374 --
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.
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, 2005, $340 and $3,041 of realized capital
losses reflected in the accompanying financial statements will not be recognized
for federal income tax purposes until 2006 for Absolute Return Strategies Fund
and Hedged Equity Fund, respectively.
At December 31, 2005, 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
- -------------------------------------------------------------------------------------------------------------------
Absolute Return Strategies Fund $2,367,604 $39,768 $(34,243) $ 5,525
Hedged Equity Fund 1,741,405 87,690 (71,316) 16,374
6. 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 102% of the delivery value of the repurchase agreements
at maturity.
The repurchase agreements executed by the joint account and outstanding as of
December 31, 2005, were as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------------
Lehman Brothers, Inc. 3.40% due 01/03/06 $92,734,273 $ 92,734,273 $92,769,306
UBS Financial Services, Inc. 3.39% due 01/03/06 65,000,000 65,000,000 65,024,483
Morgan Stanley 3.30% due 01/03/06 65,000,000 65,000,000 65,023,833
Citigroup, Inc. 2.90% due 01/03/06 65,000,000 65,000,000 65,020,944
Credit Suisse First Boston 3.45% due 01/03/06 13,466,288 13,466,288 13,471,450
- -------------------------------------------------------------------------------------------------------------------
$301,200,561 $301,310,016
- -------------------------------------------------------------------------------------------------------------------
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 29
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
As of December 31, 2005, 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 3.625% - 8.125% $ 78,959,839 $105,939,494
U. S. Treasury Notes 3.000% - 6.000% 96,950,000 97,209,524
U. S. Treasury Bills 0.000% - 1.000% 105,355,000 104,091,570
- --------------------------------------------------------------------------------------------------
$307,240,588
- --------------------------------------------------------------------------------------------------
In the event of counterparty default, the Trust has the right to collect 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.
7. SECURITIES TRANSACTIONS
During the year ended December 31, 2005, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
ABSOLUTE RETURN HEDGED
STRATEGIES EQUITY
FUND FUND
- --------------------------------------------------------------------------------
Purchases $1,641,883 $2,600,913
Sales $ 175,386 $ 202,146
30 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
8. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the period presented were:
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED NET SHARES PURCHASED
- ----------------------------------------------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2005 2005 2005
- ----------------------------------------------------------------------------------------------------------------------------------
Absolute Return Strategies Fund* 167,851 -- (35,968) 131,883
Hedged Equity Fund* 175,111 130 (41,322) 133,919
* SINCE THE COMMENCEMENT OF OPERATIONS: NOVEMBER 29, 2005.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 31
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 Absolute Return Strategies Fund and
Hedged Equity Fund (two of the funds of the Rydex Variable Trust, hereafter
referred to as the "Funds") at December 31, 2005, 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 audits 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, 2005 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 27, 2006
32 | 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 practices.
Of the ordinary income distributions paid during the year for Hedged Equity
Fund, 32.69% qualifies for the dividends received deduction for corporations.
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's website at
http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
RYDEX INVESTMENTS BOARD REVIEW AND APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
The 1940 Act requires that the initial approval of, as well as the continuation
of, a fund's investment advisory agreement must be specifically approved (1) by
the vote of the trustees or by a vote of the shareholders of the fund, and (2)
by the vote of a majority of the trustees who are not parties to the investment
advisory agreement or "interested persons" of any party (the "Independent
Trustees"), cast in person at a meeting called for the purpose of voting on such
approval. In connection with such approvals, the fund's trustees must request
and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. In addition, the SEC takes the position that, as part of their
fiduciary duties with respect to fund fees, fund boards are required to evaluate
the material factors applicable to a decision to approve an investment advisory
agreement.
Consistent with these responsibilities, the Rydex Series Funds Board of Trustees
(the "Board") calls and holds one meeting each year that is dedicated to
considering whether to renew the investment advisory agreement (the "Advisory
Agreement") between the Trust and PADCO Advisors, Inc., which does business
under the name Rydex Investments ("Rydex Investments") with respect to existing
funds in the Trust, including the funds discussed in this Semi-Annual Report
(each a "Fund" and collectively, the "Funds"), and to reviewing certain other
agreements pursuant to which Rydex Investments provides investment advisory
services to certain other registered investment companies. In preparation for
the meeting, the Board requests and reviews a wide variety of materials provided
by Rydex Investments, including information about Rydex Investments' affiliates,
personnel and operations. The Board also receives data provided by third
parties. This information is in addition to the detailed information about the
Funds that the Board reviews during the course of each year, including
information that relates to Fund operations and performance. The Board also
receives a memorandum from Fund counsel regarding the responsibilities of the
Board for the approval of investment advisory agreements. In addition, the
Independent Trustees receive advice from independent counsel to the Independent
Trustees, meet in executive session outside the presence of fund management, if
necessary, and participate in question and answer sessions with representatives
of Rydex Investments.
At a meeting held on August 28 and 29, 2005, the Board approved the selection of
Rydex Investments and the continuance of the Advisory Agreement for an
additional one-year period, based on its review of qualitative and quantitative
information provided by Rydex Investments. The Board's approval of the Advisory
Agreement was based on consideration and evaluation of a variety of specific
factors discussed at that meeting and at prior meetings, including:
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 33
OTHER INFORMATION (CONTINUED)
- --------------------------------------------------------------------------------
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY RYDEX INVESTMENTS
The Board reviewed the scope of services to be provided by Rydex Investments
under the Advisory Agreement and noted that there would be no significant
differences between the scope of services required to be provided by Rydex
Investments for the past year and the scope of services required to be provided
by Rydex Investments for the upcoming year. In reviewing the scope of services
provided to the Funds by Rydex Investments, the Board reviewed and discussed
Rydex Investments' investment experience, noting that Rydex Investments and its
affiliates have committed significant resources over time to the support of the
Funds. The Board also considered Rydex Investments' compliance program and its
compliance record with respect to the Funds. In that regard, the Board noted
that Rydex Investments provides information regarding the portfolio management
and compliance to the Board on a periodic basis in connection with regularly
scheduled meetings of the Board. In addition to the above considerations, the
Board reviewed and considered Rydex Investments' investment processes and
strategies, and matters related to Rydex Investments' portfolio transaction
policies and procedures. In particular, the Board noted the substantial volume
of portfolio trades and shareholder transaction activity, in general, processed
by Rydex Investments due to the unlimited exchange policy of the majority of the
Funds. The Board further noted that the Funds had met their investment
objectives consistently since their relevant inception dates. Based on this
review, the Board concluded that the nature, extent and quality of services to
be provided by Rydex Investments to the Funds under the Advisory Agreement were
appropriate and continued to support the Board's original selection of Rydex
Investments as investment adviser to the Funds.
FUND EXPENSES AND PERFORMANCE OF THE FUNDS AND RYDEX INVESTMENTS
The Board reviewed statistical information prepared by Rydex Investments
regarding the expense ratio components, including actual advisory fees,
waivers/reimbursements, and gross and net total expenses of each Fund in
comparison with the same information for other funds registered under the 1940
Act determined by Rydex Investments to comprise each Fund's applicable peer
group. Because few funds seek to provide unlimited exchange privileges similar
to those of the Funds (other than the Core Equity Fund, Sector Rotation Fund,
Absolute Return Strategies Fund, and Hedged Equity Fund), each Fund's applicable
peer group is generally limited to the funds of two unaffiliated mutual fund
families. In addition, the Board reviewed statistical information prepared by
Rydex Investments relating to the performance of each Fund, as well as each
Fund's ability to successfully track its benchmark over time, and a comparison
of each Fund's performance to funds with similar investment objectives for the
same periods and to appropriate indices/benchmarks, in light of total return,
yield and market trends. The Board further noted that despite the unique nature
of the Funds, the peer fund information presented to the Board was meaningful
because the peer funds' investment objectives and strategies were closely
aligned with those of the Funds. The Board noted that most of the Funds either
outperformed their peer funds or performed in line with them over relevant
periods. The Board also noted that the investment advisory fees and overall
expenses for the Funds were generally lower than or in line with the investment
advisory fee rates and overall expenses of the peer funds. Based on this review,
the Board concluded that the investment advisory fees and expense levels and the
historical performance of the Funds, as managed by Rydex Investments, as
compared to the investment advisory fees and expense levels and performance of
the peer funds, were satisfactory for the purposes of approving the continuance
of the Advisory Agreement.
COSTS OF SERVICES PROVIDED TO THE FUNDS AND PROFITS REALIZED BY RYDEX
INVESTMENTS AND ITS AFFILIATES
The Board reviewed information about the profitability of the Funds to Rydex
Investments based on the advisory fees payable under the Advisory Agreement for
the last calendar year. Rydex Investments also presented the Board with material
discussing its methodology for determining the level of advisory fees assessable
to the Funds. The Board analyzed the Funds' expenses, including the investment
advisory fees paid to Rydex Investments. The Board also reviewed information
regarding direct revenue received by Rydex Investments and ancillary revenue
received by Rydex Investments and/or its affiliates in connection with the
services provided to the Funds by Rydex Investments (as discussed below). The
Board also discussed Rydex Investments' profit margin as reflected in Rydex
Investments' profitability analysis and reviewed information regarding economies
of scale (as discussed below). Based on this review, the Board concluded that
the profits to be realized by Rydex Investments and its affiliates under the
Advisory Agreement and from other relationships between the Funds and Rydex
Investments and/or its affiliates, if any, were within the range the Board
considered reasonable and appropriate.
34 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
OTHER INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
ECONOMIES OF SCALE
In connection with its review of the Funds' profitability analysis, the Board
reviewed information regarding economies of scale or other efficiencies that may
result from increases in the Funds' asset levels. The Board noted that the
Advisory Agreement for the Funds did not provide for any breakpoints in the
investment advisory fee rates as a result of increases in the asset levels of
such Funds. The Board also noted that though Rydex Investments' assets under
management were significant, the amount is spread among more than 95 Funds.
Further limiting the realization of economies of scale, is the ability of
shareholders of a majority of the Funds to engage in unlimited trading. The
Board also reviewed Rydex Investments' historic profitability as investment
adviser to the Funds and determined that reductions in fee rates or additions of
breakpoints were not warranted at this juncture. Based on this review, the
Board, recognizing its responsibility to consider this issue at least annually,
concluded that there are limited economies of scale to share with the Funds'
shareholders.
OTHER BENEFITS TO RYDEX INVESTMENTS AND/OR ITS AFFILIATES
The Board noted that Rydex Investments reports its use of soft dollars to the
Board on a quarterly basis, as well as any portfolio transactions on behalf of
the Funds placed through an affiliate of the Funds or Rydex Investments pursuant
to Rule 17e-1 under the 1940 Act. The Board concluded that any such ancillary
benefits would not be disadvantageous to the Funds' shareholders.
Based on the above analysis, the Board determined that the Advisory Agreement,
including the investment advisory fee rates thereunder, are fair and reasonable
in light of all relevant circumstances and concluded that it is in the best
interest of the Funds and their shareholders to continue the Advisory Agreement.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 35
INFORMATION ON BOARD OF TRUSTEES
AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling
1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------------ ----------------------------------- ------------------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 114
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
Rydex Capital Partners SPhinX Fund - 2005
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)
-----------------------------------------------
MICHAEL P. BYRUM* Rydex Series Funds - 2005 114
Trustee, Vice President and Rydex Variable Trust - 2005
Secretary (1970) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Secretary of Rydex Series Funds, Rydex Variable Trust,
and Rydex Dynamic Funds (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)
- --------------------------------------------------------------------------------
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 114
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield
Management Company
-----------------------------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 114
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and Investor, The Dalton
Group
-----------------------------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 114
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
36 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
INFORMATION ON BOARD OF TRUSTEES
AND OFFICERS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------------ ----------------------------------- ------------------------
WERNER E. KELLER Rydex Series Funds - 2005 114
Trustee (1940) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2001 to present); Chairman, Centurion Capital
Management (1991 to 2001)
------------------------------------------------
THOMAS F. LYDON, JR. Rydex Series Funds - 2005 114
Trustee (1960) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends Investments
------------------------------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 114
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries, Inc.
------------------------------------------------
ROGER SOMERS Rydex Series Funds - 1993 114
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
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,
Vice President and Treasurer (1963) Rydex Variable Trust, Rydex 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)
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Funds,
Chief Compliance Officer and Rydex Variable Trust, and Rydex Dynamic Funds
Assistant Secretary (1967) (2004 to present); Assistant Secretary of Rydex
Series Funds, Rydex 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)
* 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 | 37
[LOGO] RYDEXINVESTMENTS
Essential for modern markets(TM)
9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAOEHF-2-1205 x1206
DECEMBER 31, 2005
RYDEX VARIABLE TRUST
CLS ADVISORONE FUNDS ANNUAL REPORT
AMERIGO FUND
CLERMONT FUND
[LOGO] RYDEXINVESTMENTS
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
- --------------------------------------------------------------------------------
LETTER TO OUR SHAREHOLDERS ................................................ 2
ABOUT SHAREHOLDERS' FUND EXPENSES ......................................... 4
PERFORMANCE REPORTS AND FUND PROFILES ..................................... 6
SCHEDULES OF INVESTMENTS .................................................. 8
STATEMENTS OF ASSETS AND LIABILITIES ...................................... 10
STATEMENTS OF OPERATIONS .................................................. 11
STATEMENTS OF CHANGES IN NET ASSETS ....................................... 12
FINANCIAL HIGHLIGHTS ...................................................... 13
NOTES TO FINANCIAL STATEMENTS ............................................. 14
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ................... 20
OTHER INFORMATION ......................................................... 21
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS ............................. 23
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
Many will remember 2005 as a year of unfulfilled promise. The underpinnings were
in place for a robust year of stock market gains. Corporate earnings growth
continued to set new records, and interest rates, inflation and unemployment
remained low. Corporations had massive amounts of cash on hand to grow their
businesses and bolster stock prices through buybacks and dividend hikes. The
appetite for risk bounced back as well, judging by a near record volume of
merger and acquisition activity.
In spite of the positive fundamentals, the major equity indices remained
range-bound for much of the year with the bellwether S&P 500(R) Index trading
within a narrow 135 point range of 1,137.50 to 1,272.74. Investors were hoping
for a replay of 2004's year-end rally, but it was not to be, as a strong
November rally was unable to overcome the prior month's sell-off. As a result,
the Dow Jones Industrial Average(R) Index closed the year with fractional gains
of 1.72%, while the S&P 500 Index and Nasdaq 100(R) Index ended the year with
disappointing 4.91% and 1.90% gains, respectively.
For the first time in seven years, large-cap stocks outperformed small caps as
the Russell 1000(R) Index gained 6.27% compared to 4.55% for the Russell 2000(R)
Index. Mid-cap stocks outperformed both large and small-cap stocks as the
Russell Midcap(R) Index gained 11.0%. Although value stocks slightly
outperformed their growth counterparts, it was a statistical dead heat between
the two.
For equity investors, the real action in 2005 was in international stocks. The
MSCI EAFE Index gained 10.9% in dollar terms. Attractive valuations in European
stocks and what looked to be a sustainable economic recovery in Japan attracted
investor interest. The double-digit returns in the developed markets paled in
comparison to returns in emerging market stocks. The benchmark for emerging
market stocks, the MSCI EM Index, returned a whopping 30.3% during the year.
This volatile corner of the equity universe was driven by strong returns in
Latin American and Middle Eastern markets, among others.
Stock prices were buffeted by strong crosscurrents throughout the year. Although
long-term interest rates remained low, the specter of the Federal Reserve's
"Fed" interest rate tightening campaign weighed heavily on the market. Despite
the fact that job growth remained healthy and consumers used rising housing
prices as an excuse to turn their houses into ATMs to the tune of approximately
$800 billion, consumer confidence suffered its largest decline in 15 years in
the wake of hurricane Katrina and $70 per barrel oil. Neither the subsequent
strong rebound in consumer confidence as energy prices moderated, nor the four
consecutive quarters of double-digit earnings growth was enough to kick stock
prices higher.
The rise in short-term interest rates held stocks back in 2005. During the
course of the year, the Fed increased interest rates eight times, bringing the
closely watched Fed Funds Target Rate to 4.25%. It was widely assumed that
long-term interest rates would follow suit--an expectation that held stocks in
check. Long-term interest rates ended the year little changed. While the yield
on the 30-year Treasury Bond fell nearly 30 basis points to 4.53%, the yield on
the benchmark 10-year Treasury Note ended the year at 4.39%--only 18 basis
points higher than its starting point. A combination of foreign buying, low
inflation and demand from both public and private pensions for long maturity
assets conspired to keep long-term rates low throughout the year.
By year-end, the potent combination of steadily rising short-term interest rates
and static long-term rates gave rise to the dreaded inverted yield curve as the
two-year Treasury Note yielded 4.40%, one basis point higher than the 10-year
Note. Traditionally, an inverted yield curve portends an economic slowdown.
2 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
LETTER TO OUR SHAREHOLDERS (CONCLUDED)
- --------------------------------------------------------------------------------
We base our 2006 outlook on two factors--the economy and interest rates. But if
the threat of rising interest rates keeps the market range bound, we believe
opportunities exist in three areas during 2006: energy, technology and health
care. Although energy prices experienced a run-up of historic proportions in
2005, the sector still exhibits favorable supply/demand characteristics. There
is too much demand and not enough supply--a situation that is likely to be in
place for the foreseeable future. Technology's relatively low valuations and the
possibility of an earnings-driven technology replacement cycle may provide
opportunity for the technology sector. And lastly, the defensive nature of
health care stocks will serve investors well should economic growth slow
appreciably.
We appreciate the trust you have placed in our firm by investing with us.
Sincerely,
/s/ Carl G. Verboncoeur
Carl G. Verboncoeur
President
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 3
ABOUT SHAREHOLDERS' FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
All mutual funds have operating expenses and it is important for our
shareholders to understand the impact of costs on their investments. As a
shareholder of the Fund, you incur two types of costs: (i) transaction costs,
including sales charges (loads) on purchase payments, reinvested dividends, or
other distributions; redemption fees; and exchange fees; and (ii) ongoing costs,
including management fees, administrative services, and shareholder reports,
among others. These ongoing costs, or operating expenses, are deducted from a
fund's gross income and reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets, which
is known as the expense ratio. The following examples are intended to help 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, 2005 and
ending December 31, 2005.
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."
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help
you compare your fund's cost with those of other mutual funds. The table
provides information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio and an assumed rate of
return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid during the
period. The example is useful in making comparisons because the U.S.
Securities and Exchange Commission (the "SEC") requires all mutual funds
to calculate expenses based on the 5% return. You can assess your fund's
costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
The calculations 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 the Fund. These costs may include, but are not limited to, sales
charges (loads), redemption fees, and exchange fees.
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.
4 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ JUNE 30, 2005 DECEMBER 31, 2005 PERIOD*
- ----------------------------------------------------------------------------------------------------------
TABLE 1. BASED ON ACTUAL FUND RETURN
Amerigo Fund 1.70% $1,000.00 $1,101.40 $8.96
Clermont Fund 1.70% 1,000.00 1,046.50 8.72
- ----------------------------------------------------------------------------------------------------------
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
Amerigo Fund 1.70% 1,000.00 1,016.44 8.63
Clermont Fund 1.70% 1,000.00 1,016.44 8.63
* 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. EXPENSES
SHOWN DO NOT INCLUDE ADDITIONAL FEES CHARGED BY INSURANCE COMPANIES.
+ ANNUALIZED
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 5
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED)
- --------------------------------------------------------------------------------
AMERIGO FUND
OBJECTIVE: Seeks long-term growth of capital without regard to current income.
INCEPTION: July 1, 2003
Over the past year, Amerigo returned 9.35%. Over this same period, Amerigo's
performance benchmark, the S&P 500 Index, had a total return of 4.91%. In our
previous commentary, we used a baseball analogy to describe our strategy during
the first six months of 2005. Our goal was to stay in the "game" until we saw a
pitch we were confident we could hit. That "pitch" arrived in the second half of
the year. International equities, both developed and emerging markets, were a
major driver of Amerigo's outperformance over the period.
During the past six months, we increased Amerigo's exposure to emerging market
equities bringing the allocation to approximately 20% of the portfolio. Due to
the market weakness we witnessed in October, we re-entered the small cap asset
class for trading purposes. The Fund's position in large-cap value was reduced,
as was our exposure to the Nasdaq 100 Index. Our positions in the transportation
and semiconductor sectors were eliminated.
CUMULATIVE FUND PERFORMANCE:
JULY 1, 2003 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
DATE AMERIGO FUND S&P 500 INDEX
07/01/03 10,000 10,000
07/31/03 10,040 10,094
08/31/03 10,368 10,290
09/30/03 10,316 10,181
10/31/03 10,952 10,757
11/30/03 11,084 10,852
12/31/03 11,596 11,421
01/31/04 11,812 11,631
02/29/04 12,012 11,792
03/31/04 12,016 11,614
04/30/04 11,476 11,432
05/31/04 11,536 11,589
06/30/04 11,764 11,814
07/31/04 11,324 11,423
08/31/04 11,424 11,469
09/30/04 11,617 11,594
10/31/04 11,845 11,771
11/30/04 12,433 12,247
12/31/04 12,882 12,664
01/31/05 12,586 12,355
02/28/05 13,014 12,615
03/31/05 12,662 12,392
04/30/05 12,381 12,157
05/31/05 12,714 12,543
06/30/05 12,786 12,561
07/31/05 13,362 13,028
08/31/05 13,318 12,910
09/30/05 13,652 13,014
10/31/05 13,247 12,797
11/30/05 13,806 13,281
12/31/05 14,082 13,286
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (07/01/03)
- --------------------------------------------------------------------------------
AMERIGO FUND 9.35% 14.66%
S&P 500 INDEX 4.91% 12.03%
- --------------------------------------------------------------------------------
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 BAR CHART IN THE PRINTED MATERIAL.]
AMERIGO FUND
MONEY MARKET MUTUAL FUNDS 15.9%
EXCHANGE TRADED FUNDS 80.0%
INSURANCE 1.4%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
iShares MSCI Emerging
Markets Index Fund 17.1%
First American Prime
Obligations Fund 15.9%
iShares Russell Midcap
Growth Index Fund 9.6%
iShares MSCI EAFE Index Fund 6.7%
Vanguard Mid-Cap VIPERs 5.7%
iShares Russell 1000 Value Index Fund 5.0%
Consumer Staples Select Sector
SPDR Fund 4.5%
iShares Russell 2000 Index Fund 3.4%
SPDR Trust Series 1 3.3%
iShares Dow Jones U.S. Healthcare
Sector Index Fund 3.2%
- --------------------------------------------------------------------------------
Top Ten Total 74.4%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any derivative investments.
6 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
PERFORMANCE REPORTS AND FUND PROFILES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
CLERMONT FUND
OBJECTIVE: Seeks a combination of current income and growth of capital.
INCEPTION: July 1, 2003
Clermont, a conservative balanced fund, for the year ending December 31, 2005,
returned 3.92% as compared to the fund's benchmark, which had a total return of
3.07%. The blended index used for this comparison was comprised of 45% of the
total return of the S&P 500 Index and 55% of the return of the Lehman Brothers
1-5 Year Government Credit Index. A key driver of Clermont's performance over
this period was the portfolio's overweighting of equities, particularly emerging
market international equities.
Over this period, we reduced equity exposure to the mid-cap value and developed
international equity asset classes. Proceeds were reinvested into emerging
market equities. On the fixed-income side of the portfolio, as interest rates
moved toward the higher end of the trading range they have been in for the past
two years, we reduced our holdings of U.S. Treasury Bills and reinvested the
proceeds out further along the yield curve. Securities purchased to affect this
trade included U.S. Treasury Notes as well as bond exchange traded funds.
CUMULATIVE FUND PERFORMANCE:
JULY 1, 2003 - DECEMBER 31, 2005
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Date CLERMONT FUND S&P 500 INDEX
07/01/03 10,000 10,000
07/31/03 9,748 10,094
08/31/03 9,880 10,290
09/30/03 10,056 10,181
10/31/03 10,288 10,757
11/30/03 10,424 10,852
12/31/03 10,820 11,421
01/31/04 10,940 11,631
02/29/04 11,096 11,792
03/31/04 11,176 11,614
04/30/04 10,732 11,432
05/31/04 10,788 11,589
06/30/04 10,884 11,814
07/31/04 10,740 11,423
08/31/04 10,840 11,469
09/30/04 10,904 11,594
10/31/04 11,016 11,771
11/30/04 11,245 12,247
12/31/04 11,457 12,664
01/31/05 11,305 12,355
02/28/05 11,469 12,615
03/31/05 11,289 12,392
04/30/05 11,201 12,157
05/31/05 11,329 12,543
06/30/05 11,373 12,561
07/31/05 11,610 13,028
08/31/05 11,590 12,910
09/30/05 11,720 13,014
10/31/05 11,489 12,797
11/30/05 11,732 13,281
12/31/05 11,902 13,286
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/05
- --------------------------------------------------------------------------------
SINCE
ONE INCEPTION
YEAR (07/01/03)
- --------------------------------------------------------------------------------
CLERMONT FUND 3.92% 7.21%
S&P 500 INDEX 4.91% 12.03%
SYNTHETIC BALANCED BENCHMARK* 3.07% 6.63%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS.
* BENCHMARK REFLECTS A 45/55 RATIO OF THE PERFORMANCE OF THE S&P 500 INDEX
AND THE LEHMAN AGGREGATE INDEX.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
CLERMONT FUND
U.S. TREASURY BILL 3.7%
FEDERAL AGENCY BONDS 11.5%
MUTUAL FUNDS 4.0%
MONEY MARKET MUTUAL FUNDS 20.2%
EXCHANGE TRADED FUNDS 59.0%
INSURANCE 1.0%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
First American Prime
Obligations Fund 20.2%
Vanguard Mid-Cap VIPERs 9.8%
United States Treasury Note/Bond 7.3%
iShares MSCI Emerging Markets
Index Fund 5.7%
iShares Morningstar Mid Core
Index Fund Co. 4.9%
iShares Lehman Aggregate Bond Fund 4.6%
Vanguard Consumer Staples VIPERs 4.5%
iShares Russell Midcap Growth
Index Fund 4.3%
United States Treasury Inflation
Indexed Bonds 4.2%
Vanguard Emerging Markets VIPERs 3.9%
- --------------------------------------------------------------------------------
Top Ten Total 69.4%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any derivative investments.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 7
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
AMERIGO FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCK 1.5%
Berkshire Hathaway, Inc. --
Class A* 32 $ 2,835,840
-----------
TOTAL COMMON STOCK
(Cost $2,885,808) 2,835,840
-----------
EXCHANGE TRADED FUNDS 80.0%
iShares MSCI Emerging
Markets Index Fund+ 380,000 33,535,000
iShares Russell Midcap
Growth Index Fund+ 200,000 18,808,000
iShares MSCI EAFE Index
Fund 220,000 13,081,200
Vanguard Mid-Cap VIPERs 173,000 11,175,800
iShares Russell 1000 Value
Index Fund+ 142,000 9,815,040
Consumer Staples Select Sector
SPDR Fund 379,000 8,834,490
iShares Russell 2000 Index
Fund+ 100,000 6,670,000
SPDR Trust Series 1+ 52,000 6,469,320
iShares Dow Jones U.S.
Healthcare Sector Index
Fund+ 101,000 6,367,040
Vanguard Value VIPERs 109,000 6,231,530
Vanguard Health Care
VIPERs 100,000 5,408,000
Vanguard Emerging Markets
VIPERs 80,000 4,873,600
iShares Morningstar Mid Core
Index Fund+ 62,000 4,524,140
iShares S&P 500 Index
Fund/U.S.+ 30,000 3,739,200
iShares MSCI Netherlands
Index Fund+ 156,000 3,169,920
iShares Morningstar Large
Core Index Fund 44,000 2,926,440
iShares Russell 1000 Growth
Index Fund+ 56,000 2,864,960
iShares MSCI United
Kingdom Index Fund+ 147,000 2,731,260
iShares MSCI Spain Index+ 75,000 2,712,750
Nasdaq-100 Index Tracking
Stock 65,000 2,627,300
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
iShares MSCI Canada Index
Fund+ 30,000 $ 659,100
------------
TOTAL EXCHANGE TRADED FUNDS
(Cost $132,787,341) 157,224,090
------------
MONEY MARKET MUTUAL FUND 15.9%
First American Prime
Obligations Fund 31,190,786 31,190,786
------------
TOTAL MONEY MARKET MUTUAL FUND
(Cost $31,190,786) 31,190,786
------------
FACE
AMOUNT
------
SECURITIES LENDING COLLATERAL 23.9%
Investment in Securities Lending Short Term
Investment Portfolio Held
by U.S. Bank (Note 7) $47,005,610 47,005,610
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $47,005,610) 47,005,610
------------
TOTAL INVESTMENTS 121.3%
(Cost $213,869,545) $238,256,326
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (21.3)% $(41,763,568)
============
NET ASSETS - 100.0% $196,492,758
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 7.
8 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS December 31, 2005
- --------------------------------------------------------------------------------
CLERMONT FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCK 1.0%
Berkshire Hathaway, Inc. --
Class A* 12 $ 1,063,440
-----------
TOTAL COMMON STOCK
(Cost $1,037,838) 1,063,440
-----------
EXCHANGE TRADED FUNDS 59.0%
Vanguard Mid-Cap VIPERs+ 165,000 10,659,000
iShares MSCI Emerging
Markets Index Fund+ 70,000 6,177,500
iShares Morningstar Mid Core
Index Fund+ 73,000 5,326,810
iShares Lehman Aggregate
Bond Fund+ 50,000 5,029,500
Vanguard Consumer Staples
VIPERs 88,000 4,921,840
iShares Russell Midcap
Growth Index Fund+ 50,000 4,702,000
Vanguard Emerging Markets
VIPERs+ 70,000 4,264,400
iShares Morningstar Large
Core Index Fund 62,000 4,123,620
iShares MSCI EAFE Index
Fund 64,000 3,805,440
iShares Russell 1000 Value
Index Fund+ 50,000 3,456,000
iShares Dow Jones U.S.
Healthcare Sector Index
Fund+ 45,000 2,836,800
iShares Lehman 1-3 Year
Treasury Bond Fund+ 35,000 2,808,400
Vanguard Health Care VIPERs 40,000 2,163,200
iShares MSCI United
Kingdom Index Fund+ 106,000 1,969,480
iShares Lehman 20+ Year
Treasury Bond Fund 20,000 1,835,600
-----------
TOTAL EXCHANGE TRADED FUNDS
(Cost $57,667,213) 64,079,590
-----------
MONEY MARKET MUTUAL FUND 20.1%
First American Prime
Obligations Fund 21,900,326 21,900,326
-----------
TOTAL MONEY MARKET MUTUAL FUND
(Cost $21,900,326) 21,900,326
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
MUTUAL FUNDS 4.0%
Van Kampen Senior Income
Trust+ 305,000 $ 2,363,750
Templeton Global Income
Fund+ 241,000 1,932,820
-----------
TOTAL MUTUAL FUNDS
(Cost $4,585,719) 4,296,570
-----------
FACE
AMOUNT
-------
FEDERAL AGENCY BONDS 11.5%
United States Treasury Inflation
Indexed Bonds
3.38% due 01/15/07 $ 3,579,344 3,609,335
3.63% due 01/15/08+ 923,745 949,495
United States Treasury
Notes/Bonds
4.00% due 09/30/07+ 4,000,000 3,972,188
3.63% due 04/30/07+ 2,000,000 1,979,062
4.25% due 08/15/15+ 2,000,000 1,974,140
-------------
TOTAL FEDERAL AGENCY BONDS
(Cost $12,614,401) 12,484,220
-------------
U.S. TREASURY BILLS 3.7%
U.S. Treasury Bills
3.33% due 01/05/06+ 2,000,000 1,999,633
3.42% due 01/19/06+ 2,000,000 1,996,963
-------------
TOTAL U.S. TREASURY BILLS
(Cost $3,996,596) 3,996,596
-------------
SECURITIES LENDING COLLATERAL 26.1%
Investment in Securities Lending Short Term
Investment Portfolio Held
by U.S. Bank (Note 7) 28,419,246 28,419,246
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $28,419,246) 28,419,246
-------------
TOTAL INVESTMENTS 125.4%
(Cost $130,221,339) $ 136,239,988
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (25.4)% $ (27,572,592)
=============
NET ASSETS - 100.0% $ 108,667,396
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT DECEMBER 31, 2005 - SEE
NOTE 7.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 9
STATEMENTS OF ASSETS AND LIABILITIES December 31, 2005
- --------------------------------------------------------------------------------
AMERIGO CLERMONT
FUND FUND
- ---------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2 and 7) $238,256,326 $136,239,988
Cash 3,674,300 --
Receivable for Fund Shares Purchased 674,151 266,854
Investment Income Receivable (Note 1) 1,259,924 820,963
Other Assets 11,429 27,111
- ---------------------------------------------------------------------------------------
TOTAL ASSETS 243,876,130 137,354,916
=======================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 47,005,610 28,419,246
Liability for Fund Shares Redeemed 323 197
Investment Advisory Fees Payable (Note 3) 158,159 88,309
Transfer Agent and Administrative Fees Payable (Note 3) 43,933 24,530
Distribution and Service Fees Payable (Note 3) 43,933 24,530
Portfolio Accounting Fees Payable (Note 3) 17,573 9,812
Custody Fees Payable 4,218 2,355
Cash due to Custodian Bank -- 53,819
Other Liabilities 109,623 64,722
- ---------------------------------------------------------------------------------------
TOTAL LIABILITIES 47,383,372 28,687,520
=======================================================================================
NET ASSETS $196,492,758 $108,667,396
=======================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $166,210,129 $ 99,650,372
Undistributed Net Investment Income 246,766 1,123,446
Accumulated Net Realized Gain on Investments 5,649,082 1,874,929
Net Unrealized Appreciation (Depreciation) on Investments 24,386,781 6,018,649
=======================================================================================
NET ASSETS $196,492,758 $108,667,396
=======================================================================================
SHARES OUTSTANDING 5,650,272 3,695,443
NET ASSET VALUES $ 34.78 $ 29.41
* THE COST OF SECURITIES AT VALUE IS $213,869,545 AND $130,221,339,
RESPECTIVELY.
10 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
STATEMENTS OF OPERATIONS Year Ended December 31, 2005
- --------------------------------------------------------------------------------
AMERIGO CLERMONT
FUND FUND
- --------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 7,885 $ 694,646
Interest from Securities Lending, net (Note 7) 277,473 125,022
Dividends (Note 1) 2,635,506 1,908,949
- --------------------------------------------------------------------------------------
Total Income 2,920,864 2,728,617
- --------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 1,467,043 880,504
Transfer Agent and Administrative Fees (Note 3) 407,512 244,584
Portfolio Accounting Fees (Note 3) 163,005 97,834
Trustees' Fees* 7,876 4,692
Service Fees (Note 3) 407,512 244,584
Miscellaneous 221,708 132,973
- --------------------------------------------------------------------------------------
Total Expenses 2,674,656 1,605,171
- --------------------------------------------------------------------------------------
Net Investment Income 246,208 1,123,446
======================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain on:
Investment Securities 5,956,278 1,978,414
- --------------------------------------------------------------------------------------
Total Net Realized Gain 5,956,278 1,978,414
- --------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 10,054,641 1,010,027
- --------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 10,054,641 1,010,027
- --------------------------------------------------------------------------------------
Net Gain on Investments 16,010,919 2,988,441
- --------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $16,257,127 $4,111,887
======================================================================================
* RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(a)(19) OF THE 1940 ACT.
See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT | 11
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
AMERIGO FUND CLERMONT FUND
- -------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income $ 246,208 $ 234,270 $ 1,123,446 $ 615,717
Net Realized Gain on Investments 5,956,278 1,565,597 1,978,414 351,185
Net Change in Unrealized Appreciation (Depreciation)
on Investments 10,054,641 9,939,096 1,010,027 3,638,428
- -------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 16,257,127 11,738,963 4,111,887 4,605,330
- -------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (233,712) (75,904) (615,717) (174,477)
Realized Gain on Investment (1,851,840) -- (349,246) --
- -------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (2,085,552) (75,904) (964,963) (174,477)
=========================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 67,179,144 91,145,309 32,167,204 75,354,093
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT 2,085,552 75,904 964,963 174,477
COST OF SHARES REDEEMED (14,002,795) (21,664,456) (18,703,573) (11,144,234)
=========================================================================================================================
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS 55,261,901 69,556,757 14,428,594 64,384,336
- -------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 69,433,476 81,219,816 17,575,518 68,815,189
NET ASSETS-BEGINNING OF YEAR 127,059,282 45,839,466 91,091,878 22,276,689
=========================================================================================================================
NET ASSETS-END OF YEAR $ 196,492,758 $ 127,059,282 $ 108,667,396 $ 91,091,878
=========================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 246,766 $ 234,270 $ 1,123,446 $ 615,717
=========================================================================================================================
12 | THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.
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 ASSET AND NET INCREASE DISTRIBUTIONS DISTRIBUTIONS
VALUE, NET UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAINS VALUE RESULTING INVESTMENT REALIZED TOTAL
OF PERIOD INCOME+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
AMERIGO FUND
DECEMBER 31, 2005 $32.18 $ .05 $2.94 $2.99 $(.04) $(.35) $(.39)
December 31, 2004 28.99 .08 3.13 3.21 (.02) -- (.02)
December 31, 2003* 25.00 .07 3.92 3.99 -- -- --
CLERMONT FUND
DECEMBER 31, 2005 28.57 .33 .78 1.11 (.17) (.10) (.27)
December 31, 2004 27.05 .32 1.27 1.59 (.07) -- (.07)
December 31, 2003* 25.00 .29 1.76 2.05 -- -- --
RATIOS TO
AVERAGE NET ASSETS:
-------------------
NET INCREASE NET ASSET NET ASSETS,
IN VALUE, TOTAL NET PORTFOLIO END OF
NET ASSET END OF INVESTMENT TOTAL INVESTMENT TURNOVER PERIOD (000'S
VALUE PERIOD RETURN EXPENSES INCOME RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------------------
AMERIGO FUND
DECEMBER 31, 2005 $2.60 $34.78 9.35% 1.64% 0.15% 82% $196,493
December 31, 2004 3.19 32.18 11.09% 1.63% 0.27% 149% 127,059
December 31, 2003* 3.99 28.99 15.96% 1.71%** 0.53%** 63% 45,839
CLERMONT FUND
DECEMBER 31, 2005 .84 29.41 3.92% 1.64% 1.15% 129% 108,667
December 31, 2004 1.52 28.57 5.89% 1.63% 1.17% 124% 91,092
December 31, 2003* 2.05 27.05 8.20% 1.71%** 2.29%** 113% 22,277
* SINCE THE COMMENCEMENT OF OPERATIONS: JULY 1, 2003.
** 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 PERIOD.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 13
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Variable Trust (the "Trust"), a Delaware business trust, is registered
with the SEC under the Investment Company Act of 1940 (the "1940 Act") as a
non-diversified, open-ended investment company and is authorized to issue an
unlimited number of no par value shares. At December 31, 2005, the Trust
consisted of fifty operating Funds: twenty-four Benchmark Funds, one Money
Market Fund, one Absolute Return Strategies Fund, one Hedged Equity Fund,
nineteen Sector Funds, two Strategic Funds, and two CLS AdvisorOne Funds. This
report covers the CLS AdvisorOne Funds (the "Funds"), while the Benchmark Funds,
the Absolute Return Strategies Fund, the Hedged Equity Fund, the Money Market
Fund, Sector Funds, and Strategic Funds are contained in separate reports. Rydex
Global Advisors (the "Advisor") serves as the investment advisor to the Funds
and is responsible for the Funds' overall administration. Clarke Lanzen Skalla
Investment Firm, LLC serves as investment sub-advisor to the Funds and is
responsible for the day-to-day management of each Fund's portfolio. Rydex
Distributors, Inc. (the "Distributor") acts as principal underwriter for the
Trust. 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. Exchange Traded Funds ("ETFs"), and closed-end investment companies
("closed-end funds") are valued at the last quoted sales price. Traditional
open-end investment companies ("Mutual funds") are valued as of the close of
business, usually 4:00 p.m., Eastern Time, on the valuation date. 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. 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. In the event that the exchange for a specific futures contract
closes earlier than 4:00 p.m., Eastern Time, the futures contract is valued at
the Official Settlement Price of the exchange. However, the underlying
securities from which the futures contract value is derived are monitored until
4:00 p.m., Eastern Time, to determine if fair valuation would provide a more
accurate valuation. Short-term securities, if any, are valued at amortized cost,
which approximates market value.
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.
Investments for which market quotations are not readily available are valued at
fair value as determined in good faith by the Advisor under direction of the
Board of Trustees using methods established or ratified by the Board of
Trustees. These methods include, but are not limited to: (i) general information
as to how these securities and assets trade; (ii) in connection with futures
contracts and options thereupon, and other derivative investments, information
as to how (a) these contracts and other derivative investments trade in the
futures or other derivative markets, respectively, and (b) the securities
underlying these contracts and other derivative investments trade in the cash
market; and (iii) other information and considerations, including current values
in related markets.
B. Securities transactions are recorded on the trade date for financial
reporting purposes. Realized gains and losses from securities transactions are
recorded using the identified cost basis. 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 of net investment income and net realized capital gains are
recorded on the ex-dividend date and 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 are 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. Fees, if any, paid to brokers to borrow securities in
connection with short sales are considered part of the cost of short sale
transactions. In addition, the Fund must pay out the dividend rate of the equity
or coupon rate of the treasury obligation to the purchaser and records this as
an expense. Short Dividends or Interest Expense is a cost associated with the
investment objective of short sales
14 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
transactions, rather than an operational cost associated with the day-to-day
management of any mutual fund.
E. Upon the purchase of an option by a Fund, the premium paid is recorded as an
investment, the value of which is marked-to-market daily. When a purchased
option expires, 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 the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
G. The Trust may enter into 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. The Funds may also purchase American Depository Receipts, U.S. Government
securities, enter into repurchase agreements, and engage in futures, options and
equity swap transactions.
I. The Fund may leave Cash in Custodian Bank overnight in its cash account with
the custodian, U.S. Bank. Periodically, a Fund may have Cash Payable to
Custodian Bank as an overdraft balance. A fee is incurred on this overdraft,
calculated by multiplying the overdraft by a rate based on the federal funds
rate. Segregated Cash with the Broker is held as collateral for investments in
derivative instruments such as futures contracts and equity index swap
agreements.
J. Certain U.S. Government and Agency Obligations are traded on a discount
basis; the interest rates shown on the Schedules of Investments reflect the
discount rates paid at the time of purchase by the Fund. Other securities bear
interest at the rates shown, payable at fixed dates through maturity.
K. 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, options on futures, and swap
agreements. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amounts recognized in the Statements of Assets
and Liabilities.
In the normal course of business, the Funds enter into contracts that contain a
variety of representations and warranties, which provide general
indemnifications. The Funds' maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Funds
and/or its affiliates that have not yet occurred. However, based on experience,
the Funds expect the risk of loss to be remote.
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.
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
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 15
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 the Trust 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.
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.
In conjunction with the use of options, futures, options on futures, 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 and/or securities segregated at the custodian bank,
discount notes, or the repurchase agreements allocated to each Fund.
The risks inherent in the use of options, futures contracts, options on futures
contracts, swap agreements as well as short sales of securities include i)
adverse changes in the value of such instruments; ii) imperfect correlation
between the price of the instruments and movements in the price of the
underlying securities, indices, or futures contracts; iii) the possible absence
of a liquid secondary market for any particular instrument at any time; and iv)
the potential of counterparty default.
Each Fund operates primarily as a "fund of funds." In other words, each Fund
pursues its investment goal by investing primarily in ETFs, mutual funds, and
closed-end funds. In this report, the ETFs, mutual funds, and closed-end funds
in which the Funds invest are referred to as "underlying funds." In addition to
investing in underlying funds, each Fund may invest a portion of its assets
directly in individual securities or in derivatives, such as options and
futures.
The Funds invest in underlying funds that invest primarily in common stock or
securities convertible into or exchangeable for common stock, such as
convertible preferred stock, convertible debentures, warrants, options, and
bonds. Because the Funds invest primarily in underlying funds, the value of your
investment will fluctuate in response to the performance of the underlying
funds. In addition, investing through the Funds in a portfolio of underlying
funds involves certain additional expenses that would not arise if you invested
directly in the underlying funds. By investing indirectly in underlying funds
through a Fund, you will bear not only your proportionate share of a Fund's
expenses (including operating costs, investment advisory fees, and
administrative fees), but also, indirectly, similar expenses and charges of the
underlying funds. In addition, to the extent these underlying funds trade their
portfolios actively, they will incur higher brokerage commissions, as well as
increased realization of taxable gains.
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 annual
percentage rate of 0.90% of the average daily net assets of the Amerigo Fund and
the Clermont Fund. Organizational and setup costs for new funds are paid by the
Trust. Certain officers and trustees of the Trust are also officers of the
Advisor.
The Advisor pays the Sub-Advisor out of the advisory fees it receives. In
addition, the Advisor bears all of its own costs associated with providing these
services and the expenses of the Trustees that are affiliated with the Advisor.
The Advisor may make payments from its own resources to broker-dealers and other
financial institutions in connection with the sale of Fund shares.
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 0.25% of the average daily net assets of the Amerigo Fund and
the Clermont 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 Trust has adopted an Investor Services Plan for which 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 itself for
shareholder services it performs.
16 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
In addition, at an Organization Meeting on February 14, 2003, the Board approved
the use of a Distribution Plan for which the Distributor and other Service
Providers may receive compensation. If a Service Provider provides distribution
services, the Trust will pay distribution fees to the Distributor at an annual
rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of
the 1940 Act. The Distributor, in turn, will pay the Service Provider out of its
fees. The Distributor may, at its discretion, retain a portion of such payments
to compensate itself for distribution services. Although approved, at December
31, 2005, this plan was not being utilized.
The Servicer also provides other necessary services to the Trust, such as
auditing services, legal services, printing and mailing, etc., on a pass-through
basis. Such expenses vary from Fund to Fund and are allocated to the Funds based
on relative net assets.
4. FEDERAL INCOME TAX INFORMATION
The Funds intend 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 of America. These differences are primarily due to
differing treatments for derivatives, foreign currency transactions, losses
deferred due to wash sales, losses deferred due to post-October losses, and
excise tax regulations.
The tax character of distributions paid during 2005 was as follows:
FUND ORDINARY INCOME LONG-TERM CAPITAL GAIN TOTAL DISTRIBUTIONS
- --------------------------------------------------------------------------------
Amerigo Fund $1,308,198 $777,354 $2,085,552
Clermont Fund 906,036 58,927 964,963
The tax character of distributions paid during 2004 was as follows:
FUND ORDINARY INCOME LONG-TERM CAPITAL GAIN TOTAL DISTRIBUTIONS
- --------------------------------------------------------------------------------
Amerigo Fund $ 75,904 $ -- $ 75,904
Clermont Fund 174,477 -- 174,477
The tax character of distributable earnings/(accumulated losses) at December 31,
2005, was as follows:
UNDISTRIBUTED UNDISTRIBUTED NET UNREALIZED
ORDINARY LONG-TERM APPRECIATION/ CAPITAL LOSS
FUND INCOME CAPITAL GAINS DEPRECIATION CARRYFORWARD
- --------------------------------------------------------------------------------
Amerigo Fund $1,944,154 $4,177,637 $24,160,838 $ --
Clermont Fund 1,635,372 1,452,663 5,928,989 --
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.
At December 31, 2005, 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 NET
TAX UNREALIZED TAX UNREALIZED
FUND COST GAIN UNREALIZED LOSS GAIN
- -------------------------------------------------------------------------------
Amerigo Fund $214,095,488 $24,211,268 $ (50,430) $24,160,838
Clermont Fund 130,310,999 6,481,687 (552,698) 5,928,989
5. SECURITIES TRANSACTIONS
During the year ended December 31, 2005, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
AMERIGO CLERMONT
FUND FUND
- --------------------------------------------------------------------------------
Purchases $180,405,527 $121,004,834
Sales 132,277,214 111,094,563
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
6. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the years presented were:
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED NET SHARES PURCHASED
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2005 2004 2005 2004 2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
AMERIGO FUND 2,067,850 3,124,114 62,479 2,618 (428,242) (759,760) 1,702,087 2,366,972
CLERMONT FUND 1,128,567 2,768,824 33,413 6,412 (655,344) (410,039) 506,636 2,365,197
18 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
7. 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 100% 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, 2005, the pooled cash
collateral investments consisted of repurchase agreements (58.85%), commercial
paper (23.13%), and fixed income securities (18.02%). 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.
The following represents a breakdown of the collateral, its rates, and
maturities.
COLLATERAL TYPE RATES MATURITY
- --------------------------------------------------------------------------------------------------------
Repurchase Agreements 4.250% - 4.350% 01/03/06
Commercial Paper 0.000% - 4.300% 01/03/06 - 04/11/06
Corporate Bonds, Notes, and Asset-Backed Securities 2.378% - 5.064% 01/20/06 - 12/12/25
Mutual Funds N/A N/A
At December 31, 2005, the following funds participated in securities lending and
received cash collateral:
FUND CASH COLLATERAL VALUE OF SECURITIES LOANED
- --------------------------------------------------------------------------------
Amerigo Fund $47,005,610 $45,420,588
Clermont Fund 28,419,246 27,637,359
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 19
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 Amerigo Fund and Clermont Fund (two
of the funds of the Rydex Variable Trust, hereafter referred to as the "Funds")
at December 31, 2005, and 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 audits 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, 2005 by correspondence with the custodian and
brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 24, 2006
20 | 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 practices.
Of the ordinary income distributions paid during the year for Amerigo Fund and
Clermont Fund, 100% and 100%, respectively, qualify for the dividends received
deduction for corporations.
The Funds' distributions to shareholders included:
AMERIGO CLERMONT
FUND FUND
- ---------------------------------------------------------------------------------------------------
From short-term capital gains: $1,308,198 $906,036
From long-term capital gains, subject to the 15% rate gains category: 777,354 58,927
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's website at
http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
RYDEX INVESTMENTS BOARD REVIEW AND APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
The 1940 Act requires that the initial approval of, as well as the continuation
of, a fund's investment advisory agreement must be specifically approved (1) by
the vote of the trustees or by a vote of the shareholders of the fund, and (2)
by the vote of a majority of the trustees who are not parties to the investment
advisory agreement or "interested persons" of any party (the "Independent
Trustees"), cast in person at a meeting called for the purpose of voting on such
approval. In connection with such approvals, the fund's trustees must request
and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. In addition, the SEC takes the position that, as part of their
fiduciary duties with respect to fund fees, fund boards are required to evaluate
the material factors applicable to a decision to approve an investment advisory
agreement.
Consistent with these responsibilities, the Rydex Series Funds Board of Trustees
(the "Board") calls and holds one meeting each year that is dedicated to
considering whether to renew the investment advisory agreement (the "Advisory
Agreement") between the Trust and PADCO Advisors, Inc., which does business
under the name Rydex Investments ("Rydex Investments") with respect to existing
funds in the Trust, including the funds discussed in this Semi-Annual Report
(each a "Fund" and collectively, the "Funds"), and to reviewing certain other
agreements pursuant to which Rydex Investments provides investment advisory
services to certain other registered investment companies. In preparation for
the meeting, the Board requests and reviews a wide variety of materials provided
by Rydex Investments, including information about Rydex Investments' affiliates,
personnel and operations. The Board also receives data provided by third
parties. This information is in addition to the detailed information about the
Funds that the Board reviews during the course of each year, including
information that relates to Fund operations and performance. The Board also
receives a memorandum from Fund counsel regarding the responsibilities of the
Board for the approval of investment advisory agreements. In addition, the
Independent Trustees receive advice from independent counsel to the Independent
Trustees, meet in executive session outside the presence of fund management, if
necessary, and participate in question and answer sessions with representatives
of Rydex Investments.
At a meeting held on August 28 and 29, 2005, the Board approved the selection of
Rydex Investments and the continuance of the Advisory Agreement for an
additional one-year period, based on its review of qualitative and quantitative
information provided by Rydex Investments. The Board's approval of the Advisory
Agreement was based on consideration and evaluation of a variety of specific
factors discussed at that meeting and at prior meetings, including:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY RYDEX INVESTMENTS
The Board reviewed the scope of services to be provided by Rydex Investments
under the Advisory Agreement and noted that there would be no significant
differences between the scope of services required to be provided by Rydex
Investments for the past year and the scope of services required to be provided
by Rydex Investments for the upcoming year. In reviewing the scope of services
provided to the Funds by Rydex Investments, the Board reviewed and discussed
Rydex Investments' investment experience, noting that Rydex Investments and its
affiliates have committed significant resources over time to the support of the
Funds. The Board also considered Rydex Investments' compliance program and its
compliance record with respect to the Funds.
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 21
OTHER INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
In that regard, the Board noted that Rydex Investments provides information
regarding the portfolio management and compliance to the Board on a periodic
basis in connection with regularly scheduled meetings of the Board. In addition
to the above considerations, the Board reviewed and considered Rydex
Investments' investment processes and strategies, and matters related to Rydex
Investments' portfolio transaction policies and procedures. In particular, the
Board noted the substantial volume of portfolio trades and shareholder
transaction activity, in general, processed by Rydex Investments due to the
unlimited exchange policy of the majority of the Funds. The Board further noted
that the Funds had met their investment objectives consistently since their
relevant inception dates. Based on this review, the Board concluded that the
nature, extent and quality of services to be provided by Rydex Investments to
the Funds under the Advisory Agreement were appropriate and continued to support
the Board's original selection of Rydex Investments as investment adviser to the
Funds.
FUND EXPENSES AND PERFORMANCE OF THE FUNDS AND RYDEX INVESTMENTS
The Board reviewed statistical information prepared by Rydex Investments
regarding the expense ratio components, including actual advisory fees, waivers/
reimbursements, and gross and net total expenses of each Fund in comparison with
the same information for other funds registered under the 1940 Act determined by
Rydex Investments to comprise each Fund's applicable peer group. Because few
funds seek to provide unlimited exchange privileges similar to those of the
Funds (other than the Core Equity Fund, Sector Rotation Fund, Absolute Return
Strategies Fund, and Hedged Equity Fund), each Fund's applicable peer group is
generally limited to the funds of two unaffiliated mutual fund families. In
addition, the Board reviewed statistical information prepared by Rydex
Investments relating to the performance of each Fund, as well as each Fund's
ability to successfully track its benchmark over time, and a comparison of each
Fund's performance to funds with similar investment objectives for the same
periods and to appropriate indices/benchmarks, in light of total return, yield
and market trends. The Board further noted that despite the unique nature of the
Funds, the peer fund information presented to the Board was meaningful because
the peer funds' investment objectives and strategies were closely aligned with
those of the Funds. The Board noted that most of the Funds either outperformed
their peer funds or performed in line with them over relevant periods. The Board
also noted that the investment advisory fees and overall expenses for the Funds
were generally lower than or in line with the investment advisory fee rates and
overall expenses of the peer funds. Based on this review, the Board concluded
that the investment advisory fees and expense levels and the historical
performance of the Funds, as managed by Rydex Investments, as compared to the
investment advisory fees and expense levels and performance of the peer funds,
were satisfactory for the purposes of approving the continuance of the Advisory
Agreement.
COSTS OF SERVICES PROVIDED TO THE FUNDS AND PROFITS REALIZED BY RYDEX
INVESTMENTS AND ITS AFFILIATES
The Board reviewed information about the profitability of the Funds to Rydex
Investments based on the advisory fees payable under the Advisory Agreement for
the last calendar year. Rydex Investments also presented the Board with material
discussing its methodology for determining the level of advisory fees assessable
to the Funds. The Board analyzed the Funds' expenses, including the investment
advisory fees paid to Rydex Investments. The Board also reviewed information
regarding direct revenue received by Rydex Investments and ancillary revenue
received by Rydex Investments and/or its affiliates in connection with the
services provided to the Funds by Rydex Investments (as discussed below). The
Board also discussed Rydex Investments' profit margin as reflected in Rydex
Investments' profitability analysis and reviewed information regarding economies
of scale (as discussed below). Based on this review, the Board concluded that
the profits to be realized by Rydex Investments and its affiliates under the
Advisory Agreement and from other relationships between the Funds and Rydex
Investments and/or its affiliates, if any, were within the range the Board
considered reasonable and appropriate.
ECONOMIES OF SCALE
In connection with its review of the Funds' profitability analysis, the Board
reviewed information regarding economies of scale or other efficiencies that may
result from increases in the Funds' asset levels. The Board noted that the
Advisory Agreement for the Funds did not provide for any breakpoints in the
investment advisory fee rates as a result of increases in the asset levels of
such Funds. The Board also noted that though Rydex Investments' assets under
management were significant, the amount is spread among more than 95 Funds.
Further limiting the realization of economies of scale, is the ability of
shareholders of a majority of the Funds to engage in unlimited trading. The
Board also reviewed Rydex Investments' historic profitability as investment
adviser to the Funds and determined that reductions in fee rates or additions of
breakpoints were not warranted at this juncture. Based on this review, the
Board, recognizing its responsibility to consider this issue at least annually,
concluded that there are limited economies of scale to share with the Funds'
shareholders.
OTHER BENEFITS TO RYDEX INVESTMENTS AND/OR ITS AFFILIATES
The Board noted that Rydex Investments reports its use of soft dollars to the
Board on a quarterly basis, as well as any portfolio transactions on behalf of
the Funds placed through an affiliate of the Funds or Rydex Investments pursuant
to Rule 17e-1 under the 1940 Act. The Board concluded that any such ancillary
benefits would not be disadvantageous to the Funds' shareholders.
Based on the above analysis, the Board determined that the Advisory Agreement,
including the investment advisory fee rates thereunder, are fair and reasonable
in light of all relevant circumstances and concluded that it is in the best
interest of the Funds and their shareholders to continue the Advisory Agreement.
22 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
INFORMATION ON BOARD OF TRUSTEES
AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling
1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------- -------------------------------- -------------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 114
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
Rydex Capital Partners SPhinX Fund - 2005
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)
--------------------------------
MICHAEL P. BYRUM* Rydex Series Funds - 2005 114
Trustee, Vice President and Rydex Variable Trust - 2005
Secretary (1970) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Secretary of Rydex Series Funds,
Rydex Variable Trust, and Rydex Dynamic Funds (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)
- --------------------------------------------------------------------------------
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 114
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
--------------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 114
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and
Investor, The Dalton Group
--------------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 114
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
--------------------------------
THE RYDEX VARIABLE TRUST ANNUAL REPORT | 23
INFORMATION ON BOARD OF TRUSTEES
AND OFFICERS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------- -------------------------------- ------------------
WERNER E. KELLER Rydex Series Funds - 2005 114
Trustee (1940) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2001 to present);
Chairman, Centurion Capital Management (1991 to 2001)
--------------------------------
THOMAS F. LYDON, JR. Rydex Series Funds - 2005 114
Trustee (1960) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
Investments
--------------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 114
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
--------------------------------
ROGER SOMERS Rydex Series Funds - 1993 114
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
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
Vice President and Treasurer (1963) Variable Trust, Rydex 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)
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Funds, Rydex Variable
Chief Compliance Officer and Trust, and Rydex Dynamic Funds (2004 to present); Assistant
Assistant Secretary (1967) Secretary of Rydex Series Funds, Rydex 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)
* 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.
24 | THE RYDEX VARIABLE TRUST ANNUAL REPORT
- --------------------------------------------------------------------------------
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[LOGO] RYDEXINVESTMENTS
ESSENTIAL FOR MODERN MARKETS(TM)
9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAAO-2-1205 x1206
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, 2005 and December 31, 2004 were $557,100 and $444,500,
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, 2005 and December 31, 2004 were $347,900 and $174,370, 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 $40,000 and $18,000, 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 9, 2006, the President (principal
executive officer) and the Treasurer (principal financial officer) of the Rydex
Variable Trust (the "Trust") believe that, except for the material weakness
described below, 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. The President and Treasurer of the
Trust have determined that the lack of effective control (review) over
calculations supporting the tax liability of the funds of the Trust is a
material weakness in internal controls. Specifically, the calculation of
distributions to shareholders was not complete and accurate. In addition, this
control deficiency could result in a misstatement to tax expense and tax
liability that could result in a material misstatement of financial statements
that would not be prevented or detected. The President and Treasurer of the
Trust have not identified any other material weaknesses in such internal
controls.
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 or RGA's internal controls
over financial reporting, (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) that occurred during the second fiscal quarter of the
period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is
attached.
(a)(2) Separate certifications by the President (principal executive officer)
and Treasurer (principal financial officer) of the registrant as required by
Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.
(b) A certification by the registrant's President (principal executive officer)
and Treasurer (principal financial officer) as required by Rule 30a-2(b) under
the Act (17 CFR 270.30a-2(b)) is attached.
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 9, 2006
----------------------------------------------------------------------------
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 9, 2006
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Nick Bonos
-------------------------------------------------------
Nick Bonos, Vice President and Treasurer
Date March 9, 2006
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.