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Economic Indices

The economic indices and asset classes they represent on this web site include:

Barclays Capital U.S. Aggregate Bond Index ("Bonds")

An unmanaged index composed of securities from the Barclays Capital/Corporate Bond Index, Mortgage-Backed Securities Index and the Asset-Backed Securities Index. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indices are rebalanced monthly by market capitalization.

Bloomberg 1 Month CD Index ("Cash")

A Certificate of Deposit is a debt instrument issued by a bank that will pay interest periodically or at maturity and principal when it reaches maturity. These CD rates are a proxy of the CD Market. The proxy is taken from a bid side tick of the time of deposit. This is when the majority of money is traded in Money Market.

Credit Suisse/Tremont Dedicated Short Bias Index

One of 10 subindices of the Credit Suisse/Tremont Hedge Fund Index that track every major style of hedge fund manager. This strategy takes more short positions than long positions and earns returns by maintaining net short exposure in long and short equities.

Credit Suisse/Tremont Event Driven Index

One of 10 subindices of the Credit Suisse/Tremont Hedge Fund Index that track every major style of hedge fund manager. This strategy invests in various asset classes and seeks to profit from potential mispricing of securities related to a specific corporate or market event.

Credit Suisse/Tremont Hedge Fund Index ("Hedge Funds")

A broadly diversified index, encompassing 500 funds across 10 style-based sectors, and representative of the entire hedge fund industry. Index construction is fully transparent, with unbiased, rulesbased selection criteria and published constituents.

Credit Suisse/Tremont Long/Short Equity Fund Index ("Long/Short Equity")

One of 10 subindices of the Credit Suisse/Tremont Hedge Fund Index that track every major style of hedge fund manager. The index invests on both long and short sides of equity markets, generally focusing on diversifying or hedging across particular sectors, regions or market capitalizations.

HFR Market Neutral Index ("Market Neutral")

HFR Equity Market Neutral Index's methodology is based on defined and predetermined rules and objective criteria to select and rebalance components to maximize representation of the Hedge Fund Universe. The index utilizes state-of-the-art quantitative techniques and analysis; multi-level screening, cluster analysis, Monte-Carlo simulations and optimization techniques ensure that the index is a pure representation of equity market neutral strategies.

Morningstar Long-Term U.S. Government Bond Index ("Bonds" Used for Essential and Efficient Frontiers Only)

A sector sub-index of the Morningstar U.S. Government Bond Index, whose parent index is the Morningstar Core Bond Index. The Morningstar Long-Term U.S. Government Bond Index has exposure to investment grade bonds with maturities of seven years or longer.

MSCI Europe, Australasia and Far East Index (EAFE) ("International Equity")

An unmanaged market capitalization-weighted equity index comprising 20 of the 48 countries in the MSCI universe and representing the developed world outside of North America. Each MSCI country index is created separately, then aggregated, without change, into regional MSCI indices. EAFE performance data is calculated in U.S. dollars and in local currency.

MSCI World Net TR Index ("Global")

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

NAREIT® Index (National Association of Real Estate Investment) Trusts ("Real Estate")

An unmanaged index that reflects performance of all publicly traded equity REITs listed on the New York Stock Exchange, American Stock Exchange and the Nasdaq National Market System.

Standard & Poor's Diversified Trends Indicator (S&P DTI) ("Managed Futures")

Comprised of long and short positions in highly liquid financial and commodity futures. The S&P DTI is designed to offer investors an alternative investment indicator that is uncorrelated to traditional bond and equity returns. The S&P DTI's inception date is 1/1/2004.

S&P 500® Index ("Stocks")

An unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

S&P Goldman Sachs Commodity Index™ ("Commodities")

A composite index of commodity sector returns representing an unleveraged, long-only investment in commodity futures that is broadly diversified across the spectrum of commodities. The returns are calculated on a fully collateralized basis with full reinvestment. The combination of these attributes provides investors with a representative and realistic picture of realizable returns attainable in the commodities markets.

U.S. Dollar Index® (USDX) ("Currency")

Indicates the general international value of the U.S. Dollar. The USDX does this by averaging the exchange rates between the U.S. dollar and six major world currencies: the euro, yen, British pound, Canadian dollar, Swedish krona and Swiss franc.

 

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The alternatives strategies and asset classes mentioned are not suitable for all investors. Many alternative strategies use sophisticated and aggressive investment techniques such as leveraging, short selling and derivatives. The more you invest in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. The use of short selling involves increased risks and costs. You risk paying more for a security than you received from its sale. Theoretically, stocks sold short have the risk of unlimited losses. The use of derivatives such as futures, options and swap agreements may expose an investment to additional risks that it would not be subject to if you invested directly in the securities underlying those derivatives. Additionally, certain alternative strategies tied to hard assets such as commodities, currencies and real estate, may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, -such as droughts, floods, weather, livestock disease, embargos, tariffs and international economic, political and regulatory developments. No investment strategy can guarantee a return in a declining market. Additionally, an investor could lose all or a substantial amount of their investment. For more information about these strategies and their risks please consult your financial advisor.

This material is not intended to be a comprehensive overview of the subject matters discussed. It is intended to be general in nature and should not be construed as investment advice or a recommendation of any specific security or strategy. Before investing in any of the investment products or strategies discussed, consult with your financial advisor to determine if they are appropriate for your objectives, risk tolerance, income level and investing time horizon.

Rydex SGI offers funds with investment strategies similar to those referenced on GetAlts.com.

Read the fund's prospectus and summary prospectus (if available) carefully before investing. It contains the fund's investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

Rydex SGI Funds are distributed by Rydex Distributors, LLC (RDL). Security Global InvestorsSM is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for Rydex Advisors, LLC and Rydex Advisors II, LLC. Security Global Investors and RDL are affiliates and subsidiaries of Security Benefit, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

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