Fund Description

The fund was incepted in April 1998 and is managed by Rydex Global Advisors. The fund 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 (basic materials companies). The fund invests substantially all of its assets in equity securities of basic materials companies that are traded in the United States. Basic materials companies are engaged in the manufacture, mining, processing or distribution of raw materials and intermediate goods used in the industrial sector, and may be involved in the production of metals, textiles and wood products, including equipment suppliers and railroads. The fund may also engage in futures and options transactions, purchase ADRs and U.S. government securities, and enter into repurchase agreements. Dividends and capital gains, if any, are distributed annually.