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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
(Exact name of registrant as specified in charter)
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Address of principal executive offices) (Zip code)
Carl G. Verboncoeur
Rydex Variable Trust
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-301-296-5149
Date of fiscal year end: December 31, 2007
Date of reporting period: December 31, 2007
Form N-CSR is to be used by management investment companies to file reports with the
Commission not later than 10 days after the transmission to stockholders of any report that is
required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act
of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-
CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the
Commission will make this information public. A registrant is not required to respond to the
collection of information contained in Form N-CSR unless the Form displays a currently valid
Office of Management and Budget ("OMB") control number. Please direct comments concerning
the accuracy of the information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Rydex Variable Trust Annual Report
Benchmark Funds
Sector Funds
AdvisorOne Funds
Alternative Strategy Funds
Essential Portfolio Funds
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.
The registrant's Board of Trustees has determined that Werner Keller, an "independent" Trustee
serving on the registrant's audit committee, is an "audit committee financial expert," as defined in
Item 3 of Form N-CSR. Under applicable securities laws, a person who is determined to be an
audit committee financial expert will not be deemed an "expert" for any purpose, including
without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of
being designated or identified as an audit committee financial expert. The designation or
identification of a person as an audit committee financial expert does not impose on such person
any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities
imposed on such person as a member of the audit committee and Board of Trustees in the
absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
(a)-(d) The aggregate Audit Fees billed by the Trusts principal accountant, for the audit of the
annual financial statements in connection with statutory and regulatory filings for the fiscal years
ended December 31, 2007 and December 31, 2006 were $941,675 and $896,832, respectively.
The aggregate Tax Fees billed by Trusts principal accountant for professional services rendered
for tax compliance, tax advice, and tax planning, including preparation of tax returns and
distribution assistance, for the fiscal years ended December 31, 2007 and December 31, 2006
were $0 and $1,500, respectively.
(e)
The audit committee has adopted a policy whereby audit and non-audit services
performed by the registrants 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 registrants 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 $31,500 and $30,000, respectively. These
aggregate fees were less than the aggregate fees billed for the same periods by the registrants
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 registrants audit
committee. As such, the audit committee has considered these services in maintaining the
principal accountants 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 10, 2008, the President (principal executive officer)
and the Treasurer (principal financial officer) of the Rydex Variable Trust (the Trust) believe
that there were no significant deficiencies in the design or operation of the internal controls of
the Trust or Rydex Investments (RI), the investment advisor and manager of the Trust, or
Rydex Distributors, Inc. (RD), which acts as distributor for the Trust, including disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) which would have adversely affected the ability of the Trust or RI on behalf of the Trust,
to record, process, summarize, and report the subject matter contained in this Report.
There was no fraud, whether or not material, involving officers or employees of RI, RD or the
Trust who have a significant role in the Trusts 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 Trusts or RIs 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 registrants internal control over
financial reporting.
Item 12. Exhibits.
(a)(1)
The registrants 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 registrants President (principal executive officer) and Treasurer
(principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is
attached.
EX.-12(a)(2)(i)
CERTIFICATION
I, Carl G. Verboncoeur, certify that:
1. I have reviewed this report on Form N-CSR of Rydex Variable Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to the period covered by
this report;
3. Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations,
changes in net assets, and cash flows (if the financial statements are required to include a
statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940) and internal control over financial reporting (as defined in
Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrants disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the filing
date of this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrants internal control over
financial reporting that occurred during the second fiscal quarter of the period
covered by this report that has materially affected, or is reasonably likely to
materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and
the audit committee of the registrants board of directors (or persons performing the equivalent
functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely
affect the registrants ability to record, process, summarize, and report financial
information; and
(b)
Any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrants internal control over financial
reporting.
Date: March 10, 2008
/s/ Carl G. Verboncoeur
Carl G. Verboncoeur,
President
EX.-12(a)(2)(ii)
CERTIFICATION
I, Nick Bonos, certify that:
1. I have reviewed this report on Form N-CSR of Rydex Variable Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to the period covered by
this report;
3. Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations,
changes in net assets, and cash flows (if the financial statements are required to include a
statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940) and internal control over financial reporting (as defined in
Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrants disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the filing
date of this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrants internal control over
financial reporting that occurred during the second fiscal quarter of the period
covered by this report that has materially affected, or is reasonably likely to
materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and
the audit committee of the registrants board of directors (or persons performing the equivalent
functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely
affect the registrants ability to record, process, summarize, and report financial
information; and
(b)
Any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrants internal control over financial
reporting.
Date: March 10, 2008
/s/ Nick Bonos
Nick Bonos,
Vice President and Treasurer
EX. 12(b)(i)
CERTIFICATION
I, Carl G. Verboncoeur, President of Rydex Variable Trust (the Trust), certify that:
1.
The Form N-CSR of the Trust (the Report) fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.
The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Trust.
A signed original of this written statement required by Section 906 has been provided to the
Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission
or its staff upon request.
Dated: March 10, 2008
/s/Carl G. Verboncoeur
Carl G. Verboncoeur,
President
EX. 12(b)(ii)
CERTIFICATION
I, Nick Bonos, Vice President and Treasurer of Rydex Variable Trust (the Trust), certify that:
1.
The Form N-CSR of the Trust (the Report) fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.
The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Trust.
A signed original of this written statement required by Section 906 has been provided to the
Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission
or its staff upon request.
Dated: March 10, 2008
/s/ Nick Bonos
Nick Bonos,
Vice President and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
(Registrant)
Rydex Variable Trust
By (Signature and Title)*
/s/ Carl G. Verboncoeur
Carl G. Verboncoeur, President
Date
March 10, 2008
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 10, 2008
By (Signature and Title)*
/s/ Nick Bonos
Nick Bonos, Vice President and Treasurer
Date
March 10, 2008
* Print the name and title of each signing officer under his or her signature.
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