| The nature, extent and quality of the advisory services to be provided. The Board of Trustees concluded that Rydex and the investment sub-advisor are capable of providing high quality services to the Funds, as indicated by the nature and quality of services provided by Rydex in the past and the experience of the investment sub-adviser in providing investment advisory services to mutual funds, Rydexs management capabilities demonstrated with respect to the Funds and other mutual funds managed by Rydex, the professional qualifications and experience of Rydex and the investment sub-adviser, and Rydexs investment and management oversight processes. The Trustees also determined that Rydex proposed to provide investment and related services that were of the same quality and quantity as services provided to the Funds in the past, and that these services are appropriate in scope and extent in light of the Funds operations, the competitive landscape of the investment company business and investor needs. | ||
| The investment performance of the Advisors. The Trustees considered Rydexs past performance and experience with index replication and considered the investment sub-advisers historical performance in approving the appointment of Rydex and the investment sub-adviser. | ||
| The cost of advisory services provided and the level of profitability. On the basis of the Boards review of the fees to be charged by Rydex for investment advisory and other services, and the estimated profitability of Rydexs relationship with the Funds, the Board concluded that the level of investment advisory fees and Rydexs profitability are appropriate in light of the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between each Fund and Rydex and its affiliates. The Trustees determined that the advisory fees, sub-investment advisory fee, and estimated overall expense ratio of each Fund are competitive with industry medians, particularly with respect to mutual funds of comparable size. With respect to the sub-investment advisory fee, the Board considered that the fee was negotiated in an arms length transaction. | ||
| Whether the advisory fees reflect economies of scale. The Trustees concluded that the consideration of economies of scale was not appropriate at the present time since the funds were new and as yet had no assets. |
(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. |
(Registrant) Rydex Series Funds | ||||
By:
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/s/ Richard Goldman
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Date: August 5, 2011 |
By:
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/s/ Richard Goldman
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Date: August 5, 2011 | ||||
By:
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/s/ Nikolaos Bonos
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Date: August 5, 2011 |
(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 |
(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. |
/s/ Richard Goldman | ||||
Richard Goldman, | ||||
President | ||||
(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 |
(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. |
/s/ Nikolaos Bonos | ||||
Nikolaos Bonos, | ||||
Vice President & Treasurer | ||||
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. |
/s/ Richard Goldman | ||||
Richard Goldman, | ||||
President |
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. |
/s/ Nikolaos Bonos | ||||
Nikolaos Bonos, | ||||
Vice President and Treasurer |