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Trade Alert - March 4, 2007

Model Portfolio Allocation Changes- This Week

Models Reduce Stock Market Allocation

The model portfolios both triggered a reduction in exposure to the stock market after the severe sell-off last week.

Portfolio Changes in the Performance Xtender: This model is selling 40% of its previous 100% allocation in Mid Cap stocks. Proceeds of the sale go to money market.

Portfolio Changes in the Max Xtender: This model is reducing leverage by selling one-half of its previous position in a leveraged Mid Cap fund and placing the proceeds into a non-leveraged Mid Cap fund. The effect of this change will be to reduce the leverage factor from 2 to 1 to 1.5 to 1.

Model Portfolio: Performance Xtender

REDUCE _____________ Mid Cap Fund

BUY _________________ Money Market Fund

 

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Model Portfolio: Max Xtender

REDUCE _____ Leveraged Mid Cap Fund

BUY _________ Un-Leveraged Mid Cap Fund

 

More Details




TopNew Model Portfolio Allocations

These are the new generic portfolio allocations, reflecting the changes above ...

Model Portfolio: Performance Xtender

60 %        Mid Cap Stock Fund

40 %        Money Market Fund

 

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Model Portfolio: Max Xtender

50 %        Leveraged Mid Cap Fund

50 %        Un-Leveraged Mid Cap Fund

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TopModel Portfolio Details

The tables below provide the percentage allocation details and mutual fund ticker symbols for investors following the Model Portfolios by using funds from either of the Rydex Investments or ProFunds mutual fund companies -- or alternatively, investors using exchange traded funds (ETFs).

'Performance Xtender'

(A model portfolio that invests selectively in stock market index funds, plus certain market sectors such as Energy, Gold and Real Estate, and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. The allocation mix is designed to beat the market significantly during both bull and bear markets with only limited risk of volatility.)


Model Portfolio Changes for this week Rydex Funds ProFunds ETFs
Allocation Ticker Allocation Ticker Allocation Ticker
REDUCE MidCap Fund 40% RYAVX 40% MDPIX 40% MDY
Corporate Bonds, or
Money Market
Use proceeds to create a new 40% allocation in a money market fund .

New Model Portfolio Allocations Rydex Funds ProFunds ETFs
Allocation Ticker Allocation Ticker Allocation Ticker
Mid Cap Stock Fund 60% RYAVX 60% MDPIX 60% MDY
Corporate Bonds, or
Money Market
40% Money Market Fund.


'Max Xtender'

(A model portfolio that invests selectively in stock market index funds and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. During strong market trends ... either bullish or bearish ... the model uses up to 2-to-1 leverage to magnify returns. The allocation mix is designed to beat the market substantially during both bull and bear markets but results in a relatively high risk of volatility.)


Model Portfolio Changes for this week Rydex Funds ProFunds ETFs
Allocation Ticker Allocation Ticker Allocation Ticker
SELL Lev'd MidCap 50% RYTNX 50% UMPIX 50% MDY
BUY UnLev'd MidCap 50% RYAVX 50% MDPIX - -
Corporate Bonds, or
Money Market
Rydex does not have a leveraged MidCap fund so we have substituted RYTNX, a leveraged LargeCap Fund. ETF investors should sell enough MDY to be leveraged 1.5 to 1.

New Model Portfolio Allocations Rydex Funds ProFunds ETFs
Allocation Ticker Allocation Ticker Allocation Ticker
Lev'd MidCap Fund 50% RYTNX 50% UMPIX 150% MDY
UnLev'd Mid Caps 50% RYAVX 50% MDPIX - -
Corporate Bonds, or
Money Market

ETF Investors: Note that the MDY position is margined 1.5 to 1.