Rydex Investments has turned to Ibbotson Associates marketing services division, Agency Ibbotson, to help it market its alternative index funds. Ibbotson will start by doing research on how three types of alternative investments leveraged funds, inverse funds and sector-rotation funds are used in a traditional portfolio. Leveraged funds are designed to capture returns in upward markets, inverse funds are designed to capture returns in down markets, and sector-rotation funds move into the best-performing sectors in a sideways market.
From its findings, Ibbotson will create sales ideas to educate investors, a wholesaler presentation and a marketing brochure.
"Investors are increasingly looking beyond traditional investment options to add return and mitigate risk in their portfolio," said Richard Kendrick, managing director at Rydex. "Our goal in teaming with Ibbotson is to educate the investing public on various wealth management strategies that can add value in every market cycle."