The Rydex Funds has been selected to sub-advise the Wells S&P Real Estate Investment Trust fund, the company announced today. The agreement with Wells Asset Management represents only the second sub-advisory relationship for Rydex.
The previous sub-advisor to the fund was Gateway Investment Advisors. The Wells fund was the only one Gateway sub-advised and the company decided to quit sub-advising the fund. "We stopped sub-advising for internal reasons," said Geoffrey Keenan, COO for Gateway. "Were not really commenting on why."
The $73.7 million fund had been performing well recently. In 2000, the fund returned 27.56% and so far this year the it has returned 8%, according to Morningstar. The fund is managed for 95% correlation to the S&P REIT Index.
In its selection process, Wells sought an advisor that had experience and success with index benchmarking, according to Jill Maggiore, VP of products for Wells. Wells selected Rydex because of its expertise in that area.
Rydex has also been sub-advising Liberty Variable Investment Trusts financial services and healthcare funds since May 2000. Rydex itself offers 31 funds, including 17 sector funds.