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The System Research Treasury Bond Program ("System Research") is a quantitative investment strategy that invests long and short in the 30-year Treasury bond. The strategy takes into account fundamental and technical factors in determining long or short positions in Treasury bond mutual funds or in money market funds.
- The System Research model is comprised of six, interconnected indicators. Each indicator has a voting weight that allows the model to score up between -1 (short bonds) and +1 (long bonds), determining market direction and exposure.
- The model is comprised of two commodity indicators accounting for 30% of the model's trade signal, two equity indicators accounting for 30% of the model's trade signal and two fixed income indicators, accounting for the remaining 40% of the model's trade signal.
- System Research incorporates a risk management mechanism where it automatically de-levers during periods of high volatility that can occasionally result in partially invested positions.
- The strategy may invest up to 100% long in the Rydex Government Long Bond 1.2x Strategy Fund (RYADX) and/or the ProFunds U.S. Government Plus Fund (GVPIX), or up to 100% in the Rydex Inverse Government Long Bond Strategy Fund (RYJAX) and/or the ProFunds Rising Rates Opportunity Fund (RRPIX). The Rydex Government Long Bond 1.2x Strategy Fund corresponds to 120% of daily performance of the Long Treasury Bond. The ProFunds U.S. Government Plus Fund corresponds to 125% of daily performance of the Long Treasury Bond. The Rydex Inverse Government Long Bond Strategy Fund is a non-levered fund that corresponds to the 100% inverse of the daily performance of the Long Treasury Bond. The ProFunds Rising Rates Opportunity Fund is a 1.25x levered fund that seeks 125% inverse of the daily performance of the Long Treasury Bond. The Inverse funds profit when interest rates are moving higher.
Click here for Rydex Government Long Bond 1.2x Strategy Fund Prospectus
Click here for the Rydex Inverse Government Long Bond Strategy Fund Prospectus
Click here for ProFunds Prospectus
Past performance is no guarantee of future returns.
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