Rydex to be acquired by Security Benefit

The Security Benefit Group of Companies announced today that it will acquire Rydex Investments. Security Benefit, a mutually-owned insurer and asset manager based in Topeka, Kan., said it plans to close on the deal for Rydex, headquartered in Rockville, Md., in the fourth quarter. Terms of the acquisition were not disclosed. Speculation about a sale of Rydex, owned by a trust controlled by the family of the company’s founder, Albert “Skip” Viragh Jr., who died in 2003, has been building recently. Earlier this month, Rydex was reported near a deal to sell itself for about $800 million to $1 billion InvestmentNews, June 11). Invesco PLC of London, formally Amvescap PLC, and E*Trade Financial Corp. of New York were identified as potential buyers. In a release announing the acquisition, Security Benefit said the combined organization is expected to represent roughly $35 billion in assets under management, and $52 billion of assets under administration at closing. “The combination of Security Benefit and Rydex Investments leverages an existing successful relationship into a catalyst for broader solutions, through sophisticated asset and risk management skills, comprehensive products, options and choices and an ever-widening array of traditional and non-traditional capabilities,” said Kris Robbins, Security Benefit chairman of the board, president and chief executive officer. Security Benefit, through its subsidiaries, provides individual and employer-based retirement programs as well as institutional investors with specialty fixed income, domestic and global equity strategies in separate accounts, mutual funds, commingled funds, insurance trusts, and packaged variable or fixed annuities. Rydex Investments manages nearly $15 billion in assets via more than 80 mutual funds, exchange traded products and institutional products. The companies said Rydex will retain its current management team and existing facilities in Rockville and operate as a new and separate line of business under Security Benefit’s holding company.