Rydex Dynamic Funds
Titan 500 Fund
Temptest 500 Fund
Velocity 100 Fund
Venture 100 Fund
Rydex Series Funds
U.S. Government Money Market Fund
Supplement dated November 2, 2000
to the Rydex Dynamic Funds Prospectus and
Statement of Additional Information
dated March 1, 2000
This supplement provides new and additional information beyond that contained in
the Prospectus and Statement of Additional Information (SAI) and should be
read in conjunction with the Prospectus and SAI.
<PAGE>
The bar chart located on page
10 and all of the information on page 11 is revised as follows:
U.S. GOVERNMENT MONEY MARKET FUND
*The year-to-date return for the period from January 1, 2000 through June 30,
2000 is 2.51%
AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 1999)1
<TABLE>
<CAPTION>
1 YEAR 5 YEAR SINCE INCEPTION
<S> <C> <C> <C>
(12/03/93)3
INVESTOR CLASS SHARES 4.25% 4.60% 4.31%
ADVISOR CLASS SHARES 3.73% 4.41% 4.21%
90-DAY TREASURY COMPOSITE2 4.64% 5.00% 4.84%
</TABLE>
1 These figures assume the reinvestment of dividends and capital gains
distributions.
2 The 90-Day Treasury Composite Index is an unmanaged index that is a widely
recognized indicator of general money market performance.
3 Inception date reflects commencement of Fund operations. Advisor Class
Shares were offered beginning April 1, 1998.
YIELD Call (800) 820-0888 or visit www.rydexfunds.com for the Funds current
yield.
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
either Investor Class or Advisor Class Shares of the Fund.
<TABLE>
<CAPTION>
INVESTOR CLASS ADVISOR CLASS
<S> <C> <C>
SHAREHOLDER FEES * NONE NONE
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets)
MANAGEMENT FEES .50% .50%
DISTRIBUTION (12b-1) FEES NONE .25%
OTHER EXPENSES .38% .65%
TOTAL ANNUAL
FUND OPERATING EXPENSES .88% 1.40%
</TABLE>
* The Fund may impose a wire transfer charge of $15 on certain redemptions
under $5,000.
<PAGE>
EXAMPLE
This example is intended to help you compare the cost of investing in
either the Investor Class or Advisor Class Shares of the Fund with the cost of
investing in other mutual funds.
The example assumes that you invest $10,000 in the Fund for the time period
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions your cost would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
INVESTOR CLASS $92 $289 $501 $1,113
ADVISOR CLASS $147 $457 $789 $1,727
</TABLE>
In addition, the U.S. Government Money Market Fund Financial Highlights located
on page 32 and 33 have been updated to include the following columns:
<TABLE>
<CAPTION>
Investor Class Advisor Class
YEAR YEAR
ENDED ENDED
3/31/00 3/31/00
<S> <C> <C>
Net Asset Value -
Beginning of Period $1.00 $1.00
Net Investment Income (Loss) .04 .04
Net Increase in Net Asset Value
Resulting from Operations .04 .04
Distributions to Shareholders
from Net Investment Income (.04) (.04)
Net Increase in Net Asset Value .00 .00
Net Asset Value - End of Period $1.00 $1.00
Total Investment Return (%) 4.48% 3.94%
Ratios to Average Net Assets:
Gross Expenses (%) 0.89% 1.41%
Net Expenses (%) 0.88% 1.40%
Net Investment Income (Loss)(%) 4.36% 3.85%
</TABLE>
Supplementary Data Net Assets, End of Period (000s omitted) $686,198 $212,181
<PAGE>
Financial Highlights
The financial highlights table is intended to help you understand the Funds
financial performance for their periods of operations. Certain information
reflects financial results for a single E-Class Share. The total returns in the
table represent the rate that an investor would have earned (or lost) on an
investment in an E-Class Share of the Fund (assuming reinvestment of all
dividends and distributions). This information has not been audited. The 2000
Semi-Annual report is available by telephoning the transfer agent at
800.820.0888 or 301.296.5100.
<TABLE>
<CAPTION>
Period Ended June 30, 2000
Titan 500 Tempest 500 Velocity 100 Venture 100
Fund* Fund* Fund* Fund*
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value
Beginning of Period $ 25.00 $ 50.00 $ 25.00 $ 50.00
Net Investment Income .06 .15 .10 .22
Net Realized and Unrealized
Gains (Losses) on Securities
1.01 (3.17) 8.29 (21.25)
Net Increase (Decrease) in Net Asset Value
Resulting from Operations 1.07 (3.02) 8.39 (21.03)
Distributions to Shareholders
0 0 0 0
Net Increase (Decrease) in Net Asset Value
1.07 (3.02) 8.39 (21.03)
Net Asset Value - End of Period
$ 26.07 $ 46.98 $ 33.39 $ 28.97
Total Investment Return
4.28 (6.04) 33.56 (42.06)
Ratios to Average Net Assets:
Gross Expenses** 8.18 9.02 4.88 13.79
Net Expenses** 1.75 1.75 1.74 1.73
Net Investment Income** 2.02 2.92 3.19 6.48
Supplementary Data:
Portfolio Turnover Rate*** 0 0 0 0
Net Assets, End of Period
(000s omitted) $ 16,311 $ 12,561 $ 49,303 $ 4,181
</TABLE>
*Commencement of Operations: May 19, 2000 Titan 500 Fund and Tempest 500 Fund,
May 24, 2000 Velocity 100 Fund, and May 23, 2000 Venture 100 Fund
**Annualized
***Portfolio turnover ratio is calculated without regard to short-term
securities having a maturity of less than one year.
Calculated using the average daily shares outstanding for the period.
The following paragraph supplements and, to the extent it may contradict
disclosure in the Prospectus, supercedes the information found on pages 19 and
20 of the Prospectus:
DIRECT INVESTMENT IN THE DYNAMIC FUNDS
In most cases,Investors may only invest in a Dynamic Fund through an exchange
transaction, as described in the Prospectus. Nonetheless, you may be able to
purchase shares of the Dynamic Funds through your financial intermediary,
without first purchasing shares of the Money Market fund. Please contact your
financial intermediary directly for more information and to determine if
this option is available to you.On November 30, 2000 the Advisor will be
moving to a new location. After November 30, 2000 all references to the
address and phone and fax numbers of Rydex Dynamic Funds, its officers and
trustees, and the Advisor should be replaced with the following information:
Address- 9601 Blackwell Road
Suite 500
Rockville, MD 20850
Phone- (301) 296-5100
1-800-820-0888
Fax- (301) 296-5103
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
