has won its second subadvisory relationship. The Rockville, Maryland based fund complex will manage nearly $74 million of assets for Wells Real Estate Funds
in Atlanta. Rydex already subadvises assets for Liberty Funds.
The win was for the Wells Real Estate Investment Trust (REIT) Fund. The fund is managed to provide returns correlating with the S&P REIT Index. Rydex's Dan Gillespie
will act as senior portfolio manager and be assisted by the Rydex sector funds team.
, vice president of products for Wells explained that Rydex's ability to manage to benchmarks constrained to a predetermined degree of risk was a reason for its selection.
Rydex replaces a team from Wells Asset Management as manager of the fund assets. The fund has lagged the Wilshire 5000 REIT index since its inception by some 338 basis points annually, according to data collected by Morningstar as of May 31. It has also lagged its peer group over that period and carries just two stars from Morningstar.
"We were very pleased to win this mandate from Wells, as we are looking to grow our subadvisory relationships," said Rob Steele
, executive vice president, marketing and product development at Rydex in a statement.
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