High Yield Strategy Fund
Data updated: 2026-08-21
C000046626 — High Yield Strategy Fund. Income Allocation · $5.19M AUM · 1.73% expense ratio · 3.9% 1-yr return. Holdings, fees, performance and SEC filings.
C000046626 Fund Overview
High Yield Strategy Fund is a US mutual fund managed by Rydex Variable Trust, categorised as Income Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Rydex Variable Trust
- Category: Income Allocation
- Assets under management: $5.19M
- 1-year return: 3.9%
- SEC CIK: 0001064046
- SEC series ID: S000016688
- Share class ID: C000046626
C000046626 Investment Objective and Strategy
High Yield Strategy Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Rydex Variable Trust.
Investment objective
The High Yield Strategy Fund (the Fund) seeks to provide investment results that correlate, before fees and expenses, to the performance of the high yield bond market.
Principal investment strategy
The Fund seeks to gain exposure similar to the total return of the high yield bond market, as represented by U.S. and Canadian high yield bonds, by investing in fixed rate, non-investment grade debt through the use of credit default swaps, high yield securities, futures, total return swaps on exchange-traded funds (ETFs), and other financial instruments with economic characteristics comparable to those of the high yield bond market. Generally, high yield bonds, which also are commonly referred to as junk bonds, are those bonds rated BB+ and lower by S&P Global Ratings or Ba1 and lower by Moodys Investors Service, Inc., but may include unrated bonds that the Advisor determines are of similar quality. The Advisor will consider the liquidity, transaction costs and relative value of available investments in seeking to meet the Funds investment objective.
The Fund will primarily invest in credit default swaps, swaps on ETFs, and bond futures to gain exposure similar to the high yield bond market. Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. The Fund will normally be a seller of credit protection (assuming credit risk) as it seeks to gain exposure to the high yield bond market, but also may buy credit protection from time to time in order to maintain the appropriate level of exposure to the high yield bond market, such as during times of heavy redemption activity. The Fund's investments in bond futures are expected to provide exposure to interest rate risk comparable to that experienced in the high yield bond market, and will complement the Fund's swaps investments exposure to produce investment exposure that in the aggregate is similar to that of the high yield bond market.
For cash management purposes, the Fund may invest in other fixed income securities and money market instruments. The Fund also may invest in other financial instruments including corporate notes, convertible debt securities, preferred securities and derivatives thereof, as well as other investment companies, consisting of ETFs, unit investment trusts, and closed-end funds, that invest primarily in high yield debt instruments. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Funds investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Certain of the Funds derivatives investments may be traded in the over-the-counter (OTC) market.
Investments in derivative instruments, such as futures and swap agreements, have the economic effect of creating financial leverage in the Funds portfolio because such investments may give rise to losses that exceed the amount the Fund has invested in those instruments. Financial leverage will magnify, sometimes significantly, the Funds exposure to any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Funds portfolio. The value of the Funds portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage imposed by the Investment Company Act of 1940, satisfy margin or collateral requirements, or meet redemption requests.
The Funds use of derivatives and the leveraged investment exposure created by the use of derivatives are expected to be significant. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments that in combination have economic characteristics similar to the U.S.
and Canadian high yield bond markets and/or in high yield debt securities. The Fund may invest a portion of its assets, and at times, a substantial portion of its assets, in other short-term fixed-income investment companies advised by the Advisor, or an affiliate of the Advisor, for various purposes, including for liquidity management purposes ( e.g. , to increase yield on liquid investments used to collateralize derivatives positions) or when such investment companies present a more cost-effective investment option than direct investments in the underlying securities. Investments in these investment companies will significantly increase the portfolios exposure to certain other asset categories, including: (i) a broad range of high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization or, if unrated, determined by the Advisor to be of comparable quality (also known as junk bonds); (ii) securities issued by the U.S.
government or its agencies and instrumentalities; (iii) collateralized loan obligations (CLOs), other asset-backed securities (including mortgage-backed securities) and similarly structured debt investments; and (iv) other short-term fixed income securities. Such investments will expose the Fund to the risks of these asset categories and increases or decreases in the value of these investments may cause the Fund to deviate from its investment objective.
C000046626 Holdings
Top 10 holdings of High Yield Strategy Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| J.p. Morgan Securities LLC | 21.48% |
| Merrill Lynch, Pierce, Fenner & Smith Incorporated | 21.48% |
| United States Of America - Bureau Of The Public Debt | 15.88% |
| Federal Home Loan Banks | 13.46% |
| Guggenheim Funds Trust | 11.10% |
| Intercontinental Exchange, Inc. | 7.19% |
| Guggenheim Funds Trust | 4.03% |
| Ishares Trust | 2.40% |
| Spdr Series Trust | 2.31% |
| Dreyfus Treasury Obligations Cash Management | 0.05% |
C000046626 Portfolio Allocation
Asset-class allocation of High Yield Strategy Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Cash & Equivalents | 43.0% |
| Fixed Income | 29.3% |
| Equity | 19.8% |
| Derivatives | 7.2% |
C000046626 Performance
Total returns for C000046626 (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| YTD | 0.1% |
| 1 year | 3.9% |
| 3 years (annualised) | 8.2% |
| 5 years (annualised) | 3.2% |
C000046626 Risk Information
Risk metrics for C000046626, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 4.0%
C000046626 Costs and Fees
C000046626 costs about $173 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.73%
- Gross expense ratio: 1.80%
- Portfolio turnover: 0%
- Brokerage commissions: 7.85 bps of average net assets (SEC N-CEN)
C000046626 Cashflows
Over the 12 months to 2026-06, High Yield Strategy Fund had net outflows of $2.01M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2026-06 | $982.27K |
| 2026-05 | $158.43K |
| 2026-04 | $200.93K |
| 2026-03 | −$2.21M |
| 2026-02 | −$823.46K |
| 2026-01 | −$248.51K |
C000046626 Debt Constituents
Largest debt holdings of High Yield Strategy Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| United States Of America - Bureau Of The Public Debt | 15.88% |
| Federal Home Loan Banks | 13.46% |
C000046626 Prospectus and SEC Filings
Official High Yield Strategy Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2026-04-28
- Prospectus (485BPOS) — filed 2025-04-29
- Prospectus (485BPOS) — filed 2024-04-29
- Portfolio holdings (N-PORT) — filed 2026-08-21
- Portfolio holdings (N-PORT) — filed 2026-06-01
- Portfolio holdings (N-PORT) — filed 2026-03-02
- Annual census (N-CEN) — filed 2026-03-13
- Annual census (N-CEN) — filed 2025-03-14
Related Funds
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Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.