SCHEDULE A
DATED FEBRUARY 29, 2008
TO THE
ADVISORY AGREEMENT
DATED JANUARY 18, 2008 BETWEEN
RYDEX SERIES FUNDS
AND
PADCO ADVISORS, INC.
The Trust will pay to the Adviser as compensation for the Adviser's services
rendered, a fee, computed daily at an annual rate based on the average daily net
assets of the respective Fund in accordance the following fee schedule:
FUND RATE
---- ----
Nova Fund* ............................................................ 0.75%
Nova Master ........................................................... 0.75%
Inverse S&P 500 Strategy* ............................................. 0.90%
Inverse S&P 500 Strategy Master ....................................... 0.90%
NASDAQ-100(R)* ........................................................ 0.75%
NASDAQ-100(R) Master .................................................. 0.75%
Inverse NASDAQ-100(R) Strategy ........................................ 0.90%
Mid-Cap 1.5x Strategy * ............................................... 0.90%
Mid-Cap 1.5x Strategy Master .......................................... 0.90%
Xxxxxxx 2000(R) 1.5x Strategy ......................................... 0.90%
Government Long Bond 1.2x Strategy .................................... 0.50%
Inverse Government Long Bond Strategy * ............................... 0.90%
Inverse Government Long Bond Master ................................... 0.90%
Europe 1.25x Strategy ................................................. 0.90%
Japan 2x Strategy ..................................................... 0.75%
Large-Cap Value ....................................................... 0.75%
Large-Cap Growth ...................................................... 0.75%
Mid-Cap Value ......................................................... 0.75%
Mid-Cap Growth ........................................................ 0.75%
FUND RATE
---- ----
Banking ............................................................... 0.85%
Basic Materials ....................................................... 0.85%
Biotechnology ......................................................... 0.85%
Consumer Products ..................................................... 0.85%
Electronics ........................................................... 0.85%
Energy ................................................................ 0.85%
Energy Services ....................................................... 0.85%
Financial Services .................................................... 0.85%
Health Care ........................................................... 0.85%
Internet .............................................................. 0.85%
Leisure ............................................................... 0.85%
Precious Metals ....................................................... 0.75%
Real Estate ........................................................... 0.85%
Retailing ............................................................. 0.85%
Technology ............................................................ 0.85%
Telecommunications .................................................... 0.85%
Transportation ........................................................ 0.85%
Utilities ............................................................. 0.85%
Commodities Strategy .................................................. 0.75%
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FUND RATE
---- ----
Inverse Mid-Cap Strategy * ............................................ 0.90%
Inverse Mid-Cap Strategy Master ....................................... 0.90%
Small-Cap Value ....................................................... 0.75%
Small-Cap Growth ...................................................... 0.75%
Inverse Xxxxxxx 2000(R) Strategy ...................................... 0.90%
Strengthening Dollar 2x Strategy ...................................... 0.90%
Weakening Dollar 2x Strategy .......................................... 0.90%
U.S. Government Money Market .......................................... 0.50%
High Yield Strategy ................................................... 0.75%
INTERNATIONAL 2X STRATEGY ............................................. 0.75%
ALTERNATIVE STRATEGIES ALLOCATION ..................................... 0.00%
FUND RATE
---- ----
Sector Rotation ....................................................... 0.90%
Multi-Cap Core Equity ** .............................................. 0.70%
S&P 500 ............................................................... 0.75%
Xxxxxxx 2000(R) ....................................................... 0.75%
Essential Portfolio Moderate .......................................... 0.00%
Essential Portfolio Conservative ...................................... 0.00%
Essential Portfolio Aggressive ........................................ 0.00%
Managed Futures Strategy .............................................. 0.90%
Inverse High Yield Strategy ........................................... 0.75%
INVERSE INTERNATIONAL 2X STRATEGY ..................................... 0.75%
ADDITIONS ARE NOTED IN BOLD.
* The fee will be reduced to 0.00% for any period during which the Fund
invests through a master-feeder structure.
** The management fee with respect to the Multi-Cap Core Equity Fund (the
"Fund") is comprised of a basic fee (the "Basic Fee") at the annual rate
of 0.70% of the Fund's average daily net assets and a performance
adjustment (the "Performance Adjustment") as discussed below.
A. CALCULATING THE PERFORMANCE ADJUSTMENT.
The performance adjustment shall be calculated monthly by:
(i) Determining the difference in performance (the "Performance
Difference") between the Fund and the Xxxxxxx 3000(R) Index
(the "Index"), as described in paragraph C;
(ii) Using the Performance Difference calculated under paragraph B
(ii) to determine the performance adjustment (the
"Performance Adjustment"), as illustrated in paragraph D; and
(iii) Adding the Performance Adjustment to the Basic Fee to
determine the management fee for the applicable month.
B. COMPUTING THE PERFORMANCE DIFFERENCE.
The Performance Difference is calculated monthly, and is determined by
measuring the percentage difference between the performance of one H-Class
Share of the Fund and the performance of the Index over the most recent
12-month period. The performance of one H-Class Share of the Fund shall be
measured by computing the percentage difference, carried to five decimal
places, between the net asset value as of the last business day of the
period selected for
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comparison and the net asset value of such share as of the last business
day of the prior period, adjusted for dividends or capital gain
distributions treated as reinvested immediately. The performance of the
Index will be established by measuring the percentage difference, carried
to five decimal places, between the beginning and ending values of the
Index for the comparison period, with dividends or capital gain
distributions on the securities that comprise the Index being treated as
reinvested immediately.
C. DETERMINING THE PERFORMANCE ADJUSTMENT.
For every 0.0375% in Performance Difference, the Adviser's fee will be
adjusted upwards or downwards by 0.01%. The maximum adjustment rate is
0.20% per year, resulting in a minimum possible annual fee of 0.50% and a
maximum possible annual fee of 0.90%.
D. PERFORMANCE ADJUSTMENT EXAMPLE.
The following example illustrates the application of the Performance
Adjustment:
Fund's Index's Fund's
For the rolling 12-month investment cumulative performance relative
performance period performance change to the Index
------------------------ ---------- ---------- --------------------
January 1 $ 50.00 100.00
December 31 $ 55.25 110.20
Absolute change +$ 5.25 +$ 10.20
Actual change + 10.50% + 10.20% +0.30%
Based on these assumptions, the Multi-Cap Core Equity Fund calculates the
Adviser's management fee rate for the month-ended December 31 as follows:
o The portion of the annual basic fee rate of 0.70% applicable to that month
is multiplied by the Fund's average daily net assets for the month. This
results in the dollar amount of the basic fee.
o The +0.30% difference between the performance of the Fund and the record
of the Index is divided by 3.75, producing a rate of 0.08%.
o The 0.08% rate (adjusted for the number of days in the month) is
multiplied by the Fund's average daily net assets for the performance
period. This results in the dollar amount of the performance adjustment.
o The dollar amount of the performance adjustment is added to the dollar
amount of the basic fee, producing the adjusted management fee.
2. PERFORMANCE PERIODS
For the period from July 1, 2003 through May 31, 2004, the Adviser will be paid
at the Base Rate, without regard to any Performance Adjustment. For the month
ending June 30, 2004, the Adviser will begin applying the Performance Adjustment
as described herein, based upon the performance of the Fund relative to the
performance of the Index during the 12-month period from July 1, 2003 through
June 30, 2004. The 12-month comparison period will roll over with each
succeeding month, so that it will always equal 12 months, ending with the month
for which the performance incentive adjustment is being computed.
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3. CHANGES TO THE "INDEX" OR THE "CLASS"
The Trustees have initially designated the Xxxxxxx 3000(R) Index and the
H-Class Shares as the index and class to be used for purposes of determining the
Performance Adjustment (referred to herein as the "Index" and the "Class,"
respectively). From time to time, to the extent permitted by the 1940 Act, the
Trustees may, by a vote of the Trustees of the Trust voting in person, including
a majority of the Trustees who are not parties to this Agreement or "interested
persons" (as defined in the 1940 Act) of any such parties, determine (i) that
another securities index is a more appropriate benchmark than the Index for
purposes of evaluating the performance of the Trust; and/or (ii) that a
different class of shares of the Trust representing interests in the Fund other
than the Class is most appropriate for use in calculating the Performance
Adjustment. After ten days' written notice to the Adviser, a different index
(the "Successor Index") may be substituted for the Index in prospectively
calculating the Performance Adjustment, and/or a different class of shares (the
"Successor Class") may be substituted in calculating the Performance Adjustment.
However, the calculation of that portion of the Performance Adjustment
attributable to any portion of the performance period prior to the adoption of
the Successor Index will still be based upon the Fund's performance compared to
the Index. The use of a Successor Class of shares for purposes of calculating
the Performance Adjustment shall apply to the entire performance period so long
as such Successor Class was outstanding at the beginning of such period. In the
event that such Successor Class of shares was not outstanding for all or a
portion of the Performance Period, it may only be used in calculating that
portion of the Performance adjustment attributable to the period during which
such Successor Class was outstanding and any prior portion of the Performance
Period shall be calculated using the Class of shares previously designated.
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