Security Benefit announced today a purchase agreement stating that it will acquire Rydex Investments and its exchange traded fund (ETF) lineup. This will create a leading-edge retirement, mutual fund and investment technology organization with $35 billion in assets under management. The merge also will make Security Benefit the sixth largest provider of ETFs, according to the press release.

I just got off the conference call with Security Benefit Chairman, President and CEO Kris Robbins and Rydex CEO Carl Verboncoeur. The key benefit of the acquisition seems to be that Security Benefit will have greater penetration in the retirement planning/401K business if they can offer more innovative investment vehicles … the kind in which Rydex specializes. Collectively, these companies will have better distribution in the marketplace.

Read the full disclosure, as Tom Lydon is a Rydex Investments board member.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.