August 24, 2017
Guggenheim Investments Launches NDR Thematic Opportunities Portfolio, Series 1 with Ned Davis Research, Inc. as Portfolio Consultant
NEW YORK, NY – Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, announced today that it has partnered with Ned Davis Research, Inc. (NDR), a leading independent research firm, as portfolio consultant, to introduce an addition to Guggenheim Investments’ lineup of Unit Investment Trusts (UITs), the NDR Thematic Opportunities Portfolio, Series 1 (Trust).
The Trust seeks to maximize total return primarily through capital appreciation. It provides investors access to NDR’s proprietary 360-degree research approach which combines both fundamental and technical analysis to identify forward-looking investment themes1 they believe will be strong drivers of performance over the life of the Trust based on timeliness, investability, and diversification.
“Because thematic investing is highly dependent on the ability to isolate timely trends that have not already been priced into the stock prices of companies that will benefit from these trends, extensive research is essential,” said Douglas Mangini, Senior Managing Director and Head of Intermediary Distribution. “With nearly 40 years of global research experience, NDR’s objective, data-driven process makes them uniquely qualified to identify investment themes for the trust.”
The Trust will focus on these four prominent investment themes that have been identified by NDR. NDR’s outlook on these themes are outlined below:
- “Trump-onomics” — Often‐mentioned proposals in federal government policies during the early stages of President Donald Trump’s administration include increased spending on infrastructure, such as highways, airports, and energy, as well as national defense.
- Rising Interest Rate Environment — NDR believes that the Fed will continue to raise rates in 2017 in response to higher wages and low unemployment that policymakers equate with increases in future inflation. Rising rates typically point to a strengthening economy.
- Aging of the Millennials — The largest generation ever, millennials (those born between 1982 and 2000), represent approximately 25% of the U.S. population2 and should have a larger impact on the economy compared to older generations. Trends driven by aging millennials include increased spending on homes, household products, cars and select retailers. Potential tax cuts could also lead to increased discretionary spending.
- Rising Oil Prices — NDR believes demand will be robust in a relatively strong global economy, but that production may struggle to keep up because of cutbacks in oil exploration and production during the most recent oil bear market. The potential for an oil shortage should cause prices to rise until the oil and gas industries can adequately ramp up their production levels.
“NDR is thrilled to partner with Guggenheim on this innovative thematic UIT, providing investors with a unique opportunity to take advantage of our quantitative rigor through a timely new approach offered through the Guggenheim UIT. This Trust highlights one of NDR’s core strengths, our ability to identify macroeconomic themes and capture the performance potential with robust industry and security selection,” said Paul Jakubowicz, Director of Custom Research at NDR.
UITs offer a defined portfolio with a scheduled maturity, focused exposure, and an efficient way to gain market exposure. They can be a powerful way for investors to gain exposure to timely opportunities as part of their overall investment plan.
Guggenheim manages a broad UIT lineup, offering more than 65 products, covering a variety of asset classes and investment themes. We provide equity and multi-asset UITs, as well as fixed-income options that include taxable, municipal, and laddered strategies.
For more information, please visit http://www.guggenheiminvestments.com.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with $237 billion1 in assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 275+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification and attractive long-term results.
1 There can be no guarantee that the forward-looking investment themes identified will come to fruition, that any security held by the trust will benefit directly from the current thematic opportunity or that the trust will meet its investment objective.
2 NDR 2014 National Population Projections, (U.S. Census Bureau)
1 Guggenheim Investments total asset figure is as of 6.30.2017. The assets include $11.7bn of leverage for assets under management and $0.4bn for assets for which Guggenheim provides administrative services. Guggenheim Investments represents the following affiliated investment management businesses: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Real Estate, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.
Risk Considerations: As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these: • Securities prices can be volatile. • Securities selected according to this strategy may not perform as intended. The Trust is exposed to additional risk due to its policy of investing in accordance with an investment strategy. Although the Trust’s investment strategy is designed to achieve the Trust’s investment objective, the strategy may not prove to be successful. The investment decisions may not produce the intended results and there is no guarantee that the investment objective will be achieved. • The Trust is concentrated in the financial sector. The factors that impact the financial sector will likely have a greater effect on this Trust than on a more broadly diversified trust. The profitability of companies in the financial sector is largely dependent upon the availability and cost of capital which may fluctuate significantly in response to changes in interest rates and general economic developments. Financial sector companies are subject to the adverse effects of economic recession, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business. • The Trust is concentrated in the consumer discretionary sector. The factors that impact the consumer discretionary sector will likely have a greater effect on this Trust than on a more broadly diversified trust. The success of consumer discretionary companies, which manufacture products and provide discretionary services directly to the consumer, is tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence, and also depends heavily on disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer discretionary products in the marketplace.• The Trust invests in securities issued by small-capitalization and mid-capitalization companies, which may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments. These securities customarily involve more investment risk than securities of large-capitalization companies. • Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. • Inflation may lead to a decrease in the value of assets or income from investments. Please see the Trust prospectus for more complete risk information.
Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.
This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.
Read the trust’s prospectus carefully before investing. It contains the Trust’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus at GuggenheimInvestments.com.
Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”). Securities offered through Guggenheim Funds Distributors, LLC. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim Partners, LLC.
Not FDIC insured. Not bank guaranteed. May lose value.
©2017, Guggenheim Partners, LLC. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Guggenheim Partners, LLC.