January 15, 2019
Guggenheim Limited Duration Fund Achieves 5-Year Track Record, Maintains 5-Star Overall Morningstar Ratings
NEW YORK – Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, is pleased to announce that the Guggenheim Limited Duration Fund achieved a 5-year track record on December 16, 2018 and maintained a 5-star Overall Morningstar RatingTM as of December 31, 2018, based on the risk-adjusted return for its institutional share class.
“These 5-star ratings from Morningstar provide added validation of how our differentiated approach to investment management has produced strong results for our clients over the long term,” said Guggenheim Chairman of Investments and Global CIO Scott Minerd, who oversees the management of $176 billion in fixed-income assets.
Guggenheim’s fixed-income portfolios are managed through a systematic, disciplined investment process, designed to mitigate behavioral biases and lead to better decision making. The elements of the investment management process are divided among four independent investment management teams. By making our investment process team-based, we slow down the decision-making process, and by slowing down the decision making, we make sure that every decision is thoughtful and minimizes biases.
We believe our ability to uncover value in securities outside of the traditional benchmark-driven framework puts our clients in the best position to benefit from our pursuit of compelling risk-adjusted return opportunities,” said Anne Walsh, CIO – Fixed Income. “At the heart of this investment proposition is the structure of our investment process, which allows our best ideas to be expressed in actively managed portfolios.”
“We believe there is an opportunity to capture attractive yield, while limiting duration risks within a strategically constructed ultra-short duration portfolio,” said Douglas Mangini, Head of Intermediary Distribution. “The Guggenheim Ultra Short Duration Fund offers an investment grade approach seeking to maximize current income, while preserving capital and providing daily liquidity for advisors and their clients.”
Since eligible on December 31st, 2016, the Guggenheim Limited Duration Fund (GILHX) has been rated 5-Stars Overall by Morningstar 100% of the time, 25 months in a row. The fund was rated against 472 funds in Morningstar’s Short-Term Bond category. The total return of the fund’s Class I shares is in the top 6% and 5% of its Morningstar category for the trailing 3- and 5-year periods respectively as of December 31, 2018².
“Many short duration strategies are narrowly focused and may miss opportunities to increase yield and diversification through investing in a broader universe of fixed-income securities” said Douglas Mangini, Head of Intermediary Distribution. “Guggenheim Limited Duration Fund provides a more flexible multi-sector approach for investors seeking to preserve capital and generate income.”
The following is a list of Guggenheim Investments’ Morningstar 4- and 5-star rated taxable fixed-income mutual funds, as of December 31, 2018, based on risk-adjusted return.
||Funds Per Category
||Overall Star Rating ²
|Guggenheim Limited Duration (GILHX)
||Out of 472 Funds
|Guggenheim Macro Opportunities (GIOIX)
||Out of 274 Funds
|Guggenheim Total Return Bond (GIBIX)
||Out of 876 Funds
|Guggenheim Investment Grade Bond (GIUSX)
||Out of 876 Funds
|Guggenheim Ultra Short Duration (GIYIX)
||Out of 145 Funds
|Guggenheim Floating Rate Strategies (GIFIX)
||Out of 213 Funds
|Guggenheim High Yield (SHYIX)
||High Yield Bond
||Out of 604 Funds
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with more than $207 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.
1Assets under management are as of 9.30.2018 and include leverage of $11.8bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: 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.
2 Past performance does not guarantee future returns. Overall Morningstar Ratings are based on risk-adjusted returns and Morningstar Rankings are based on average annual total return. The Institutional class for each fund was rated, based on its risk-adjusted returns, 5 stars for overall, 3 years, and 5 years among 876, 876, and 767 Intermediate-Term Bond funds (Investment Grade Bond Fund and Total Return Bond Fund), 472, 472, and 405 Short-Term Bond funds (Limited Duration Fund), and 274, 274, and 177 Nontraditional Bond funds (Macro Opportunities Fund); 5 stars for overall, 4 stars for 3 years, and 5 stars for 5 years among 604, 604, and 507 High Yield funds (High Yield Fund); 4 stars for overall, 3 stars for 3 years, and 5 stars for 5 years among 213, 213, and 196 Bank Loan funds (Floating Rate Strategies Fund); and 4 stars for overall and 3 years among 145 and 145 Ultrashort Bond funds (Ultra Short Duration Fund). The Institutional Class for the 1-year period was ranked 34 out of 530 (10th percentile) Short-Term Bond funds (Limited Duration Fund).
The Morningstar Rating for funds, or “star rating”, is calculated for managed products with at least a three-year history and does not include the effect of sales charges. Exchange-traded funds and open-end mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.
The funds may not be suitable for all investors. • Investments in fixed-income instruments are subject to the possibility that interest rates could rise, causing the value of the Fund’s holdings and share price to decline. • Investors in asset-backed securities, including collateralized loan obligations (“CLOs”), generally receive payments that are part interest and part return of principal. These payments may vary based on the rate loans are repaid. Some asset-backed securities may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices volatile and they are subject to liquidity and valuation risk. CLOs Guggenheim Partners bear similar risks to investing in loans directly. • Investments in loans involve special types of risks, including credit, interest rate, counterparty, prepayment, liquidity, and valuation risks. Loans are often below investment grade, may be unrated, and typically offer a fixed or floating interest rate. • High yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility. • The use of leverage, through borrowings or instruments such as derivatives, may cause a fund to be more volatile and riskier than if it had not been leveraged. The more a fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • Investments in reverse repurchase agreements are subject to many of the same risks as leveraged instruments, such as derivatives. • You may have a gain or loss when you sell your shares. • Please read a fund’s prospectus for more detailed information regarding these and other risks.