Guggenheim’s investment process separates the different functions into specialized teams in order to avoid cognitive biases and produce thoughtful decision making. The tenets of behavioral finance set the philosophical foundation for this structure.

Our Philosophy

We built our investment process on the foundation of behavioral finance, a school of thought most closely identified with the Nobel Prize-winning work of Daniel Kahneman. The goal of behavioral finance is to embrace a slower, effortful, and dispassionate decision making process in order to eliminate the cognitive biases that occur when investors react quickly and emotionally to market changes.

Scott Minerd, Global CIO and Chairman of Investments, discusses how Guggenheim’s investment structure is designed for superior decision making.


Our Process and Team

Our investment process benefits from specialized expertise and segregation of responsibilities. As these videos demonstrate, we separate macroeconomic research, security selection, portfolio construction, and portfolio management into independent teams that collaborate in the pursuit of compelling risk-adjusted returns.

 

Macroeconomic Research

Macroeconomic Research  

Brian Smedley, Head of Macroeconomic and Investment Research, and Vice President Maria Giraldo discuss with Scott Minerd, Global CIO, how the group provides critical input to the other groups in the investment process.

Sector Teams

Sector Teams  

Investment Grade Credit Head Jeffrey Carefoot, Structured Credit Co-Heads Brendan Beer and Peter Van Gelderen, and ABS and CMBS Trader George Mancheril explain that Sector Teams focus on security selection and monitoring.

Portfolio Construction

Portfolio Construction 

Anne Walsh, Assistant CIO, Fixed Income, and Eric Palley, Portfolio Construction Group Managing Director, explain that the Portfolio Construction Group conducts portfolio level risk analysis and modeling.

Portfolio Management

Portfolio Management 

Portfolio Managers James Michal and Steve Brown explain how they take inputs from the other groups in order to implement and optimize portfolios based on client guidelines.

$204 Billion1 Total Assets

1100+ Guggenheim Investments Employees2

10 Sector Teams3

$154 Billion2 Fixed Income Assets

Over $240 billion in assets under management across a platform of managed accounts and funds.

Average Years of Industry Experience2

275+ Investment Professionals2


¹ Income may be subject to the federal Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxed as capital gains. This is not tax advice. Investors should consult with a tax advisor before making any tax-related investment decisions.2 Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.

Past performance is no guarantee of future results.

Source: Morningstar

The Overall Morningstar Rating for a Fund is derived from a weighted average of the performance figures associated with its three-, five-and ten year (if applicable) Morningstar Rating metrics. The rating includes effects of sales charges, loads and redemption fees, while the load waived rating does not. Load-waived rating should only be considered by investors who are not subject to a front-end sales charge. Load-waived A share star ratings are intended for those investors who have access to such purchase terms. Please read a current prospectus for more information. For each Fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance placing more emphasis on downward variations and rewarding consistent performance. With load ratings include the effect of sales charges, loads and redemption fees. Load waived ratings exclude sales charges, loads and redemption fees, and are only applicable to investors not subject to sales charges. The top 10% of funds in each 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. (Each A-Class share is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Ratings for other share classes may differ due to different performance characteristics. The Fund’s ratings reflects fee waivers in effect; in their absence, ratings may have been lower.

Morningstar Rankings do not include the effect of a fund’s sales load, if applicable. Other share classes may have different performance characteristics. Morningstar rankings are based on a fund’s average annual total return relative to all funds in the same Morningstar category. Fund performance used within the rankings, reflects certain fee waivers, without which, returns and Morningstar rankings would have been lower. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Multiple share classes of a fund have a common portfolio but impose different expense structures.

©2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary of Morningstar and /or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, nor its content providers, are responsible for any damages or losses arising from any use of its information.

The Funds may not be suitable for all investors. • The Funds' market value will change in response to interest rate changes and market conditions, among other factors. In general, bond prices rise when interest rates fall and vice versa. • You may have a gain or loss when you sell your shares. • It is important to note that the Funds are not guaranteed by the U.S. government. • The Funds may have exposure to high yield securities, municipal securities, floating rate securities, foreign securities, derivative instruments, real estate, commodity markets and other fixed income securities. • Exposure to high yield securities may subject a Fund to greater volatility. • Investments in municipal securities can be affected by events that affect the municipal bond market. • Investments in syndicated bank loans generally offer a floating interest rate and involve special types of risks. • Investments in foreign securities carry additional risks when compared to U.S. securities due to the impact of diplomatic, political or economic developments in the country in question (investments in emerging markets securities are generally subject to an even greater level of risk). • Investments in derivative instruments can be more volatile and less liquid, increasing the risk of loss when compared to traditional securities. Certain of the derivative instruments are also subject to the risks of counterparty default and adverse tax treatment. • Investments in real estate securities subjects a Fund to the same risks as direct investments in real estate, which is particularly sensitive to economic downturns. • When market conditions are deemed appropriate, the Funds may use leverage to the full extent permitted by their investment policies and restrictions and applicable law. Leveraging will exaggerate the effect on net asset value of any increase or decrease in the market value of the Fund‘s portfolio. • Please see each Fund’s prospectus for more information on these and other risks.

©2016 Guggenheim Investments. All Rights Reserved.

• Not FDIC Insured • No Bank Guarantee • May Lose Value

Read the fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available), click here or call 800.820.0888.

The referenced funds are distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), which includes Guggenheim Partners Investment Management ("GPIM") and Security Investors, LLC ("SI"), the investment advisors to the referenced funds. Guggenheim Funds Distributors, LLC, is affiliated with Guggenheim, SI, and GPIM.