I am writing to inform you that on Friday April 6, 2018, Guggenheim Investments closed the previously announced sale of our ETF business to Invesco — an important milestone in our growth strategy.
The strategic decision to sell the ETFs allows us to focus on the specialized active investment capabilities for which we are best known, including fixed-income and corporate credit.
All of us at Guggenheim Investments remain committed to delivering strong risk-adjusted performance to our clients by employing our rigorous and repeatable investment processes, as well as executing sound fundamental research and analysis.
As you know, our mutual funds remain well regarded in the industry. As of 3/31/2018, all six of our taxable fixed-income mutual funds have the highest-possible 5-star overall rating from Morningstar¹, the industry's most respected independent research firm.
We remain committed to serving individual investors and their advisors through this highly rated suite of mutual funds, closed-end funds, and unit investment trusts. We believe this commitment is reflected in the continuing growth of our mutual fund family. Recent data released by Morningstar shows that in 2017 Guggenheim Investments ranked first in the industry in organic growth rate in both its fixed-income mutual funds and its Guggenheim mutual fund product line among firms that ended the year with at least $20 billion in assets under management.
In the first two months of 2018, Guggenheim again ranked first in organic growth among 41 firms that had at least $20 billion in AUM at the end of 2017 in its fixed-income mutual funds.
Guggenheim Investments will look to the next phase of growth by continuing to focus on delivering investment excellence, innovative solutions and superior service to investors.
I thank you for your continued trust and the opportunity to serve you.
Jerry W. Miller
President, Guggenheim Investments
Past performance does not guarantee future returns. Investing involves risk, including the possible loss of principal. Securities offered through Guggenheim Funds Distributors, LLC.
¹The Institutional class for each fund was rated, based on its risk-adjusted returns, 5 stars for the overall out of 858 Intermediate-Term Bond (GIBIX), 264 Nontraditional Bond (GIOIX), 206 Bank Loan (GIFIX), 858 Intermediate-Term Bond (GIUSX), 455 Short Term Bond (GILHX) and 588 High Yield Bond (SHYIX) funds as of 3.31.2018. 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. Ratings for other share classes may differ due to different performance characteristics.
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