December 08, 2021
A Decade of Delivering: Guggenheim’s Fixed-Income Mutual Funds Reach 10-Year Anniversary
NEW YORK – Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, is pleased to announce that three of its flagship fixed-income mutual funds, Guggenheim Macro Opportunities Fund (GIOIX), Guggenheim Total Return Bond Fund (GIBIX), and Guggenheim Floating Rate Strategies Fund (GIFIX), reached their 10-year track records. Over the course of the past decade, the three funds rank highly versus respective Morningstar peers: GIOIX and GIBIX have each achieved top 1% rankings based on total return and overall 5-star ratings based on risk-adjusted return, while GIFIX has achieved a top decile ranking and a 4-star rating.
"The 10-year track record of these funds is a testament to our innovative investment process, influenced by Nobel Prize Laureate Danny Kahneman’s work in behavioral finance, and intended to perform regardless of market conditions,” said Scott Minerd, Guggenheim Chairman of Investments and Global CIO, who oversees the management of $259 billion in assets.
Guggenheim’s investment process is built on a team-based active management process that is designed to mitigate cognitive biases. The firm maintains more than 200 fixed-income investment professionals whose responsibilities are disaggregated into four specialized teams: The Macroeconomic and Investment Research group provides economic, policy, and market forecasts for the firm; Sector teams make specific security selections based on robust, bottom-up, fundamental analyses; the Portfolio Construction Group delivers model asset allocations and risk analysis; and Portfolio Managers execute investment strategies based on team inputs and portfolio mandates. This investment process separates the investment management function into its component parts to encourage collaboration, communication, and effortful decision-making that is intended to mitigate cognitive biases, snap judgments, and other decision-making pitfalls identified by studies in behavioral finance.
Anne Walsh, Chief Investment Officer for Fixed Income, said, “The remarkable results of our three flagship funds reflect the benefits of active management and the repeatable and scalable nature of the Guggenheim investment process. Our portfolio construction, which is unconstrained by any index, is intended to expand the investment universe, minimize risk, and help investors seeking income and attractive risk-adjusted returns in this low-yield world.”
Steve Brown, Assistant Chief Investment Officer, said, “As we pause to mark this 10-year milestone, I want to thank our clients for their trust in our distinctive investment process and their commitment to Guggenheim over the years. My colleagues and I look forward to continuing to pursue strong risk-adjusted returns in the years to come.”
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners and has more than $259 billion* in total 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, wealth managers and high net worth investors. We have a track record of delivering results through innovative solutions. Our 260+ 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.
Past performance is no guarantee of future results. For current fund performance, please visit our website at guggenheiminvestments.com.
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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.
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, which includes both mutual funds and ETFs. 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.
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, 4 stars for overall, 3 stars for 3 years, 3 stars for 5 years, and 5 stars for 10 year among 228, 228, 207, and 138 Bank Loan funds (Floating Rate Strategies Fund); 5 stars for overall, 4 stars for 3 years, 4 stars for 5 years, and 5 stars for 10 years among 296, 296, 271, and 119 Nontraditional Bond funds (Macro Opportunities Fund); 5 stars for overall, 4 stars for 3 years, 5 stars for 5 years, and 10 stars for 10 years among 572, 572, 497, and 356 Intermediate Core-Plus Bond funds (Total Return Bond Fund). The Institutional Class for the 1-year period was ranked 50 out of 238 (17th percentile) Bank Loan funds (Floating Rate Strategies Fund), 73 out of 341 (26th percentile) Nontraditional Bond funds (Macro Opportunities Fund), and 128 out of 608 (21st percentile) Intermediate Core-Plus Bond funds (Total Return Bond Fund). The Institutional Class for the 3-year period was ranked 91 out of 228 (44th percentile) Bank Loan funds (Floating Rate Strategies Fund), 69 out of 296 (23rd percentile) Nontraditional Bond funds (Macro Opportunities Fund), and 104 out of 572 (17th percentile) Intermediate Core-Plus Bond funds (Total Return Bond Fund). The Institutional Class for the 5-year period was ranked 92 out of 207 (45th percentile) Bank Loan funds (Floating Rate Strategies Fund), 44 out of 271 (15th percentile) Nontraditional Bond funds (Macro Opportunities Fund), and 24 out of 497 (5th percentile) Intermediate Core-Plus Bond funds (Total Return Bond Fund).
The Funds may not be suitable for all investors. Investments in fixed-income securities are subject to the possibility that interest rates could rise, causing the value of the Funds’ securities and share price to decline. Fixed-income securities with longer durations are subject to more volatility than those with shorter durations. High yield, below investment grade, and unrated debt securities are subject to greater volatility and risk of default than investment grade bonds and may be less liquid. Some asset-backed securities, including mortgage-backed securities and CLOs, may have structures that make their reaction to interest rates and other factors difficult to predict, causing their prices to be volatile; and they are subject to interest rate, credit, liquidity, and valuation risks. Loan investments are often below investment grade or unrated and subject to special types of risks, including credit, interest rate, counterparty, and prepayment risk. The Funds’ use of leverage, through borrowings or instruments such as derivatives, may cause the Funds to be more volatile and riskier than if they had not been leveraged. Please see the Funds’ prospectus for more information on these and other risks.
Read a 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. Obtain a prospectus and summary prospectus (if available) at www.guggenheiminvestments.com or call 800.820.0888.
* Guggenheim Investments AUM (assets under management) as of 09/30/2021. The assets include leverage of $17.9 billion. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Fund Management (Europe) Limited, Guggenheim Partners Japan Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.
*Assets under management is as of 9.30.2021 and includes leverage of $17.9bn.