Guggenheim Partners Investment Management, LLC

Form CRS – Client Relationship Summary


June 30, 2020
 

Guggenheim Partners Investment Management, LLC (“we” or “us”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Brokerage and investment advisory fees and services differ and it is important for you to understand these differences.

Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which provides educational materials about broker-dealers, investment advisers, and investing.

What investment services and advice can you provide me?

We offer investment advisory services to retail investors through separately managed accounts. These services generally involve recommending the purchase, sale or holding of debt and/or equity investments and executing such recommendations. We monitor client accounts daily for adherence to investment objectives, guidelines and restrictions as part of our standard services. We typically have discretionary authority over accounts, which means we have authority to make investment decisions, except where prohibited by investment objectives, guidelines or restrictions, without consulting you. We also provide non-discretionary advice where you make the ultimate decision to buy or sell securities and we will generally be responsible for executing such decisions. We generally require a minimum account size of $100 million, subject to reduction at our discretion.

For additional information, please see Items 4 and 7 of our Form ADV Part 2 Brochure.

Questions to ask your financial professional:

  • Given my financial situation, should I choose an investment advisory service? Why or why not?
  • How will you choose investments to recommend to me?
  • What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

 

What fees will I pay?

You will pay us a monthly or quarterly fee that is equal to a percentage of the assets we manage for you. In general, the more assets we manage for you, the more you will pay in fees. For that reason, we have an incentive to encourage you to increase the assets in your account. You will also typically pay normal costs and expenses of portfolio investments, including brokerage, trading execution fees, and custody fees. We also have an incentive to favor accounts that pay, or have the potential to pay, us high fees.

You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

For additional information, please see Item 5 of our Form ADV Part 2 Brochure.

Questions to ask your financial professional:

  • Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

 

What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?

When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means.

We make investments for some accounts that result in commissions and/or fees paid to us or one of our affiliates. We earn and keep fees for advising, originating, structuring, arranging, and selling investments in which we invest your assets. These commissions and fees present conflicts in that we have incentive to invest your assets in these investments so that we or our affiliates earn additional commissions or fees.

From time to time, we purchase investment opportunities from or involving our affiliates for clients like you. We have incentive to purchase investments where one of our affiliates will receive a fee. Some such transactions are considered principal transactions and/or require consent. Additionally, certain executives and other personnel have direct or indirect interests in certain of our clients and/or in investments we recommend to our clients, and we have incentive to favor those clients and investments.    

For additional information, including information about our conflicts of interest, please see Items 10 and 11 of our Form ADV Part 2 Brochure.

Questions to ask your financial professional:

  • How might your conflicts of interest affect me, and how will you address them?

 

How do your financial professionals make money?

Our financial professionals earn a base salary and are eligible to earn a bonus. Our firm has a collaborative approach to managing assets, and compensation is appraised beginning with an overall assessment of the firm’s performance. Our financial professionals can become owners of the firm and receive the opportunity to invest in funds we manage and deals we source. The specific factors to determine compensation vary across our platform, but in general we evaluate our investment professionals (1) quantitatively based on their contribution to investment performance and portfolio risk control and (2) qualitatively based on factors such as teamwork and client service efforts. Our compensation system seeks to discourage individuals from taking unnecessary risk. To ensure
alignment with your interests, a portfolio manager’s compensation is not correlated to assets under his or her management. We do not pay sales commissions to our personnel.

Do you or your financial professionals have legal or disciplinary history?

Yes. Visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.

Questions to ask your financial professional:

  • As a financial professional, do you have any disciplinary history? For what type of conduct?

 

Additional Information

For additional information about our services, see Items 4 and 8 of our Form ADV Part 2 Brochure or visit www.GuggenheimInvestments.com.  If you would like additional, up-to-date information or a copy of this disclosure, please call 310-576-1270.

Questions to ask your financial professional:

  • Who is my primary contact person? Is he or she a representative of an investment-adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?


© Guggenheim Investments. All rights reserved.

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, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.