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Core and Core Plus Fixed Income

Multi-sector approach designed to meet our clients’ core and core plus investment objectives

We build portfolios by focusing on the investment objectives of our clients rather than the weights of a generic benchmark. In 1999, we began managing Core Fixed Income portfolios for insurance companies, partnering with them to build investment solutions tailored to their unique objectives, including risk and asset-liability management, regulatory support and rating agency support. This objectives-driven approach provided the foundation for our Core and Core Plus strategies, which we have expanded to meet the complex challenges faced by other institutional investors, including public and corporate pension plans and endowments and foundations.
 

Innovative Approach

We believe that capturing attractive yields, while remaining focused on the preservation of capital, is the surest path to superior investment results.

Our large fixed income team uses a fundamental credit-intensive investment process that incorporates our knowledge of issuers, structures and industries. We invest across the full spectrum of the fixed income market, including asset-backed securities, investment grade and high yield corporates, bank loans, residential mortgage-backed securities, commercial mortgage-backed securities and municipals. Many of the securities we research are not included in the Barclays U.S. Aggregate Index and are often overlooked by other investors.

Active management is a key element of our strategy. We employ opportunistic positioning at the sector and security level with a strong emphasis on relative value, rather than index weightings. Portfolios are constructed from the bottom up and positioned to reflect Guggenheim’s macroeconomic analysis and themes.

 

Solution to the "Core Conundrum"

Traditional core fixed income portfolios typically resemble the Barclays U.S. Aggregate Index. Today, this index consists primarily of low-yielding government-related debt, making it more difficult to meet total return targets.

Against this backdrop, many investors have simply lowered credit quality and extended duration to generate yield. While these investment shortcuts may produce short-term gains, they leave investors exposed to downside risk that can erode long-term returns.

At Guggenheim, we have the resources and expertise to uncover value in under-researched areas that are not included in the Barclays U.S. Aggregate Index, including ABS and other structured securities and off-the-run credits. As a result, our portfolios can help investors meet their return and yield objectives without assuming excessive credit or duration risk.

Low Correlation to Other Managers

Our investment approach has produced returns that have had low correlation to other investment managers, making our strategy an excellent complement within a multi-manager framework.

Sustainable Strategy

With our track record of outperformance and innovative approach to portfolio construction, we believe that our Core Fixed Income strategy is a compelling solution in all environments and can help institutional investors navigate the challenges that likely lie ahead.

Strong Track Record*

 

2015 Core Plus Fixed Income
Manager of the Year

 

2015 Core Plus Fixed Income


 

Top 1% of Competitor Universe

Core Fixed Income Returns



Related Fixed Income Strategies


 

Key Investment Professionals

Anne Walsh, CFA

Assistant Chief Investment Officer, Fixed Income

Eric Silvergold

Portfolio Manager, Insurance Asset Management

James Michal

Portfolio Manager


Contact Us

Contact Guggenheim Investments for more information about this strategy or to learn more about our capabilities.

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Important Disclosures

*All rankings as of 12.31.2015. Core Fixed Income ranking based on gross returns for Guggenheim’s Core Fixed Income Master Composite versus 146 competitors in the eVestment Alliance U.S. Core Fixed Income universe. For the last 1-, 3-, 5-, 7-and 10-year periods, Core Fixed Income ranked in the top 3%, 1%, 1%, 2% and 1%, respectively, versus 240, 239, 236, 230 and 214 competitors, respectively. Prior to August 2014, the Core Fixed Income Master Composite was known as the Core Fixed Income Composite. Data taken from eVestment Alliance on 01.28.2016. Guggenheim Investments composite peer rankings represent percentile rankings which are based on monthly gross of fee returns and reflect where those returns fall within the indicated eVestment Alliance (EA) universe. EA provides third party databases, including the institutional investment database from which the presented information was extracted. The EA institutional investment database consists of over 1,500 active institutional managers, investment consultants, plan sponsors, and other similar financial institutions actively reporting on over 10,000 products. Only information regarding full year performance and rankings is presented as Guggenheim Investments believes performance for a full year period is an important factor. Additional information regarding EA rankings for year to date and since inception performance of the composites is available on EA’s website. Please see the disclosure page for more information about the rankings presented above.

Past performance is not a guarantee of future results. Investing involves risk, including the possible loss of principal. There is no guarantee that any investment strategy will achieve its investment objectives or is suitable for all investors. Diversification does not ensure profit nor protect against loss. Every asset class is subject to various risks that affect their performance in different market cycles. Fixed income investments are subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Equity investments are subject to market risk or the risk of loss due to adverse company and industry news, or general economic decline. Alternative investments are subject to market risk, currency risk, foreign investment risks, liquidity risks, higher fees and expenses, regulatory restrictions, and volatility due to speculative trading and use of leverage.




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Guggenheim Investments represents the following affiliated investment management businesses: 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.