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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 Bloomberg 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 Bloomberg 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 seek to uncover value in under-researched areas that are not included in the Bloomberg U.S. Aggregate Index, including ABS and other structured securities and off-the-run credits. We believe this approach to portfolio construction may help generate higher yields without adding undue credit or duration risk.

Complementary Within a Multi-Manager Framework

Our track record, investment approach and asset allocation has shown over time that the strategy can be complementary within a multi-manager framework.

Sustainable Strategy

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.

Peer Rankings*

 

Top 1% of Competitor Universe

Core Fixed Income Returns Since Inception

Top 3% of Competitor Universe

Core Plus Fixed Income Returns Since Inception

2018 Fixed Income Outlook Program, Asset Manager category

 

2015 Core Plus Fixed Income

  

2017 Outstanding Achievement in Fixed Income, Asset Manager category

 

2015 Core Plus Fixed Income

  


Related Fixed Income Strategies

Fixed-Income Investment Philosophy and Process

 

Key Investment Professionals

Steven Brown, CFA

CIO Total Return and Macro Strategies

Adam Bloch

Portfolio Manager

Related Resources

Contact Us

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

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Important Disclosures

*As of 03/31/2022.  Core Fixed Income since inception ranking is based on gross returns for Guggenheim’s Fixed Income Composite versus 125 competitors in the eVestment US Core Fixed Income universe. For the last 1-, 3-, 5-, 7- and 10-year periods, Core Fixed Income ranked in the top 2%, 4%, 1%, 1% and 1%, respectively, versus 223, 220, 214, 208  and 204 competitors, respectively. Prior to August 2014, the Core Fixed Income Master Composite was known as the Core Fixed Income Composite. Data taken from eVestment on 04/23/2022.

Core Plus Fixed Income since inception ranking is based on gross returns for Guggenheim’s Core Plus Fixed Income Composite versus 89 competitors in the eVestment US Core Plus Fixed Income universe. For the last 1-, 3-, 5-, 7- and 10-year periods, Core Plus Fixed Income ranked in the top 17%, 9%,8%, 5% and 1%, respectively, versus 141, 138, 129, 125 and 116 competitors, respectively. Data taken from eVestment on 04/23/2022.

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 LLC universe. eVestment Alliance LLC provides third party databases, including the institutional investment database from which the presented information was extracted. The eVestment Alliance LLC 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 eVestment Alliance LLC rankings for year to date and since inception performance of the composites is available on eVestment Alliance LLC’s website.

The WealthManagement.com Executive Forum and Industry Awards recognize the companies and organizations that support financial advisor success. The Asset Managers: Fixed Income subcategory winner is selected based on a new initiative or program, or an enhancement to an existing platform, that improves advisors’ understanding, usage and portfolio management of fixed income. Initiatives can include areas such as research tools, practice management programs, wholesaler support, service improvements, technology enhancements, etc. Criteria include quantitative measures-such as specific feature set, usage, adoption, scope, scale, advisor survey scores, etc.-along with qualitative measures such as innovation, creativity, new methods of deployment, etc. The WealthManagement.com Industry Awards program recognizes outstanding achievement by organizations that support financial advisor success. For the 2017 awards, WealthManagement.com received 470 submissions from firms across 72 awards categories. For the 2018 awards, WealthManagement.com received 600 submissions from firms across 67 awards categories. A panel of judges from the financial services industry selected the finalists and award winners. For more details, visit events.wealthmanagement.com.

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 of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners 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.