The Advisory Series: Guggenheim Investment Grade Corporate Trust 3-7 Year, Series 1 ("Trust") seeks to provide a high level of current income and to preserve capital.
|Wrap Fee Price||N/A|
|Estimated Current Return (ECR)||3.48%|
|Estimated Long Term Return (ELTR)||0.47%|
|Principal Amount of Bonds*||$780.08|
|Average Maturity||2.3 Years|
|Estimated Annual Income||$28.8900|
Estimated Annual Income per Unit does take into account the impact of the sale of bonds to pay for the deferred sales charge. Estimated Annual Income per Unit is computed by dividing the estimated annual income of the underlying bonds by the number of units outstanding. The amount may be lower or greater than the above-stated amount due to certain factors that may include, but are not limited to, the selling of bonds to pay for the deferred sales charge, a change in Trust expenses or the sale or maturity of securities in the portfolio. Fees and expenses of the Trust may vary as a result of a variety of factors including the Trust's size, redemption activity, brokerage and other transaction costs and extraordinary expenses.
* Represents the principal amount of the underlying bonds and any cash held in the Trust and does not take into account the impact of the sale of bonds to pay the deferred sales charge or any expenses of the Trust. Bonds will be sold to pay the deferred sales charges, to meet redemptions, to pay expenses and in other limited circumstances. The sale of bonds will affect the principal amount of bonds included in the Trust and the principal amount of bonds per unit. Units of the Trust, when redeemed or upon termination, may be worth more or less than their original cost and there can be no assurance that a unitholder will receive the principal amount of bonds at any particular point in time.
Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
Principal Investment Strategy
The Trust will primarily consist of a portfolio of investment-grade corporate debt obligations with a dollar-weighted average maturity of between 3-7 years from the Trust’s initial date of deposit (the “Inception Date”). As of the Inception Date, the Trust’s dollar-weighted average maturity is 5.142 years. The Sponsor will select debt obligations that it believes have the best chance to meet the Trust’s investment objective over its life.
As of the Inception Date, at least 80% of the value of the Trust’s assets consists of investment-grade corporate debt obligations maturing in approximately 3-7 years. While the portfolio of the Trust consists primarily of corporate debt obligations, it may also include U.S. government bonds, debt obligations offered by real estate investment Trusts, sovereign foreign bonds, mortgage- and asset-backed securities and loan participations. Corporate debt obligations are fully taxable debt obligations issued by corporations to finance their operations. The portfolio may hold debt obligations with a maturity of less than three years or greater than seven years. Investment-grade securities will be those securities rated investment-grade quality (i.e., in the category of BBB/Baa or higher) by at least one nationally recognized statistical rating organization or, if unrated, deemed to be of comparable credit characteristics by the Sponsor. Such rating relates to the underlying securities and not the Trust or the value of the units, which will fluctuate. For purposes of the Trust’s 80% policy, the Sponsor believes that any unrated corporate debt obligation held by the Trust would have been rated investment-grade if it was rated by a nationally recognized statistical rating organization. There can be no assurance that any security contained in the Trust will retain an investment-grade rating for the life of the Trust. See “Description of Bond Rating” for additional information. As a result of this strategy, the Trust is concentrated in the financials sector.
The Sponsor has selected Guggenheim Partners Investment Management, LLC (“GPIM”), a subsidiary of Guggenheim Partners, LLC, to assist the Sponsor with the selection of the Trust’s portfolio.
The Sponsor considered the following factors, among others, in selecting the debt obligations:
• All ratings provided for the debt obligations must be rated as investment-grade or above by at least one nationally recognized statistical rating organization or in the case of a debt obligation with no issued ratings, such a debt obligation has credit characteristics similar to those of comparable debt obligations that were rated so as to be acceptable for acquisition by the Trust in the opinion of the Sponsor. For purposes of the Trust’s 80% policy, the Sponsor believes that any unrated corporate debt obligation held by the Trust would have been rated investment-grade if it was rated by a nationally recognized statistical rating organization;
• The price of the debt obligations relative to other debt obligations with comparable characteristics;
• The diversification of debt obligations with respect to the issuer with no one issuer comprising more than 20% of the final portfolio;
• Attractiveness of the interest payments relative to debt obligations with similar characteristics; and
• The potential for early return of principal or any event risk which could have a negative impact on the price of the debt obligations.
Following the Inception Date, a debt obligation may cease to be rated or its rating may be reduced, even to below investment-grade, and the Trust could continue to hold such debt obligation.
Risks and Other Considerations
As with all investments, you may lose some or all of your investment in the Trust. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these:
• The financial condition of an issuer or an insurer of the bonds may worsen or its credit ratings may drop, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period. There can be no assurance that any security contained in the Trust will retain an investment-grade rating for the life of the Trust. As the Trust is unmanaged, a downgraded security will remain in the portfolio.
Please see the Trust prospectus for more complete risk information.
Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.
Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.
Investing involves risk, including the possible loss of principal.
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. Securities offered through Guggenheim Funds Distributors, LLC.
© 2021 Guggenheim Investments. All Rights Reserved.
Research our firm with FINRA Broker Check.
• Not FDIC Insured • No Bank Guarantee • May Lose Value
This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation. Investing involves risk, including the possible loss of principal.