1. Home
  2. UIT
  3. Guggenheim Short Duration High Yield Trust Series 45

Guggenheim Short Duration High Yield Trust Series 45


Investment Objective

The Guggenheim Short Duration High Yield Trust, Series 45 (“Trust”) seeks to provide current income.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price N/A
Wrap Fee Price N/A
Liquidation Price $186.30
Estimated Current Return (ECR) 5.03%
Estimated Long Term Return (ELTR) 3.49%
Estimated Current Return (Wrap Fee) 5.03%
Estimated Long Term Return (Wrap Fee) 3.49%
Accrued Interest $0.08
Principal Amount of Bonds* $185.36
Average Maturity 1.0 Years
Estimated Annual Income $9.3700


Monthly-Cash 40170X529
Monthly-Fee/Cash 40170X537


Deposit Information

Inception Date 5/26/2016
Non-Reoffered Date 8/18/2016
Ticker Symbol CGSYTX
Trust Structure RIC
Inception Unit Price $1,037.34
Inception Liquidation Price $1,006.87
Deferred Sales Charge Dates --

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 invest in a portfolio of high yield corporate securities or “junk” bonds. The Sponsor will select bonds that it believes have the best chance to meet the Trust’s investment objective over its life. The Trust may hold bonds that are issued by companies headquartered or incorporated outside the United States.

The portfolio of the Trust consists of high yield corporate debt obligations, which may include corporate bonds, mortgage- and asset-backed securities, loan participations and pass through securities. As of the initial date of deposit (the “Inception Date”), at least 80% of the bonds in the portfolio are rated below investment-grade as determined by at least one or more nationally recognized statistical rating organizations. High-yield or “junk” bonds are frequently issued by corporations in the growth stage of their development or by established companies which are highly leveraged or whose operations or industries are depressed. Obligations rated below investment-grade should be considered speculative as these ratings indicate a quality of less than investment-grade. Because high-yield bonds are generally subordinated obligations and are perceived by investors to be riskier than higher rated securities, their prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree than investment-grade bonds. See “Description of Bond Ratings” for additional information.

“Duration” is the estimated number of years required to receive the present value of future payments, both of interest and principal, of a bond. Duration is often used as an indicator of a bond’s price volatility resulting from changes in interest rates. The Sponsor considers this Trust to be a “short duration” portfolio because the average weighted duration of the bonds in the Trust is 3.7 years. The duration of the bonds in the Trust range from 1.56 to 5 years.

As a result of this strategy, the Trust is concentrated in the consumer products sector.

Selection Criteria

The Sponsor considered the following factors, among others, in selecting the bonds:

• The bonds may be rated below investment-grade by at least one or more Investment Summary 3 nationally recognized statistical rating organizations;

• The price of the bonds relative to other bonds with comparable characteristics;

• The diversification of bonds with respect to the issuer with no one issuer comprising more than 20% of the final portfolio;

• Attractiveness of the interest payments relative to bonds 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 bonds.

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:

• At least 80% of the bonds held by the Trust are rated below investment-grade and are considered to be “junk” securities. Below investment-grade obligations are considered to be speculative and are subject to greater market and credit risks, and accordingly, the risk of non-payment or default is higher than with investment-grade securities. In addition, below investment-grade bonds may be more sensitive to interest rate changes and more likely to receive early returns of principal.

• Corporate bonds are fixed rate debt obligations that generally decline in value with increases in interest rates. Foreign and U.S. interest rates may rise or fall by differing amounts and, as a result, the Trust’s investment in foreign securities may expose the Trust to additional risks. Generally, bonds with longer periods before maturity are more sensitive to interest rate changes. In addition, the duration of a bond will also affect its price sensitivity to interest rate changes. For example, if a bond has a duration of 3 years and interest rates go up by 1%, it can be expected that the bond price will move down by 3%. The Trust may be subject to greater risk of rising interest rates than would normally be the case due to the current period of historically low rates.

• Corporate bonds are subject to credit risk in that an issuer of a bond may be unable to make interest and principal payments when due. In general, lower rated bonds carry greater credit risk.

• There is no assurance that the Trust portfolio will retain for any length of time its present size and diversity. As indicated in the “Trust Portfolio,” a number of the bonds in the Trust may be called prior to their stated maturity date and will remain callable throughout the life of the Trust. A call provision is more likely to be exercised by the issuer when the offering price valuation of a bond is higher than its call price. Such price valuation is likely to be higher in periods of declining interest rates. In such cases, the proceeds from such redemptions will be distributed to unit holders. The Estimated Current Return and Estimated Long-Term Return of the units may be adversely affected by such sales or redemptions. As stated below, the size and diversity of the Trust may also be affected by the Trust’s sale of bonds to meet redemptions, for credit issues and in other circumstances. In addition, the Trust contains bonds that have “make whole” call options that generally cause the bonds to be redeemable at any time at a designated price. Such bonds are generally more likely to be subject to early redemption and may result in the reduction of income received by the Trust and the early termination of the Trust.

• The Sponsor does not actively manage the portfolio. Because the portfolio is fixed and not managed, in general, the Trust only sells bonds at the Trust’s termination or in order to meet redemptions, for tax purposes, for credit issues or to pay sales charges and expenses. As a result, the price at which a bond is sold may not be the highest price the Trust could have received during the life of the Trust.

• No assurance can be given that the Trust’s investment objective will be achieved. This objective is subject to the continuing ability of the respective issuers of the bonds to meet their obligations.

• The Trust is subject to market risk. Market value fluctuates in response to various factors. These can include changes in interest rates, inflation, the financial condition of a bond’s issuer, perceptions of the issuer, ratings on a bond, or political or economic events affecting the issuer.

• An issuer or an insurer of the bonds may be unwilling or unable to make principal payments and/or interest payments in the future, may call a security before its stated maturity or may reduce the level of payments made. In addition, there is no guarantee that the issuers will be able to satisfy their interest or principal payment obligations to the Trust over the life of the Trust. This may result in a reduction in the value of your units.

• The Trust includes restricted bonds. Restricted bonds are issued under Rule 144A of the Securities Act of 1933, as amended, and may only be resold in privately negotiated transactions pursuant to federal securities laws or in a public offering with respect to which a registration statement is in effect under the Securities Act. As a result, such bonds may not be readily marketable. In addition, certain restricted bonds may be illiquid.

• 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.

• The income generated by the Trust may be reduced over time in response to bond sales, changes in distributions paid by issuers, unit redemptions and expenses.

• The Trust is concentrated in the consumer products sector. As a result, the factors that impact the consumer products sector will likely have a greater effect on this Trust than a more broadly diversified Trust. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector.

• The Trust invests in foreign securities. Securities of foreign issuers present risks beyond those of domestic securities. The Trust’s investment in companies that do significant business in foreign countries presents additional risk. Securities of such companies are subject to the risk that foreign countries may be more volatile than the United States due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.

• Certain bonds in the Trust may have been purchased by the Sponsor on a “when issued” basis. Bonds purchased on a “when issued” basis have not yet been issued by the issuer on the Inception Date (although such issuer has committed to issue such bonds). The effect of the Trust holding a “when issued” bond is that unitholders who purchase their units prior to the delivery date of such bond may have to make a downward adjustment in the tax basis of their units. Such downward adjustment may be necessary to account for interest accruing on such “when issued” bond during the time between their purchase of units and delivery of such bonds to the Trust.

• The Trust may sell bonds to meet redemptions, to pay expenses, for credit issues and in other circumstances. Accordingly, the size, diversity, composition, returns and income generated by the Trust may be adversely affected. In addition, such sales of bonds may be at a loss. If such sales are substantial enough, provisions of the Trust’s indenture could cause a complete and unexpected liquidation of the Trust before its scheduled maturity, resulting in unanticipated losses for investors.

• Certain bonds included in the Trust may be original issue discount bonds or “zero coupon” bonds, as noted in “Trust Portfolio.” These bonds may be subject to greater price fluctuations with changing interest rates and contain additional risks.

• Certain bonds in the Trust may be subject to liquidity risk. The principal trading market for the bonds in the Trust will generally be in the over-the-counter market. As a result, the existence of a liquid trading market for the bonds may depend on whether dealers will make a market in the bonds. There can be no assurance that a market will be made for any of the bonds, that any market for the bonds will be maintained or of the liquidity of the bonds in any markets made. The price at which the bonds may be sold to meet redemptions and the value of the Trust will be adversely affected if trading markets for the bonds are limited or absent.

• Inflation may lead to a decrease in the value of assets or income from investments.

See “Investment Risks” for additional information.

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.