Guggenheim Floating Rate Strategies Fund


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Floating Rate Strategies (GIFIX) won for the 3-year time period within the Loan Participation Fund classification. (3-year period among 164 funds).

Overall Morningstar Rating™

Based on risk-adjusted returns out of 212 Bank Loan funds. As of 3.31.2016 (Institutional Class).

The Guggenheim Floating Rate Strategies Fund (the "Fund") invests primarily in bank loans and other senior secured floating rate securities—a distinct segment of the market that may offer opportunities for investors seeking an alternative to traditional fixed income securities. The Fund utilizes a rigorous, risk-managed strategy with bottom-up, research-intensive security selection in an effort to capitalize on current relative-value investment opportunities.

  • Maximize Current Income: By investing in securities whose interest rates float above prevailing short-term rates, the Fund offers the potential for income, particularly when interest rates are rising. Investors should note, if short-term interest rates decline, the interest earned on floating-rate securities will decline as well.
  • Hedge Interest Rate and Inflation Exposure: Unlike bonds, floating rate securities generally have low price sensitivity to interest rates and are positively correlated to inflation. For these reasons, the Fund may help mitigate the risks inherent with a traditional bond portfolio in a rising interest rate and inflationary environment.
  • Lower Portfolio Volatility: The Fund may enhance the diversification¹ of both stock and bond portfolios, potentially reducing a portfolio's overall volatility.

Guggenheim's Gundersen: The biggest misconceptions about floating rate bank loan funds

InvestmentNews, October 2015
Kevin Gundersen of Guggenheim describes how floating rate bank loan funds can provide protection against two key investment risks, and tries to debunk the biggest misconceptions keeping investors away from the asset class.

Portfolio Management Team

  • B. Scott Minerd, Chairman of Investments and Global Chief Investment Officer
  • Anne B. Walsh, Senior Managing Director and Assistant Chief Investment Officer
  • Kevin H. Gundersen, Senior Managing Director and Portfolio Manager
  • James W. Michal, Managing Director and Portfolio Manager
  • Thomas J. Hauser, Managing Director and Portfolio Manager

¹ Diversification neither assures a profit or eliminate risk.

Source: Morningstar

Past performance is no guarantee of future results.

The Floating Rate Strategies Fund Institutional class was rated, based on its risk-adjusted returns, 5 stars for the overall and 5 stars for the 3-year periods among 212 and 212 Bank Loan funds.

The Overall Morningstar Rating for a Fund is derived from a weighted average of the performance figures associated with its three-, five-and ten year (if applicable) Morningstar Rating metrics. The rating includes effects of sales charges, loads and redemption fees, while the load waived rating does not. Load-waived rating should only be considered by investors who are not subject to a front-end sales charge. Load-waived A share star ratings are intended for those investors who have access to such purchase terms. Please read a current prospectus for more information. For each Fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance placing more emphasis on downward variations and rewarding consistent performance. With load ratings include the effect of sales charges, loads and redemption fees. Load waived ratings exclude sales charges, loads and redemption fees, and are only applicable to investors not subject to sales charges. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each A-Class share is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Ratings for other share classes may differ due to different performance characteristics. The Fund’s ratings reflects fee waivers in effect; in their absence, ratings may have been lower.

Morningstar Rankings do not include the effect of a fund’s sales load, if applicable. Other share classes may have different performance characteristics. Morningstar rankings are based on a fund’s average annual total return relative to all funds in the same Morningstar category. Fund performance used within the rankings, reflects certain fee waivers, without which, returns and Morningstar rankings would have been lower. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Multiple share classes of a fund have a common portfolio but impose different expense structures.

©2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary of Morningstar and /or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, nor its content providers, are responsible for any damages or losses arising from any use of its information.

Source: Lipper, Inc. The Best Fixed Income—Small Fund Group award is granted to the fund family with the lowest average decile ranking for Consistent Return over the 3-year period. To qualify, a fund family must have at least three fixed income funds and less than $58 billion and $52.6 billion in assets under management for 2014 and 2015, respectively. Guggenheim Funds ranked 1 out of 74 for 2015 and 1 out of 73 for 2014 eligible companies. The Best Loan Participation Fund award is granted to the fund in the Loan Participation category with the highest Lipper Leader score for Consistent Return over the 3-year period as of 11.30.2015. Other share classes may have different performance and expense characteristics. Lipper awards are granted annually to the funds in each Lipper classification that achieve the highest score for Consistent Return, a measure of funds’ historical risk-adjusted returns, relative to peers.

Lipper, a wholly owned subsidiary of Thomson Reuters, is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.

The Funds may not be suitable for all investors. • The Funds' market value will change in response to interest rate changes and market conditions, among other factors. In general, bond prices rise when interest rates fall and vice versa. • You may have a gain or loss when you sell your shares. • It is important to note that the Funds are not guaranteed by the U.S. government. • The Funds may have exposure to high yield securities, municipal securities, floating rate securities, foreign securities, derivative instruments, real estate, commodity markets and other fixed income securities. • Exposure to high yield securities may subject a Fund to greater volatility. • Investments in municipal securities can be affected by events that affect the municipal bond market. • Investments in syndicated bank loans generally offer a floating interest rate and involve special types of risks. • Investments in foreign securities carry additional risks when compared to U.S. securities due to the impact of diplomatic, political or economic developments in the country in question (investments in emerging markets securities are generally subject to an even greater level of risk). • Investments in derivative instruments can be more volatile and less liquid, increasing the risk of loss when compared to traditional securities. Certain of the derivative instruments are also subject to the risks of counterparty default and adverse tax treatment. • Investments in real estate securities subjects a Fund to the same risks as direct investments in real estate, which is particularly sensitive to economic downturns. • When market conditions are deemed appropriate, the Funds may use leverage to the full extent permitted by their investment policies and restrictions and applicable law. Leveraging will exaggerate the effect on net asset value of any increase or decrease in the market value of the Fund‘s portfolio. • Please see each Fund’s prospectus for more information on these and other risks.

©2016 Guggenheim Investments. All Rights Reserved.

• Not FDIC Insured • No Bank Guarantee • May Lose Value

Read the fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and 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.

The referenced funds are distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), which includes Guggenheim Partners Investment Management ("GPIM") and Security Investors, LLC ("SI"), the investment advisors to the referenced funds. Guggenheim Funds Distributors, LLC, is affiliated with Guggenheim, SI, and GPIM.