Core and Core Plus Fixed Income
Multi-sector approach designed to meet our clients’ core and core plus
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.
Strong Track Record*
Our strategy has a track record of delivering attractive results: Guggenheim's returns rank in top 1% for the last 1-, 3- and 5- year periods, while the strategy's information ratio ranks in the top 4% or better over the same time periods.
Guggenheim Uncovers Value Across Full Fixed Income Spectrum
The Barclays U.S. Aggregate Index represents less than half of the U.S. bond market and excludes approx. $20 trillion of securities. Accordingly, we perform rigorous, bottom-up research to uncover the most attractive risk-adjusted return opportunities across the entire fixed income spectrum, including investment grade corporates, high yield, bank loans, asset-backed securities and CLOs, non-agency residential mortgage-backed securities, commercial mortgage-backed securities, commercial real estate debt, municipals, agency residential mortgage-backed securities, and Treasury and agency securities. Focusing on relative value rather than the weights of a generic market index enables us to construct portfolios that are better suited to meet the return, yield and risk objectives of institutional investors.
Read our Fixed Income Outlook to learn more about how we are currently positioning portfolios to capitalize on relative value.
Segregation of Responsibilities Mitigates Behavioral Biases
A key component of our investment philosophy is the belief that investment decisions can be detrimentally influenced by the cognitive biases identified by behavioral finance. To avoid these biases, we have structured our investment process using specialist functions for Sector / Security Research, Macroeconomic Research, Portfolio Construction and Portfolio Management.
Low Correlation to Other Managers
Our security selection and sector allocation differentiate us from other managers, making our strategy an excellent complement within a multi-manager framework.
Repeatable, Scalable Approach
With our disciplined, systematic investment process and unique organizational structure, we believe that our Core and Core Plus Plus Fixed Income strategies are compelling solutions in all environments and can help institutional investors navigate the challenging fixed income landscape.
Core Fixed Income Composite Returns*
Top 1% of Competitor Universe Since Inception
Anne B. Walsh, JD, CFA
Assistant CIO Fixed Income
*All rankings as of 09.30.2015. Core Fixed Income return and information ratio rankings based on gross returns for Guggenheim’s Core Fixed Income Master Composite in the eVestment Alliance U.S. Core Fixed Income universe. For the last 1-, 3-, and 5-year periods, Core Fixed Income returns ranked in the top 1%, 1%, and 1%, while the information ratio ranked in the top 4, 1% and 1% versus 249, 248, and 244 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 11.06.2015. 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.
Risk Considerations: 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.