Unconstrained total-return fixed income strategy designed to deliver
attractive risk-adjusted returns in all market environments
The unconstrained Multi Credit strategy is designed to utilize the full scope of yield and return opportunities in the fixed income markets and capitalize on Guggenheim’s extensive resources.
Extensive Research Capabilities
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. Many of the securities we research are not included in traditional indices.
Active management is a key element of our strategy. Our unconstrained Multi Credit portfolios are focused in sectors and securities with the most attractive absolute and relative value. 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. The strategy’s asset allocation is constantly monitored and tactically adjusted to take advantage of changing macroeconomic conditions.
Solution for Low Yield Environment
Currently, yields for traditional fixed income securities are at historically low levels. 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.
With our expertise and extensive research capabilities, we can uncover value in under-researched market segments and help investors meet their yield and return objectives without assuming excessive credit or duration risk.
Low Correlation to Other Managers
Our investment approach has produced attractive returns that have had low correlation to traditional fixed income markets and other investment managers, making our strategy an excellent complement within a multi-manager framework.
Customizing portfolios to meet the complex challenges of our clients is a core competency of Guggenheim. We believe our Multi Credit strategy is a compelling solution in all environments and can help institutional investors successfully navigate the constantly evolving fixed income markets.
Multi Credit Composite Returns*
Top 2% of Competitor Universe Since Inception
Anne B. Walsh, JD, CFA
Assistant CIO Fixed Income
Steven Brown, CFA
*As of 09.30.2015. Multi Credit ranking based on gross returns for Guggenheim’s Multi Credit Composite versus 52 competitors in the eVestment Alliance Custom Multi Credit universe. For the last 1-, 3-, 5-and 7-year periods, Multi Credit ranked in the top 9%, 6%, 4% and 7% respectively, versus 124, 105, 80 and 58 competitors, respectively. 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.