Interview Highlights

Assistant Chief Investment Officer for Fixed Income Securities
Guggenheim Partners Investment Management

Guggenheim uses the phrase “core conundrum” when describing the challenges of today’s fixed-income environment. Explain what that means.
Sure. The core conundrum is where fixed income investors are looking to achieve yield and income in a very low income environment. Right now, the Barclays Aggregate Index is not really a source of high yield or potential returns. And the risk of rising rates puts those investors in jeopardy of losses in the future.

How does Guggenheim’s approach seek to solve this issue?
Guggenheim uses an active fixed income management approach to solve for the core conundrum. What we do is look to non-indexed assets to add yield into the portfolios.

What I’m talking about is the fact that in the U.S. fixed income markets there are about 37 trillion dollars of fixed income assets available. Less than half of those appear in the Barclays Aggregate Index, leaving a tremendous dollar amount of fixed income assets available for investments.

Our objective is to use those investments to try and add value to our portfolios. And I think you can see that it really does work.

Senior Managing Director and Head of Intermediary Distributions
Guggenheim Partners Investment Management

Which ETF is being recognized on the New York Stock Exchange today?
Today we’re recognizing GTO, Guggenheim’s Total Return Bond ETF.

Guggenheim Investment is dedicated to providing access to our award winning investment management, no matter how investors want to invest. So we offer a full line of separately managed accounts, mutual funds, and now ETFs, too, to provide that access.

Tell us about the Guggenheim ETF business.
Sure! The Guggenheim ETF business is about $30 Billion dollars – we’re one of the top ETF providers in America. And we’ve had a tradition of providing innovation and great strategies for clients.

Since 2003 we’ve been delivering ETFs like our RSP, the equally weighted S&P 500 ETF, which was really one the first smart beta ETFs offered. Our target maturity bond ETFs, which allow investors to invest in defined maturity ladders of bonds and pure styles, are another smart beta type of approach to providing pure exposures to both value and growth offerings.

Now we’re really excited to extend that to GTO, which provides access, as I said, to our award winning fixed income active management.

Can you tell us about the history of Guggenheim?
Guggenheim Investment Management and Guggenheim Partners sprung from the Guggenheim family. And it’s really nice to be here at the New York Stock Exchange because there’s so much rich history here. This is where the investment market started in America, and the Guggenheims, for over 100 years, have been part of that success. So we’re really happy to share this day with you.

How does it feel to be on the floor of the New York Stock Exchange?
We are really excited to expand the reach of our investment management to all investors. And Guggenheim’s Total Return Bond Fund, GTO, is part of that expansion of our reach.

And we couldn’t think about doing it with a better partner than the New York Stock Exchange. We share your commitment to being excellent at what you do – whether it’s listing or trading – and we strive for the same excellence that you do. So thank you very much.

Guggenheim on the Trading Floor

Listen to Anne Walsh and Doug Mangini of Guggenheim Partners Investment Management Discuss Fixed Income Active Management