Guggenheim Floating Rate Strategies Fund Class A (GIFAX)

Overview

This fund focuses on investments in a variety of floating rate financial instruments. It prioritizes assets that are expected to provide income through interest payments, which are variable and adjust with market rates. This approach is designed to manage interest rate risk, making the fund particularly suitable for investors who are concerned about inflation or increases in interest rates affecting their returns. The investment portfolio includes a broad range of instruments such as senior secured syndicated bank loans, asset-backed securities, and derivatives, aiming to diversify across different sectors and borrowers to mitigate risk.

Products and Services

• Floating Rate Senior Secured Syndicated Bank Loans

  These are loans provided by a group of financial institutions to companies and are secured against the borrowers' assets. They offer variable interest rates, adjusting with market rates, thus offering protection against interest rate rises.

• Floating Rate Revolving Credit Facilities

  This product refers to credit lines extended to borrowers, allowing them to draw, repay, and redraw loans advanced against them within a set credit limit. Interest rates on these facilities adjust in relation to the market rates.

• Floating Rate Unsecured Loans

  Unlike secured loans, these do not require collateral from the borrower, but they still offer interest rates that adjust with the market. They generally carry a higher risk and, consequently, a higher interest rate than secured loans.

• Floating Rate Asset Backed Securities

  These securities are bonds or notes backed by financial assets—typically loans or receivables—that provide regular payments, which fluctuate according to the interest rate movements.

• Other Floating Rate Bonds, Loans, Notes, and Securities

  The fund also invests in a variety of other floating rate financial instruments, further diversifying its portfolio and sources of income, and shielding investors from fixed rate vulnerabilities.

• Fixed Income Instruments

  Although the focus is on floating rate instruments, the fund maintains a position in fixed income instruments to ensure a diversified investment strategy. These instruments provide a constant stream of income, unaffected by interest rate changes.

• Derivative Instruments

  These financial contracts derive their value from an underlying asset or benchmark. The fund uses derivatives to gain exposure to floating rate or variable rate loans, obligations, or other securities, offering a form of hedging against various investment risks.