Before you invest, you may wish to review the Funds Prospectus, which contains more information about the Fund and its risks. You may obtain
the Prospectus and other information about the Fund, including the Statement of Additional Information (SAI) and most recent reports to shareholders, at no cost by visiting http://guggenheiminvestments.com/services/prospectuses-and-reports, calling
(800) 820-0888 or e-mailing sservices@sg-investors.com. The Funds Prospectus and SAI, both dated January 28, 2013, as revised from time to time, and the Funds most recent shareholder reports, are incorporated by reference into this
Summary Prospectus.
Floating Rate Strategies Fund
INVESTMENT OBJECTIVE
The Floating Rate Strategies Fund seeks to provide a high level of current income while maximizing total return.
FEES AND EXPENSES OF THE FUND
This table
describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Family of Funds, as defined
on page 53 of the Funds prospectus. More information about these and other discounts is available from your financial professional and in the Sales Charge Class A Shares section on page 53 of the Funds prospectus and
the How to Purchase Shares section on page 48 of the Funds Statement of Additional Information.
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Class A
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Class C
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Institutional
Class
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SHAREHOLDER FEES
(fees paid directly from your investment)
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Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price)
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4.75%
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None
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None
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Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or
redemption proceeds, whichever is lower)
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None
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1%
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None
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ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your
investment)
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Management Fees
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0.65%
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0.65%
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0.65%
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Distribution and Service (12b-1) Fees
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0.25%
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1.00%
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None
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Other Expenses
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0.49%
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0.41%
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0.34%
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Interest Expense
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0.02
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%
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0.03
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%
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0.02
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%
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Remaining Other Expenses
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0.47
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%
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0.38
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%
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0.32
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%
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Total Annual Fund Operating Expenses
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1.39%
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2.06%
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0.99%
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Fee Waiver (and/or expense reimbursement)
1
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-0.33%
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-0.26%
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0.19%
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Total Annual Fund Operating Expenses After Fee Waiver (and/or expense
reimbursement)
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1.06%
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1.80%
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0.80%
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1
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The Investment Manager has contractually agreed through February 1, 2014 to waive fees to the extent necessary to limit the ordinary
operating expenses (including distribution (12b-1) fees, but exclusive of brokerage costs, dividends on securities sold short, acquired fund fees and expenses, interest, taxes, litigation, indemnification, and extraordinary expenses)
(Operating Expenses) of the Fund to the annual percentage of average daily net assets for each class of shares as follows: Class A 1.02%, Class C 1.77% and Institutional Class 0.78%. The Fund may have
Total annual fund operating expenses after fee waiver greater than the expense cap as a result of any acquired fund fees and expenses or other expenses that are excluded from the calculation. The Investment Manager is entitled to
reimbursement by the Fund of fees waived during any of the previous 36 months beginning on the date of the expense limitation agreement. The agreement will expire when it reaches its termination or when the investment adviser ceases to serve as such
(subject to recoupment rights) and it can be terminated by the Funds Board of Directors, subject to the recoupment rights of the Investment Manager.
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EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. Although the actual costs may be higher or lower, based
on these assumptions your cost would be:
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Redeemed
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Not Redeemed
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Class
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1 Year
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3 Years
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5 Years
|
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10 Years
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1 Year
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3 Years
|
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5 Years
|
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10 Years
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A
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$
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578
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$
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863
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$
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1,169
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|
|
$
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2,037
|
|
|
$
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578
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|
|
$
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863
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|
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$
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1,169
|
|
|
$
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2,037
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C
|
|
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283
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|
|
|
621
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|
|
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1,085
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|
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2,369
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|
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183
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621
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|
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1,085
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2,369
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Institutional
|
|
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82
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|
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296
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|
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529
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1,196
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82
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296
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529
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1,196
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PORTFOLIO TURNOVER
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year,
the Funds portfolio turnover rate was 61% of the average value of its portfolio.
PRINCIPAL INVESTMENT STRATEGIES
The Fund will normally invest at least 80% of its assets (net assets, plus the amount of any borrowing for investment purposes) in floating rate
senior secured syndicated bank loans, floating rate revolving credit facilities (revolvers), floating rate unsecured loans, floating rate asset backed securities (including floating rate collateralized loan obligations
(CLOs)), other floating rate bonds, loans, notes and other securities (which may include, principally, senior secured, senior unsecured and subordinated bonds), fixed income instruments with respect to which the Fund has entered into
derivative instruments to effectively convert the fixed rate interest payments into floating rate income payments, and derivative instruments that provide exposure to floating rate or variable rate loans, obligations or other securities. The loans
in which the Fund will invest, generally made by banks and other lending institutions, are made to (or issued by) corporations, partnerships and other business entities. Floating rate loans feature rates that reset regularly, maintaining a fixed
spread over the London InterBank Offered Rate (LIBOR) or the prime rates of large money-center banks. The interest rates for floating rate loans typically reset quarterly, although rates on some loans may adjust at other intervals.
The Fund invests in other fixed income instruments of various maturities which may be represented by bonds, debt securities, forwards,
derivatives or other similar instruments that the Funds Investment Manager, believes provide the potential to deliver a high level of current income. Securities in which the Fund invests also may include, corporate bonds, convertible
securities (including those that are deemed to be busted because they are trading well below their equity conversion value), fixed rate asset-backed securities (including collateralized mortgage-backed securities) and CLOs. The Fund may
invest in a variety of investment vehicles, such as closed-end funds, exchange traded funds (ETFs) and other mutual funds.
The Fund may hold securities of any quality, rated or unrated, including, those that are rated below investment grade, or, if unrated, determined to
be of comparable quality (also known as high yield securities or junk bonds). The Fund may hold below investment grade securities with no limit. The Fund may hold non-registered or restricted securities (consisting of
securities originally issued in reliance on Rule 144A and Regulation S securities). The Fund may also invest in securities of real estate investment trusts (REITs) and other real estate companies.
The Fund will principally invest in U.S. dollar denominated loans and other securities of U.S. companies, but may also invest in securities of
non-U.S. companies and non-U.S. dollar denominated loans and securities (e.g., denominated in Euros, British pounds, Swiss francs or Canadian dollars), including loans and securities of emerging market countries. The Investment Manager may attempt
to reduce foreign currency exchange rate risk by entering into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date (forward contracts).
The Fund also may seek certain exposures through derivative transactions, including foreign exchange forward contracts, futures on securities,
indices, currencies and other investments; options; interest rate swaps, cross-currency swaps, total return swaps; and credit default swaps, which may also create economic leverage in the Fund. The Fund may engage in derivative transactions for
speculative purposes to enhance total return, to seek to hedge against fluctuations in securities prices, interest rates or currency rates, to change the effective duration of its portfolio, to manage certain investment risks and/or as a substitute
for the purchase or sale of securities or currencies. The Fund may use leverage to the extent permitted by applicable law by entering into reverse repurchase agreements and borrowing transactions (principally lines of credit) for investment
purposes.
The Fund also may engage, without limit, in repurchase agreements, forward commitments, short sales and securities lending.
The Fund may, without limitation, seek to obtain exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs and or dollar rolls).
The Investment Managers investment philosophy is predicated upon the belief that thorough research and independent thought are
rewarded with performance that has the potential to outperform benchmark indexes with both lower volatility and lower correlation of returns as compared to such benchmark indexes.
The Investment Manager may determine to sell a security for several reasons including the following: (1) to adjust the portfolios average maturity, or to shift assets into or out of
higher-yielding securities; (2) if a securitys credit rating has been changed or for other credit reasons; (3) to meet redemption requests; (4) to take gains; or (5) due to relative value. The Fund will not invest in
securities that are in default at the time of investment, but if a security defaults subsequent to purchase by the Fund, the Investment Manager will determine in its discretion whether to hold or
dispose of such security. Under adverse market conditions (for example, in the event of credit events, where it is deemed opportune to preserve gains, or to preserve the relative value of investments), the Fund can make temporary defensive
investments and may not be able to pursue its objective.
PRINCIPAL RISKS
The value of an investment in the Fund will fluctuate and is subject to investment risks, which means investors could lose money. The principal risks of investing in the Fund are listed below.
Asset-Backed and Mortgage-Backed Securities Risk
Investors in asset-backed securities, including mortgage-backed
securities, generally receive payments that are part interest and part return of principal. These payments may vary based on the rate at which the underlying borrowers pay off their loans. Some asset-backed securities, including mortgage-backed
securities, may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices very volatile and they are subject to liquidity risk.
Collateralized Loan Obligations Risk
CLOs are subject to the risk of substantial losses due to actual defaults, decrease of market value due to collateral defaults and disappearance of
subordinate tranches, market anticipation of defaults, and investor aversion to CLO securities as a class. The risks of CLOs depend largely on the type of the underlying loans and the tranche of CLOs in which the Fund invests. In addition, CLOs
carry risks including interest rate risk, credit risks and default risk. Certain CLOs obtain their exposure through synthetic investments. These CLOs entail the risks of derivative instruments.
Convertible Securities Risk
The value of convertible securities tends to decline as interest rates increase. Convertible securities
generally offer lower interest or dividend yields than non-convertible securities of similar quality. The Fund could lose money if the issuer of a convertible security is unable to meet its financial obligations or goes bankrupt.
Credit Risk
The Fund could lose money if the issuer of a bond is unable to repay interest and principal on time or defaults. The
issuer of a bond could also suffer a decrease in quality rating, which would affect the volatility of the price and liquidity of the bond.
Currency Risk
The Funds indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies
will decline in value relative to the U.S. Dollar, which would cause a decline in the U.S. value of the holdings of the Fund. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons,
including changes in interest rates and the imposition of currency controls or other political, economic and tax developments in the U.S. or abroad.
Derivatives Risk
Derivatives may pose risks in addition to those associated with investing directly in securities or other investments, including possible illiquidity of the
derivative, limited ability to enter into or unwind a position, imperfect correlations with underlying investments or the Funds other portfolio holdings, leverage risk, lack of availability and the risk that the counterparty may default on its
obligations. If the Investment Manager is incorrect about its expectations of market conditions, the use of derivatives could result in a loss, which in some cases may be unlimited.
Emerging Markets Risk
Investments in emerging markets securities are generally subject to a greater level of those risks associated with investing in foreign securities, as emerging
markets are considered less developed and developing countries.
Foreign Securities Risk
Foreign securities carry
additional risks when compared to U.S. securities, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.
High Yield and Unrated Securities Risk
Higher yielding, below investment grade and unrated high risk debt securities may present
additional risk because these securities may be less liquid and present more credit risk than investment grade bonds. The price of high yield securities tends to be subject to greater volatility due to issuer-specific operating results and outlook
and to real or perceived adverse economic and competitive industry conditions.
Interest Rate Risk
Investments in
fixed-income securities are subject to the possibility that interest rates could rise sharply, causing the value of the Funds securities and share price to decline. Fixed-income securities with longer durations are subject to more volatility
than those with shorter durations.
Investment in Investment Vehicles Risk
Investing in other investment vehicles,
including ETFs, closed-end funds and other funds, subjects the Fund to those risks affecting the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the
Fund and its shareholders will incur its pro rata share of the underlying vehicles expenses.
Investments in Loans Risk
Investments in loans involve special types of risks, including
credit risk, interest rate risk, counterparty risk and prepayment risk. Loans may offer a fixed or floating interest rate. Loans are often generally below investment grade and may be unrated. Loans may be difficult to value and some can be subject
to liquidity risk.
Leverage Risk
The Funds use of leverage, through borrowings or instruments such as derivatives,
may cause the Fund to be more volatile than if it had not been leveraged.
Liquidity and Valuation Risk
In certain
circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price, or the price at which it has been valued by the Investment Manager for purposes of the Funds net asset value,
causing the Fund to be less liquid and unable to realize what the Investment Manager believes should be the price of the investment.
Management Risk
The Fund is actively managed, which means that investment decisions are made based on investment views. There is no
guarantee that the investment views will be successful. Furthermore, active trading that can accompany active management, also called high turnover, may have a negative impact on performance. Active trading may result in higher brokerage
costs or mark-up charges, which are ultimately passed on to shareholders of the Fund.
Market Risk
The market value of the
securities held by the Fund may fluctuate resulting from factors affecting the individual company or other factors such as changing economic, political or financial market conditions.
Prepayment Risk
Securities subject to prepayment risk generally offer less potential for gains when interest rates decline, because issuers of the securities may be able to prepay the
principal due on the securities, and may offer a greater potential for income loss when interest rates rise.
Real Estate Securities
Risk
The Fund may invest in securities of real estate companies and companies related to the real estate industry, including real estate investment trusts (REITs), which are subject to the same risks as direct investments in
real estate. The real estate industry is particularly sensitive to economic downturns.
Regulatory and Legal Risk
U.S. and
other regulators and governmental agencies may implement additional regulations and legislators may pass new laws that affect the investments held by the Fund, the strategies used by the Fund or the level of regulation or taxation applying to the
Fund (such as regulations related to investments in derivatives). These may impact the investment strategies, performance, costs and operations of the Fund or taxation of shareholders.
Repurchase Agreement and Reverse Repurchase Agreement Risk
In the event of the insolvency of the counterparty to a repurchase agreement or reverse repurchase agreement, recovery of the
repurchase price owed to the Fund or, in the case of a reverse repurchase agreement, the securities sold by the Fund, may be delayed. Because reverse repurchase agreements may be considered to be the practical equivalent of borrowing funds, they
constitute a form of leverage. If the Fund reinvests the proceeds of a reverse repurchase agreement at a rate lower than the cost of the agreement, entering into the agreement will lower the Funds yield.
Restricted Securities Risk
Restricted securities generally cannot be sold to the public and may involve a high degree of business,
financial and liquidity risk, which may result in substantial losses to the Fund.
PERFORMANCE INFORMATION
The following chart and table provide some indication of the risks of investing in the Fund by showing changes in the Funds Class A share
performance from year to year and by showing how the Funds average annual returns for the one year and since inception periods have compared to those of a broad measure of market performance. As with all mutual funds, past performance (before
and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available on the Funds website at www.guggenheiminvestments.com or by calling 1-800-820-0888.
The bar chart does not reflect the impact of the sales charge applicable to Class A shares which,
if reflected, would lower the returns shown.
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|
|
Highest Quarter Return
1Q 2012 4.58%
|
|
Lowest Quarter Return
2Q 2012 0.68%
|
AVERAGE ANNUAL TOTAL RETURNS
(For the periods ended December 31, 2012)
After-tax returns shown in the table are calculated using the historical highest individual federal marginal income tax rates and do not reflect the
impact of any state or local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts (IRAs). After-tax returns are shown for Class A only. After-tax returns for Class C and Institutional Class will vary.
|
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|
|
|
|
|
|
|
|
|
1 Year
|
|
|
Since
inception
1
|
|
Class A
|
|
|
|
|
|
|
|
|
Return Before Taxes
|
|
|
6.14%
|
|
|
|
5.49%
|
|
Return After Taxes on Distributions
|
|
|
4.21%
|
|
|
|
3.69%
|
|
Return After Taxes on Distributions and Sale of Fund Shares
|
|
|
3.94%
|
|
|
|
3.61%
|
|
Class C
|
|
|
9.63%
|
|
|
|
9.55%
|
|
Institutional Class
|
|
|
11.64%
|
|
|
|
10.60%
|
|
Index
|
|
|
|
|
|
|
|
|
Credit Suisse Leverage Loan Index
(reflects no deductions for fees, expenses or
taxes)
|
|
|
9.42%
|
|
|
|
9.19%
|
|
1
|
Since inception of 11/30/2011.
|
MANAGEMENT OF THE FUND
INVESTMENT MANAGER
Guggenheim Partners Investment Management, LLC, d/b/a/ Guggenheim Investments (the Investment Manager), serves as the investment manager of the Fund.
PORTFOLIO MANAGERS
B. Scott Minerd, Michael
P. Damaso, Anne B. Walsh, Kevin H. Gundersen and James W. Michal are primarily responsible for the day-to-day management of the Fund. They hold the titles of Chief Investment Officer; Senior Managing Director, Head of Trading & Portfolio
Manager; Senior Managing Director, Managing Director & Portfolio Manager; and Director & Portfolio Manager, respectively, with the Investment Manager. B. Scott Minerd, Michael P. Damaso and Anne B. Walsh have managed the Fund since
2011, and James W. Michal has managed the Fund since 2013.
PURCHASE AND SALE OF FUND SHARES
You may purchase or redeem Fund shares through your broker/ dealer, other financial intermediary that has an agreement with Guggenheim Distributors,
LLC, the Funds distributor, or through the transfer agent (by mail or telephone, if you select the
telephone option on your account application). You may purchase, redeem or exchange shares of any class of the Fund on any day the New York Stock Exchange is open for business. For Class A
and C shares, the minimum initial investment is $100. Subsequent investments must be $100 (or $20 under an Automatic Investment Plan). For Institutional Class shares, the minimum initial investment is $2 million, although the Fund may waive this
requirement at its discretion. The Institutional Class shares have a minimum account balance of $1 million, but Class A and C shares do not have a minimum account balance. Due to the relatively high cost of maintaining accounts below the
minimum account balance, the Fund reserves the right to redeem shares if an account balance falls below the minimum account balance for any reason. Investors will be given 60 days notice to reestablish the minimum account balance. If the
account balance is not increased, the account may be closed, and the proceeds sent to the investor. Fund shares will be redeemed at net asset value on the day the account is closed.
TAX INFORMATION
Fund distributions are taxable as ordinary income or capital gains (or a
combination of both), unless your investment is in an IRA or other tax-advantaged retirement account.
PAYMENTS TO BROKER/DEALERS AND OTHER FINANCIAL
INTERMEDIARIES
If you purchase the Fund through a broker/dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker/dealer or other intermediary and your sales person to recommend the Fund over
another investment. Ask your sales person or visit your financial intermediarys website for more information.
805 KING FARM BOULEVARD, SUITE 600
ROCKVILLE, MARYLAND 20850
800 820 0888
WWW.GUGGENHEIMINVESTMENTS.COM
SUMFRACI-0113x0114
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