Note to Clients: Meeting An Historic Challenge

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Tonight, we stand at the precipice of an historic challenge. Nothing in our collective experience compares to the circumstances that we now face.

The soundness and safety of our lives and those of our friends and families is threatened in a fashion which is uncommon in our history though not unprecedented. The Spanish Influenza and the polio epidemic stand as examples where we have pulled together to not only survive but ultimately conquer the threat to our common welfare.

I encourage everyone to practice the appropriate prudence for the protection not only of your health and that of your friends and loved ones but also for our neighbors and communities.

I take solace in the fact that our robust investment process is delivering strong results for clients. We have maintained the discipline of our investment process, which was based on the belief that investors simply were not being compensated for taking on credit risk. As spreads grew tighter we moved up in credit quality, confident that markets were not pricing in the rising downgrade and default risk. Our refusal to take on that risk at the wrong time meant that for a short period we would underperform those managers who did. But I believe that our prudence has positioned us to take advantage of opportunities that are now being afforded by a repricing of risk assets on behalf of our clients.

The coronavirus has spread beyond Asia to virtually every country in the world, and the pandemic will have a stifling effect on global growth. The Federal Reserve is doing all it can to provide liquidity to the markets and ensure stable financial conditions, but no amount of rate-cutting or quantitative easing will make a difference in the progress of the virus. Until the spread of the disease is arrested, we will be in uncharted waters as to the length and severity of the human and economic impact.

We are committed to the safety and prosperity of our clients, our employees, and our shareholders. The resources of the firm are being made fully available not only to support our clients, but also to support our employees and their families.

In this remarkable period in our history, we must renew our resolve to the commitment to always do that which is true and noble for all. Together, we can meet this historic challenge.

Important Notices and Disclosures

This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

This material contains opinions of the author, but not necessarily those of Guggenheim Partners, LLC or its subsidiaries. The opinions contained herein are subject to change without notice. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information.

One basis point is equal to 0.01 percent.

Investing involves risk, including the possible loss of principal. Investments in fixed-income instruments are subject to the possibility that interest rates could rise, causing their values to decline. High yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility.

Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.

©2020, Guggenheim Partners, LLC. No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of Guggenheim Partners, LLC.

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