Business & Finance
Business and Finance
Business and Finance
Thu, October 27, 2011 Guggenheim Equal Weight Enhanced Equity Income Fund Raises $175 Million from IPO
LISLE, Ill.--([ BUSINESS WIRE ])--Guggenheim Equal Weight Enhanced Equity Income Fund (the aFunda) (NYSE: GEQ), a closed-end management investment company, announced that it has priced its initial public offering of common shares. The Fundas common shares will begin trading on the New York Stock Exchange today under the symbol aGEQ.a The offering is scheduled to close on October 31, 2011.
The Fundas investment objective is to provide a high level of risk-adjusted total return with an emphasis on current income. The Fund seeks to achieve its investment objective primarily through a two-part strategy. The Fund will invest, under normal circumstances, substantially all of its managed assets in a portfolio of common stocks included in the S&P 500 Equal Weighta" Index. In addition, the Fund will utilize a call option writing strategy to seek to generate current income and potentially mitigate overall portfolio volatility. The Fund anticipates using leverage, which may have the effect of increasing the Fundas overall portfolio volatility. Under normal market conditions, the Fund seeks overall portfolio volatility that, after giving effect to the Fundas option writing strategy and use of leverage, approximates that of the broad equity market. There can be no assurance that the Fund will achieve its investment objective or be able to structure its investments as anticipated.
The Fund offered 8,750,000 million shares at a price of $20 per share, representing an aggregate public offering price of $175 million, through an underwriting syndicate led by Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and RBC Capital Markets, LLC. The underwriters have the right to exercise an overallotment option which could increase the number of shares outstanding by approximately as much as 15% within the next 45 days.
Guggenheim Funds Investment Advisors, LLC (aGuggenheim Fundsa) will serve as the Fundas investment adviser. Security Investors, LLC (aSecurity Investorsa or the aEquity Portfolio Sub-Advisera) serves as the Fundas investment sub-adviser responsible for the management of the Fundas portfolio of equity securities. Guggenheim Partners Asset Management, LLC (aGPAMa or the aOptions Strategy Sub-Advisera and, together with the Equity Portfolio Sub-Adviser, the aSub-Advisersa) serves as the Fundas investment sub-adviser responsible for the management of the Fundas options strategy. Each of the Adviser and the Options Strategy Sub-Adviser is a subsidiary of Guggenheim Partners, LLC (aGuggenheim Partnersa). The Equity Strategy Sub-Adviser is currently a subsidiary of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners. On September 21, 2011, Guggenheim Capital, LLC, the parent company of Guggenheim Partners, agreed to purchase Security Benefit Asset Management Holdings, LLC, the indirect holding company of the Equity Strategy Sub-Adviser, from Security Benefit Corporation.
Guggenheim Funds offers strategic investment solutions for financial advisors and their valued clients. As an innovator in exchange-traded funds (ETFs), unit investment trusts (UITs) and closed-end funds (CEFs), Guggenheim Funds often leads its peers with creative investment strategy solutions. Guggenheim Funds provides supervision, management or servicing of assets with a commitment to consistently delivering exceptional service. Guggenheim Funds is a subsidiary of Guggenheim Partners, LLC (aGuggenheim Partnersa), a privately held global financial services firm with more than $125 billion in assets under management. Guggenheim Partners provides asset management, investment banking and capital markets services, insurance, institutional finance and investment advisory solutions to institutions, governments and agencies, corporations, investment advisors, family offices and individuals. Guggenheim Partners employs more than 1,700 individuals and serves clients from more than 25 cities across the United States, Europe and Asia. Guggenheim is headquartered in Chicago and New York.
This information does not represent an offer to sell securities of the Fund and it is not soliciting an offer to buy securities of the Fund. There can be no assurance that the Fund will achieve its investment objective. The net asset value of the Fund will fluctuate with the value of the underlying securities. It is important to note that closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value. The risk of loss due to this discount may be greater for initial investors expecting to sell their shares in a relatively short period after the completion of the public offering. Past performance is not indicative of future performance. An investment in closed-end funds is subject to investment risk, including the possible loss of the entire amount that you invest. An investment in the Fund is subject to certain risks and other considerations. Such risks and considerations include, but are not limited to: No Operating History, Not a Complete Investment Program Risk, Investment and Market Risk, Management Risk, Common Stock Risk, Concentration Risk, Options Risk, Financial Leverage Risk, Strategic Transactions Risk, Counterparty Risk, Synthetic Investment Risk, Investment Funds Risk, Inflation/Deflation Risk, Volatility Risk, Tax Risk, Recent Market Developments Risk, Market Discount Risk, U.S. Credit Rating Downgrade Risk, Legislation and Regulation Risk, Portfolio Turnover Risk, Securities Lending Risk, Market Disruption and Geopolitical Risk and Anti-Takeover Provisions Risk. See [ www.guggenheimfunds.com/GEQ ] for a detailed discussion of fund-specific risks.
The offering of these securities is being made only by means of a prospectus.This press release does not constitute an offer to sell or a solicitation to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
A registration statement relating to these securities was filed with, and has been declared effective by, the Securities and Exchange Commission. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus or registration statement.
Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment before they invest. The prospectus contains this and more information. The prospectus should be read carefully before investing. For a copy of the prospectus, please contact a securities representative or Guggenheim Funds Distributors, Inc., 2455 Corporate West Drive, Lisle, Illinois 60532, 800-345-7999. Investors may also obtain a prospectus free of charge from the Securities and Exchange Commissionas website at [ www.sec.gov ].
Member FINRA/SIPC (10/11)
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE
