NEW YORK, June 26, 2012 (GLOBE NEWSWIRE) -- Guggenheim Partners, LLC ("Guggenheim"), a global diversified financial services firm, today announced the launch of the Transparent Value Dow Jones RBP® Directional Allocation Index Fund. The fund employs an index-of-indexes structure, seeking to replicate the performance of the Dow Jones RBP® Directional Allocation Index Fund.
The new fund is based on the recently launched Dow Jones RBP® Directional Allocation Index, which consists of various combinations of the three Dow Jones RBP® Directional Indexes: Aggressive 50 Index, Market 50 Index and Defensive 50 Index.1 The fund uses these indexes to position the portfolio for changing market cycles, and can allocate up to 100% in cash if warranted, in an attempt to maximize asset protection, or allocate up to 100% in an aggressive portfolio to take advantage of bull markets. The fund employs an innovative stock valuation methodology called Required Business Performance® (RBP®) with the goal of modulating equity market risk.
"Research has proven that investors often react to market movements and volatility with emotion, which may lead to poor timing decisions," said Julian Koski, Co-Chief Executive Officer and Director of Portfolio Strategy for Transparent Value. "Our goal is to replace the investor thought process and break that cycle of emotional investing."
Transparent Value's RBP® Methodology measures a company's ability to deliver the revenue required to justify its stock price. The methodology avoids behavioral risk, which Transparent Value defines as the misalignment between the stock price and management's ability to deliver the Required Business Performance. The RBP® Methodology enables the Fund to provide the transparency that investors seek – now more than ever due to the severity of the recent market downturn and the desire to invest in securities that are less risky and produce more consistent returns.
With increasing numbers of baby boomers facing retirement without the luxury of much time to grow their wealth, there is a demand for products that offer both exposure to equities and protection from massive drawdowns. The new fund seeks to meet the needs of this set of investors, as well as others seeking downside protection, a crucial element of a diversified portfolio strategy.
The Transparent Value Dow Jones RBP® Directional Allocation Index Fund uses a technical overlay that considers three primary signals to make beta2 allocation decisions. These three signals are based on well-known market indicators, including consumer sentiment, economic conditions and the market's momentum. The fund also uses secondary signals to test the validity of the primary signals.
"Given the unprecedented market volatility we've experienced over the last few years, managing equity risk has become more important than ever, and investors should be compensated for the risks they take," said Koski, who manages the fund along with portfolio manager Scott Hammond. "The Directional Allocation Index Fund is a solution advisors can use to help their clients realize the potential of equity returns with the added benefit of actively striving to avoid large draw downs."
In addition to this new fund, Transparent Value offers three series of equity mutual funds: Directional Funds, Style Funds and Dividend Funds, all of which use a Dow Jones RBP® Index. The Directional funds are large-cap strategies with stocks filtered on the basis of beta and RBP® Probability. The Style Funds are large-cap funds focused on either growth or value stocks with high RBP® probabilities, as well as a core fund consisting of both growth and value stocks. The Dividend Fund consists of large-cap and mid-cap stocks with high dividend yields.
About Transparent Value
Transparent Value, a Guggenheim Partners company, is an equity boutique with a highly differentiated and disciplined investment approach. Using a fact-driven, forecast-free approach to analysis, its proprietary Required Business Performance® (RBP®) Methodology aims to provide investors with market outperformance by seeking to invest in the companies with the highest likelihood of delivering the Required Business Performance® to support the stock price, while avoiding the companies with the most behavioral risk. For information, please visit www.transparentvalue.com
About Guggenheim Partners
Guggenheim Partners is a privately held global financial services firm with more than $160 billion in assets under management. The firm 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 is headquartered in New York and Chicago and serves clients around the world from more than 25 offices in nine countries. For more information about Guggenheim Partners, visit www.guggenheimpartners.com.
RISKS: The Fund is brand new and has limited operating history. The Fund seeks to track a quantitative strategy index, and as a result the Fund may have a lower return. An investment in the Transparent Value Funds involves risk, including loss of principal. Since the Fund invests in securities comprising an index created by a proprietary model, the Fund may have a lower return than if the Fund were managed using a fundamental or index-based strategy that did not incorporate quantitative analysis. Moreover, the Fund is non-diversified and as a result may have greater exposure to volatility than other funds.
- The Dow Jones RBP U.S. Large-Cap 50 Aggressive IndexSM measures the 50 top U.S. large-cap stocks ranked by RBP® probability. Components also have high momentum and above-average beta factors as measured in accordance with the methodology set forth in the Guide to the Dow Jones RBP Directional Series IndexesSM. The Dow Jones RBP U.S. Large-Cap 50 Market IndexSM measures 50 top U.S. large-cap stocks ranked by RBP® probability. Components also have high momentum and beta factors close to one as measured in accordance with the methodology set forth in the Guide to the Dow Jones RBP Directional Series IndexesSM. The Dow Jones RBP U.S. Large-Cap 50 Defensive IndexSM measures 50 top U.S. large-cap stocks ranked by RBP® probability. Components also have high momentum and below-average beta factors as measured in accordance with the methodology set forth in the Guide to the Dow Jones RBP Directional Series IndexesSM.
- Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
Transparent Value®, RBP®, Required Business Performance®, and the Transparent Value logo are registered trademarks of Transparent Value, LLC or one of its subsidiaries. "See the market clearly" is a trademark of Transparent Value, LLC and its affiliates. Other featured words or symbols used to identify the source of goods and services may be the trademarks of their respective owners. No claim is made that RBP® can, in and of itself, be used to determine which securities to buy or sell, or when to buy or sell them. Transparent Value, LLC ("Transparent Value") is a subsidiary of Guggenheim Partners, LLC.
This material is intended to inform you of products and services offered by Transparent Value and not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security or fund interest.
No assurance can be given that the investment objectives described herein will be achieved. The views expressed in this press release are the views of Transparent Value and are subject to change without notice based on market and other conditions. The opinions expressed may differ from those of other entities affiliated with Transparent Value that use different investment philosophies. The views and strategies described herein may not be suitable for all investors. This material is distributed with the understanding that it is not rendering accounting, legal or tax advice. Please consult your legal or tax advisor concerning such matters.
"Dow Jones Indexes" is a licensed service mark of CME Group Index Services LLC ("CME Indexes"). "Dow Jones®", "Dow Jones Indexes", "Dow Jones U.S. RBP® Indexes" are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones"), and have been licensed for use by CME Indexes. "CME" is a trademark of Chicago Mercantile Exchange Inc. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Dow Jones, CME Indexes, Transparent Value or any of their respective affiliates on the investment merits of such company. None of Dow Jones, CME Indexes, Transparent Value or any of their respective affiliates is providing investment advice in connection with these indexes.
Transparent Value Mutual Funds are distributed by ALPS Distributors, Inc. Guggenheim Funds Distributors, Inc is the marketing agent for Transparent Value Mutual Funds. Guggenheim Funds Distributors, Inc is a member of SIPC. Transparent Value Mutual Funds, Transparent Value, LLC and Guggenheim Funds Distributors, Inc. are subsidiaries of Guggenheim Partners, LLC
Investors should consider the investment objectives, risks, charges and expenses of the Transparent Value Mutual Funds carefully before investing. To obtain a prospectus containing this and other information on Transparent Value Mutual Funds, please contact 1.888.727.6885 or visit www.transparentvalue.com. Read the prospectus carefully before investing.
© 2012 Transparent Value, LLC. All rights reserved. No part of this document may be circulated, quoted or reproduced for distribution without prior written approval from Transparent Value, LLC.
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