Guggenheim UIT Defined Outcome Investing

Limit Uncertainty with Outcome Based Investing

Most investments today target non-defined returns, with uncertain levels of risk, over an undefined period of time. That kind of unpredictability can cause anxiety for some investors looking to stay invested in the market and yet meet their investment goals.

Outcome Based investing seeks to limit or more narrowly target market outcomes to help better align with investor outlooks and offers a:

defined upside and/or defined downside
defined time period

Outcome Based investing return profiles are tied to the performance of the underlying security and require the investment to be held from inception through maturity. The underlying assets may not perform as expected and the investment objective may not be achieved.

Valuable Resources for Advisors

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An Innovative Way to Manage Equity Risk

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Outcome Based Investing Resources for Advisors

What Is Your Investment Outlook?

Whether investors have a bullish, bearish, and/or range-bound market view, outcome based investing can help investors target outcomes that are consistent with their outlook.

Preservation Strategy. Bearish investors may find preservation strategies attractive because they seek to guard against significant declines in the reference security, while still offering participation in the upside price performance of the reference security, typically to a cap.

Buffer Strategy. Bearish investors may find buffer strategies attractive because they offer participation in the upside price participation of the reference security, typically to a cap, and a specified level of downside buffer.

Defined Return Strategy. Bearish investors may find a defined return strategy attractive because it offers a defined return if the reference security has positive performance (in the buffer zone) at the end of the outcome period. It also offers a buffer to guard against losses within the buffer zone, however losses can occur for performance outside the buffer zone.

Preservation Strategy. Rangebound investors may find preservation strategies attractive because they seek to guard against significant declines in the reference security, while still offering participation in the upside price performance of the reference security, typically to a cap.

Buffer Strategy. Rangebound investors may find buffer strategies attractive because they offer participation in the upside price participation of the reference security, typically to a cap, yet still a specified level of downside buffer.

Enhanced Strategy. Rangebound investors may find enhanced strategies attractive because they seek enhanced upside participation in the price performance of the reference security, typically to a cap, with no downside buffer.

Defined Return Strategy. Rangebound investors may find a defined return strategy attractive because it offers a defined return if the reference security has positive performance (in the buffer zone) at the end of the outcome period.

Buffer Strategy. Bullish investors may find buffer strategies attractive because they offer participation in the upside price participation of the reference security, yet still a specified level of downside buffer.

Enhanced Strategy. Bullish investors may find enhanced strategies attractive because they offer enhanced upside participation in the price performance of the reference security, typically to a cap, with no downside buffer.

Defined Return Strategy. Bullish investors may find a defined return strategy attractive because it offers a defined return if the reference security has positive performance (in the buffer zone) at the end of the outcome period.

Why Use Outcome Based Investing?

Outcome based investing can be used for a variety of investment applications.

For Risk Management

Outcome based investments have a stated downside cap and/or buffer compared to the performance of a reference security and seek to limit downside risk to help preserve assets.

For Enhanced Return Potential

Enhanced outcome based investments enable investors to have increased participation in the upward movement of a reference security, typically to a cap.

An Alternative to
Alternative Investing

Some investors use alternative investments as a diversifier that may be beneficial in a market downturn. with their defined upside and/or downside characteristics, outcome based investments may provide downside risk management in times of market dislocation.

A Potential Alternative to Income

Finding attractive yields can be a challenge. Defined return investments offer a way to convert equity upside potential into a defined return at the end of the outcome period (often with a built-in downside buffer) if reference security is positive or within buffer zone.

Learn more about how outcome based investing may be able to help you align portfolios with your market outlook. Download our Outcome Based Investing Basics.

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Outcome based investing may not be suitable for all investors. Investing involves risk, including the possible loss of principal. There is no guarantee that a outcome based investment will achieve its objective. The ability of a outcome based investment to provide the capped return or limited downside loss is typically dependent on investors purchasing units at the beginning of an outcome period and holding them until the last day of the period. Investors purchasing units after the outcome period has begun or redeeming units prior to its termination may experience very different results from the stated investment objective.

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. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC.

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

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