Inception Date 1/24/2012
Mandatory Maturity Date 5/7/2013
Trust Structure Grantor
Inception Unit Price $10.000000
Inception Bid Price1 $9.900000
Maturity Price (as of 5/7/2013)2 $10.378800
Historical Annual Dividend Distribution3 $0.625500

The weighted average P/E Ratio of the underlying securities where P/E ratio is defined as the ratio of the current stock price to the most recently reported earnings per share.

The weighted average P/B Ratio of the underlying securities where P/B ratio is defined as the ratio of the current stock price to the most recently reported book value per share.

The weighted average Market Capitalization of the underlying securities where Market Cap is defined as the current stock price multiplied by the most recently reported common shares outstanding.

The weighted average 1-year sales growth of the underlying securities where sales growth is calculated as the year over year percent change in net sales.

1 The "Inception Bid Price" represents the net asset value of one unit of a trust excluding any deferred sales charge, if applicable.

2 The "Maturity Price" represents the proceeds per unit received by unitholders upon termination of the trust.

3 The Historical Annual Dividend Distribution is as of the date of deposit and subject to change. The amount of distributions paid by the Trust’s securities may be lower or greater than the above-stated amount due to certain factors that may include, but are not limited to, a change in the dividends paid by issuers, a change in Trust expenses or the sale or maturity of securities in the portfolio. Fees and expenses of the Trust may vary as a result of a variety of factors including the Trust’s size, redemption activity, brokerage and other transaction costs and extraordinary expenses.

Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.

This information does not constitute an offer to sell or a solicitation of any offer to buy: nor shall there be any sale of these securities in any state where the offer, solicitation, or sale is not permitted.

Investment Objective

The Guggenheim Discount Opportunity Strategy Portfolio of CEFs, Series 1 ("Trust") seeks to provide capital appreciation.


The Trust will invest in common shares of closed-end investment companies (“closed-end funds”) that are currently trading at a greater discount to their net asset value (“NAV Discount”) than their historical NAV Discount over the past two years. The Trust seeks capital appreciation by selecting closed-end funds that the sponsor believes have the potential to narrow the gap between their current NAV Discount and their historical NAV Discount. The Trust portfolio will include a variety of closed-end funds, including general equity funds, taxable fixed-income funds and balanced/multi-asset funds. The closed-end funds will invest in securities of a variety of asset classes. These asset classes include, but are not limited to: 

  • high-yield securities or “junk” bonds;
  • convertible securities; 
  • preferred securities; 
  • real estate investment trusts (“REITs”); 
  • senior loans; 
  • corporate bonds; 
  • government bonds; 
  • options; 
  • foreign securities, including securities of companies located in emerging markets; and 
  • equities. 

Please see “Principal Risks” and “Investment Risks” for a description of the risks of investing in each of these asset classes. 

An investment can be made in the closed-end funds without paying the sales fee, operating expenses and organization costs of the Trust. 

The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC ("GPIM"), an affiliate of Guggenheim Partners, LLC, has selected the securities to be included in the Trust’s portfolio according to the selection criteria described below. 

See “Investment Policies” in Part B of the prospectus for additional information.


The Trust’s portfolio was constructed and the securities were selected three business days prior to the initial date of deposit (the “Inception Date”) according to the selection criteria described below. 

The security selection process begins by identifying the entire universe of U.S.-listed closed-end funds. Each closed-end fund is then ranked for each the two factors listed below on a scale of 1 through 10, where “1” represents the 10% of closed-end funds ranked highest in a given factor and “10” represents the 10% of closed-end funds ranked lowest in a given factor.  

  • Current NAV Discount compared to the closed-end fund’s two-year historical NAV Discount 
  • Six-month market price momentum 

The 40 closed-end funds with the highest average of the two rankings (where ties are broken by selecting the closed-end fund with the higher trading liquidity) will be selected for the Trust portfolio, subject to the following constraints: 

  • Minimum per share price of $5 as of the selection date; 
  • Exclude closed-end funds that have a net asset value of less than $100 million; 
  • Exclude securities with 30-days average trading volume of less than $400,000 (or less than the median universe average trading volume if that is less than $400,000); 
  • Exclude closed-end funds in the initial universe ranked in the bottom 20% in each of the following three metrics:
    1. Current NAV Discount
    2. Current NAV Discount compared to the closed-end fund’s two-year historical NAV Discount
    3. Six-month market price momentum 
  • No more than 50% of the Trust portfolio will comprise closed-end funds classified as equity funds; 
  • No more than 50% of the Trust portfolio will comprise closed-end funds classified as taxable fixed-income funds; 
  • No more than 30% of the Trust portfolio will comprise closed-end funds classified as balanced/multi-asset funds; 
  • No more than 20% of the Trust portfolio will comprise closed-end funds classified as tax-exempt fixed-income funds; and 
  • No more than 15% of the Trust portfolio will comprise closed-end funds with similar investment strategy categories. 

The 40 closed-end funds selected for the portfolio will be approximately equallyweighted as of the selection date.

Some of the securities held by the closed-end funds are income-producing securities, including corporate bonds, preferred securities and high-yield bonds. High-yield or “junk” bonds, the generic names for bonds rated below investment-grade, are frequently issued by corporations in the growth stage of their development or by established companies who are highly leveraged or whose operations or industries are depressed. Obligations rated below investment-grade should be considered speculative as these ratings indicate a quality of less than investment-grade. Because high-yield bonds are generally subordinated obligations and are perceived by investors to be riskier than higher rated securities, their prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree. 

See “Description of Ratings” in Part B of the prospectus for additional information regarding the ratings criteria.


As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The trust also might not perform as well as you expect. This can happen for reasons such as these: 

  • Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. 
  • Due to the current state of the economy, the value of the securities held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. Starting in December 2007, economic activity declined across all sectors of the economy, and the United States experienced increased unemployment. The economic crisis affected the global economy with European and Asian markets also suffering historic losses. Standard & Poor’s Rating Services recently lowered its long-term sovereign credit rating on the United States to “AA+” from “AAA,” which could lead to increased interest rates and volatility. Extraordinary steps have been taken by the governments of several leading countries to combat the economic crisis; however, the impact of these measures is not yet fully known and cannot be predicted. 
  • The Trust includes closed-end funds. Closed-end funds are actively managed investment companies that invest in various types of securities. Closed-end funds issue common shares that are traded on a securities exchange. Closed- End Funds are subject to various risks, including management’s ability to meet the closed-end fund’s investment objective and to manage the closed-fund fund’s portfolio during periods of market turmoil and as investors’ perceptions regarding closed-end Funds or their underlying investments change. Closed- End Funds are not redeemable at the option of the shareholder and they may trade in the market at a discount to their net asset value. Closed-end funds may also employ the use of leverage which increases risk and volatility. Instability in the auction rate preferred shares market may affect the volatility of closed-end funds that use such instruments to provide leverage. 
  • Certain closed-end funds held by the Trust invest in common stocks. Common stocks represent a proportional share of ownership in a company. Common stock prices fluctuate for several reasons including changes in investors’ perceptions of the financial condition of an issuer, changes in the general condition of the relevant stock market, such as the market volatility recently exhibited, or when political or economic events affect the issuers. Common stock prices may also be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase.
  • The value of the fixed-income securities in the closed-end funds will generally fall if interest rates, in general, rise. Typically, fixed-income securities with longer periods before maturity are more sensitive to interest rate changes. 
  • A closed-end fund or an issuer of securities held by a closed-end fund may be unwilling or unable to make principal payments and/or to declare distributions in the future, may call a security before its stated maturity, or may reduce the level of distributions declared. This may result in a reduction in the value of your units. 
  • The financial condition of a Closed- End Fund or an issuer of securities held by a closed-end fund may worsen, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period. 
  • Certain closed-end funds held by the Trust invest in bonds that are rated below investment-grade and are considered to be “junk” securities. Below investment-grade obligations are considered to be speculative and are subject to greater market and credit risks, and accordingly, the risk of non-payment or default is higher than with investment-grade securities. In addition, such securities may be more sensitive to interest rate changes and more likely to receive early returns of principal. 
  • Certain closed-end funds held by the Trust may invest in bonds that are rated as investment-grade by only one rating agency. As a result, such split-rated securities may have more speculative characteristics and are subject to a greater risk of default than securities rated as investment-grade by more than one rating agency. 
  • Certain closed-end funds held by the Trust invest in senior loans. Borrowers under senior loans may default on their obligations to pay principal or interest when due. This nonpayment would result in a reduction of income to the applicable closed-end fund, a reduction in the value of the senior loan experiencing non-payment and a decrease in the net asset value of the closed-end fund. Although senior loans in which the closed-end funds invest may be secured by specific collateral, there can be no assurance that liquidation of collateral would satisfy the borrower’s obligation in the event of non-payment of scheduled principal or interest or that such collateral could be readily liquidated. Senior loans in which the closed-end funds invest:
    — generally are of below investment-grade credit quality;
    — may be unrated at the time of investment;
    — generally are not registered with the Securities and Exchange Commission (“SEC”) or any state securities commission; and
    — generally are not listed on any securities exchange. In addition, the amount of public information available on senior loans generally is less extensive than that available for other types of assets. 
  • Certain closed-end funds held by the Trust invest in convertible securities. Convertible securities generally offer lower interest or dividend yields than non-convertible fixed-income securities of similar credit quality because of the potential for capital appreciation. The market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, a convertible security’s market value also tends to reflect the market price of the common stock of the issuing company, particularly when that stock price is greater than the convertible security’s “conversion price.” Convertible securities fall below debt obligations of the same issuer in order of preference or priority in the event of a liquidation and are typically unrated or rated lower than such debt obligations. 
  • Certain closed-end funds held by the Trust invest in call options. The call writing portion of the investment strategy of the closed-end funds may not be successful in that the closed-end funds may not realize the full appreciation of stocks on which the closed-end funds have written call options. The ability to successfully implement the closed-end fund’s investment strategy depends on the closed-end fund’s adviser’s ability to predict pertinent market movements, which cannot be assured. 
  • The value of a call option held by a closed-end fund may be adversely affected if the market for the option becomes less liquid or smaller. The value of an option will be affected by changes in the value and dividend rates of the stock subject to the option, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the common stock, and the remaining time to expiration. 
  • Certain closed-end funds held by the Trust invest in foreign securities. Investment in foreign securities presents additional risk. Foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.
  • Certain closed-end funds held by the Trust invest in securities issued by companies headquartered or incorporated in countries considered to be emerging markets. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization cycles. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk. 
  • Closed-end funds held by the Trust invest in municipal bonds. Municipal bonds are long-term fixed rate debt obligations that decline in value with increases in interest rates, an issuer’s worsening financial condition, a drop in bond ratings or when there is a decrease in the federal income tax rate. Typically, bonds with longer periods before maturity are more sensitive to interest rate changes. Municipal bonds generally generate income exempt from federal income taxation, but may be subject to the alternative minimum tax. In addition, some or all of the income generated by a closed-end fund may not be exempt from regular federal or state income taxes and as a result, the related income paid by the Trust may also be subject to regular federal and state income taxes. Capital gains, if any, may be subject to tax. 
  • Current economic conditions may lead to limited liquidity and greater volatility. The markets for fixed-income securities, such as those held by the closed-end funds, may experience periods of illiquidity and volatility. General market uncertainty and consequent repricing risk have led to market imbalances of sellers and buyers, which in turn have resulted in significant valuation uncertainties in a variety of fixed-income securities. These conditions resulted, and in many cases continue to result in, greater volatility, less liquidity, widening credit spreads and a lack of price transparency, with many debt securities remaining illiquid and of uncertain value. These market conditions may make valuation of some of the securities held by a closed-end fund uncertain and/or result in sudden and significant valuation increases or declines in its holdings. 
  • Inflation may lead to a decrease in the value of assets or income from investments. 
  • The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed. 
  • Please note that the Sponsor or an affiliate may be engaged as a service provider to certain closed-end funds held by the Trust and therefore certain fees paid by the Trust to such closed-end funds will be paid to the Sponsor or an affiliate for its services to such closed-end funds. In addition to the expenses of the units of the Trust, the Trust is subject to various expenses of closed-end funds. Please see the Trust prospectus for more complete risk information.

See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.

Please see the Trust prospectus for more complete risk information.

Unit Investment Trusts ("UITs") are fixed and not actively managed. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. UITs are subject to annual
fund operating expenses in addition to the sales charges. Units, when redeemed, may be worth more or less than their original price.

This UIT is part of a long-term strategy, and investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), which includes Security Investors, LLC (“SI”), Guggenheim Funds Investment Advisors, LLC ("GFIA") and Guggenheim Partners Investment Management (“GPIM”), the investment advisors to the referenced funds. Guggenheim Funds Distributors, LLC, is affiliated with Guggenheim, SI, GFIA and GPIM.

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• Not FDIC Insured • No Bank Guarantee • May Lose Value