The board of trustees of the Old Mutual/Claymore Long-Short Fund has appointed Guggenheim Partners Asset Management as investment sub-adviser for the fund and provided notice of termination to Analytic Investors as investment sub-adviser, effective 22 June 2010.
At such time, Guggenheim will enter into an interim investment sub-advisory agreement with the fund and Claymore Advisors, the fund’s investment adviser, which will be in effect for an interim period of up to 150 days.
The board also approved a new sub-advisory agreement among the fund, Claymore and Guggenheim to be effective upon approval by shareholders and intends to submit the new sub-advisory agreement to shareholders for approval at the annual meeting of shareholders of the fund currently scheduled for 19 July 2010.
"We are excited for the opportunity to offer individual investors access to GPAM’s equity and options market expertise as we seek to restore and enhance Fund shareholder value," says Scott Minerd (pictured), chief investment officer of Guggenheim Partners. "As part of this commitment to shareholders, we look forward to continuing the Guggenheim tradition of building wealth for generations."
In connection with the appointment of Guggenheim as interim investment sub-adviser, the name of the fund will change to Guggenheim Enhanced Equity Income Fund. The name change will be effective on or about 22 June 2010.
The fund will continue to seek its primary investment objective of seeking a high level of current income and gains with a secondary objective of long-term capital appreciation.
While the fund currently seeks to achieve its investment objective through a long-short strategy and an opportunistic covered call writing strategy, Guggenheim will manage the fund using a covered call strategy developed by Guggenheim to seek to use efficiencies from the tax characteristics of the fund’s portfolio. As of 22 June, selling securities short will no longer be a principal investment strategy of the fund.
Guggenheim’s covered call strategy will follow a rules-based methodology to obtain broadly diversified exposure to the equity markets, either through investments in individual common stocks or through other investments that replicate the economic characteristics of broadly diversified exposure to the equity markets, including exchange-traded funds or other investment funds that track equity market indices along with other securities and instruments.
