Guggenheim High Yield Fund (Institutional Class) returned -1.17 percent in the first quarter, compared with the -0.50 percent return for its benchmark, the Bloomberg U.S. High Yield Corporate Index.
The Fund benefitted from solid credit selection in capital goods, as it avoided certain issuers whose fundamentals deteriorated during the quarter.
This was offset by the bank loan exposure as well as the underweight to energy, which was the top performing sector during the quarter.
The Fund remained positioned up in quality versus the benchmark, driven by an underweight to CCCs. This quality bias was a tailwind during the quarter, as CCCs underperformed meaningfully.
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Performance Review
The Fund (Institutional Class) returned -1.17 percent in the first quarter, compared with the -0.50 percent return for its benchmark, the Bloomberg U.S. High Yield Corporate Index.
