UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant ☒
Filed by a Party other than the Registrant ☐
Check the appropriate box:
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Preliminary Proxy Statement | ||
☐ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | |
☒ | Definitive Proxy Statement | |
☐ | Definitive Additional Materials | |
☐ | Soliciting Material Pursuant to §240.14a-12 |
GUGGENHEIM TAXABLE MUNICIPAL BOND & INVESTMENT GRADE DEBT TRUST (NYSE: GBAB)
GUGGENHEIM ACTIVE ALLOCATION FUND (NYSE: GUG)
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND (NYSE: GOF)
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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GUGGENHEIM TAXABLE MUNICIPAL BOND & INVESTMENT GRADE DEBT TRUST (NYSE: GBAB)
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND (NYSE: GOF)
GUGGENHEIM ACTIVE ALLOCATION FUND (NYSE: GUG)
227 West Monroe Street, 7th Floor
Chicago, Illinois 60606
NOTICE OF JOINT ANNUAL MEETING OF SHAREHOLDERS
To be held on April 7, 20226, 2023
Notice is hereby given to the holders of common shares of beneficial interest par value $0.01 per share (“Shares”), of each of Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (“GBAB”) and, Guggenheim Strategic Opportunities Fund (“GOF”) and Guggenheim Active Allocation Fund (“GUG”) (GBAB, GOF and GOFGUG are each referred to herein as a “Fund” and togethercollectively as the “Funds”) that the joint annual meeting of shareholders of the Funds (the “Annual Meeting”) will be held in a virtual meeting format only, on Thursday, April 7, 2022,6, 2023, at 10:00 a.m. (Central time).
The Annual Meeting is being held for the following purposes:
1. To elect Trustees in the following manner:
(a) With respect to GBAB and GUG only:
(i) | To elect, as Class |
(b) With respect to GOF only:
(i) | To elect, as Class |
2. To transact such other business as may properly come before the Annual Meeting or any adjournments, postponements, or delays thereof.
THE BOARD OF TRUSTEES (THE “BOARD”) OF EACH FUND UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” EACH OF THE NOMINEES OFFOR THE BOARD OF YOUR FUND LISTED IN THE ACCOMPANYING PROXY STATEMENT.
Further information regarding the purpose of the Annual Meeting is included in the accompanying Proxy Statement dated March 4, 2022.3, 2023.
The Annual Meeting will be held in a virtual meeting format only. Shareholders of record on the Record Date (as defined below) for the Annual Meeting may participate in and vote at the Annual Meeting on the Internet by virtual means. To participate in the Annual Meeting, shareholders must register in advance by visiting https://www.viewproxy.com/Guggenheim/broadridgevsm/ and submitting the requested required information to Broadridge Financial Solutions, Inc. (“Broadridge”), the Funds’ proxy tabulator. Only shareholders of record at the close of business on February 18, 202217, 2023 (the “Record Date”) are entitled to notice of, and to vote at, the Annual Meeting or any postponement or adjournment thereof. Proxies are being solicited on behalf of the Board of each Fund.
Shareholders whose shares are registered directly with a Fund in the shareholder’s name will be asked to submit their name and control number found on the shareholder’s proxy card in order to register to participate in and vote at the Annual Meeting. Shareholders whose shares are held by a broker, bank or other nominee must first obtain a “legal proxy” from the applicable nominee/record holder, who will then provide the shareholder with a newly-issued control number.
We note that obtaining a legal proxy may take several days. Requests for registration should be received no later than 3:00 p.m., Eastern Time, on Wednesday, April 6, 2022,March 29, 2023, but in any event must be received by the scheduled time for commencement of the Annual Meeting, as indicated above. Once shareholders have obtained a new control number, they must visit https://www.viewproxy.com/Guggenheim/broadridgevsm/ and submit their name and newly issued control number in order to register to participate in and vote at the Annual Meeting. After shareholders have submitted their registration information, they will receive an email from Broadridge that confirms that their registration request has been received and is under review by Broadridge. Once shareholders’ registration requests have been accepted, they will receive (i) an email containing an event link and dial-in information to participate in the Annual Meeting and (ii) an email with a password to enter at the event link in order to access the Annual Meeting. Shareholders may vote before or during the Annual Meeting at
proxyvote.com. All shareholders are encouraged to submit their proxy voting instructions prior to the Annual Meeting. Only shareholders of thea Fund present or represented by proxy will be able to vote, or otherwise exercise the powers of a shareholder, at the Annual Meeting.
The Board of each Fund has fixed the close of business on February 18, 2022,17, 2023, as the Record Date for the determination of shareholders entitled to notice of, and to vote at, the Annual Meeting and any adjournments, postponements, or delays thereof.
It is important that your Shares be represented at the Annual Meeting by attendance or by proxy. Whether or not you plan to attend the Annual Meeting, we urge you to complete, sign, date, and return the enclosed proxy card in the postage-paid envelope provided or vote via telephone or the Internet pursuant to the instructions on the enclosed proxy card so you will be represented at the Annual Meeting. If you attend the Annual Meeting and wish to vote during the Annual Meeting, you will be able to do so and your vote at the Annual Meeting will revoke any proxy you may have submitted. Merely attending the Annual Meeting, however, will not revoke any previously submitted proxy.
By order of the
Board of each Fund:
Brian E. Binder
Chief Executive Officer and President of each Fund
Chicago , Illinois
March 4, 20223, 2023
YOUR VOTE IS IMPORTANT
PLEASE COMPLETE, SIGN, DATE AND RETURN THE ENCLOSED PROXY CARD IN THE POSTAGE-PAID ENVELOPE PROVIDED OR VOTE VIA TELEPHONE OR THE INTERNET PURSUANT TO THE INSTRUCTIONS ON THE ENCLOSED PROXY CARD. IN ORDER TO SAVE THE FUNDS ANY ADDITIONAL EXPENSE OF FURTHER SOLICITATION, PLEASE MAIL YOUR PROXY CARD OR VOTE VIA TELEPHONE OR THE INTERNET PROMPTLY. THE ANNUAL MEETING WILL BE HELD IN A VIRTUAL MEETING FORMAT ONLY. FOR ADDITIONAL INFORMATION ON HOW YOU CAN ATTEND AND PARTICIPATE IN THE ANNUAL MEETING, PLEASE SEE INSTRUCTIONS IN THE ACCOMPANYING PROXY STATEMENT.
GUGGENHEIM TAXABLE MUNICIPAL BOND & INVESTMENT GRADE DEBT TRUST (NYSE: GBAB)
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND (NYSE: GOF)
GUGGENHEIM ACTIVE ALLOCATION FUND (NYSE: GUG)
PROXY STATEMENT
FOR THE JOINT ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON APRIL 7, 20226, 2023
This proxy statement (“Proxy Statement”) is furnished to the holders of common shares of beneficial interest par value $0.01 per share (“Shares”), of Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (“GBAB”) and ,Guggenheim Strategic Opportunities Fund (“GOF”) and Guggenheim Active Allocation Fund (“GUG”) (GBAB, GOF and GOFGUG are each referred to herein as a “Fund” and togethercollectively as the “Funds”) in connection with the solicitation by the Board of Trustees (the “Board”) of each Fund of proxies to be voted at the joint annual meeting of shareholders of the Funds to be held on Thursday, April 7, 2022,6, 2023, and any adjournments, postponements or delays thereof (the “Annual Meeting”). The Annual Meeting will be held in a virtual meeting format only, on Thursday, April 7, 2022,6, 2023, at 10:00 a.m. (Central time).
The Annual Meeting will be held in a virtual meeting format only. For additional information on how you can attend and participate in the Annual Meeting, please see the instructions in this Proxy Statement.
This Proxy Statement will give you the information you need to vote on the matters listed on the accompanying Notice of Joint Annual Meeting of Shareholders (“Notice of Joint Annual Meeting”). Much of the information in this Proxy Statement is required under rules of the U.S. Securities and Exchange Commission (“SEC”). If you have any questions, please contact us at our toll-free number, (800) 345-7999.
The Notice of the Annual Meeting, this Proxy Statement, and the enclosed proxy card(s) are being sent on or about March 9, 20223, 2023 to shareholders of record as of February 18, 202217, 2023 (the “Record Date”).
Each Fund will furnish, to any shareholder, without charge, a copy of such Fund’s most recent annual report and/or semi-annual report to shareholders upon request. Requests should be directed to Guggenheim Funds Distributors, LLC, 227 West Monroe Street, 7th Floor, Chicago, Illinois 60606, (800) 345-7999.
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• Why is a shareholder meeting being held?
The Shares of each Fund are listed on the New York Stock Exchange (“NYSE”), and the rules of the NYSE require each Fund to hold an annual meeting of shareholders each fiscal year.
• What Proposal will be voted on?
To elect Trustees in the following manner:
(a) With respect to GBAB and GUG only:
(i) | To elect, as Class |
(b) With respect to GOF only:
(i) | To elect, as Class |
• Will my vote make a difference?
Yes! Your vote is important and could make a difference in the governance of the Fund(s), no matter how many Shares you own.
The enclosed• Who is asking for my vote?
Your proxy card is being solicited byon behalf of the Board of each Fund for use at the Annual Meeting to be held on Thursday, April 7, 2022,6, 2023, and any adjournments, postponements, or delays thereof, for the purposes stated in the Notice of Annual Meeting.
• How does the Board recommend that shareholders vote on the Proposal?
The Board unanimously recommends that you vote “FOR” each of the nominees offor the Board of your Fund.
The Board of each Fund has reviewed the qualifications and backgrounds of the Board’s nominees and believes that they are experienced in overseeing investment companies and are familiar with the Funds, their investment strategies and operations, and the investment adviser and investment sub-adviser of the Funds. The Board has approved each of the Proposals (i.e. to elect the nominees named in this Proxy StatementStatement) and believes their election is in the best interests of the shareholders of each Fund.
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• Who is eligible to vote?
Shareholders of record of each Fund at the close of business on February 18, 202217, 2023 (the “Record Date”), are entitled to attend and to vote at the Annual Meeting or any adjournments, postponements, or delays thereof.Meeting. Each Share is entitled to one vote on the Proposal for the applicable Fund and a fractional vote with respect to fractional Shares, with no cumulative voting. Shares represented by duly executed proxies will be voted in accordance with your instructions.
• How do I vote my Shares?
Whether or not you plan to attend the Annual Meeting, we urge you to complete, sign, date, and return the enclosed proxy card in the postage-paid envelope provided or vote via telephone or the Internet so your Shares will be represented at the Annual Meeting. Instructions regarding how to vote via telephone or the Internet are included on the enclosed proxy card. The required control number for Internet and telephone voting is printed on the enclosed proxy card. The control number is used to match proxy cards with shareholders’ respective accounts and to ensure that, if multiple proxy cards are executed, Shares are voted in accordance with the proxy card bearing the latest date.
The Annual Meeting will be held in a virtual meeting format only. Shareholders of record on the Record Date for the Annual Meeting may participate in and vote at the Annual Meeting on the Internet by virtual means. To participate in the Annual Meeting, shareholders must register in advance by visiting https://www.viewproxy.com/Guggenheim/broadridgevsm/ and submitting the requested required information to Broadridge Financial Solutions, Inc. (“Broadridge”), the Funds’ proxy tabulator. Only shareholders of record on the Record Date are entitled to notice of, and to vote at, the Annual Meeting or any postponement or adjournment thereof.Meeting. Proxies are being solicited on behalf of the Board of each Fund.
Shareholders whose shares are registered directly with a Fund in the shareholder’s name will be asked to submit their name and control number found on the shareholder’s proxy card in order to register to participate in and vote at the Annual Meeting. Shareholders whose shares are held by a broker, bank or other nominee must first obtain a “legal proxy” from the applicable nominee/record holder, who will then provide the shareholder with a newly-issued control number.
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We note that obtaining a legal proxy may take several days. Requests for registration should be received no later than 3:00 p.m., Eastern Time, on Wednesday, April 6, 2022,March 29, 2023, but in any event must be received by the scheduled time for commencement of the Annual Meeting, as indicated above. Once shareholders have obtained a new control number, they must visit https://www.viewproxy.com/Guggenheim/broadridgevsm/ and submit their name and newly issued control number in order to register to participate in and vote at the Annual Meeting. After shareholders have submitted their registration information, they will receive an email from Broadridge that confirms that their registration request has been received and is under review by Broadridge. Once shareholders’ registration requests have been accepted, they will receive (i) an email containing an event link and dial-in information to participate in the Annual Meeting and (ii) an email with a password to enter at the event link in order to access the Annual Meeting. Shareholders may vote before or during the Annual Meeting at proxyvote.com. All shareholders are encouraged to submit their proxy voting instructions prior to the Annual Meeting. Only shareholders of thea Fund present or represented by properly executed proxy will be able to vote, or otherwise exercise the powers of a shareholder, at the Annual Meeting.
If you have any questions regarding how to participate in and vote at the Annual Meeting, you may contact the Funds at (800) 345-7999.
All Shares represented by properly executed proxies received prior to the Annual Meeting will be voted at the Annual Meeting in accordance with the instructions marked thereon or otherwise as provided therein. If you sign the proxy card, but don’t fill in a vote, your Shares will be voted in accordance with the Board’s recommendation (i.e., “FOR” each of the nominees). If any other business is brought before the Annual Meeting, your Shares will be voted in the proxies’ best judgment or discretion.
Shareholders who execute proxy cards or record their voting instructions via telephone or the Internet may revoke them at any time before they are voted by filing with the Secretary of the Funds a written notice of revocation, by delivering (including via telephone or the Internet) a duly executed proxy bearing a later date or by attending the Annual Meeting and voting. Merely attending the Annual Meeting, however, will not revoke any previously submitted proxy.
4
Broker-dealerThe Funds understand that broker-dealer firms holding Shares of a Fund in “street name” for the benefit of their customers and clients will request the instructions of such customers and clients on how to vote their Shares on the Proposal before the Annual Meeting. The Funds understand that, under the rules of the NYSE, such broker-dealer firms may for certain “routine” matters, without instructions from their customers and clients, grant discretionary authority to the proxies designated by the Board to vote if no instructions have been received prior to the date specified in the broker-dealer firm’s request for voting instructions. Each Proposal is a “routine” matter and beneficial owners who do not provide proxy instructions or who do not return a proxy card may have their Shares voted by broker-dealer firms in favor of the Proposal. A properly executed proxy card or other authorization by a beneficial owner of Shares that does not specify how the beneficial owner’s Shares should be voted on the Proposal may be deemed an instruction to vote such Shares in favor of the Proposal. Broker-dealers who are not members of the NYSE may be subject to other rules, which may or may not permit them to vote your Shares without instruction. We urge you to provide instructions to your bank, broker or other nominee so that your votes may be counted.
• What vote is required to elect a Trustee nominee?
With respect to each Fund, the affirmative vote of a majority of the Shares present at the Annual Meeting or represented by proxy and entitled to vote on the subject matter at the Annual Meeting at which a quorum is present is necessary to elect a Trustee nominee. A description of quorum is included under the section entitled “Further Information About Voting and the Annual Meeting – Quorum.”
• Why does this Proxy Statement list multiple funds?
The Funds have similar proposals and it is cost-efficient to have a joint Proxy Statement and joint Annual Meeting. The Annual Meeting is scheduled as a joint meeting of the Funds, whose votes on similar proposals applicable to such Funds are being solicited separately, because the shareholders of the Funds are expected to consider and vote on similar matters. In the event that any shareholder present at the Annual Meeting objects to the holding of a joint meeting and moves for the adjournment of an applicable Fund’s meeting to a time immediately after the Annual Meeting so that each Fund’s meeting may be held separately, the persons named as proxies will vote in favor of such adjournment.
5
Shareholders of each Fund will vote separately on the respective proposal relating to the applicable Fund. In any event, an unfavorable vote on any Proposal by the shareholders of one Fund will not affect the implementation of such Proposal by another Fund if the Proposal is approved by the shareholders of that Fund.
5• How many shares of each Fund were outstanding as of the Record Date?
At the close of business on February 18, 2022,17, 2023, the Funds had the following Shares outstanding:
Fund | Number of Shares Outstanding |
GBAB | |
GOF | |
GUG | 32,980,083 |
6
THE PROPOSAL: ELECTION OF TRUSTEES
Introduction
The rules of the NYSE require each Fund to hold an annual meeting of shareholders to elect Trustees each fiscal year. Shareholders of the Funds are being asked to elect to Trustees in the following manner:
(a) With respect to GBAB and GUG only:
(i) | To elect, as Class |
(b) With respect to GOF only:
(i) | To elect, as Class |
Composition of the Board of Trustees
GBAB and GUG:
GBAB:
The Trustees of GBAB and GUG are classified into three classes of Trustees, as follows:
Class I Trustee* | Class II Trustees** | Class III Trustees*** |
Randall C. Barnes | Thomas F. Lydon, Jr. | Amy J. Lee |
Angela Brock-Kyle | Ronald A. Nyberg | Sandra G. Sponem |
Ronald E. Toupin, Jr. |
_______
* Class I Trustees are expected to next stand for election in 2023.
** Class II Trustees are expected to next stand for election in 2024.
*** Class III Trustees are standing for election at the Annual Meeting and are expected to next stand for election in 2025.
* | Class I Trustees are standing for election at the Annual Meeting and are expected to next stand for election in 2026. |
** | Class II Trustees are expected to next stand for election in 2024. |
*** | Class III Trustees are expected to next stand for election in 2025 |
7
GOF:
The Trustees of GOF are classified into two classes of Trustees, as follows:
Class I Trustee*
| Class II Trustees** |
Randall C. Barnes | Thomas F. Lydon Jr. |
Angela Brock-Kyle | Ronald A. Nyberg |
Amy J. Lee | Sandra G. Sponem |
Ronald E. Toupin, Jr. |
* | Class I Trustees are expected to next stand for election in 2024. |
** | Class II Trustees are standing for election at the Annual Meeting and are expected to next stand for election in 2025. |
__________
* Class I Trustees are standing for election at the Annual Meeting and are expected to next stand for election in 2024.
** Class II Trustees are expected to next stand for election in 2023.
Election of Trustees
Each Trustee nominee, if elected at the Annual Meeting, will hold office for a term in accordance with his or her respective Classclass or until his or her respective successor shall have been elected and shall have qualified or until he or she resigns or is otherwise removed. The other Trustees of the Funds will continue to serve under their current terms and will stand for election at subsequent annual meetings of shareholders as stated above.
Unless authority is withheld or other instructions are provided, it is the intention of the persons named in the proxy card to vote “FOR” each of the Trustee nominees named above. Each Trustee nominee has consented to serve as a Trustee of each Fund if elected at the Annual Meeting. If a designated Trustee nominee declines or otherwise becomes unavailable for election, however, the proxy confers discretionary power on the persons named therein to vote in favor of a substitute Trustee nominee or nominees.
Trustees
Certain information concerning the Trustees and the officers of each of the Funds is set forth in the table below. Independent Trustees are those who are not interested personsan “interested person” (as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”)) of (i) the Funds, (ii) Guggenheim Funds Investment Advisors, LLC (“Guggenheim Funds” or the “Adviser”), each Fund’s investment adviser, or (iii) Guggenheim Partners Investment Management, LLC (“GPIM” or the “Sub-Adviser”), each Fund’s investment sub-adviser, and who satisfy the requirements contained in the definition of “independent” as defined in Rule 10A-3 under the Securities Exchange Act of 1934 (the “Independent Trustees”). The Fund Complex consists of U.S. registered investment companies advised or serviced by Guggenheim Funds or its affiliates. As of February 28, 202227, 2023 the Fund Complex is composed of sixfive closed-end funds (including the Funds) and 150 open-end funds advised or serviced by the Adviser or its affiliates.
8
Other | |||||
Term of | Directorships | ||||
Office | Number of | held by | |||
and | Portfolios in | Trustee | |||
Name, | Position(s) | Length | Fund Complex | During | |
Address(1) | Held with | of Time | Principal Occupation | Overseen by | the Past |
and Age | Funds | Served | During The Past Five Years | Trustee | Five Years |
INDEPENDENT | |||||
Randall C. Barnes | Trustee | † | Current: Private Investor (2001-present). | Current: Advent | |
Year of birth: 1951 | Convertible and | ||||
Former: Senior Vice President | Income Fund | ||||
Treasurer, PepsiCo, Inc. (1993-1997), | (2005-Present); | ||||
President, Pizza Hut International | Purpose | ||||
(1991-1993) | Investments | ||||
Strategic Planning and New Business | Funds | ||||
Development, PepsiCo, Inc. (1987-1990). | (2013-present). | ||||
Former: | |||||
Fiduciary/Claymo | |||||
re Energy | |||||
Infrastructure | |||||
Fund (2004- | |||||
2022); | |||||
Guggenheim | |||||
Enhanced Equity | |||||
Income Fund | |||||
(2005-2021); | |||||
Guggenheim | |||||
Credit Allocation | |||||
Fund (2013- | |||||
2021). | |||||
Angela Brock-Kyle | Trustee | † | Current: Founder and Chief Executive | Current: | |
Year of Birth: 1959 | Officer, | Bowhead | |||
(2013-present) | Insurance GP, | ||||
Directors Forum (2022-present). | LLC (2020- | ||||
present); | |||||
Former: Senior Leader, TIAA (financial | |||||
services firm) (1987-2012). | |||||
present). | |||||
Former: | |||||
Fiduciary/Claymo | |||||
re Energy | |||||
Infrastructure | |||||
Fund (2019- | |||||
2022); | |||||
Guggenheim | |||||
Enhanced Equity | |||||
Income Fund | |||||
Guggenheim | |||||
Credit Allocation | |||||
Fund | |||||
2021); Infinity | |||||
Property & | |||||
Casualty Corp. | |||||
(2014-2018). | |||||
9
Other | ||||||
Term of | Directorships | |||||
Office | Number of | held by | ||||
and | Portfolios in | Trustee | ||||
Name, | Position(s) | Length | Fund Complex | During | ||
Address(1) | Held with | of Time | Principal Occupation | Overseen by | the Past | |
and Age | Funds | Served | During The Past Five Years | Trustee | Five Years | |
INDEPENDENT TRUSTEES: (continued) | ||||||
Thomas F. | Trustee | † | Current: President, Global Trends | 154 | Current: US | |
Lydon, Jr. | Investments (registered investment adviser) | Global Investors | ||||
Year of Birth: 1960 | (1996-present); Chief Executive Officer, | (GROW) (1995- | ||||
ETF Flows, LLC (financial advisor education | present). | |||||
and provider) (2019-present); Chief Executive | ||||||
Officer, Lydon Media (2016-present); Director, | Former: | |||||
GDX Index Partners, LLC (index provider) | Fiduciary/ | |||||
(2021-present); Vice Chairman, VettaFi | Claymore Energy | |||||
(financial advisor content, research and | Infrastructure | |||||
digital distribution provider) (2022-present). | Fund (2019-2022); | |||||
Guggenheim | ||||||
Enhanced Equity | ||||||
Income Fund | ||||||
(2019-2021); | ||||||
Guggenheim | ||||||
Credit Allocation | ||||||
Fund (2019- | ||||||
2021); Harvest | ||||||
Volatility Edge - | ||||||
Trust (3) (2017- | ||||||
2019). | ||||||
Ronald A. Nyberg | Trustee | † | Current: Of Counsel (formerly partner), | Current: Advent | ||
Year of birth: 1953 | Momkus LLP (2016-present). | Convertible and | ||||
Income Fund | ||||||
Former: Partner, Nyberg & Cassioppi, | ||||||
LLC (2000-2016); Executive Vice President, | PPM Funds | |||||
General Counsel and Corporate Secretary | (2018 - present); | |||||
of Van Kampen Investments (1982-1999). | NorthShore- | |||||
Edward- | ||||||
Elmhurst Health | ||||||
(2012-present). | ||||||
Former: | ||||||
Fiduciary/Claymo | ||||||
re Energy | ||||||
Infrastructure | ||||||
Fund (2004- | ||||||
2022); | ||||||
Guggenheim | ||||||
Enhanced Equity | ||||||
Income Fund | ||||||
(2005-2021); | ||||||
Guggenheim | ||||||
Credit Allocation | ||||||
Fund (2013- | ||||||
2021); Western | ||||||
Asset Inflation- | ||||||
Linked | ||||||
Opportunities & | ||||||
Income Fund | ||||||
Western Asset | ||||||
Inflation-Linked | ||||||
Income Fund | ||||||
10
Other | |||||
Term of | Directorships | ||||
Office | Number of | held by | |||
and | Portfolios in | Trustee | |||
Name, | Position(s) | Length | Fund Complex | During | |
Address(1) | Held with | of Time | Principal Occupation | Overseen by | the Past |
and Age | Funds | Served | During The Past Five Years | Trustee | Five Years |
INDEPENDENT TRUSTEES: (continued) | |||||
Sandra G. Sponem | Trustee | † | Current: Retired. | Current: SPDR | |
Year of Birth: 1958 | Series Trust (81) | ||||
Former: Senior Vice President and | (2018-present); | ||||
Chief Financial Officer, M.A. | SPDR Index | ||||
Shares Funds (30) | |||||
(construction and real estate | (2018-present); | ||||
development company) (2007-2017). | SSGA Active | ||||
Trust (14) (2018- | |||||
present). | |||||
Former: | |||||
Fiduciary/Claymo | |||||
re Energy | |||||
Infrastructure | |||||
Fund (2019- | |||||
2022); | |||||
Guggenheim | |||||
Enhanced Equity | |||||
Income Fund | |||||
Guggenheim | |||||
Credit Allocation | |||||
Fund | |||||
2021); SSGA | |||||
Master Trust (1) | |||||
(2018-2020). | |||||
Ronald E. | Trustee | † | Current: Portfolio Consultant (2010- | 154 | Former: |
Toupin, Jr. | present); Member, Governing Council, | Fiduciary/ | |||
Year of birth: | 1958 | Independent Directors Council (2013- | Claymore Energy | ||
present); Governor, Board of Governors, | Infrastructure | ||||
Investment Company Institute | Fund (2004-2022); | ||||
(2018-present). | Guggenheim | ||||
Enhanced Equity | |||||
Former: Member, Executive Committee, | Income Fund | ||||
Independent Directors Council (2016-2018); | (2005-2021); | ||||
Vice President, Manager and Portfolio | Guggenheim | ||||
Manager, Nuveen Asset Management (1998- | Credit Allocation | ||||
1999); Vice President, Nuveen Investment | Fund (2013- | ||||
Advisory Corp. (1992-1999); Vice President | 2021); Western | ||||
and Manager, Nuveen Unit Investment | Asset Inflation- | ||||
Trusts (1991-1999); and Assistant Vice | Linked | ||||
President and Portfolio Manager, Nuveen | Opportunities & | ||||
Unit Investment Trusts (1988-1999), each | Income Fund | ||||
of John Nuveen & Co., Inc. (registered | (2004-2020); | ||||
broker-dealer) (1982-1999). | Western Asset | ||||
Inflation-Linked | |||||
Income Fund | |||||
(2003-2020). |
1011
Other | ||||||
Term of | Directorships | |||||
Office | Number of | held by | ||||
and | Portfolios in | Trustee | ||||
Name, | Position(s) | Length | Fund Complex | During | ||
Address(1) | Held with | of Time | Principal Occupation | Overseen by | the Past | |
and Age | Funds | Served | During The Past Five Years | Trustee | Five Years | |
INTERESTED TRUSTEE: | ||||||
Amy J. | Interested | † | Current: Interested Trustee, certain other | Former: | ||
Lee* | Trustee | funds in the Fund Complex (2018-present); | ||||
Year of birth: 1961 | Chief Legal Officer, certain other funds in | |||||
the Fund Complex (2014-present); Vice | ||||||
President, certain other funds in the Fund | ||||||
Complex (2007-present); Senior Managing | Guggenheim | |||||
Director, Guggenheim Investments | ||||||
(2012-present). | Income Fund | |||||
Former: President and Chief Executive | Guggenheim | |||||
Officer, certain other funds in the Fund | Credit Allocation | |||||
Complex (2017- 2019); Vice President, | Fund (2018- | |||||
Associate General Counsel and Assistant | 2021). | |||||
Secretary, Security Benefit Life Insurance | ||||||
Company and Security Benefit Corporation | ||||||
(2004-2012). |
_____________
GBAB | GOF | |
Independent Trustees | ||
Barnes | 2010 | 2007 |
Brock-Kyle | 2019 | 2019 |
Lydon | 2019 | 2019 |
Nyberg | 2010 | 2007 |
Sponem | 2019 | 2019 |
Toupin | 2010 | 2007 |
Interested Trustee | ||
Lee | 2018 | 2018 |
(1) The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, 7th Floor, Chicago, Illinois 60606.
* Ms. Lee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Adviser and/or affiliates of the Adviser.
† Each Trustee is generally expected to serve a term as set forth herein under “Composition of the Board of Trustees.” Each Trustee has served as a Trustee of each respective Fund since the year shown below:
GBAB | GOF | GUG | |
Independent Trustees | |||
Barnes | 2010 | 2007 | 2021 |
Brock-Kyle | 2019 | 2019 | 2021 |
Lydon | 2019 | 2019 | 2021 |
Nyberg | 2010 | 2007 | 2021 |
Sponem | 2019 | 2019 | 2021 |
Toupin | 2010 | 2007 | 2021 |
Interested Trustee | |||
Lee | 2018 | 2018 | 2021 |
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Trustee Qualifications
The Trustees were selected to serve on the Board based upon their skills, experience, judgment, analytical ability, diligence, ability to work effectively with other Trustees, availability and commitment to attend meetings and perform the responsibilities of a Trustee and, for the Independent Trustees, a demonstrated willingness to take an independent and questioning view of management.
The following is a summary of the experience, qualifications, attributes and skills of each Trustee that support the conclusion, as of the date of the date hereof, that each Trustee should serve as a Trustee in light of the Funds’ business and structure. References to the qualifications, attributes and skills of Trustees do not constitute the holding out of any Trustee as being an expert under Section 7 of the Securities
12
Act of 1933.1933 and shall not impose any greater responsibility or liability on any such person or on a Board by reason thereof.
Randall C. Barnes. Mr. Barnes has served as a trustee of certain funds in the Fund Complex since 2004. Through his service as a Trustee of the Funds and a trustee of other funds in the Fund Complex, as well as Chair of the Valuation Oversight Committee, his service on other registered investment company boards, prior employment experience as President of Pizza Hut International and as Treasurer of PepsiCo, Inc. and his personal investment experience.experience, Mr. Barnes is experienced in financial, accounting, regulatory and investment matters.
Angela Brock-Kyle. Ms. Brock-Kyle has served as a trustee of certain funds in the Fund Complex since 2016. Through her service as a Trustee of the Funds and a trustee of other funds in the Fund Complex, prior employment experience, including at TIAA where she spent 25 years in leadership roles, her professional training in law and business and her experience serving on the boards of public, private and non-profit organizations, including service as audit committee chair and as a member of governance and nominating committees, Ms. Brock-Kyle is experienced in financial, accounting, regulatory, governance and investment matters.
Amy J. Lee. Ms. Lee has served as a trustee of certain funds in the Fund Complex since 2018. Through her service as a Trustee of the Funds and a trustee of other funds in the Fund Complex, her service as Chief Legal Officer of the Fund Complex, her service as Senior Managing Director of Guggenheim Investments, as well as her prior experience as Associate General Counsel, Vice President and Assistant Secretary of Security Benefit Life Insurance Company and Security Benefit Corporation, Ms. Lee is experienced in financial, legal, regulatory and governance matters.
Thomas F. Lydon, Jr. Mr. Lydon has served as a trustee of certain funds in the Fund Complex since 2005. Through his service as a Trustee of the Funds and a trustee of other funds in the Fund Complex, his service as Chair of the Contracts Review Committee, his experience as President of Global Trends Investments, a registered investment adviser, his service on the board of U.S. Global Investors, Inc. (GROW), an investment adviser and transfer agent, as well as his prior service on another registered investment company board and his authorship and editorial experience regarding exchange-traded funds, Mr. Lydon is experienced in financial, investment and governance matters.
12
Ronald A. Nyberg. Mr. Nyberg has served as a trustee of certain funds in the Fund Complex since 2003. Through his service as a Trustee of the Funds and a trustee of other funds in the Fund Complex, as well as Chair of the Nominating &and Governance Committee, his service on other registered investment company boards, his professional training and experience as an attorney and his former experience as a partner of the law firm, Momkus LLC,LLP, and Nyberg & Cassioppi, LLC, and Executive Vice President and General Counsel of Van Kampen
13
Investments, an asset management firm, Mr. Nyberg is experienced in financial, regulatory and governance matters.
Sandra G. Sponem. Ms. Sponem has served as a trustee of certain funds in the Fund Complex since 2016. Through her service as a Trustee of the Funds and a trustee of other funds in the Fund Complex, her service as Chair of the Audit Committee, her service on other registered investment company boards, her prior employment experience, including as Chief Financial Officer of Piper Jaffray Companies, Inc. (now Piper Sandler Companies) and its predecessor, U.S. Bancorp Piper Jaffray, Inc., and as Senior Vice President and Chief Financial Officer of M.A. Mortenson Company,Companies, Inc., a construction and real estate development company, her Certified Public Accountant (inactive) designation and previously held securities licenses and extensive knowledge of accounting and finance and the financial services industry, Ms. Sponem is experienced in accounting, financial, governance and investment matters. The Board has determined that Ms. Sponem is an “audit committee financial expert” as defined by the SEC.
Ronald E. Toupin, Jr. Mr. Toupin has served as a trustee of certain funds in the Fund Complex since 2003. Mr. Toupin currently serves on the Governing Council of the Independent Directors Council (IDC) of the Investment Company Institute (ICI) and on the Board of Governors of the ICI. Through his service as a Trustee of the Funds and a trustee of other funds in the Fund Complex, as well as the Independent Chair of the Board, his prior service on other registered investment company boards, and his professional training and prior employment experience, including as Vice President and Portfolio Manager for Nuveen Asset Management, an asset management firm, Mr. Toupin is experienced in financial, regulatory and investment matters.
Each Trustee also has considerable familiarity with the Funds, the Funds’ investment advisers and other service providers, and their operations, as well as the special regulatory requirements governing registered investment companies and the special responsibilities of investment company trustees as a result of his/her substantial prior service as a Trustee of the Funds and/or other funds in the Fund Complex, or with respect to Ms. Lee, her extensive experience in the financial industry, including her experience with the parent of the investment advisers of the funds of the Fund Complex.
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Executive Officers
The following information relates to the executive officers of the Funds who are not Trustees. Fund officers receive no compensation from the Funds but may also be officers or employees of the Adviser, athe Sub-Adviser or affiliates of the Adviser or athe Sub-Adviser and may receive compensation in such capacities.
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Term of | |||
Office and | |||
Name, | Length | ||
Address(1) | of Time | Principal Occupation | |
and Age | Title | Served(2) | During the Past Five Years |
Brian E. Binder | President | Since 2018 | Current: President, |
Year of birth: 1972 | and | Guggenheim Investments (2022-present); | |
Chief | President and Chief Executive Officer, certain | ||
Executive | other funds in the Fund Complex (2018- | ||
present); President, Chief Executive Officer and | |||
Chairman of the Board of Managers, Guggenheim | |||
Funds Investment Advisors, LLC (2018-present); | |||
President and Chief Executive Officer, Security | |||
Investors, LLC (2018-present); Board Member, | |||
Guggenheim Partners | |||
Management (Europe) Limited (2018-present). | |||
Former: Senior Managing Director and Chief | |||
Administrative Officer, Guggenheim Investments | |||
(2018-2022); Managing Director and President, | |||
Deutsche Funds, and Head of US Product, | |||
Trading and Fund Administration, Deutsche Asset | |||
Management (2013-2018); Managing Director, | |||
Committee and Head of Business Management | |||
and Consulting, Invesco Ltd. (2010-2012). | |||
Bryan Stone | Vice | Since 2014 | Current: Vice President, certain other funds in |
Year of birth: 1979 | President | the Fund Complex (2014-present); Managing | |
Director, Guggenheim Investments (2013- | |||
present). | |||
Former: Senior Vice President, Neuberger | |||
Berman Group LLC (2009-2013); Vice President, | |||
Morgan Stanley (2002-2009). | |||
Joanna Catalucci | Chief | Since 2012 | Current: Chief Compliance Officer, certain funds |
Year of birth: 1966 | Compliance | in the Fund Complex (2012-present); Senior | |
Officer | Managing Director, Guggenheim Investments | ||
(2014-present). | |||
Former: Anti-Money Laundering Compliance | |||
Officer, certain funds in the Fund Complex (2016- | |||
present); Chief Compliance Officer & Secretary, | |||
certain other funds in the Fund Complex (2008- | |||
2012); Senior Vice President & Chief Compliance | |||
Officer, Security Investors, LLC and certain | |||
affiliates (2010-2012); Chief Compliance Officer | |||
and Senior Vice President, Rydex Advisors, LLC | |||
and certain affiliates (2010-2011). |
1415
Term of | |||
Office and | |||
Name, | Length | ||
Address(1) | of Time | Principal Occupation | |
and Age | Title | Served(2) | During the Past Five Years |
Chief | Since | Current: | |
Year of birth: | |||
Officer, | |||
Chief | |||
Financial | present). | ||
Officer, | |||
Principal | Former: Assistant Treasurer, certain other funds in | ||
Financial | the Fund Complex (2006-2022); Manager, Mutual | ||
and | Fund Administration of Van Kampen | ||
Accounting | |||
Officer, and | |||
Treasurer | |||
Mark E. Mathiasen | Secretary | Since 2007 | Current: Secretary, certain other funds in the Fund |
Year of birth: 1978 | Complex (2007-present); Managing Director, | ||
Guggenheim Investments (2007-present). | |||
Michael P. Megaris | Assistant | Since 2014 | Current: Assistant Secretary, certain other funds |
Year of birth: 1984 | Secretary | in the Fund Complex (2014-present); Managing | |
Director, Guggenheim Investments | |||
present). | |||
Kimberly J. Scott | Assistant | Since 2012 | Current: Director, Guggenheim Investments |
Year of Birth: 1974 | Treasurer | (2012-present); Assistant Treasurer, certain other | |
funds in the Fund Complex (2012-present). | |||
Former: Financial Reporting Manager for | |||
Invesco, Ltd. (2010-2011); Vice | |||
President/Assistant Treasurer, Mutual Fund | |||
Administration for Van Kampen Investments, | |||
Inc./Morgan Stanley Investment Management | |||
(2009-2010); | |||
Administration for Van Kampen Investments, | |||
Inc./Morgan Stanley Investment Management | |||
(2005-2009). | |||
Glenn McWhinnie | Assistant | Since 2016 | Current: Vice President, Guggenheim Investments |
Year of birth: 1969 | Treasurer | (2009-present); Assistant Treasurer, certain other | |
funds in the Fund Complex (2016-present). | |||
Former: Tax Compliance Manager, Ernst & | |||
Young LLP (1996-2009). |
1516
Term of | |||
Office and | |||
Name, | Length | ||
Address(1) | of Time | Principal Occupation | |
and Age | Title | Served(2) | During the Past Five Years |
Jon Szafran | Assistant | Since 2017 | Current: |
Year of birth: 1989 | Treasurer | (2017-present); Assistant Treasurer, certain other | |
funds in the Fund Complex (2017-present). | |||
Former: Assistant Treasurer of Henderson Global | |||
Funds and Manager of US Fund Administration, | |||
Henderson Global Investors (North America) Inc. | |||
(“HGINA”) (2017); Senior Analyst of US Fund | |||
Administration, HGINA (2014-2017); Senior | |||
Associate of Fund Administration, Cortland | |||
Capital Market Services, LLC (2013-2014); | |||
Experienced Associate, PricewaterhouseCoopers | |||
LLP (2012-2013). |
_______
(1) The business address of each officer of the Funds is c/o Guggenheim Investments, 227 West Monroe Street, 7th Floor, Chicago, Illinois 60606.
(2) Officers serve at the pleasure of the Board and until his or her successor is appointed and qualified or until his or her resignation or removal. The year set forth above is the earliest year in which the officer was appointed as an officer of any Fund.
Board Leadership Structure
The primary responsibility of the Board is to represent the interests of the Funds and to provide oversight of the management of the Funds. The Funds’ day-to-day operations are managed by the Adviser, the Sub-Adviser and other service providers who have been approved by the Board. The Board is currently comprised of seven Trustees, six of whom (including the chairperson) are Independent Trustees. Generally, the Board acts by majority vote of all the Trustees and, if required by applicable laws, also by a majority vote of the Independent Trustees.
The Board has appointed an Independent Chair, Ronald E. Toupin, Jr., who presides at Board meetings and who is responsible for, among other things, participating in the planning of Board meetings, setting the tone of Board meetings and seeking to encourage open dialogue and independent inquiry among the Trustees and management. In addition, the Independent Chair acts as a liaison with officers, counsel and other Trustees between meetings of the Board. The Independent Chair may also perform such other functions as may be delegated by the Board from time to time. The Board has established five standing committees (as described below) and has delegated certain responsibilities to those committees, each of which is comprised solely of Independent Trustees other than the Valuation Oversight Committee, which is comprised of all Trustees. The Board and its committees meet periodically throughout the year to oversee the Funds’ activities, including through the review of the Funds’ contractual arrangements with service providers and the Funds’ financial statements, compliance with regulatory requirements, and performance. The Board may also establish informal working groups from time to time to review and address the policies and practices of the Trust or the Board with respect to certain specified matters. The Independent Trustees are advised by independent legal counsel experienced in Investment Company1940 Act of 1940 (“1940 Act”) matters
17
and are represented by such
16
independent legal counsel at Board and committee meetings. The Board has determined that this leadership structure, including an Independent Chair, a supermajority of Independent Trustees and committee membership (other than for the Valuation Oversight Committee) limited to Independent Trustees, is appropriate in light of the characteristics and circumstances of the Funds because it allocates responsibilities among the Committees and the Board in a manner that further enhances effective oversight. The Board considered, among other things: the number of portfolios that comprise the trusts in the Guggenheim Family of Funds overseen by members of the Board; the variety of asset classes those portfolios include; the net assets of each Fund and the Guggenheim Family of Funds; and the management, distribution and other service arrangements of each Fund and the Guggenheim Family of Funds. The Board may at any time and in its discretion change this leadership structure.
Board Committees
The Trustees have determined that the efficient conduct of the Funds’ affairs makes it desirable to delegate responsibility for certain specific matters to committees of the Board. The committees meet as often as necessary, either in conjunction with regular meetings of the Trustees or otherwise. The committees of the Board are the Executive Committee, the Audit Committee, the Nominating and Governance Committee, the Contracts Review Committee and the Valuation Oversight Committee.
Executive Committee. The Board has an Executive Committee, which is composed of Sandra G. Sponem and Ronald E. Toupin, Jr., each an Independent Trustee. In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the management of the business of the Funds. Mr. Toupin serves as Chair of the Executive Committee. However, the Executive Committee cannot, among other things, authorize dividends or distributions on shares, amend the bylaws or recommend to the shareholders any action which requires shareholder approval.
Audit Committee. The Board has an Audit Committee, which is composed of Randall C. Barnes, Angela Brock-Kyle, Thomas F. Lydon, Jr., Ronald A. Nyberg, Sandra G. Sponem, and Ronald E. Toupin, Jr., each of whom is an Independent Trustee (as defined herein) and is “independent” as defined by NYSE listing standards. Ms. Sponem serves as Chair of the Audit Committee.
The Audit Committee is generally responsible for certain oversight matters, such as reviewing the Funds’ systems for accounting, financial reporting and internal controls and, as appropriate, the internal controls of certain service providers, overseeing the integrity of the Funds’ financial statements (and the audit thereof), reviewing reports from the Adviser on portfolio securities’ pricing errors and errors in the calculation of the net asset value of a Fund, as well as overseeing the qualifications, independence and performance of the Funds’ independent registered public accounting firm. The Audit Committee is also responsible for recommending to the Board the appointment, retention and termination of the
18
Funds’ independent registered public accounting firm and acting as a liaison between the Board and the Funds’ independent registered public accounting firm. The Audit Committee is governed by a written charter (the “Audit
17
Committee Charter”). The Audit Committee Charter is available under “News & Literature” on each Fund’s page at https://www.guggenheiminvestments.com/cef.cef/literature.
The Audit Committee presents the following report on behalf of each Fund:
The Audit Committee of the Board is charged with selecting an independent registered public accounting firm for the Funds and reviewing accounting matters with the independent accountants. The Audit Committee reviews the Funds’ annual financial statements with both management and the Funds’ independent registered public accounting firm and the Audit Committee meets periodically with the independent accountants to consider their evaluation of the Funds’ financial and internal controls. In addition to being Independent Trustees as defined above, each member of the Audit Committee also meets the additional independence requirements of the New York Stock Exchange.
The Audit Committee, in discharging its duties, has met with and held discussions with management and the Funds’ independent accountants. The Audit Committee has reviewed and discussed the audited financial statements with management. Management has represented to the independent accountants that the Funds’ financial statements were prepared in accordance with generally accepted accounting principles.
The Audit Committee has also discussed with the independent accountants the matters required to be discussed by Statement on Auditing Standards No. 114 (The Auditor’s Communications With Those Charged With Governance) and the applicable requirements of the Public Company Accounting Oversight Board (“PCAOB”) and the SEC. The independent accountants provided to the Audit Committee the written disclosure required by PCAOB regarding the independent accountant’s communications with the Audit Committee concerning independence, , and the Audit Committee discussed with representatives of the independent registered public accounting firm their firm’s independence.
Based on the Audit Committee’s review and discussions with management and the independent accountants, the representations of management and the reports of the independent registered public accounting firm to the Audit Committee, the Audit Committee recommended and approved, pursuant to authority delegated by Board of Trustees of the Funds, that the audited financial statements be included in the Funds’ annual reports.reports to shareholders. The members of the Audit Committee are Randall C. Barnes, Angela Brock-Kyle, Thomas F. Lydon, Jr., Ronald A. Nyberg, Sandra G. Sponem, and Ronald E. Toupin, Jr.
19
Nominating and Governance Committee. The Board has a Nominating and Governance Committee, which is composed of Randall C. Barnes, Angela Brock-Kyle, Thomas F. Lydon, Jr., Ronald A. Nyberg, Sandra G. Sponem, and Ronald E. Toupin, Jr., each of whom is an Independent Trustee and is “independent” as
18
defined by NYSE listing standards. Mr. Nyberg serves as Chair of the Nominating and Governance Committee.
The Nominating and Governance Committee is governed by a written charter (the “Nominating and Governance Committee Charter”). The Nominating and Governance Committee Charter is available under “News & Literature” on each Fund’s page at https://www.guggenheiminvestments.com/cefcef/literature.
The purpose of the Nominating and Governance Committee is to review matters pertaining to the composition, committees, and operations of the Board. The Nominating and Governance Committee is responsible for recommending qualified candidates to the Board in the event that a position is vacated or created. The Nominating and Governance Committee would consider recommendations by shareholders if a vacancy were to exist and shall assess shareholder recommendations in the same manner as it reviews its own candidates. The Board does not have a standing compensation committee.
In considering Trustee nominee candidates, the Nominating and Governance Committee requires that Trustee candidates have a college degree or equivalent experience and may take into account a wide variety of factors in considering Trustee candidates, including (but not limited to): availability and commitment of a candidate to attend meetings and perform his or her responsibilities on the Board, relevant industry and related experience, educational background, financial expertise, the candidate’s ability, judgment and expertise and overall diversity of the Board’s composition. The Nominating and Governance Committee may consider candidates recommended by various sources, including (but not limited to): such Fund’s current Trustees, officers, investment advisers and shareholders. The Nominating and Governance Committee will not nominate a person for election to the Board as an Independent Trustee in contravention of its Independent Trustee Retirement Policy. The Nominating and Governance Committee may, but is not required to, retain a third party search firm to identify potential candidates.
A Trustee candidate must (i) be prepared to submit written answers to a questionnaire seeking professional and personal information that will assist the Nominating and Governance Committee to evaluate the candidate and to determine, among other matters, whether the candidate would qualify as a Trustee who is not an “interested person” of the Funds as such term is defined under the 1940 Act; (ii) be prepared to submit character references and agree to appropriate background checks; and (iii) be prepared to meet with one or more members of the Nominating and Governance Committee at a time and location convenient to those Nominating and Governance Committee members in order to discuss the nominee’s qualifications.
20
The Nominating and Governance Committee will consider Trustee candidates recommended by shareholders of the Funds. The Nominating and Governance Committee will consider and evaluate trustee nominee candidates
19
properly submitted by shareholders on the same basis as it considers and evaluates candidates recommended by other sources.
In considering Trustee nominee candidates, the Nominating and Governance Committee takes into account a wide variety of factors, including the overall diversity of the Board’s composition. The Nominating and Governance Committee believes the Board generally benefits from diversity of background, experience and views among its members, and considers this a factor in evaluating the composition of the Board, but has not adopted any specific policy in this regard.
To have a candidate considered by the Nominating and Governance Committee, a shareholder must submit the recommendation in writing and must include the information required by the “Procedures for Shareholders to Submit Nominee Candidates” that are set forth as Appendix B to the Nominating and Governance Committee Charter. Shareholder recommendations must be sent to the Funds’ Secretary of the Funds, c/o Guggenheim Funds Investment Advisors, LLC, 227 West Monroe Street, 7th Floor, Chicago, Illinois 60606.
The nominees for election at the Annual Meeting currently serve as Trustees and were unanimously nominated by the Board of Trustees and the Nominating and Governance Committee.
Contracts Review Committee. The Board has a Contracts Review Committee, which is composed of Randall C. Barnes, Angela Brock-Kyle, Thomas F. Lydon, Jr., Ronald A. Nyberg, Sandra G. Sponem, and Ronald E. Toupin, Jr., each of whom is an Independent Trustee. Mr. Lydon serves as Chair of the Contracts Review Committee. The purpose of the Contracts Review Committee is to assist the Board in overseeing the evaluation of certain contracts to which a Fund is or is proposed to be a party to ensure that the interests of the Fund and its shareholders are served by the terms of these contracts. The Committee’s primary function is to oversee the process of evaluating existing investment advisory and subadvisory agreements, administration agreements, and distributioncertain other agreements. In addition, at its discretion or at the request of the Board, the Committee reviews and makes recommendations to the Board with respect to any contract to which a Fund is or is proposed to be a party.
Valuation Oversight Committee. The Board has a Valuation Oversight Committee, which is composed of Randall C. Barnes, Angela Brock-Kyle, andThomas F. Lydon Jr., Ronald A. Nyberg, Sandra G. Sponem, and Ronald E. Toupin, each of whom is an Independent Trustee, as well as Amy J. Lee who is an Interested Trustee. Mr. Barnes serves as Chair of the Valuation Oversight Committee. The Valuation Oversight Committee assists the Board in overseeingCommittee’s primary function is to oversee the activities of Guggenheim’s Valuation Committee and the Adviser as valuation designee in making fair valuation determinations of the Funds’ securities and other assets held by the Funds. Duties of the and performing other valuation responsibilities. The
21
Valuation Oversight Committee include reviewingreceives reporting on valuation matters for the valuation designee in accordance with the Funds’ valuation procedures, evaluating pricing services that are being used for the Funds,policy and receiving reports relating to actions taken by Guggenheim’s Valuation Committee.procedures.
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Board and Committee Meetings
Information regarding the number of meetings of the Board, Audit Committee, Nominating and Governance Committee, Contracts Review Committee and Valuation Oversight Committee of each Fund during such Fund’s most recently completed fiscal year is set forth in the table below (The Executive Committee did not meet during the fiscal year end shown):
Nominating | Contract | Valuation | ||||
Audit | and | Review | Oversight | |||
Fiscal Year | Board | Committee | Governance | Committee | Committee | |
Fund | End | Meetings | Meetings | Meetings | Meetings | Meetings |
GBAB | 5/31/2021 | 4 | 6 | 3 | 2 | 4 |
GOF | 5/31/2021 | 5 | 7 | 3 | 2 | 4 |
Nominating | Contracts | Valuation | ||||
Audit | and | Review | Oversight | |||
Fiscal Year | Board | Committee | Governance | Committee | Committee | |
Fund | End | Meetings | Meetings | Meetings | Meetings | Meetings |
GBAB | 5/31/2022 | 8 | 5 | 3 | 1 | 4 |
GOF | 5/31/2022 | 7 | 5 | 3 | 1 | 4 |
GUG | 5/31/2022 | 6 | 4 | 2 | 1 | 2 |
Each Trustee attended at least 75% of the meetings of the Board (and any committee thereof on which he or she serves) held during the portion of each Fund’s fiscal year ended in 2021.2022.
Board’s Role in Risk Oversight
The day-to-day business of the Funds, including the day-to-day management and administration of the Funds and of the risks that arise from the Funds’ investments and operations, is performed by third-party service providers, primarily the Adviser or its affiliates. Consistent with its responsibility for oversight of the Funds, the Board is responsible for overseeing the service providers and thus, has oversight responsibility with respect to the risk management functions performed by those service providers. Risks to the Funds include, among others, investment risk, credit risk, derivatives risk, valuation risk, compliance risk and operational risk, as well as the overall business risk relating to the Funds. RiskThe risk management function seeks to identify and mitigate the potential effects of risks, i.e., events or circumstances that could have material adverse effects on the business, operations, investment performance or reputation of the Funds. Under the oversight of the Board, the service providers to the Funds employ a variety of processes, procedures and controls to seek to identify risks relevant to the operations of the Funds and to lessen the probability of the occurrence of such risks and/or to mitigate the effects of such events or circumstances if they do occur. Each service provider is responsible for one or more discrete aspects of the Funds’ business and consequently, for managing risks associated with that activity. Each of the Adviser and other service providers has its own independent interest in risk management, and its policies and methods of carrying out risk management functions will depend, in part, on its analysis of the risks, functions and business models. Accordingly, Board oversight of different types of risks may be handled in different ways. As part of the Board’s periodic review of each Fund’s advisory and other service provider agreements, the Board may consider risk management
22
aspects of the service providers’ operations and the functions for which they are responsible.
The Board oversees risk management for the Funds directly and through the committee structure it has established. The Board has established the Audit
21
Committee, the Nominating and Governance Committee, the Contracts Review Committee and the Valuation Oversight Committee to assist in its oversight functions, including its oversight of the risks each Fund faces. For instance, the Audit Committee receives reports from the Funds’ independent registered public accounting firm on internal control and financial reporting matters. In addition, the Board has established an Executive Committee to act on the Board’s behalf, to the extent permitted and as necessary, in between meetings of the Board. Each committee reports its activities to the Board on a regular basis.basis, as applicable. The Board also oversees the risk management of the Funds’ operations by requesting periodic reports from and otherwise communicating with various personnel of the Funds and their service providers, including, in particular, the Funds’ Chief Compliance Officer, their independent registered public accounting firm and Guggenheim Investments’ Chief Risk Officer and internal auditors for the Adviser or its affiliates, as applicable. In this connection, the Board requires officers of the Funds to report a variety of matters at regular and special meetings of the Board and its committees, as applicable, including matters relating to risk management. On at least a quarterly basis, the Board meets with the Funds’ Chief Compliance Officer, including separate meetings with the Independent Trustees in executive session, to discuss compliance matters and, on at least an annual basis, receives a report from the Chief Compliance Officer regarding the adequacy of the policies and procedures of the Funds and certain service providers and the effectiveness of their implementation. The Board, with the assistance of Fund management, reviews investment policies and risks in connection with its review of the Funds’ performance. In addition, the Board receives reports from the Adviser and Sub-Adviser, as applicable, on the investments and securities trading of the Funds. With respect to valuation, the Valuation Oversight Committee oversees a pricing committee comprisedthe Adviser as valuation designee in the performance of Fund officers and personnelfair valuation determinations of the Adviser.Funds’ securities and/or other assets in accordance with Rule 2a-5 under the 1940 Act. The Board has approved the Funds’ valuation policy and procedures and the Adviser’s Rule 2a-5 fair valuation policy and procedures applicable to valuing the Funds’ securities and other assets, which the Valuation Oversight Committee and the Audit Committee periodically review. The Valuation Oversight Committee reviews, at least annually, a written report from the valuation designee that assesses the adequacy and effectiveness of the valuation designee’s fair value process and also receives periodic and prompt reporting on fair value matters from the valuation designee, in accordance with the Funds’ valuation policy and procedures. The Board also requires the Adviser and Sub-Adviser, as applicable, to report to the Board on other matters relating to risk management on a regular and as-needed basis.
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The Board oversees the Funds’ use of derivatives in accordance with Rule 18f-4 under the 1940 Act. Each Fund is not classified as a “limited derivatives user fund” (as defined in Rule 18f-4) (each a “Full Compliance Fund”) and, as required by Rule 18f-4, has implemented a Derivatives Risk Management Program, which is reasonably designed to manage its derivatives risks and to reasonably segregate the functions associated with the Program from the portfolio management of the Fund. The Board, including a majority of the Independent Trustees, approved the designation of a Derivatives Risk Manager (the “DRM”), which is responsible for administering the Derivatives Risk Management Program for the Full Compliance Funds. To facilitate the Board’s oversight, the Board reviews, no less frequently than annually, a written report on the effectiveness of the Derivatives Risk Management Program and also more frequent reports regarding certain derivatives risk matters.
The Board recognizes that not all risks that may affect the Funds can be identified, that it may not be practical or cost-effective to eliminate or mitigate certain risks, that it may be necessary to bear certain risks (such as investment-related risks) to seek to achieve the Funds’ investment objectives, and that the processes, procedures and controls employed to address certain risks may be limited in their effectiveness. As part of its oversight function, the Board receives and reviews various risk management reports and assessments and discusses these matters with appropriate management and other personnel. Moreover, despite the periodic reports the Board receives, it may not be made aware of all of the relevant information of a particular risk. Most of the Funds’ investment management and business affairs are carried out by or through the Adviser or its affiliates and other service providers, most of whom employ professional personnel who have risk management responsibilities and each of whom has an independent interest in risk
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management, which interest could differ from or conflict with that of the other funds that are advised by Adviser.Adviser or its affiliates. The role of the Board and of any individual Trustee is one of oversight and not of management of the day-to-day affairs of the Funds and its oversight role does not make the Board a guarantor of the Funds’ investments, operations or activities. As a result of the foregoing and other factors, the Board’s risk management oversight is subject to limitations. The Board may at any time and in its discretion change how it administers its risk oversight function.
Trustee Communications
Shareholders and other interested parties may contact the Board or any Trustee by mail. To communicate with the Board or any Trustee, correspondence should be addressed to the Board or the Board members with whom you wish to communicate by either name or title. All such correspondence should be sent c/o the Secretary of the Fund or Funds at 227 West Monroe Street, 7th Floor, Chicago, Illinois 60606.
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Trustee Beneficial Ownership of Securities
The table below states the dollar range of equity securities of each Fund and funds in the Fund Complex beneficially owned by the Trustees as of December 31, 2021:2022:
Aggregate | ||||
dollar range | ||||
of equity | ||||
Dollar | Dollar | Dollar | securities in | |
Range of | Range of | Range of | all funds in the | |
Equity | Equity | Equity | Fund Complex | |
Securities | Securities | Securities | Overseen by | |
in GBAB | in GOF | in GUG | the Trustee | |
Independent Trustees | ||||
Barnes | None | Over $100,000 | $100,001-$500,000 | Over $100,000 |
Brock-Kyle | $0-10,000 | $10-001-$50,000 | $10-001-$50,000 | Over $100,000 |
Lydon | ||||
None | None | Over $100,000 | ||
Nyberg | $ | $ | $10-001-$50,000 | Over $100,000 |
Sponem | None | None | $10-001-$50,000 | Over $100,000 |
Toupin | Over $100,000 | |||
$50,001-$100,000 | Over $100,000 | |||
Interested Trustee | ||||
Lee | None | None | None | Over $100,000 |
As of December 31, 2021,2022, the Trustees and officers of the Fund as a group owned less than 1% of the outstanding Shares of each Fund.
Trustee Compensation
The Independent Trustees receive from the Fund Complex a general annual retainer for service on covered boards. Additional annual retainer fees are paid to: the Independent Chair of the Board; the Chair (and Vice Chair, if any) of each of the Audit Committee, the Contracts Review Committee, the Nominating and Governance Committee, and the Valuation Oversight Committee; and each
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other member of the Valuation Oversight Committee. In addition, fees are paid for special Board or Committee meetings, whether telephonic or in-person. No per meeting fee applies to meetings of the Valuation Oversight Committee. The Funds also reimburse each Independent Trustee for reasonable travel and other out-of-pocket expenses incurred in attending in-person meetings, which are not included in the compensation amounts shown below. Each Fund pays proportionately its respective share of Independent Trustees’ fees and expenses based in part on a per capita allocation and in part based on relative net assets. The amounts forEffective January 1, 2023, the Independent Trustees changed and aadditional annual retainer was added forfee paid to the Valuation Oversight Committee Chair effective January 1, 2022.members was eliminated. The following table sets forth the compensation paid to each Independent Trustee by each Fund during its most recently completed fiscal year and the total compensation paid to each Independent Trustee by the Fund Complex during the most recently completed calendar year ended December 31, 2021.2022.
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Pension or | ||||
Retirement | ||||
Benefits | Estimated | Total | ||
Aggregate | Accrued | Annual | Compensation | |
Compensation | as Part | Benefits | From the Funds | |
from each | of Fund | Upon | and the Fund | |
Trustee | Fund | Expenses(1) | Retirement(1) | Complex(2) |
Randall C. Barnes | † | None | None | $ |
Angela Brock-Kyle | † | None | None | $ |
Thomas F. Lydon, Jr | † | None | None | $ |
Ronald A. Nyberg | † | None | None | $ |
Sandra G. Sponem | † | None | None | $ |
Ronald E. Toupin, Jr | † | None | None | $ |
_______
(1) | The Funds do not accrue or pay retirement or pension benefits to Trustees as of the date hereof. |
(2) | The amounts shown in this column represent the aggregate compensation paid by all of the funds in the Fund Complex, which includes five closed-end funds and 150 open-end funds, for the calendar year ended December 31, |
† | The amount of aggregate compensation payable by each Fund for the calendar year ended December 31, 2022 is shown in the table below: |
† The amount of aggregate compensation payable by each Fund for the calendar year ended December 31, 2021 is shown in the table below:
GBAB | GOF | GBAB | GOF | GUG | |
Independent Trustees | |||||
Barnes | $9,690 | $14,180 | $11,627 | $22,094 | $12,815 |
Brock-Kyle | $9,690 | $14,180 | $11,012 | $20,928 | $12,138 |
Lydon | $9,870 | $14,443 | $11,351 | $21,573 | $12,513 |
Nyberg | $9,870 | $14,443 | $11,290 | $21,467 | $12,449 |
Sponem | $11,201 | $16,376 | $12,241 | $23,260 | $13,492 |
Toupin | $12,511 | $18,309 | $13,776 | $26,176 | $15,183 |
Shareholder Approval
With respect to each Fund, the affirmative vote of a majority of the Shares present in person at the Annual Meeting or represented by proxy and entitled to vote on the subject matter at the Annual Meeting at which a quorum is present is necessary to elect a Trustee nominee. Abstentions will have the same effect as votes against the election of a Trustee nominee. “Broker non-votes” (i.e., Shares held by brokers or nominees as to which (i) instructions have not been received from the beneficial owner or the persons entitled to vote and (ii) the broker does not have discretionary
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voting power on a particular matter) will have no effect on the outcome of the vote on a Trustee nominee.
The holders of the Shares will have equal voting rights (i.e., one vote per Share).
Board Recommendation
The Board unanimously recommends that shareholders vote “FOR” each of the nominees of the Board of your Fund.
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ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
Further Information About Voting and the Annual Meeting
Quorum. With respect to each Fund, the holders of a majority of the Shares entitled to vote on any matter at a meeting present in person or by proxy shall constitute a quorum at such meeting of the shareholders for purposes of conducting business on such matter. Votes withheld, abstentions and broker non-votes (i.e., Shares held by brokers or nominees as to which (i) instructions have not been received from the beneficial owner or the persons entitled to vote and (ii) the broker does not have discretionary voting power on a particular matter) will be counted as Shares present at the Annual Meeting for quorum purposes.
Record Date. The Board has fixed the close of business on February 18, 2022,17, 2023, as the Record Date for the determination of shareholders of each Fund entitled to notice of, and to vote at, the Annual Meeting. Shareholders of each Fund as of the close of business on the Record Date will be entitled to one vote on each matter to be voted on by such Fund for each Share held and a fractional vote with respect to fractional Shares with no cumulative voting rights.
Joint Meeting. The Annual Meeting is scheduled as a joint meeting of the Funds, whose votes on similar proposals applicable to such Funds are being solicited separately, because the shareholders of the Funds are expected to consider and vote on similar matters. In the event that any shareholder present at the Annual Meeting objects to the holding of a joint meeting and moves for the adjournment of his or her Fund’s meeting to a time immediately after the Annual Meeting so that each Fund’s meeting may be held separately, the persons named as proxies will vote in favor of such adjournment.
Shareholders of each Fund will vote separately on the respective Proposal relating to their Fund. In any event, an unfavorable vote on any Proposal by the shareholders of one Fund will not affect the implementation of such Proposal by another Fund if the Proposal is approved by the shareholders of that Fund.
How to Vote Your Shares. Whether or not you plan to attend the Annual Meeting, we urge you to complete, sign, date, and return the enclosed proxy card in the postage-paid envelope provided or vote via telephone or the Internet so your Shares will be represented at the Annual Meeting. Instructions regarding how to vote via telephone or the Internet are included on the enclosed proxy card. The required control number for Internet and telephone voting is printed on the enclosed proxy card. The control number is used to match proxy cards with shareholders’ respective accounts and to ensure that, if multiple proxy cards are executed, Shares are voted in accordance with the proxy card bearing the latest date.
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All Shares represented by properly executed proxies received prior to the Annual Meeting will be voted at the Annual Meeting in accordance with the instructions marked thereon or otherwise as provided therein. If you sign the proxy card, but don’t fill in a vote, your Shares will be voted in accordance with the Board’s recommendation (i.e., “FOR” each of the nominees). If any other business is brought before the Annual Meeting, your Shares will be voted in the proxies’ best judgment or discretion.
Shareholders who execute proxy cards or record voting instructions via telephone or the Internet may revoke them at any time before they are voted by filing with the Secretary of the Funds a written notice of revocation, by delivering (including via telephone or the Internet) a duly executed proxy bearing a later date or by attending the Annual Meeting and voting. Merely attending the Annual Meeting, however, will not revoke any previously submitted proxy.
Attending the Annual Meeting. The Annual Meeting will be held in a virtual meeting format only. Shareholders of record on the Record Date for the Annual Meeting may participate in and vote at the Annual Meeting on the Internet by virtual means. To participate in the Annual Meeting, shareholders must register in advance by visiting https://www.viewproxy.com/Guggenheim/broadridgevsm/ and submitting the requested required information to Broadridge Financial Solutions, Inc. (“Broadridge”), the Funds’ proxy tabulator. Only shareholders of record on the Record Date are entitled to notice of, and to vote at, the Annual Meeting or any postponement or adjournment thereof.Meeting. For additional information on how you can attend and participate in the Annual Meeting, please see “How do I vote my Shares?” on page 3 of this Proxy Statement.
If you have any questions regarding how to participate in and vote at the Annual Meeting, you may contact the Funds at (800) 345-7999.
Additional Information Regarding Voting. Broker-dealer firms holding Shares of a Fund in “street name” for the benefit of their customers and clients will request the instructions of such customers and clients on how to vote their shares on the Proposal before the Annual Meeting. The Funds understand that, under the rules of the NYSE, such broker-dealer firms may for certain “routine” matters, without instructions from their customers and clients, grant discretionary authority to the proxies designated by the Board to vote if no instructions have been received prior to the date specified in the broker-dealer firm’s request for voting instructions. Each Proposal is a “routine” matter and beneficial owners who do not provide proxy instructions or who do not return a proxy card may have their Shares voted by broker-dealer firms in favor of the Proposal. A properly executed proxy card or other authorization by a beneficial owner of Shares that does not specify how the beneficial owner’s Shares should be voted on the Proposal may be deemed an instruction to vote such Shares in favor of the Proposal. Broker-dealers who are not members of the NYSE may be subject to other rules, which may or may not permit them to vote your Shares without instruction. We urge you to provide instructions to your bank, broker or other nominee so that your votes may be counted.
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The Funds will update certain data regarding the Funds, including performance data, on a monthly basis on its website at www.guggenheiminvestments.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Funds.
Investment Adviser and Investment Sub-Adviser
Guggenheim Funds, a subsidiary of Guggenheim Partners, LLC (“Guggenheim Partners”), acts as each Fund’s investment adviser pursuant to an investment advisory agreement between each Fund and Guggenheim Funds. Guggenheim Funds is a registered investment adviser and acts as investment adviser to a number of closed-end investment companies. Guggenheim Funds is a Delaware limited liability company with principal offices located at 227 West Monroe Street, 7th Floor, Chicago, Illinois 60606.
Guggenheim Partners is a diversified financial services firm with wealth management, capital markets, investment management and proprietary investing businesses, whose clients are a mix of individuals, family offices, endowments, foundations, insurance companies and other institutions that have entrusted Guggenheim Partners with the supervision of more than $331$285 billion of assets as of September 30, 2021.2022. Guggenheim Partners is headquartered in Chicago and New York with a global network of offices throughout the United States, Europe, and Asia.
Guggenheim Partners Investment Management, LLC (“GPIM”), an affiliate of Guggenheim Partners, acts as each Fund’s investment sub-adviser pursuant to separate sub-advisory agreements among each such Fund, the Adviser and GPIM. GPIM is a Delaware limited liability company, with its principal offices located at 100 Wilshire Boulevard, Santa Monica, California 90401.
Administrator
MUFG Investor Services (US) (“MUFG”) serves as the Funds’ administrator. MUFG is located at 805 King Farm Boulevard, Rockville, Maryland 20850. Pursuant to an accounting and administration agreement with each Fund, MUFG provides certain administrative, bookkeeping and accounting services to the Funds. MUFG also provides certain fund accounting services to the Funds pursuant to a fund accounting agreement.
Independent Registered Public Accounting Firm
Ernst & Young LLP (“E&Y”) has been selected as the independent registered public accounting firm for the Funds by the Audit Committees of the Funds and approved by a majority of each Fund’s Board, including a majority of the Independent Trustees, to audit the accounts of the Funds for and during each Fund’s current fiscal year. The Funds do not know of any direct or indirect financial interest of E&Y in the Funds.
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Representatives of E&Y willare expected to be available to attendpresent at the Annual Meeting, will have the opportunity to make a statement if they desire to do so and willare expected to be available to answer questions if necessary.respond to appropriate questions.
Audit and Other Fees
Audit Fees. For each Fund’s two most recently completed fiscal years, the aggregate fees billed to each Fund by E&Y for professional services rendered for the audit of such Fund’s annual financial statements are set forth on Annex A.
Audit-Related Fees. For each Fund’s two most recently completed fiscal years, the aggregate fees billed by E&Y and approved by the Audit Committee of each Fund for assurance and related services reasonably related to the performance of the audit of such Fund’s annual financial statements (such fees relate to services rendered, and out of pocket expenses incurred, in connection with the Funds’ registration statements, comfort letters and consents) are set forth on Annex A.A.
E&Y did not perform any other assurance and related services that were required to be approved by the Funds’ Audit Committees for such fiscal years.
Tax Fees. For each Fund’s two most recently completed fiscal years, the aggregate fees billed by E&Y and approved by the Audit Committee of each Fund for professional services rendered for tax compliance, tax advice, and tax planning (such fees relate to tax services provided by E&Y in connection with the Fund’s excise tax calculations and review of the Fund’s tax returns) are set forth on Annex A.A.
E&Y did not perform any other tax compliance or tax planning services or render any tax advice that were required to be approved by the Funds’ Audit Committee for such period.
All Other Fees. For each Fund’s two most recently completed fiscal years, the aggregate fees billed for products and services provided by E&Y, other than the services reported above in Audit Fees, Audit-Related Fees, and Tax Fees are set forth on Annex A.
Aggregate Non-Audit Fees. For each Fund’s two most recently completed fiscal years, the aggregate non-audit fees billed by E&Y for services rendered to each Fund, Guggenheim Funds, and any entity controlling, controlled by or under common control with Guggenheim Funds that provides ongoing services to the Fund (not including an investment sub-adviser whose primary role is portfolio management and is sub-contracted with or overseen by another investment adviser) that directly related to the operations and financial reporting of the Fund are set forth on Annex A.
Audit Committee’s Pre-Approval Policies and Procedures
As noted above, the Audit Committee is governed by the Audit Committee Charter, which includes Pre-Approval Policies and Procedures in Section V of such Charter. Specifically, sections V.B.2 and V.B.3 of the Audit Committee Charter
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contain the Pre-Approval Policies and Procedures and such sections are included below reformatted for this Proxy.
V.B.2. | Pre-Approval Policy (Trusts). Pre-approve any engagement of the independent auditors to provide any services, other than “prohibited non-audit services,” to the Trust, including the fees and other compensation to be paid to the independent auditors (unless an exception is available under Rule 2-01 of Regulation S-X). |
(a) | The categories of services to be reviewed and considered for pre-approval include the following (collectively, “Identified Services”): |
(a) The categories of services to be reviewed and considered for pre-approval include the following (collectively, “Identified Services”):
Audit Services
• Annual financial statement audits
• Seed audits (related to new product filings, as required)
• SEC and regulatory filings and consents
Audit-Related Services
• Accounting consultations
• Fund merger/reorganization support services
• Other accounting related matters
• Agreed upon procedures reports
• Attestation reports
• Other internal control reports
Tax Services
• Recurring tax services:
o Preparation of Federal and state income tax returns, including extensions
o Preparation of calculations of taxable income, including fiscal year tax designations
o Preparation of annual Federal excise tax returns (if applicable)
o Preparation of calendar year excise distribution calculations
o Calculation of tax equalization on an as-needed basis
o Preparation of monthly/quarterly estimates of tax undistributed position for closed-end funds
o Preparation of the estimated excise distribution calculations on an as-needed basis
o Preparation of calendar year shareholder reporting designations on Form 1099
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o Preparation of quarterly Federal, state and local and franchise tax estimated tax payments on an as-needed basis
o Preparation of state apportionment calculations to properly allocate Fund taxable income among the states for state tax filing purposes
o Assistance with management’s identification of passive foreign investment companies (PFICs) for tax purposes
• Permissible non-recurring tax services upon request: