Guggenheim Enhanced Equity Income Fund | |
SCHEDULE OF INVESTMENTS (Unaudited) | September 30, 2020 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% | |||||
Consumer, Non-cyclical - 21.1% | |||||
Alexion Pharmaceuticals, Inc.*,1 | 5,709 | $ | 653,281 | ||
STERIS plc1 | 3,706 | 652,960 | |||
IDEXX Laboratories, Inc.*,1 | 1,649 | 648,238 | |||
DexCom, Inc.*,1 | 1,568 | 646,377 | |||
Hologic, Inc.*,1 | 9,695 | 644,427 | |||
PayPal Holdings, Inc.*,1 | 3,269 | 644,091 | |||
Global Payments, Inc.1 | 3,617 | 642,307 | |||
Avery Dennison Corp.1 | 5,021 | 641,884 | |||
MarketAxess Holdings, Inc.1 | 1,328 | 639,552 | |||
Campbell Soup Co.1 | 13,220 | 639,451 | |||
Humana, Inc.1 | 1,537 | 636,149 | |||
Vertex Pharmaceuticals, Inc.*,1 | 2,332 | 634,584 | |||
General Mills, Inc.1 | 10,275 | 633,762 | |||
Danaher Corp.1 | 2,936 | 632,209 | |||
Biogen, Inc.*,1 | 2,228 | 632,039 | |||
Lamb Weston Holdings, Inc.1 | 9,498 | 629,433 | |||
Automatic Data Processing, Inc.1 | 4,508 | 628,821 | |||
Amgen, Inc.1 | 2,473 | 628,537 | |||
Zoetis, Inc.1 | 3,793 | 627,248 | |||
Anthem, Inc.1 | 2,331 | 626,083 | |||
Abbott Laboratories1 | 5,745 | 625,228 | |||
Quest Diagnostics, Inc.1 | 5,452 | 624,199 | |||
Laboratory Corporation of America Holdings*,1 | 3,315 | 624,115 | |||
Cintas Corp.1 | 1,874 | 623,723 | |||
Conagra Brands, Inc.1 | 17,450 | 623,140 | |||
Catalent, Inc.*,1 | 7,272 | 622,920 | |||
UnitedHealth Group, Inc.1 | 1,995 | 621,981 | |||
S&P Global, Inc.1 | 1,724 | 621,674 | |||
Centene Corp.*,1 | 10,657 | 621,623 | |||
Stryker Corp.1 | 2,977 | 620,318 | |||
Cooper Companies, Inc.1 | 1,840 | 620,301 | |||
Align Technology, Inc.*,1 | 1,894 | 620,020 | |||
FleetCor Technologies, Inc.*,1 | 2,604 | 620,012 | |||
AmerisourceBergen Corp. — Class A1 | 6,393 | 619,610 | |||
Regeneron Pharmaceuticals, Inc.*,1 | 1,104 | 617,997 | |||
ABIOMED, Inc.*,1 | 2,229 | 617,567 | |||
Quanta Services, Inc.1 | 11,666 | 616,665 | |||
Thermo Fisher Scientific, Inc.1 | 1,395 | 615,920 | |||
Robert Half International, Inc.1 | 11,623 | 615,322 | |||
Bristol-Myers Squibb Co.1 | 10,197 | 614,777 | |||
Bio-Rad Laboratories, Inc. — Class A*,1 | 1,191 | 613,913 | |||
PepsiCo, Inc.1 | 4,429 | 613,859 | |||
Verisk Analytics, Inc. — Class A1 | 3,311 | 613,561 | |||
Incyte Corp.*,1 | 6,835 | 613,373 | |||
JM Smucker Co.1 | 5,308 | 613,180 | |||
Pfizer, Inc.1 | 16,676 | 612,009 | |||
CVS Health Corp.1 | 10,479 | 611,974 | |||
IHS Markit Ltd.1 | 7,794 | 611,907 | |||
Moody’s Corp.1 | 2,111 | 611,873 | |||
Estee Lauder Companies, Inc. — Class A1 | 2,801 | 611,318 | |||
Intuitive Surgical, Inc.*,1 | 856 | 607,366 | |||
West Pharmaceutical Services, Inc.1 | 2,208 | 606,979 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Consumer, Non-cyclical - 21.1% (continued) | |||||
Church & Dwight Company, Inc.1 | 6,477 | $ | 606,960 | ||
Johnson & Johnson1 | 4,070 | 605,942 | |||
Procter & Gamble Co.1 | 4,354 | 605,162 | |||
Colgate-Palmolive Co.1 | 7,837 | 604,625 | |||
Constellation Brands, Inc. — Class A1 | 3,186 | 603,779 | |||
Rollins, Inc.1 | 11,114 | 602,268 | |||
Cigna Corp.1 | 3,552 | 601,744 | |||
Eli Lilly & Co.1 | 4,062 | 601,257 | |||
United Rentals, Inc.*,1 | 3,444 | 600,978 | |||
Sysco Corp.1 | 9,655 | 600,734 | |||
Mondelez International, Inc. — Class A1 | 10,452 | 600,467 | |||
ResMed, Inc.1 | 3,497 | 599,491 | |||
Kimberly-Clark Corp.1 | 4,050 | 598,023 | |||
Corteva, Inc.1 | 20,727 | 597,145 | |||
Varian Medical Systems, Inc.*,1 | 3,470 | 596,840 | |||
Medtronic plc1 | 5,741 | 596,605 | |||
Archer-Daniels-Midland Co.1 | 12,828 | 596,374 | |||
McKesson Corp.1 | 4,000 | 595,720 | |||
Dentsply Sirona, Inc.1 | 13,621 | 595,646 | |||
IQVIA Holdings, Inc.*,1 | 3,770 | 594,265 | |||
Kellogg Co.1 | 9,192 | 593,711 | |||
Becton Dickinson and Co.1 | 2,551 | 593,567 | |||
Kroger Co.1 | 17,501 | 593,459 | |||
Gartner, Inc.*,1 | 4,749 | 593,388 | |||
Monster Beverage Corp.*,1 | 7,395 | 593,079 | |||
Hershey Co.1 | 4,134 | 592,568 | |||
Clorox Co.1 | 2,811 | 590,788 | |||
Merck & Company, Inc.1 | 7,120 | 590,604 | |||
Hormel Foods Corp.1 | 12,071 | 590,151 | |||
Nielsen Holdings plc1 | 41,511 | 588,626 | |||
Zimmer Biomet Holdings, Inc.1 | 4,321 | 588,261 | |||
McCormick & Company, Inc.1 | 3,028 | 587,735 | |||
AbbVie, Inc.1 | 6,706 | 587,378 | |||
Edwards Lifesciences Corp.*,1 | 7,355 | 587,076 | |||
DaVita, Inc.*,1 | 6,831 | 585,075 | |||
Cardinal Health, Inc.1 | 12,433 | 583,729 | |||
Baxter International, Inc.1 | 7,238 | 582,080 | |||
Mylan N.V.*,1 | 39,237 | 581,885 | |||
Coca-Cola Co.1 | 11,780 | 581,579 | |||
Equifax, Inc.1 | 3,700 | 580,530 | |||
Gilead Sciences, Inc.1 | 9,172 | 579,579 | |||
Molson Coors Beverage Co. — Class B1 | 17,142 | 575,285 | |||
Brown-Forman Corp. — Class B1 | 7,580 | 570,926 | |||
Boston Scientific Corp.*,1 | 14,929 | 570,437 | |||
Universal Health Services, Inc. — Class B1 | 5,313 | 568,597 | |||
Kraft Heinz Co.1 | 18,969 | 568,122 | |||
Perrigo Company plc1 | 12,371 | 567,953 | |||
Tyson Foods, Inc. — Class A1 | 9,440 | 561,491 | |||
HCA Healthcare, Inc.1 | 4,489 | 559,689 | |||
Philip Morris International, Inc.1 | 7,405 | 555,301 | |||
Teleflex, Inc.1 | 1,623 | 552,502 | |||
Henry Schein, Inc.*,1 | 9,344 | 549,240 | |||
Altria Group, Inc.1 | 13,799 | 533,193 | |||
Illumina, Inc.*,1 | 1,719 | 531,308 | |||
Total Consumer, Non-cyclical | 64,122,774 |
Guggenheim Enhanced Equity Income Fund | |
SCHEDULE OF INVESTMENTS (Unaudited) | September 30, 2020 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Financial - 18.5% | |||||
Invesco Ltd.1 | 56,215 | $ | 641,413 | ||
Discover Financial Services1 | 10,988 | 634,887 | |||
Crown Castle International Corp. REIT1 | 3,793 | 631,534 | |||
SBA Communications Corp. REIT1 | 1,975 | 628,998 | |||
BlackRock, Inc. — Class A1 | 1,111 | 626,104 | |||
Arthur J Gallagher & Co.1 | 5,909 | 623,872 | |||
SL Green Realty Corp. REIT1 | 13,441 | 623,259 | |||
Charles Schwab Corp.1 | 17,068 | 618,374 | |||
CME Group, Inc. — Class A1 | 3,685 | 616,537 | |||
Mastercard, Inc. — Class A1 | 1,822 | 616,146 | |||
Aon plc — Class A1 | 2,984 | 615,599 | |||
Assurant, Inc.1 | 5,067 | 614,678 | |||
T. Rowe Price Group, Inc.1 | 4,783 | 613,276 | |||
First Republic Bank1 | 5,623 | 613,244 | |||
Intercontinental Exchange, Inc.1 | 6,123 | 612,606 | |||
Equinix, Inc. REIT1 | 804 | 611,144 | |||
Synchrony Financial1 | 23,323 | 610,363 | |||
Cincinnati Financial Corp.1 | 7,820 | 609,725 | |||
Ameriprise Financial, Inc.1 | 3,955 | 609,505 | |||
Fifth Third Bancorp1 | 28,581 | 609,347 | |||
Willis Towers Watson plc1 | 2,918 | 609,337 | |||
People’s United Financial, Inc.1 | 59,085 | 609,166 | |||
Capital One Financial Corp.1 | 8,466 | 608,367 | |||
Alexandria Real Estate Equities, Inc. REIT1 | 3,798 | 607,680 | |||
Public Storage REIT1 | 2,727 | 607,357 | |||
Simon Property Group, Inc. REIT1 | 9,376 | 606,440 | |||
Digital Realty Trust, Inc. REIT1 | 4,131 | 606,266 | |||
Franklin Resources, Inc.1 | 29,733 | 605,066 | |||
Prologis, Inc. REIT1 | 6,002 | 603,921 | |||
Allstate Corp.1 | 6,411 | 603,532 | |||
Weyerhaeuser Co. REIT1 | 21,157 | 603,398 | |||
Vornado Realty Trust REIT1 | 17,891 | 603,106 | |||
CBRE Group, Inc. — Class A*,1 | 12,822 | 602,249 | |||
Regions Financial Corp.1 | 52,213 | 602,016 | |||
Goldman Sachs Group, Inc.1 | 2,994 | 601,704 | |||
Mid-America Apartment Communities, Inc. REIT1 | 5,189 | 601,665 | |||
Aflac, Inc.1 | 16,529 | 600,829 | |||
Progressive Corp.1 | 6,333 | 599,545 | |||
Visa, Inc. — Class A1 | 2,997 | 599,310 | |||
AvalonBay Communities, Inc. REIT1 | 4,013 | 599,301 | |||
Truist Financial Corp.1 | 15,733 | 598,641 | |||
Duke Realty Corp. REIT1 | 16,191 | 597,448 | |||
PNC Financial Services Group, Inc.1 | 5,431 | 596,921 | |||
Marsh & McLennan Companies, Inc.1 | 5,195 | 595,866 | |||
Raymond James Financial, Inc.1 | 8,171 | 594,522 | |||
Cboe Global Markets, Inc.1 | 6,770 | 594,000 | |||
Loews Corp.1 | 17,054 | 592,626 | |||
Regency Centers Corp. REIT1 | 15,583 | 592,466 | |||
Globe Life, Inc.1 | 7,383 | 589,902 | |||
Principal Financial Group, Inc.1 | 14,646 | 589,794 | |||
U.S. Bancorp1 | 16,398 | 587,868 | |||
Berkshire Hathaway, Inc. — Class B*,1 | 2,760 | 587,714 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Financial - 18.5% (continued) | |||||
Northern Trust Corp.1 | 7,533 | $ | 587,348 | ||
Nasdaq, Inc.1 | 4,785 | 587,167 | |||
Healthpeak Properties, Inc. REIT1 | 21,567 | 585,544 | |||
W R Berkley Corp.1 | 9,566 | 584,961 | |||
MetLife, Inc.1 | 15,733 | 584,796 | |||
American Express Co.1 | 5,819 | 583,355 | |||
Host Hotels & Resorts, Inc. REIT1 | 54,042 | 583,113 | |||
American International Group, Inc.1 | 21,179 | 583,058 | |||
UDR, Inc. REIT1 | 17,870 | 582,741 | |||
Western Union Co.1 | 27,192 | 582,725 | |||
Wells Fargo & Co.1 | 24,784 | 582,672 | |||
SVB Financial Group*,1 | 2,420 | 582,300 | |||
American Tower Corp. — Class A REIT1 | 2,408 | 582,086 | |||
Kimco Realty Corp. REIT1 | 51,585 | 580,847 | |||
Comerica, Inc.1 | 15,182 | 580,712 | |||
KeyCorp1 | 48,665 | 580,573 | |||
Boston Properties, Inc. REIT1 | 7,229 | 580,489 | |||
Apartment Investment and Management Co. — Class A REIT1 | 17,195 | 579,815 | |||
Chubb Ltd.1 | 4,985 | 578,858 | |||
Extra Space Storage, Inc. REIT1 | 5,410 | 578,816 | |||
Morgan Stanley1 | 11,946 | 577,589 | |||
Realty Income Corp. REIT1 | 9,493 | 576,700 | |||
Ventas, Inc. REIT1 | 13,730 | 576,111 | |||
Everest Re Group Ltd.1 | 2,915 | 575,829 | |||
Travelers Companies, Inc.1 | 5,304 | 573,840 | |||
Hartford Financial Services Group, Inc.1 | 15,566 | 573,763 | |||
Bank of New York Mellon Corp.1 | 16,708 | 573,753 | |||
JPMorgan Chase & Co.1 | 5,951 | 572,903 | |||
Federal Realty Investment Trust REIT1 | 7,796 | 572,538 | |||
Huntington Bancshares, Inc.1 | 62,138 | 569,806 | |||
Bank of America Corp.1 | 23,588 | 568,235 | |||
Essex Property Trust, Inc. REIT1 | 2,821 | 566,429 | |||
Equity Residential REIT1 | 11,002 | 564,733 | |||
Welltower, Inc. REIT1 | 10,217 | 562,854 | |||
Citizens Financial Group, Inc.1 | 22,187 | 560,887 | |||
Prudential Financial, Inc.1 | 8,830 | 560,882 | |||
Zions Bancorp North America1 | 19,104 | 558,219 | |||
State Street Corp.1 | 9,266 | 549,752 | |||
Unum Group1 | 32,619 | 548,978 | |||
Lincoln National Corp.1 | 17,470 | 547,335 | |||
M&T Bank Corp.1 | 5,917 | 544,897 | |||
Iron Mountain, Inc. REIT1 | 20,171 | 540,381 | |||
Citigroup, Inc.1 | 11,794 | 508,439 | |||
Total Financial | 56,155,463 | ||||
Industrial - 13.9% | |||||
Martin Marietta Materials, Inc.1 | 2,865 | 674,306 | |||
A O Smith Corp.1 | 12,331 | 651,077 | |||
FedEx Corp.1 | 2,584 | 649,928 | |||
Vulcan Materials Co.1 | 4,774 | 647,068 | |||
Keysight Technologies, Inc.*,1 | 6,513 | 643,354 | |||
Westrock Co.1 | 18,508 | 642,968 | |||
PerkinElmer, Inc.1 | 5,111 | 641,482 |
Guggenheim Enhanced Equity Income Fund | |
SCHEDULE OF INVESTMENTS (Unaudited) | September 30, 2020 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Industrial - 13.9% (continued) | |||||
United Parcel Service, Inc. — Class B1 | 3,786 | $ | 630,861 | ||
FLIR Systems, Inc.1 | 17,577 | 630,135 | |||
Fortune Brands Home & Security, Inc.1 | 7,281 | 629,952 | |||
Pentair plc1 | 13,761 | 629,841 | |||
General Electric Co.1 | 101,090 | 629,791 | |||
Carrier Global Corp.1 | 20,571 | 628,238 | |||
Packaging Corporation of America1 | 5,750 | 627,037 | |||
Amphenol Corp. — Class A1 | 5,767 | 624,393 | |||
Otis Worldwide Corp.1 | 10,001 | 624,262 | |||
Trane Technologies plc1 | 5,141 | 623,346 | |||
CH Robinson Worldwide, Inc.1 | 6,096 | 622,950 | |||
Boeing Co.1 | 3,754 | 620,386 | |||
Deere & Co.1 | 2,785 | 617,239 | |||
Agilent Technologies, Inc.1 | 6,100 | 615,734 | |||
Stanley Black & Decker, Inc.1 | 3,783 | 613,603 | |||
Ball Corp.1 | 7,364 | 612,096 | |||
Allegion plc1 | 6,139 | 607,208 | |||
IDEX Corp.1 | 3,321 | 605,784 | |||
CSX Corp.1 | 7,794 | 605,360 | |||
Union Pacific Corp.1 | 3,070 | 604,391 | |||
Expeditors International of Washington, Inc.1 | 6,656 | 602,501 | |||
Waste Management, Inc.1 | 5,316 | 601,612 | |||
Jacobs Engineering Group, Inc.1 | 6,481 | 601,242 | |||
Amcor plc1 | 54,385 | 600,954 | |||
TE Connectivity Ltd.1 | 6,148 | 600,905 | |||
Snap-on, Inc.1 | 4,069 | 598,672 | |||
Eaton Corporation plc1 | 5,867 | 598,610 | |||
Xylem, Inc.1 | 7,114 | 598,430 | |||
AMETEK, Inc.1 | 6,020 | 598,388 | |||
Rockwell Automation, Inc.1 | 2,706 | 597,160 | |||
Mettler-Toledo International, Inc.*,1 | 617 | 595,868 | |||
Teledyne Technologies, Inc.*,1 | 1,920 | 595,603 | |||
Ingersoll Rand, Inc.*,1 | 16,717 | 595,125 | |||
Sealed Air Corp.1 | 15,333 | 595,074 | |||
Honeywell International, Inc.1 | 3,614 | 594,901 | |||
Roper Technologies, Inc.1 | 1,505 | 594,641 | |||
Illinois Tool Works, Inc.1 | 3,077 | 594,507 | |||
Fortive Corp.1 | 7,774 | 592,457 | |||
Lockheed Martin Corp.1 | 1,544 | 591,784 | |||
Norfolk Southern Corp.1 | 2,765 | 591,682 | |||
Johnson Controls International plc1 | 14,435 | 589,670 | |||
Republic Services, Inc. — Class A1 | 6,282 | 586,424 | |||
Kansas City Southern1 | 3,233 | 584,624 | |||
Flowserve Corp.1 | 21,375 | 583,324 | |||
Caterpillar, Inc.1 | 3,910 | 583,177 | |||
Parker-Hannifin Corp.1 | 2,876 | 581,930 | |||
Emerson Electric Co.1 | 8,856 | 580,688 | |||
3M Co.1 | 3,620 | 579,852 | |||
Dover Corp.1 | 5,332 | 577,669 | |||
Waters Corp.*,1 | 2,949 | 577,060 | |||
Huntington Ingalls Industries, Inc.1 | 4,081 | 574,401 | |||
General Dynamics Corp.1 | 4,138 | 572,823 | |||
Raytheon Technologies Corp.1 | 9,918 | 570,682 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Industrial - 13.9% (continued) | |||||
Garmin Ltd.1 | 6,012 | $ | 570,298 | ||
Masco Corp.1 | 10,275 | 566,461 | |||
Howmet Aerospace, Inc.1 | 33,792 | 565,002 | |||
TransDigm Group, Inc.1 | 1,189 | 564,918 | |||
L3Harris Technologies, Inc.1 | 3,322 | 564,209 | |||
J.B. Hunt Transport Services, Inc.1 | 4,451 | 562,517 | |||
Textron, Inc.1 | 15,526 | 560,333 | |||
Northrop Grumman Corp.1 | 1,775 | 559,995 | |||
Old Dominion Freight Line, Inc.1 | 3,074 | 556,148 | |||
Westinghouse Air Brake Technologies Corp.1 | 8,911 | 551,413 | |||
Total Industrial | 42,056,524 | ||||
Consumer, Cyclical - 13.2% | |||||
Darden Restaurants, Inc.1 | 6,930 | 698,128 | |||
L Brands, Inc.1 | 21,482 | 683,342 | |||
Aptiv plc1 | 7,114 | 652,211 | |||
Domino’s Pizza, Inc.1 | 1,524 | 648,127 | |||
Target Corp.1 | 4,074 | 641,329 | |||
Whirlpool Corp.1 | 3,481 | 640,121 | |||
NIKE, Inc. — Class B1 | 5,097 | 639,878 | |||
DR Horton, Inc.1 | 8,425 | 637,183 | |||
Lennar Corp. — Class A1 | 7,763 | 634,082 | |||
Hasbro, Inc.1 | 7,648 | 632,642 | |||
Costco Wholesale Corp.1 | 1,774 | 629,770 | |||
Dollar General Corp.1 | 3,000 | 628,860 | |||
Tractor Supply Co.1 | 4,370 | 626,396 | |||
Best Buy Company, Inc.1 | 5,616 | 625,005 | |||
Walgreens Boots Alliance, Inc.1 | 17,334 | 622,637 | |||
Ross Stores, Inc.1 | 6,667 | 622,164 | |||
Copart, Inc.*,1 | 5,896 | 620,023 | |||
TJX Companies, Inc.1 | 11,108 | 618,160 | |||
Lowe’s Companies, Inc.1 | 3,715 | 616,170 | |||
Fastenal Co.1 | 13,661 | 615,975 | |||
Walmart, Inc.1 | 4,400 | 615,604 | |||
Gap, Inc.1 | 36,148 | 615,600 | |||
Hanesbrands, Inc.1 | 39,084 | 615,573 | |||
PulteGroup, Inc.1 | 13,278 | 614,638 | |||
Tiffany & Co.1 | 5,285 | 612,267 | |||
PACCAR, Inc.1 | 7,170 | 611,458 | |||
Cummins, Inc.1 | 2,893 | 610,886 | |||
Dollar Tree, Inc.*,1 | 6,679 | 610,060 | |||
NVR, Inc.*,1 | 149 | 608,385 | |||
Starbucks Corp.1 | 7,054 | 606,080 | |||
McDonald’s Corp.1 | 2,759 | 605,573 | |||
Mohawk Industries, Inc.*,1 | 6,205 | 605,546 | |||
Home Depot, Inc.1 | 2,177 | 604,575 | |||
WW Grainger, Inc.1 | 1,693 | 604,012 | |||
VF Corp.1 | 8,589 | 603,377 | |||
Advance Auto Parts, Inc.1 | 3,891 | 597,269 | |||
Yum! Brands, Inc.1 | 6,519 | 595,185 | |||
Newell Brands, Inc.1 | 34,470 | 591,505 | |||
Ulta Beauty, Inc.*,1 | 2,628 | 588,619 | |||
Norwegian Cruise Line Holdings Ltd.*,1 | 34,351 | 587,746 | |||
Hilton Worldwide Holdings, Inc.1 | 6,884 | 587,343 | |||
General Motors Co.1 | 19,747 | 584,314 | |||
O’Reilly Automotive, Inc.*,1 | 1,267 | 584,188 | |||
Tapestry, Inc.1 | 37,245 | 582,139 | |||
Delta Air Lines, Inc.1 | 18,975 | 580,255 | |||
United Airlines Holdings, Inc.*,1 | 16,676 | 579,491 |
Guggenheim Enhanced Equity Income Fund | |
SCHEDULE OF INVESTMENTS (Unaudited) | September 30, 2020 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Consumer, Cyclical - 13.2% (continued) | |||||
Southwest Airlines Co.1 | 15,443 | $ | 579,112 | ||
Chipotle Mexican Grill, Inc. — Class A*,1 | 463 | 575,838 | |||
MGM Resorts International1 | 26,463 | 575,570 | |||
AutoZone, Inc.*,1 | 487 | 573,511 | |||
Ford Motor Co.1 | 85,928 | 572,280 | |||
American Airlines Group, Inc.1 | 46,447 | 570,834 | |||
Genuine Parts Co.1 | 5,981 | 569,212 | |||
Live Nation Entertainment, Inc.*,1 | 10,527 | 567,195 | |||
Royal Caribbean Cruises Ltd.1 | 8,675 | 561,533 | |||
Marriott International, Inc. — Class A1 | 6,060 | 561,035 | |||
Leggett & Platt, Inc.1 | 13,499 | 555,754 | |||
BorgWarner, Inc.1 | 14,196 | 549,953 | |||
Alaska Air Group, Inc.1 | 14,914 | 546,300 | |||
CarMax, Inc.*,1 | 5,918 | 543,923 | |||
Las Vegas Sands Corp.1 | 11,587 | 540,650 | |||
Ralph Lauren Corp. — Class A1 | 7,898 | 536,827 | |||
PVH Corp.1 | 8,968 | 534,852 | |||
Wynn Resorts Ltd.1 | 7,325 | 526,008 | |||
LKQ Corp.*,1 | 18,703 | 518,634 | |||
Carnival Corp.1 | 34,002 | 516,150 | |||
Under Armour, Inc. — Class A*,1 | 27,791 | 312,093 | |||
Under Armour, Inc. — Class C*,1 | 28,980 | 285,163 | |||
Total Consumer, Cyclical | 40,006,318 | ||||
Technology - 11.6% | |||||
Paycom Software, Inc.*,1 | 2,266 | 705,406 | |||
Lam Research Corp.1 | 2,046 | 678,760 | |||
KLA Corp.1 | 3,498 | 677,703 | |||
NVIDIA Corp.1 | 1,236 | 668,948 | |||
Fiserv, Inc.*,1 | 6,463 | 666,012 | |||
ServiceNow, Inc.*,1 | 1,349 | 654,265 | |||
Applied Materials, Inc.1 | 10,936 | 650,145 | |||
Take-Two Interactive Software, Inc.*,1 | 3,918 | 647,332 | |||
Advanced Micro Devices, Inc.*,1 | 7,879 | 645,999 | |||
IPG Photonics Corp.*,1 | 3,794 | 644,866 | |||
Tyler Technologies, Inc.*,1 | 1,849 | 644,487 | |||
Skyworks Solutions, Inc.1 | 4,418 | 642,819 | |||
Synopsys, Inc.*,1 | 3,004 | 642,796 | |||
Paychex, Inc.1 | 8,021 | 639,835 | |||
Teradyne, Inc.1 | 8,028 | 637,905 | |||
Seagate Technology plc1 | 12,924 | 636,765 | |||
Xilinx, Inc.1 | 6,097 | 635,551 | |||
MSCI, Inc. — Class A1 | 1,773 | 632,571 | |||
Intel Corp.1 | 12,206 | 632,027 | |||
Cadence Design Systems, Inc.*,1 | 5,925 | 631,783 | |||
Qorvo, Inc.*,1 | 4,892 | 631,117 | |||
Oracle Corp.1 | 10,552 | 629,954 | |||
Texas Instruments, Inc.1 | 4,410 | 629,704 | |||
Jack Henry & Associates, Inc.1 | 3,861 | 627,760 | |||
ANSYS, Inc.*,1 | 1,915 | 626,645 | |||
Adobe, Inc.*,1 | 1,276 | 625,789 | |||
Citrix Systems, Inc.1 | 4,544 | 625,754 | |||
Activision Blizzard, Inc.1 | 7,714 | 624,448 | |||
Akamai Technologies, Inc.*,1 | 5,648 | 624,330 | |||
QUALCOMM, Inc.1 | 5,303 | 624,057 | |||
Intuit, Inc.1 | 1,909 | 622,735 | |||
Electronic Arts, Inc.*,1 | 4,773 | 622,447 | |||
Apple, Inc.1 | 5,370 | 621,900 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Technology - 11.6% (continued) | |||||
salesforce.com, Inc.*,1 | 2,474 | $ | 621,766 | ||
Microsoft Corp.1 | 2,948 | 620,053 | |||
Analog Devices, Inc.1 | 5,285 | 616,971 | |||
Maxim Integrated Products, Inc.1 | 9,114 | 616,198 | |||
Fortinet, Inc.*,1 | 5,223 | 615,322 | |||
Leidos Holdings, Inc.1 | 6,900 | 615,135 | |||
Fidelity National Information Services, Inc.1 | 4,170 | 613,866 | |||
Microchip Technology, Inc.1 | 5,973 | 613,785 | |||
Cerner Corp.1 | 8,478 | 612,875 | |||
Micron Technology, Inc.*,1 | 13,050 | 612,828 | |||
Cognizant Technology Solutions Corp. — Class A1 | 8,822 | 612,423 | |||
Autodesk, Inc.*,1 | 2,644 | 610,790 | |||
Hewlett Packard Enterprise Co.1 | 65,096 | 609,950 | |||
Broadcom, Inc.1 | 1,672 | 609,143 | |||
Zebra Technologies Corp. — Class A*,1 | 2,406 | 607,419 | |||
International Business Machines Corp.1 | 4,952 | 602,510 | |||
NetApp, Inc.1 | 13,642 | 598,065 | |||
HP, Inc.1 | 31,182 | 592,146 | |||
Xerox Holdings Corp.1 | 31,508 | 591,405 | |||
Broadridge Financial Solutions, Inc.1 | 4,474 | 590,568 | |||
Western Digital Corp.1 | 16,096 | 588,309 | |||
Accenture plc — Class A1 | 2,562 | 578,986 | |||
DXC Technology Co.1 | 30,767 | 549,191 | |||
Total Technology | 35,052,319 | ||||
Communications - 6.5% | |||||
Twitter, Inc.*,1 | 15,451 | 687,569 | |||
Etsy, Inc.*,1 | 5,430 | 660,451 | |||
CDW Corp.1 | 5,403 | 645,821 | |||
Charter Communications, Inc. — Class A*,1 | 1,000 | 624,340 | |||
Netflix, Inc.*,1 | 1,248 | 624,037 | |||
Comcast Corp. — Class A1 | 13,465 | 622,891 | |||
VeriSign, Inc.*,1 | 3,036 | 621,925 | |||
T-Mobile US, Inc.*,1 | 5,391 | 616,515 | |||
F5 Networks, Inc.*,1 | 5,013 | 615,446 | |||
Motorola Solutions, Inc.1 | 3,909 | 612,970 | |||
Arista Networks, Inc.*,1 | 2,951 | 610,651 | |||
Corning, Inc.1 | 18,832 | 610,345 | |||
Amazon.com, Inc.*,1 | 193 | 607,705 | |||
Verizon Communications, Inc.1 | 10,060 | 598,469 | |||
Cisco Systems, Inc.1 | 15,083 | 594,119 | |||
eBay, Inc.1 | 11,398 | 593,836 | |||
NortonLifeLock, Inc.1 | 28,467 | 593,252 | |||
AT&T, Inc.1 | 20,741 | 591,326 | |||
Facebook, Inc. — Class A*,1 | 2,256 | 590,846 | |||
Expedia Group, Inc.1 | 6,349 | 582,140 | |||
Interpublic Group of Companies, Inc.1 | 34,768 | 579,583 | |||
Booking Holdings, Inc.*,1 | 337 | 576,499 | |||
E*TRADE Financial Corp.1 | 11,514 | 576,276 | |||
ViacomCBS, Inc. — Class B1 | 20,543 | 575,409 | |||
CenturyLink, Inc.1 | 56,479 | 569,873 | |||
Omnicom Group, Inc.1 | 11,496 | 569,052 | |||
Walt Disney Co.1 | 4,565 | 566,425 | |||
Juniper Networks, Inc.1 | 26,016 | 559,344 |
Guggenheim Enhanced Equity Income Fund | |
SCHEDULE OF INVESTMENTS (Unaudited) | September 30, 2020 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Communications - 6.5% (continued) | |||||
DISH Network Corp. — Class A*,1 | 18,735 | $ | 543,877 | ||
News Corp. — Class A1 | 30,420 | 426,488 | |||
Fox Corp. — Class A1 | 14,592 | 406,095 | |||
Discovery, Inc. — Class C*,1 | 18,658 | 365,697 | |||
Alphabet, Inc. — Class A*,1 | 201 | 294,586 | |||
Alphabet, Inc. — Class C*,1 | 195 | 286,572 | |||
Discovery, Inc. — Class A*,1 | 9,438 | 205,465 | |||
Fox Corp. — Class B1 | 6,783 | 189,721 | |||
News Corp. — Class B1 | 9,526 | 133,174 | |||
Total Communications | 19,728,790 | ||||
Utilities - 5.6% | |||||
Consolidated Edison, Inc.1 | 8,269 | 643,328 | |||
Duke Energy Corp.1 | 7,244 | 641,529 | |||
Pinnacle West Capital Corp.1 | 8,484 | 632,482 | |||
Public Service Enterprise Group, Inc.1 | 11,481 | 630,422 | |||
Southern Co.1 | 11,621 | 630,091 | |||
American Electric Power Company, Inc.1 | 7,599 | 621,066 | |||
Ameren Corp.1 | 7,852 | 620,936 | |||
Entergy Corp.1 | 6,302 | 620,936 | |||
American Water Works Company, Inc.1 | 4,263 | 617,623 | |||
Atmos Energy Corp.1 | 6,453 | 616,842 | |||
AES Corp.1 | 33,792 | 611,973 | |||
Eversource Energy1 | 7,321 | 611,670 | |||
WEC Energy Group, Inc.1 | 6,268 | 607,369 | |||
CMS Energy Corp.1 | 9,875 | 606,424 | |||
Sempra Energy1 | 5,106 | 604,346 | |||
Edison International1 | 11,880 | 603,979 | |||
Xcel Energy, Inc.1 | 8,736 | 602,871 | |||
NiSource, Inc.1 | 27,291 | 600,402 | |||
Exelon Corp.1 | 16,788 | 600,339 | |||
NextEra Energy, Inc.1 | 2,162 | 600,085 | |||
Alliant Energy Corp.1 | 11,598 | 599,037 | |||
CenterPoint Energy, Inc.1 | 30,925 | 598,399 | |||
Dominion Energy, Inc.1 | 7,553 | 596,158 | |||
PPL Corp.1 | 21,849 | 594,511 | |||
FirstEnergy Corp.1 | 20,508 | 588,785 | |||
Evergy, Inc.1 | 11,580 | 588,496 | |||
NRG Energy, Inc.1 | 19,029 | 584,951 | |||
DTE Energy Co.1 | 5,078 | 584,173 | |||
Total Utilities | 17,059,223 | ||||
Energy - 4.8% | |||||
Devon Energy Corp.1 | 67,055 | 634,340 | |||
Diamondback Energy, Inc.1 | 20,306 | 611,617 | |||
ConocoPhillips1 | 18,166 | 596,571 | |||
ONEOK, Inc.1 | 22,836 | 593,279 | |||
Occidental Petroleum Corp.1 | 58,853 | 589,119 | |||
Concho Resources, Inc.1 | 13,275 | 585,693 | |||
Williams Companies, Inc.1 | 29,733 | 584,254 | |||
Kinder Morgan, Inc.1 | 46,918 | 578,499 | |||
Baker Hughes Co.1 | 43,117 | 573,025 | |||
Cabot Oil & Gas Corp. — Class A1 | 32,977 | 572,481 | |||
Hess Corp.1 | 13,907 | 569,214 | |||
HollyFrontier Corp.1 | 28,710 | 565,874 | |||
Marathon Petroleum Corp.1 | 19,248 | 564,736 | |||
Pioneer Natural Resources Co.1 | 6,533 | 561,773 | |||
Valero Energy Corp.1 | 12,966 | 561,687 | |||
Noble Energy, Inc.1 | 65,593 | 560,820 |
Shares | Value | ||||
COMMON STOCKS† - 98.9% (continued) | |||||
Energy - 4.8% (continued) | |||||
Exxon Mobil Corp.1 | 16,301 | $ | 559,613 | ||
TechnipFMC plc1 | 88,585 | 558,971 | |||
Chevron Corp.1 | 7,742 | 557,424 | |||
EOG Resources, Inc.1 | 15,403 | 553,584 | |||
Marathon Oil Corp.1 | 134,559 | 550,346 | |||
Phillips 661 | 10,539 | 546,342 | |||
Schlumberger Ltd.1 | 33,660 | 523,750 | |||
Halliburton Co.1 | 42,151 | 507,920 | |||
National Oilwell Varco, Inc.1 | 53,656 | 486,123 | |||
Apache Corp.1 | 50,609 | 479,267 | |||
Total Energy | 14,626,322 | ||||
Basic Materials - 3.7% | |||||
International Paper Co.1 | 15,455 | 626,546 | |||
International Flavors & Fragrances, Inc.1 | 4,970 | 608,576 | |||
Celanese Corp. — Class A1 | 5,644 | 606,448 | |||
Mosaic Co.1 | 32,851 | 600,188 | |||
Air Products & Chemicals, Inc.1 | 2,003 | 596,614 | |||
Sherwin-Williams Co.1 | 848 | 590,836 | |||
Ecolab, Inc.1 | 2,954 | 590,327 | |||
Nucor Corp.1 | 13,096 | 587,487 | |||
Eastman Chemical Co.1 | 7,519 | 587,384 | |||
FMC Corp.1 | 5,540 | 586,741 | |||
Freeport-McMoRan, Inc.1 | 36,970 | 578,211 | |||
PPG Industries, Inc.1 | 4,732 | 577,683 | |||
Newmont Corp.1 | 9,083 | 576,316 | |||
Linde plc1 | 2,404 | 572,464 | |||
LyondellBasell Industries N.V. — Class A1 | 8,094 | 570,546 | |||
DuPont de Nemours, Inc.1 | 10,270 | 569,780 | |||
Dow, Inc.1 | 12,066 | 567,705 | |||
Albemarle Corp.1 | 6,334 | 565,499 | |||
CF Industries Holdings, Inc.1 | 18,025 | 553,548 | |||
Total Basic Materials | 11,112,899 | ||||
Total Common Stocks | |||||
(Cost $316,241,135) | 299,920,632 | ||||
EXCHANGE-TRADED FUNDS† - 45.5% | |||||
iShares Russell 2000 Index ETF2 | 308,315 | 46,182,504 | |||
SPDR S&P 500 ETF Trust2 | 137,580 | 46,074,166 | |||
Invesco QQQ Trust Series 12 | 165,457 | 45,970,573 | |||
Total Exchange-Traded Funds | |||||
(Cost $113,154,006) | 138,227,243 | ||||
MONEY MARKET FUND† - 4.0% | |||||
Dreyfus Treasury Securities Cash Management Fund — Institutional Shares, 0.01%3 | 12,088,304 | 12,088,304 | |||
Total Money Market Fund | |||||
(Cost $12,088,304) | 12,088,304 | ||||
Total Investments - 148.4% | |||||
(Cost $441,483,445) | $ | 450,236,179 |
Guggenheim Enhanced Equity Income Fund | |
SCHEDULE OF INVESTMENTS (Unaudited) | September 30, 2020 |
Contracts | Value | ||||
LISTED OPTIONS WRITTEN† - (1.9)% | |||||
Call options on: | |||||
BNP Paribas S&P 500 Index Expiring October 2020 with strike price of $3,375 (Notional Value $92,146,200)* | 274 | $ | (1,631,396 | ) | |
BNP Paribas NASDAQ-100 Index Expiring October 2020 with strike price of $11,475 (Notional Value $92,486,286)* | 81 | (1,983,285 | ) | ||
BNP Paribas Russell 2000 Index Expiring October 2020 with strike price of $1,510 (Notional Value $92,270,750)* | 612 | (2,256,156 | ) | ||
Total Call Options Written | |||||
(Premiums received $5,868,733) | (5,870,837 | ) | |||
Other Assets & Liabilities, net - (46.5)% | (141,062,410 | ) | |||
Total Net Assets - 100.0% | $ | 303,302,932 |
* | Non-income producing security. |
† | Value determined based on Level 1 inputs — See Note 3. |
1 | All or a portion of these securities have been physically segregated in connection with borrowings. As of September 30, 2020, the total market value of segregated securities was $222,072,751. |
2 | Security represents cover for outstanding options written. |
3 | Rate indicated is the 7-day yield as of September 30, 2020. |
plc — Public Limited Company | |
REIT — Real Estate Investment Trust |
See Sector Classification in Other Information section. |
The following table summarizes the inputs used to value the Fund’s investments at September 30, 2020 (See Note 3 in the Notes to Schedule of Investments): |
Investments in Securities (Assets) | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | ||||||||||||
Common Stocks | $ | 299,920,632 | $ | — | $ | — | $ | 299,920,632 | ||||||||
Exchange-Traded Funds | 138,227,243 | — | — | 138,227,243 | ||||||||||||
Money Market Fund | 12,088,304 | — | — | 12,088,304 | ||||||||||||
Total Assets | $ | 450,236,179 | $ | — | $ | — | $ | 450,236,179 |
Investments in Securities (Liabilities) | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | ||||||||||||
Options Written | $ | 5,870,837 | $ | — | $ | — | $ | 5,870,837 |
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) | |
Note 1 – Organization and Significant Accounting Policies
Organization
Guggenheim Enhanced Equity Income Fund (the “Fund” or “GPM”) a Delaware statutory trust, is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”).
The Fund’s primary investment objective is to seek to provide a high level of current income and current gains, with a secondary objective of long-term capital appreciation. The Fund seeks to achieve its investment objective by obtaining broadly diversified exposure to the equity markets and utilizing a covered call strategy which will follow a proprietary dynamic rules-based methodology. The Fund seeks to earn income and gains both from dividends paid by the securities owned by the Fund and cash premiums received from selling options.
For information on the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.
Significant Accounting Policies
The Fund operates as an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.
The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Fund. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.
(a) Valuation of Investments
The Board of Trustees of the Fund (the “Board”) has adopted policies and procedures for the valuation of the Fund’s investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Fund’s securities and/or other assets.
Valuations of the Fund’s securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Fund’s officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.
If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.
Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.
Open-end investment companies are valued at their net asset value per share as of the close of business, on the valuation date. Exchange-traded funds are valued at the last quoted sale price.
Exchange-traded options are valued at the mean of the bid and ask prices on the principal exchange on which they are traded. Over-the-counter (“OTC”) options are valued using a price provided by a pricing service.
Investments for which market quotations are not readily available are fair-valued as determined in good faith by Guggenheim Funds Investment Advisors, LLC (“GFIA” or the “Adviser”), subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’s) “fair value”. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) | |
Note 2 – Derivatives
As part of its investment strategy, the Fund utilizes a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Schedule of Investments.
Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.
The Fund utilized derivatives for the following purposes:
Hedge: an investment made in order to reduce the risk of adverse price movements in a security, by taking an offsetting position to protect against broad market moves.
Speculation: the use of an instrument to express macro-economic and other investment views.
Options Purchased and Written
A call option on a security gives the purchaser of the option the right to buy, and the writer of a call option the obligation to sell, the underlying security. The purchaser of a put option has the right to sell, and the writer of the put option the obligation to buy, the underlying security at any time during the option period. The risk associated with purchasing options is limited to the premium originally paid. As of September 30, 2020, there were no options purchased outstanding.
The risk in writing a call option is that a Fund may incur a loss if the market price of the underlying security increases and the option is exercised. The risk in writing a put option is that a Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. In addition, there may be an imperfect correlation between the movement in prices of options and the underlying securities where a Fund may not be able to enter into a closing transaction because of an illiquid secondary market; or, for OTC options, a Fund may be at risk because of the counterparty’s inability to perform.
In conjunction with the use of derivative instruments, the Fund is required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Fund uses margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Fund as collateral.
The Fund has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Fund monitors the counterparty credit risk.
Note 3 – Fair Value Measurement
In accordance with U.S. GAAP, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:
Level 1 — quoted prices in active markets for identical assets or liabilities.
Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).
Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.
The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) | |
Independent pricing services are used to value a majority of the Fund’s investments. When values are not available from a pricing service, they will be determined under the valuation policies that have been reviewed and approved by the Board. In any event, values are determined using a variety of sources and techniques, including: market prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics or based
on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information and analysis.
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.
Note 4 – Federal Income Tax Information
The Fund intends to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Fund from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.
Tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Fund’s financial statements. The Fund’s U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.
At September 30, 2020, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost, and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:
Tax Cost | Tax Unrealized Appreciation | Tax Unrealized Depreciation | Net Tax Unrealized Appreciation (Depreciation) |
$ 436,656,716 | $ 65,194,219 | $ (57,485,593) | $ 7,708,626 |
Note 5 – COVID-19 and Recent Developments
The global ongoing crisis caused by the outbreak of COVID-19 is causing materially reduced consumer demand and economic output, disrupting supply chains, resulting in market closures, travel restrictions and quarantines, and adversely impacting local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Fund’s investments and a shareholder’s investment in the Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Fund, the Fund, its service providers, the markets in which it invests and market intermediaries are also impacted by quarantines and similar measures intended to contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational risks.
OTHER INFORMATION (Unaudited) | |
Sector Classification
Information in the “Schedule of Investments” is categorized by sectors using sector-level classifications used by Bloomberg Industry Classification System, a widely recognized industry classification system provider. In the Fund’s registration statement, the Fund has investment policies relating to concentration in specific industries. For purposes of these investment policies, the Fund usually classifies industries based on industry-level classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.