Claymore Dividend & Income Fund (NYSE: DCS)(the “Fund”)
announces that the Fund’s name and NYSE ticker symbol have changed
to Guggenheim Enhanced Equity Strategy Fund (NYSE: GGE).
Additionally, the Fund’s CUSIP has changed to 40167K100.
On March 14, 2011, the Fund announced that the Board of Trustees
of the Fund approved the appointment of Guggenheim Partners Asset
Management, LLC (“GPAM”) as investment sub-adviser to the Fund and
the termination of the investment sub-advisory agreement with
Manning & Napier Advisors, Inc., the Fund’s prior investment
sub-adviser, each effective today. GPAM has entered into an interim
investment sub-advisory agreement (the “Interim Sub-Advisory
Agreement”) with the Fund and Guggenheim Funds Investment Advisors,
LLC, the Fund’s investment adviser, which will be in effect for an
interim period of up to 150 days pending shareholder approval of a
new investment sub-advisory agreement among the Fund, GFIA and GPAM
(the “New Sub-Advisory Agreement”). The Fund intends to submit the
New Sub-Advisory Agreement to shareholders for approval at the 2011
annual meeting of shareholders of the Fund.
The Fund will continue to seek its primary investment objective
of seeking a high level of current income with a secondary
objective of capital appreciation. The Fund seeks to achieve such
investment objective by utilizing an enhanced equity option
strategy developed by GPAM. The Fund anticipates that this
investment strategy may increase the earnings of the Fund, which
may result in an increase in the amount of quarterly distributions
payable by the Fund beginning in August 2011 to an annualized range
of 7% to 8%, based on current market conditions. No assurance can
be given that such a distribution rate will be achieved and the
Fund’s actual distribution rate may be above or below the range
stated herein. In connection with the appointment of GPAM, GFIA has
agreed to extend the waiver of a portion of the advisory fees
payable by the Fund.
The Fund’s proxy statement for the annual meeting of
shareholders will contain additional information regarding GPAM,
the Fund’s investment strategy and the New Sub-Advisory Agreement.
Promptly after filing its definitive proxy statement for the annual
meeting with the Securities and Exchange Commission (the “SEC”),
the Fund will mail the definitive proxy statement and a proxy card
to each shareholder entitled to vote at the annual meeting of
shareholders. WE URGE SHAREHOLDERS TO READ THE PROXY STATEMENT
(INCLUDING ANY SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT
DOCUMENTS THAT THE FUND WILL FILE WITH THE SEC WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Shareholders will be able to obtain, free of charge, copies of the
proxy statement and any other documents filed by the Fund with the
SEC in connection with the annual meeting of shareholders at the
SEC’s website at www.sec.gov, by calling 800-345-7999 or by writing
the Fund at 2455 Corporate West Drive, Lisle, Illinois 60532.
For additional information, please visit
www.guggenheimfunds.com/GGE.
Fee Waiver
Under the investment advisory agreement between the Fund and
GFIA, GFIA is entitled to receive an investment advisory fee at an
annual rate equal to 0.85% of the average daily value of the Fund’s
total managed assets. GFIA previously agreed to a 0.08% fee waiver
due to expire on June 17, 2011. Beginning upon the expiration of
the current fee waiver and for so long as the investment
sub-adviser of the Fund is an affiliate of GFIA, GFIA has agreed to
waive 0.05% of its advisory fee, such that the Fund will pay to
GFIA an investment advisory fee at an annual rate equal to 0.80% of
the average daily value of the Fund’s total managed assets. GFIA
will pay a portion of the advisory fee to GPAM as investment
sub-adviser. GFIA has agreed to reimburse certain fees and expenses
of the Fund associated with the appointment of GPAM.
Investment Strategy
The Fund will continue to seek its primary investment objective
of seeking a high level of current income with a secondary
objective of capital appreciation. GPAM will seek to achieve the
Fund's investment objective by obtaining broadly diversified
exposure to the equity markets and utilizing a covered call
strategy which follows GPAM's proprietary dynamic rules-based
methodology to seek to utilize efficiencies from the tax
characteristics of the Fund's portfolio. The Fund may seek to
obtain exposure to equity markets through investments in
exchange-traded funds or other investment funds that track equity
market indices, through investments in individual equity securities
and/or through derivative instruments that replicate the economic
characteristics of exposure to equity securities or markets. In
current market conditions, GPAM initially expects to seek to obtain
exposure to equity markets by investing primarily in
exchange-traded funds. The Fund will have the ability to write call
options on indices and/or securities which will typically be at- or
out-of-the money. GPAM's strategy typically targets one-month
options, although options of any strike price or maturity may be
utilized. The Fund will seek to achieve its primary investment
objective of seeking a high level of current income through
dividends paid on securities owned by the Fund and cash premiums
received from selling options. Although the Fund will receive
premiums from the options written, by writing a covered call
option, the Fund forgoes any potential increase in value of the
underlying securities above the strike price specified in an option
contract through the expiration date of the option. To the extent
GPAM's strategy seeks to achieve broad equity exposure through a
portfolio of common stocks, the Fund would hold a diversified
portfolio of stocks. To the extent GPAM's equity exposure strategy
is implemented through investment in broad-based equity
exchange-traded funds or other investment funds or derivative
instruments that replicate the economic characteristics of exposure
to equity securities markets, the Fund's portfolio is expected to
comprise fewer holdings. The Fund will ordinarily focus its
investments in securities of U.S. issuers but may invest up to 15%
of its total assets in U.S. dollar-denominated securities of
foreign issuers. The Fund may invest in or seek exposure to equity
securities of issuers of any market capitalization.
Changes to Non-Fundamental Investment Policies
In connection with the appointment of GPAM, the Board of
Trustees approved changes to certain non-fundamental investment
policies of the Fund and provided notice of such changes to
shareholders on March 16, 2011. These changes become effective
today.
As a result, the Fund no longer has an investment policy of
investing, under normal market conditions, at least 80% of its
total assets in dividend-paying or other income-producing
securities. Nor is it an investment policy of the Fund, under
normal market conditions, to invest at least 65% of the Fund's
total assets in dividend-paying common and preferred stocks.
Instead, the Fund has adopted a non-fundamental investment
policy of, under normal market conditions, investing at least 80%
of its net assets, plus the amount of any borrowings for investment
purposes, in equity securities. This policy may be changed by the
Board, but no change is anticipated. If this policy changes, the
Fund will provide shareholders at least 60 days' written notice
before implementation of the change.
In addition, the Fund no longer has an investment policy of
investing up to 10% of its total assets in securities of other
open- or closed-end investment companies that invest primarily in
securities of the types in which the Fund may invest directly.
Instead, the Fund may invest without limitation in securities of
other open- or closed-end investment companies, including
exchange-traded funds. In current market conditions, GPAM initially
expects to seek to obtain exposure to equity markets by investing
primarily in exchange-traded funds. Investments in exchange-traded
funds and other investment funds which invest at least 80% of their
assets in equity securities or have investment objectives or
strategies of tracking equity market indices will be included as
investments in equity securities for the purpose of the Fund’s
investment policy of investing at least 80% of its assets in equity
securities.
Portfolio Management Team
The portfolio management personnel of the Sub-Adviser who are
primarily responsible for the day-to-day management of the Fund’s
portfolio are: Scott Minerd, Chief Investment Officer of the
Sub-Adviser, Anne Bookwalter Walsh, Assistant Chief Investment
Officer of the Sub-Advisor, Farhan Sharaff, Assistant Chief
Investment Officer, Equities of the Sub-Adviser, Jayson Flowers,
Managing Director of the Sub-Adviser and Jamal Pesaran, Portfolio
Sector Manager of the Sub-Adviser. The portfolio management
personnel primarily responsible for the day-to-day management of
the Fund’s portfolio are supported by a team of equity analysts and
risk managers.
Scott Minerd. Since 2001, Mr. Minerd has served as Chief
Investment Officer of the Sub-Adviser, guiding the investment
strategies of the sector portfolio managers. He was formerly a
Managing Director with Credit Suisse First Boston in charge of
trading and risk management for the Fixed Income Credit Trading
Group. In this position, he was responsible for the corporate bond,
preferred stock, money markets, U.S. government agency and
sovereign debt, derivatives securities, structured debt and
interest-rate swaps trading business units. Previously, Mr. Minerd
was Morgan Stanley’s London-based European Capital Markets Products
Trading and Risk Manager responsible for Eurobonds, Euro-MTNs,
domestic European Bonds, FRNs, derivative securities and money
market products in 12 European currencies and Asian markets. Mr.
Minerd has also held capital markets positions with Merrill Lynch
and Continental Bank and was a Certified Public Accountant working
for Price Waterhouse. Mr. Minerd holds a BS degree in Economics
from the Wharton School, University of Pennsylvania and has
completed graduate work at both the University of Chicago, Graduate
School of Business and the Wharton School, University of
Pennsylvania.
Anne Bookwalter Walsh. Ms. Walsh is the Assistant Chief
Investment Officer, Fixed Income of GPAM and joined Guggenheim and
the Sub-Adviser in 2007. As a senior member of the Sub-Adviser's
Portfolio Construction Group, she assists with the development of
the Fund's asset allocation strategies. Prior to joining
Guggenheim, she was Senior Vice President and the Chief Investment
Officer for Reinsurance Group of America, where she was employed
from 2000 to 2007. Prior to that role, Ms. Walsh served as Vice
President and Senior Investment Consultant for Zurich Scudder
Investments. Earlier, she held roles at Lincoln Investment
Management and American Bankers Insurance Group. Ms. Walsh received
her BSBA and MBA from Auburn University and her JD from the
University of Miami School of Law. She is a CFA charterholder, a
Fellow of the Life Management Institute and a member of the CFA
Institute.
Farhan Sharaff. Mr. Sharaff joined the Sub-Adviser in 2009 and
is the Assistant Chief Investment Officer, Equities. Mr. Sharaff
has more than 20 years of experience in investment research and
investment management. Prior to joining the Sub-Adviser, he was a
Partner and Chief Investment Officer at MJX Capital Advisors, a
wealth management firm focused on providing advice and investment
management for its clients, especially in the traditional and
alternative asset classes. Prior to that, Mr. Sharaff served as the
global Chief Investment Officer at CIGNA Corporation, Zurich
Scudder Investments and Citigroup. In all of the above engagements,
Mr. Sharaff was responsible for research, investment management,
product development and investment risk management. He was also a
member of the business management teams at Citigroup and Zurich
Scudder. Mr. Sharaff has a Bachelor of Science in Electrical
Engineering from the University of Aston (U.K.) and an MBA in
Finance from the Manchester Business School (U.K.). In addition,
Mr. Sharaff sits on boards for CITIC Capital Asset Management,
Clarfeld Financial Advisors, and Transparent Value Trust.
Jayson Flowers. Mr. Flowers joined the Sub-Adviser in 2001, and
serves as the Managing Director, heading Equity and Derivative
Strategies. Mr. Flowers has more than 15 years experience in the
financial markets with concentration in risk management and trading
across various sectors of the capital structure. His investment
experience ranges in expertise from structured product investments
and asset backed securities, to trading U.S. Government agencies,
foreign sovereign debt, commodities, indexed futures, derivative
and global equity arbitrage. Prior to working for the Sub-Adviser,
Mr. Flowers was a co-founder and partner of Adventure Capital, a
boutique venture capital and merchant banking company. Previously
Mr. Flowers was at Credit Suisse First Boston, Dominick &
Dominick Inc., and Coopers & Lybrand. Mr. Flowers holds a BA in
Economics from Union College.
Jamal Pesaran. Mr. Pesaran joined the Sub-Adviser in 2008 and is
a Portfolio Sector Manager covering equity and equity derivatives
strategies. Prior to joining the Sub-Adviser, he was with Lehman
Brothers and then HSBC Securities in equity derivatives sales
covering hedge fund clients for the US and Pacific Rim markets. Mr.
Pesaran was an options market-maker and portfolio manager, notably
with Goldman Sachs’ Hull Trading Group and UBS Investment Bank in
London and Frankfurt, respectively. Mr. Pesaran holds his MBA from
UCLA Anderson Graduate School of Business and a Bachelor of Science
degree in Economics from Bristol University (U.K.) and he is a CFA
charterholder.
Summary of Certain Additional Risk Factors
As a result of the changes in the Fund’s investment strategy
described above, the Fund will be subject to certain additional
risk factors.
There are several risks associated with transactions in options
used in connection with the Fund’s option strategy. A decision as
to whether, when and how to use options involves the exercise of
skill and judgment, and even a well conceived transaction may be
unsuccessful to some degree because of market behavior or
unexpected events. As the writer of a covered call option, the Fund
forgoes, during the option’s life, the opportunity to profit from
increases in the market value of the security covering the call
option above the sum of the premium and the strike price of the
call, but has retained the risk of loss should the price of the
underlying security decline. The Fund’s successful use of options
on indices depends upon its ability to predict the direction of the
market and is subject to various additional risks. There can be no
assurance that a liquid market will exist when the Fund seeks to
close out an option position on an options exchange. If the Fund
were unable to close out a covered call option that it had written
on a security, it would not be able to sell the underlying security
unless the option expired without exercise.
As a stockholder in an investment company, the Fund will bear
its ratable share of that investment company's expenses, and would
remain subject to payment of the Fund's investment management fees
with respect to the assets so invested. Shareholders would
therefore be subject to duplicative expenses to the extent the Fund
invests in other investment companies. To the extent the Fund
invests in exchange-traded funds or other investment companies that
seek to track a specified index, such investments will be subject
to tracking error risk.
GPAM
GPAM is an investment manager specializing in innovative
investment strategies that aim to add incremental returns relative
to benchmarks in both up and down markets. GPAM's investment
philosophy is predicated upon the belief that thorough research and
independent thought are rewarded with performance that has the
potential to outperform benchmark indices with both lower
volatility and lower correlation of returns over time as compared
to such benchmark indices.
Guggenheim Funds
GFIA and its affiliates (“Guggenheim Funds”) offer strategic
investment solutions for financial advisors and their valued
clients. As an innovator in exchange-traded funds (ETFs), unit
investment trusts (UITs) and closed-end funds (CEFs), Guggenheim
Funds often leads its peers with creative investment strategy
solutions. Guggenheim Funds provides supervision, management or
servicing of assets with a commitment to consistently delivering
exceptional service.
Guggenheim Funds and GPAM are indirect subsidiaries of
Guggenheim Partners, LLC, a global, diversified financial services
firm with more than $100 billion in assets under management and
supervision. Guggenheim, through its affiliates, provides
investment management, investment advisory, insurance, investment
banking, and capital markets services. The firm is headquartered in
Chicago and New York with a global network of offices throughout
the United States, Europe, and Asia.
This information does not represent an offer to sell securities
of the Fund and it is not soliciting an offer to buy securities of
the Fund. There can be no assurance that the Fund will achieve its
investment objective. The net asset value of the Fund will
fluctuate with the value of the underlying securities. It is
important to note that closed-end funds trade on their market
value, not net asset value, and closed-end funds often trade at a
discount to their net asset value. Past performance is not
indicative of future performance.
Forward Looking Statements
This press release may contain forward-looking statements,
within the meaning of the federal securities laws. These statements
describe the Fund’s plans, strategies, and goals and the Fund’s
beliefs and assumptions concerning future economic and other
conditions and the outlook for the Fund. Words such as
“anticipates,” “believes,” “expects,” “objectives,” “goals,”
“future,” “intends,” “seeks,” “will,” “may,” “could,” “should,” and
similar expressions are used to identify forward-looking
statements, although some forward-looking statements may be
expressed differently.
The Fund cautions that forward-looking statements are subject to
numerous assumptions, risks and uncertainties, which change over
time. Forward-looking statements speak only as of the date they are
made, based on currently available information, and the Fund
assumes no duty to and does not undertake to update forward-looking
statements. Actual results could differ materially from those
anticipated in forward-looking statements and future results could
differ materially from historical performance.
An investment in the Fund is subject to certain risks and other
considerations. Such risks and considerations include, but are not
limited to: Equity Securities and Related Market Risk, Other
Investment Companies Risk, Options Risk, Other Derivatives Risk,
Counterparty Risk, Medium and Smaller Company Risk, Financial
Leverage Risk, Foreign Investment Risk, Inflation/Deflation Risk,
Management Risk, Portfolio Turnover Risk, Recent Market
Developments Risk, Government Intervention in Financial Markets
Risk, Legislation Risk, Market Disruption and Geopolitical Risk and
Anti-Takeover Provisions Risk.
Investors should consider the investment objectives and
policies, risk considerations, charges and expenses of any
investment before they invest. For this and more information,
please contact a securities representative or Guggenheim Funds
Distributors, Inc., 2455 Corporate West Drive, Lisle, Illinois
60532, 800-345-7999.
Member FINRA/SIPC (5/11)
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY
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