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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-21982
Guggenheim Strategic Opportunities Fund
(Exact name of registrant as specified in charter)
227 West Monroe Street, Chicago,
60606
(Address of principal executive offices) (Zip code)
Amy J. Lee
227 West Monroe Street, Chicago,
60606
(Name and address of agent for service)
Registrant's telephone number,
including area code: (312)
827-0100
Date of fiscal year end: May 31
Date of reporting period:
June 1, 2022 - November
30, 2022
Item 1. Reports to
Stockholders.
The registrant's annual report
transmitted to shareholders pursuant to Rule 30e-1 under the
Investment Company Act of 1940, as amended (the “Investment Company
Act”), is as follows:

GUGGENHEIMINVESTMENTS.COM/GOF
... YOUR WINDOW TO THE LATEST, MOST
UP-TO-DATE INFORMATION ABOUT GUGGENHEIM STRATEGIC OPPORTUNITIES
FUND
The shareholder report you are
reading right now is just the beginning of the story.
Online at
guggenheiminvestments.com/gof, you will find:
• Daily, weekly and monthly data on
share prices, net asset values, distributions and more
• Portfolio overviews and performance
analyses
• Announcements, press releases and
special notices
• Fund and adviser contact
information
Guggenheim Partners Investment
Management, LLC and Guggenheim Funds Investment Advisors, LLC are
continually updating and expanding shareholder information services
on the Fund’s website in an ongoing effort to provide you with the
most current information about how your Fund’s assets are managed
and the results of our efforts. It is just one more small way we
are working to keep you better informed about your investment in
the Fund.
|
|
DEAR
SHAREHOLDER (Unaudited) |
November
30, 2022 |
We thank you for your investment in
the Guggenheim Strategic Opportunities Fund (the “Fund”). This
report covers the Fund’s performance for the six-month period ended
November 30, 2022 (the “Reporting Period”).
In December 2022, Guggenheim Partners
announced the untimely and unexpected death of Scott Minerd, one of
Guggenheim's Managing Partners and its Global Chief Investment
Officer. He joined Guggenheim as a Managing Partner shortly after
the firm was formed. He was a frequent commentator on markets and
investments, both on television and via social media. He also was
one of the designers of the organization, systems and procedures
that make Guggenheim Investments a strong, robust and scalable
leader in the asset management business.
Guggenheim has implemented its
succession plan, which is designed to deal with unexpected events.
There will be no disruption of service to our clients, no change in
the daily management of client portfolios and no change in the
process of selecting investment assets, all of which are handled by
longstanding committees and by long-tenured investment
professionals who, every day, implement our investment
process.
Guggenheim Investments continues to
be led by its Co-Presidents, Dina DiLorenzo and David Rone, and by
Anne B. Walsh, a Managing Partner and Chief Investment Officer of
Guggenheim Partners Investment Management. She will continue her
current role leading the team managing client investments and will
assume many of Mr. Minerd’s responsibilities on an interim
basis.
To learn more about the Fund’s
performance and investment strategy, we encourage you to read the
Economic and Market Overview and the Management’s Discussion of
Fund Performance, which begin on page 5. There you will find
information on Guggenheim’s investment philosophy, views on the
economy and market environment, and detailed information about the
factors that impacted the Fund’s performance.
The Fund’s investment objective is to
maximize total return through a combination of current income and
capital appreciation. The Fund pursues a relative value-based
investment philosophy. The Fund’s sub-adviser seeks to combine a
credit-managed fixed-income portfolio with access to a diversified
pool of alternative investments and equity strategies.
All Fund returns cited—whether based
on net asset value (“NAV”) or market price—assume the reinvestment
of all distributions. For the Reporting Period, the Fund provided a
total return based on market price of -2.40% and a total return
based on NAV of -1.93%. At the end of the Reporting Period, the
Fund’s market price of $16.30 per share represented a premium of
26.16% to its NAV of $12.92 per share.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 3
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DEAR
SHAREHOLDER (Unaudited) continued |
November
30, 2022 |
Past performance is not a guarantee
of future results. All NAV returns include the deduction of
management fees, operating expenses, and all other Fund expenses.
The market price of the Fund’s shares fluctuates from time to time,
and it may be higher or lower than the Fund’s NAV.
During the Reporting Period, the Fund
paid a monthly distribution of $0.1821 per share. The most recent
distribution represents an annualized distribution rate of 13.41%
based on the Fund’s closing market price of $16.30 per share at the
end of the Reporting Period.
The Fund’s distribution rate is not
constant and the amount of distributions, when declared by the
Fund’s Board of Trustees, is subject to change. There is no
guarantee of any future distribution or that the current returns
and distribution rate will be maintained. Please see the
Distributions to Shareholders & Annualized Distribution Rate
table on page 24, and Note 2(f) on page 92 for more information on
distributions for the period.
We encourage shareholders to consider
the opportunity to reinvest their distributions from the Fund
through the Dividend Reinvestment Plan (“DRIP”), which is described
in detail on page 122 of this report. When shares trade at a
discount to NAV, the DRIP takes advantage of the discount by
reinvesting the monthly dividend distribution in common shares of
the Fund purchased in the market at a price less than NAV.
Conversely, when the market price of the Fund’s common shares is at
a premium above NAV, the DRIP reinvests participants’ dividends in
newly-issued common shares at the greater of NAV per share or 95%
of the market price per share. The DRIP provides a cost-effective
means to accumulate additional shares and enjoy the benefits of
compounding returns over time. The DRIP effectively provides an
income averaging technique which causes shareholders to accumulate
a larger number of Fund shares when the market price is depressed
than when the price is higher.
We appreciate your investment and
look forward to serving your investment needs in the future. For
the most up-to-date information on your investment, please visit
the Fund’s website at guggenheiminvestments.com/gof.
Sincerely,
Guggenheim
Funds Investment Advisors, LLC
Guggenheim
Strategic Opportunities Fund
December
31, 2022
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ECONOMIC
AND MARKET OVERVIEW (Unaudited) |
November
30, 2022 |
Month-over-month price increases in
the October and November 2022 Consumer Price Index (“CPI”) reports
finally cooled, offering some evidence that the Federal Reserve’s
(the “Fed”) efforts to tighten policy and get inflation under
control are starting to work. The headline CPI slowed from an 11%
annualized three-month growth rate in June 2022 to 3.7% by November
2022. The three-month annualized change in core CPI softened from a
recent peak of 7.9% to 4.2%, and trimmed measures of inflation
(measures that remove the highest and lowest outliers) also
declined. While these figures are still well above the Fed’s 2%
core inflation target, it is encouraging to see them moving in the
right direction.
The inflation categories that remain
high are mostly in services. The November CPI report showed that
core goods prices fell by 0.5% on the month, led by a 2.9% drop in
used car prices. More declines in goods prices appear likely as
supply chains rapidly improve and retailers step up their efforts
to clear an inventory overhang through deeper discounting. However,
housing and broader services inflation measures remain well above
pre-COVID levels. Housing inflation will likely take time to come
down in the official statistics due to the lagging nature of lease
renewals, but more timely indicators show inflation for new rentals
is falling fast. The Fed has now become more concerned with core
services inflation excluding housing and how a tight labor market
and high wage growth could impact this category.
The December Summary of Economic
Projections, which provides the Fed’s median forecasts for a
variety of data including the unemployment rate, inflation, and
their policy rate, confirmed that the Fed is far from convinced
that inflation is heading back to target and expects more
tightening will be needed to achieve their inflation target. The
median 2023 forecasts for U.S. real gross domestic product growth
fell to 0.5%, the federal funds rate increased to 5.1%, and the
unemployment rate increased to 4.6%. At the same time, the Fed’s
projection for the year-over-year increase in the core personal
consumption expenditures price index—its preferred inflation
measure—increased to 3.5% by year-end. Taken together, these
projections suggest that even with a higher terminal rate, weaker
growth, and a higher unemployment rate, the Fed expects to be
further away from its inflation goal in 2023 than it projected in
recent months.
Our research indicates that the
unemployment rate could increase to 6%, higher than the Fed’s
median projection, as Fed efforts to slow the already weak economy
may end up overshooting. This could trigger a more serious
recession than the consensus expectation and likely bring about a
decline in risk assets.
The opinions and forecasts
expressed may not actually come to pass. This information is
subject to change at any time, based on market and other
conditions, and should not be construed as a recommendation of any
specific security or strategy.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
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MANAGEMENT’S
DISCUSSION OF |
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FUND
PERFORMANCE (Unaudited) |
November
30, 2022 |
MANAGEMENT TEAM
Guggenheim Funds Investment Advisors,
LLC serves as the investment adviser to Guggenheim Strategic
Opportunities Fund (“Fund”). The Fund is managed by a team of
seasoned professionals at Guggenheim Partners Investment
Management, LLC (“GPIM”).1
This team includes Anne B. Walsh,
CFA, JD, Managing Partner, Chief Investment Officer of GPIM; Steven
H. Brown, CFA, Chief Investment Officer, Total Return and Macro
Strategies, and Senior Managing Director of GPIM; Adam J. Bloch,
Managing Director and Portfolio Manager of GPIM; and Evan L.
Serdensky, Director and Portfolio Manager of GPIM.
Discuss the Fund’s return and
return of comparative Indices
All Fund returns cited—whether based
on NAV or market price—assume the reinvestment of all
distributions. For the Reporting Period, the Fund provided a total
return based on market price of -2.40% and a total return based on
NAV of -1.93%. At the end of the Reporting Period, the Fund’s
market price of $16.30 per share represented a premium of 26.16% to
its NAV of $12.92 per share. At the beginning of the Reporting
Period, the Fund’s market price of $17.92 per share represented a
premium of 25.05% to its NAV of $14.33 per share.
Past performance is not a guarantee
of future results. All NAV returns include the deduction of
management fees, operating expenses, and all other Fund expenses.
The market value of the Fund’s shares fluctuates from time to time
and maybe higher or lower than the Fund’s NAV.
Please refer to the graphs and tables
included within the Fund Summary, beginning on page 21 for
additional information about the Fund’s performance.
Index |
Total
Return |
Bloomberg
U.S. Aggregate Bond Index |
-4.06% |
Bloomberg
U.S. Corporate Bond Index |
-3.94% |
Bloomberg
U.S. Corporate High Yield Index |
-2.86% |
Credit
Suisse Leveraged Loan Index |
1.06% |
ICE
Bank of America Asset Backed Security Master BBB-AA
Index |
-3.08% |
NASDAQ
- 100 Index |
-4.40% |
Russell
2000 Index |
1.98% |
Standard
& Poor’s 500 (“S&P 500”) Index |
-0.40% |
1 |
|
Guggenheim Partners Advisors, LLC (“GPA”) also
served as an investment sub-adviser to the Fund during the
Reporting Period. GPA was terminated as an investment sub-adviser
to the Fund effective December 22, 2022. |
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MANAGEMENT’S
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FUND
PERFORMANCE (Unaudited) continued |
November
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Discuss the Fund’s
distributions
During the Reporting Period, the Fund
paid a monthly distribution of $0.1821 per share. The most recent
distribution represents an annualized distribution rate of 13.41%
based on the Fund’s closing market price of $16.30 per share at the
end of the Reporting Period.
There is no guarantee of any future
distribution or that the current returns and distribution rate will
be maintained. The Fund’s distribution rate is not constant and the
amount of distributions, when declared by the Fund’s Board of
Trustees, is subject to change.
Please see the Distributions to
Shareholders & Annualized Distribution Rate table on page 24,
and Note 2(f) on page 92 for more information on distributions for
the period.
Payable
Date |
Amount |
June
30, 2022 |
$0.1821 |
July
29, 2022 |
$0.1821 |
August
31, 2022 |
$0.1821 |
September
30, 2022 |
$0.1821 |
October
31, 2022 |
$0.1821 |
November
30, 2022 |
$0.1821 |
Total |
$1.0926 |
What factors contributed or
detracted from the Fund’s Performance during the Reporting
Period?
The Reporting Period was marked by a
material move higher in interest rates and spreads in reaction to
accelerating inflation early in the period and simultaneously
rising concerns of slower growth from restrictive monetary policy.
While typically spreads and interest rates exhibit negative
correlation, the Reporting Period was marked by an unusual positive
correlation between risky and risk-free assets. Accordingly,
duration and credit spread exposure both detracted from
performance, while carry contributed positively. The Fund, which at
Reporting Period end had a duration of 4.00 years, experienced
negative performance as the 10 year Treasury yield rose by nearly
90 basis points. One basis point is equal to one-hundredth of one
percent, or 0.01%. Duration positioning remained roughly constant
throughout the Reporting Period. (Duration is a measure of a bond’s
price sensitivity to changes in interest rates, expressed in years,
and reflects the weighted average term to maturity of discounted
bond cash flow.) GPIM may seek to manage the Fund’s duration in a
flexible and opportunistic manner based primarily on then-current
market conditions and interest rate levels. Credit spreads
accounted for roughly 400 basis points of negative performance, as
the Fund maintained exposure to a diversified portfolio of credit
sectors for income generation. Investment
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
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MANAGEMENT’S
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November
30, 2022 |
Grade and High Yield credit spreads
widened rapidly to nearly the 80th historical percentile, and
partially retraced the moves to ultimately finish around the 60th
percentile. Bank loans, which comprised approximately 32% of the
Fund, were the best performing asset class due to their floating
rate features. Though we expect to see continued volatility as
markets grapple with the rapid tightening of financial conditions,
at current valuations we see return distributions for fixed income
skewed to the upside over the next year. Particularly on a
yield-basis, high quality spread product valuations are compelling
for long-term oriented investors.
Discuss the Fund’s Use of
Leverage
At the end of the Reporting Period,
the Fund’s leverage was approximately 24% of Managed Assets, which
is equivalent to the amount of leverage at the beginning of the
Reporting Period.
The Fund currently employs financial
leverage through reverse repurchase agreements and a credit
facility with a major bank.
One purpose of leverage is to fund
the purchase of additional securities that may provide increased
income and potentially greater appreciation to common shareholders
than could be achieved from an unlevered portfolio. Leverage may
result in greater NAV volatility and entails more downside risk
than an unleveraged portfolio.
Investments in Investment Funds (as
defined below in the Risks and Other Considerations section)
frequently expose the Fund to an additional layer of financial
leverage and the associated risks, such as the magnified effect of
any losses.
How did the Fund use derivatives
during the Reporting Period?
The Fund used a variety of
derivatives during the Reporting Period both to gain market
exposure and to hedge certain exposures. Derivatives used for
hedging generated mixed performance. Foreign currency forwards,
used to hedge non-USD exposures, contributed positively as the
dollar strengthened versus both the Euro and the Pound. Call
writing added to performance as equity indices broadly fell. The
Fund also utilized S&P 500 Puts and Put Spreads to partially
protect against drawdowns in risk assets. Put option hedges
contributed roughly 30 basis points to overall performance during
the period. Interest rate swaps detracted from performance during
the period.
8 l GOF
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MANAGEMENT’S
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PERFORMANCE (Unaudited) continued |
November
30, 2022 |
How was the Fund positioned at the
end of the Reporting Period?
Risk assets valuations remain
volatile as central banks continue to raise interest rates to
combat near record inflation and the probability of a recession has
risen. We expect volatility to continue for several months as
rapidly changing economic data remains acutely impactful on
valuations, although credit market valuations have meaningfully
cheapened and offer attractive entry points. During the period, the
Fund reduced exposure to lower quality credit segments which have
greater fundamental exposure to a downturn and, until recently,
were outperforming higher quality segments on a risk-adjusted
basis. The Fund redeployed capital into higher quality credit
segments at all-in yields not achievable in over a decade. While
credit markets are attractive to long-run investors, equity
valuations remain expensive and the risk versus reward trade-off is
unfavorable in our assessment. Accordingly, the allocation to
equity strategies remains at the low end of the Fund’s historical
and long-term target range.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
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MANAGEMENT’S
DISCUSSION OF |
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PERFORMANCE (Unaudited) continued |
November
30, 2022 |
Index Definitions
Indices are unmanaged and reflect no
expenses. It is not possible to invest directly in an
index.
The Bloomberg U.S. Aggregate Bond
Index is a broad-based flagship benchmark that measures the
investment grade, U.S. dollar-denominated, fixed-rate taxable bond
market, including U.S. Treasuries, government-related and corporate
securities, mortgage-backed securities or “MBS” (agency fixed-rate
and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), ABS,
and commercial mortgage-backed securities (“CMBS”) (agency and
non-agency).
The Bloomberg U.S. Corporate Bond
Index is a broad-based benchmark that measures the investment
grade, fixed-rate, taxable corporate bond market. It includes U.S.
dollar-denominated securities publicly issued by U.S. and non-U.S.
industrial, utility and financial issuers that meet specified
maturity, liquidity, and quality requirements.
The Bloomberg U.S. Corporate High
Yield Index measures the U.S. dollar-denominated, high yield,
fixed-rate corporate bond market. Securities are classified as high
yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB
+/BB + or below.
The Credit Suisse Leveraged Loan
Index is an index designed to mirror the investable universe of
the U.S.-dollar-denominated leveraged loan market.
The ICE Bank of America Asset
Backed Security Master BBB-AA Index is a subset of the ICE Bank
of America Merrill Lynch U.S. Fixed Rate Asset Backed Securities
Index including all securities rated AA1 through BBB3,
inclusive.
The NASDAQ-100 Index includes
100 of the largest domestic and international non-financial
securities listed on The Nasdaq Stock Market based on market
capitalization. The Index reflects companies across major industry
groups including computer hardware and software,
telecommunications, retail/wholesale trade and biotechnology. It
does not contain securities of financial companies including
investment companies.
The Russell 2000 Index
measures the performance of the small-cap segment of the U.S.
equity universe.
The Standard & Poor’s 500
(“S&P 500”) is a capitalization-weighted index of 500
stocks designed to measure the performance of the broad economy,
representing all major industries and is considered a
representation of the U.S. stock market.
10 l GOF
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MANAGEMENT’S
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Risks and Other
Considerations
Investors should be aware that in
light of the current uncertainty, volatility and distress in
economies, financial markets, geopolitical tensions, and labor and
public 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.
The views expressed in this report
reflect those of the portfolio managers only through the report
period as stated on the cover. These views are subject to change at
any time, based on market and other conditions and should not be
construed as a recommendation of any kind. The material may also
include forward looking statements that involve risk and
uncertainty, and there is no guarantee that any predictions will
come to pass.
There can be no assurance that the
Fund will achieve its investment objectives. The value of the Fund
will fluctuate with the value of the underlying securities. Risk is
inherent in all investing, including the loss of your entire
principal. Therefore, before investing you should consider the
risks carefully. The Fund is subject to various risk factors.
Certain of these risk factors are described below. Please see the
Fund’s Prospectus, Statement of Additional Information (SAI), most
recent annual report on Form N-CSR and
guggenheiminvestments.com/gof for a more detailed description of
the risks of investing in the Fund. Shareholders may access the
Fund’s Prospectus, SAI and most recent annual report on the EDGAR
Database on the Securities and Exchange Commission’s website at
www.sec.gov.
The fact that a particular risk below
is not specifically identified as being heightened under current
conditions does not mean that the risk is not greater than under
normal conditions.
Below Investment Grade Securities
Risk. High yield, below investment grade and unrated high risk
debt securities (which also may be known as “junk bonds”) may
present additional risks because these securities may be less
liquid, and therefore more difficult to value accurately and sell
at an advantageous price or time, and present more credit risk than
investment grade bonds. The price of high yield securities tends to
be subject to greater volatility due to issuer-specific operating
results and outlook and to real or perceived adverse economic and
competitive industry conditions. This exposure may be obtained
through investments in other investment companies. Generally, the
risks associated with high yield securities are heightened during
times of weakening economic conditions or rising interest
rates.
Corporate Bond Risk. Corporate bonds are
debt obligations issued by corporations and other business
entities. Corporate bonds may be either secured or unsecured.
Collateral used for secured debt includes real property, machinery,
equipment, accounts receivable, stocks, bonds or notes. If a bond
is unsecured, it is known as a debenture. Bondholders, as
creditors, have a prior legal claim over common and preferred
stockholders as to both income and assets of the corporation for
the principal and interest due them and may have a prior claim over
other creditors if liens or mortgages are involved. Interest on
corporate bonds may be fixed or floating, or the bonds may be zero
coupons. Interest on corporate bonds is typically paid
semi-annually and is fully taxable to the bondholder. Corporate
bonds contain elements of both interest-rate risk and credit risk.
The market value of a corporate bond generally may be expected to
rise and fall inversely with interest rates and may also be
affected by the credit rating of the corporation, the corporation’s
performance and perceptions of the corporation in the marketplace.
Corporate bonds usually yield more than government or agency bonds
due to the presence
GOF l
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of credit risk. Depending on the
nature of the seniority provisions, a senior corporate bond may be
junior to other credit securities of the issuer. The market value
of a corporate bond may be affected by factors directly related to
the issuer, such as investors’ perceptions of the creditworthiness
of the issuer, the issuer’s financial performance, perceptions of
the issuer in the marketplace, performance of management of the
issuer, the issuer’s capital structure and use of financial
leverage and demand for the issuer’s goods and services. There is a
risk that the issuers of corporate bonds may not be able to meet
their obligations on interest or principal payments at the time
called for by an instrument. Corporate bonds of below investment
grade quality are often high risk and have speculative
characteristics and may be particularly susceptible to adverse
issuer-specific developments.
Covered Call Option Strategy
Risk. The ability of the Fund to achieve its investment
objective is partially dependent on the successful implementation
of its covered call option strategy. The Fund may write call
options on individual securities, securities indices,
exchange-traded funds and baskets of securities. The buyer of an
option acquires the right to buy (a call option) or sell (a put
option) a certain quantity of a security (the underlying security)
or instrument, at a certain price up to a specified point in time
or on expiration, depending on the terms. The seller or writer of
an option is obligated to sell (a call option) or buy (a put
option) the underlying instrument. A call option is “covered” if
the Fund owns the security underlying the call or has an absolute
right to acquire the security without additional cash consideration
(or, if additional cash consideration is required, cash or cash
equivalents in such amount are segregated by the Fund’s custodian).
As a seller of covered call options, the Fund faces the risk that
it will forgo the opportunity to profit from increases in the
market value of the security covering the call option during an
option’s life. As the Fund writes covered calls over more of its
portfolio, its ability to benefit from capital appreciation becomes
more limited.
Credit Risk. The Fund could
lose money if the issuer or guarantor of a debt instrument or a
counterparty to a derivatives transaction or other transaction is
unable or unwilling, or perceived to be unable or unwilling, to pay
interest or repay principal on time or defaults. The risk that such
issuer, guarantor or counterparty is less willing or able to do so
is heightened in market environments where interest rates are
rising. Also, the issuer, guarantor or counterparty may suffer
adverse changes in its financial condition or be adversely affected
by economic, political or social conditions that could lower the
credit quality (or the market’s perception of the credit quality)
of the issuer or instrument, leading to greater volatility in the
price of the instrument and in shares of the Fund. Although credit
quality may not accurately reflect the true credit risk of an
instrument, a change in the credit quality rating of an instrument
or an issuer can have a rapid, adverse effect on the instrument’s
liquidity and make it more difficult for the Fund to sell at an
advantageous price or time. The risk of the occurrence of these
types of events is especially heightened in market environments
where interest rates are rising.
Current Fixed-Income and Debt
Market Conditions. Fixed-income and debt market conditions are
highly unpredictable and some parts of the market are subject to
dislocations. In response to the high inflation in recent periods,
governmental authorities have implemented significant fiscal and
monetary policy changes, including increasing interest rates and
implementation of quantitative tightening. These actions present
heightened risks, particularly to fixed-income and debt
instruments, and such risks could be even further heightened if
these actions are ineffective in achieving their desired outcomes.
The U.S. Federal Reserve Board (“Federal Reserve”) has signaled its
intention to continue raising
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interest rates and maintain interest
rates at increased levels until inflation decreases to the Federal
Reserve’s target level. It is difficult to accurately predict the
effect of these actions. Certain economic conditions and market
environments will expose fixed-income and debt instruments to
heightened volatility and reduced liquidity, which can impact the
Fund’s investments and may negatively impact the Fund’s
characteristics, which in turn would impact performance.
Derivatives Transactions Risk.
The Fund may utilize derivatives, including futures contracts and
other strategic transactions, to seek to earn income, facilitate
portfolio management and mitigate risks. Participation in
derivatives markets transactions involves investment risks and
transaction costs to which the Fund would not be subject absent the
use of these strategies (other than its covered call writing
strategy and put option writing strategy). There may be imperfect
correlation between the value of derivative instruments and the
underlying assets. Derivatives transactions may be subject to risks
associated with the possible default of the other party to the
transaction. Derivative instruments may be illiquid. Certain
derivatives transactions may have economic characteristics similar
to leverage, in that relatively small market movements may result
in large changes in the value of an investment. Certain derivatives
transactions that involve leverage can result in losses that
greatly exceed the amount originally invested. Changes in value of
a derivative may also create sudden margin delivery or settlement
payment obligations for the Fund, which can materially affect the
performance of the Fund and its liquidity and other risk profiles.
Furthermore, the Fund’s ability to successfully use derivatives
transactions depends on the Sub-Adviser’s ability to predict
pertinent securities prices, interest rates, currency exchange
rates and other economic factors, which cannot be assured.
Derivatives transactions utilizing instruments denominated in
foreign currencies will expose the Fund to foreign currency risk.
To the extent the Fund enters into derivatives transactions to
hedge exposure to foreign currencies, such transactions may not be
successful and may eliminate any chance for the Fund to benefit
from favorable fluctuations in relevant foreign currencies. The use
of derivatives transactions may result in losses greater than if
they had not been used, may require the Fund to sell or purchase
portfolio securities at inopportune times or for prices other than
current market values, may limit the amount of appreciation the
Fund can realize on an investment or may cause the Fund to hold a
security that it might otherwise sell. Derivatives transactions
involve risks of mispricing or improper valuation. The Fund also
may be required to deposit amounts as premiums or to be held in
margin accounts. Such amounts may not otherwise be available to the
Fund for investment purposes. Derivatives transactions also are
subject to operational risk, including from documentation issues,
settlement issues, system failures, inadequate controls, and human
error, and legal risk, including risk of insufficient
documentation, insufficient capacity or authority of a
counterparty, or legality or enforceability of a contract.
Derivatives transactions may involve commissions and other costs,
which may increase the Fund’s expenses and reduce its return.
Various legislative and regulatory initiatives may impact the
availability, liquidity and cost of derivative instruments, limit
or restrict the ability of the Fund to use certain derivative
instruments or transact with certain counterparties as a part of
its investment strategy, increase the costs of using derivative
instruments or make derivative instruments less
effective.
Equity Securities Risk. Equity
securities include common stocks and other equity and
equity-related securities (and securities convertible into stocks)
such as limited liability company interests and trust certificates.
The prices of equity securities generally fluctuate in value more
than fixed-income
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 13
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PERFORMANCE (Unaudited) continued |
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investments, may rise or fall rapidly
or unpredictably and may reflect real or perceived changes in the
issuing company’s financial condition and changes in the overall
market or economy. A decline in the value of equity securities held
by the Fund will adversely affect the value of your investment in
the Fund.
Interest Rate Risk.
Fixed-income and other debt instruments are subject to the
possibility that interest rates could change (or are expected to
change). Changes in interest rates, including changes in reference
rates used in fixed-income and other debt instruments (such as the
London Interbank Offered Rate (“LIBOR”) or Secured Overnight
Financing Rate (“SOFR”)), may adversely affect the Fund’s
investments in these instruments, such as the value or liquidity
of, and income generated by, the investments. In addition, changes
in interest rates, including rates that fall below zero, can have
unpredictable effects on markets and can adversely affect the
Fund’s yield, income and performance. Generally, when interest
rates increase, the values of fixed-income and other debt
instruments decline, and when interest rates decrease, the values
of fixed-income and other debt instruments rise. The Federal
Reserve, in recent periods, has increased interest rates at
significant levels and signaled an intention to continue to raise
interest rates and maintain interest rates at increased levels
until inflation decreases to the Federal Reserve’s target level.
These actions present heightened risks to fixed-income and debt
instruments, and such risks could be even further heightened if
these actions are unexpectedly or suddenly reversed or are
ineffective in achieving their desired outcomes. It is difficult to
accurately predict how long the Federal Reserve’s current stance on
interest rates will persist and the impact these actions will have
on the economy and the Fund’s investments and the markets where
they trade.
Investment in Loans Risk. The
Fund may purchase loans on a direct assignment basis from a
participant in the original syndicate of lenders or from subsequent
assignees of such interests. Loans may offer a fixed or floating
interest rate. Loans are often below investment grade and may be
unrated. The Fund’s investments in loans can also be difficult to
value accurately and may be more susceptible to liquidity risk than
fixed income instruments of similar credit quality and/or maturity.
Participations in loans may subject the Fund to the credit risk of
both the borrower and the seller of the participation and may make
enforcement of loan covenants, if any, more difficult for the Fund
as legal action may have to go through the seller of the
participation (or an agent acting on its behalf). Covenants
contained in loan documentation are intended to protect lenders and
investors by imposing certain restrictions and other limitations on
a borrower’s operations or assets and by providing certain
information and consent rights to lenders. The Fund invests in or
is exposed to loans and other similar debt obligations that are
sometimes referred to as “covenant-lite” loans or obligations,
which are generally subject to more risk than investments that
contain traditional financial maintenance covenants and financial
reporting requirements. The terms of many loans and other
instruments are tied to LIBOR, which functions as a reference rate
or benchmark. It is anticipated that LIBOR will ultimately be
discontinued, which may cause increased volatility and illiquidity
in the markets for instruments with terms tied to LIBOR or other
adverse consequences, such as decreased yields and reduction in
value, for these instruments. These events may adversely affect the
Fund and its investments in such instruments.
Senior Loans Risk. The
Fund may invest in senior secured floating rate loans made to
corporations and other non-governmental entities and issuers
(“Senior Loans”). Senior Loans typically hold the most senior
position in the capital structure of the issuing entity, are
typically secured with specific collateral and typically have a
claim on the assets and/or stock of the borrower that is senior to
that held by
14 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
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MANAGEMENT’S
DISCUSSION OF |
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FUND
PERFORMANCE (Unaudited) continued |
November
30, 2022 |
subordinated debt holders and
stockholders of the borrower. The Fund’s investments in Senior
Loans are generally rated below investment grade or unrated but
believed by the Adviser to be of below investment grade quality and
are considered speculative because of the credit risk of their
issuers. The risks associated with such Senior Loans are similar to
the risks of other lower grade securities, although Senior Loans
are typically senior in payment priority and secured on a senior
priority basis in contrast to subordinated and unsecured
securities. Senior Loans’ higher priority has historically resulted
in generally higher recoveries in the event of a corporate
reorganization. In addition, because their interest payments are
adjusted for changes in short-term interest rates, investments in
Senior Loans have less interest rate risk than certain other lower
grade securities, which may have fixed interest rates.
Second Lien Loans Risk. The
Fund may invest in “second lien” secured floating rate loans made
to public and private corporations and other non-governmental
entities and issuers for a variety of purposes (“Second Lien
Loans”). Second Lien Loans are subject to the same risks associated
with investment in Senior Loans and other lower grade debt
securities. However, Second Lien Loans are second in right of
payment to Senior Loans and therefore are subject to the additional
risk that the cash flow of the borrower and any property securing
the loan may be insufficient to meet scheduled payments and
repayment of principal after giving effect to the senior secured
obligations of the borrower. Second Lien Loans are expected to have
greater price volatility and exposure to losses upon default than
Senior Loans and may be less liquid.
Subordinated Secured Loans Risk. Subordinated
secured loans generally are subject to similar risks as those
associated with investment in Senior Loans, Second Lien Loans and
below investment grade securities. However, such loans may rank
lower in right of payment than any outstanding Senior Loans, Second
Lien Loans or other debt instruments with higher priority of the
borrower and therefore are subject to additional risk that the cash
flow of the borrower and any property securing the loan may be
insufficient to meet scheduled payments and repayment of principal
in the event of default or bankruptcy after giving effect to the
higher ranking secured obligations of the borrower. Subordinated
secured loans are expected to have greater price volatility than
Senior Loans and Second Lien Loans and may be less
liquid.
Unsecured Loans Risk. Unsecured
loans generally are subject to similar risks as those associated
with investment in Senior Loans, Second Lien Loans, subordinated
secured loans and below investment grade securities. However,
because unsecured loans have lower priority in right of payment to
any higher ranking obligations of the borrower and are not backed
by a security interest in any specific collateral, they are subject
to additional risk that the cash flow of the borrower and available
assets may be insufficient to meet scheduled payments and repayment
of principal after giving effect to any higher ranking obligations
of the borrower. Unsecured loans are expected to have greater price
volatility than Senior Loans, Second Lien Loans and subordinated
secured loans and may be less liquid.
Leverage Risk. The Fund’s use
of leverage, through borrowings or instruments such as derivatives,
causes the Fund to be more volatile and riskier than if it had not
been leveraged. Although the use of leverage by the Fund may create
an opportunity for increased return, it also results in additional
risks and can magnify the effect of any losses. The effect of
leverage in a declining market is likely to cause a greater decline
in the net asset value of the Fund than if the Fund were not
leveraged, which may result
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 15
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MANAGEMENT’S
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FUND
PERFORMANCE (Unaudited) continued |
November
30, 2022 |
in a greater decline in the market
price of the Fund shares. There can be no assurance that a
leveraging strategy will be implemented or that it will be
successful during any period during which it is employed. When the
cost of leverage is no longer favorable, or when the Fund is
otherwise required to reduce its leverage, the Fund may not be able
to maintain distributions at historical levels and common
shareholders will bear any costs associated with selling portfolio
securities. The Fund’s total leverage may vary significantly over
time. To the extent the Fund increases its amount of leverage
outstanding, it will be more exposed to these risks. Investments in
Investment Funds (as defined below) and certain other pooled and
structured finance vehicles, such as collateralized loan
obligations, frequently expose the Fund to an additional layer of
financial leverage and, thus, increase the Fund’s exposure to
leverage risk.
Management Risk. The Fund is
actively managed, which means that investment decisions are made
based on investment views. There is no guarantee that the
investment views will produce the desired results or expected
returns, causing the Fund to fail to meet its investment objective
or underperform its benchmark index or funds with similar
investment objectives and strategies.
Market Risk. The value of, or
income generated by, the investments held by the Fund are subject
to the possibility of rapid and unpredictable fluctuation. The
value of certain investments (e.g., equity securities) tends to
fluctuate more dramatically over the shorter term than do the value
of other asset classes. These movements may result from factors
affecting individual companies, or from broader influences,
including real or perceived changes in prevailing interest rates,
changes in inflation or expectations about inflation, investor
confidence or economic, political (including geopolitical), social
or financial market conditions, tariffs and trade disruptions,
recession, changes in currency rates, natural/environmental
disasters, cyber attacks, terrorism, governmental or
quasigovernmental actions, public health emergencies (such as the
spread of infectious diseases, pandemics and epidemics), debt
crises, actual or threatened war or other armed conflicts (such as
the ongoing Russia-Ukraine conflict and its risk of expansion or
collateral economic and other effects) or ratings downgrade, and
other similar events, each of which may be temporary or last for
extended periods. Many economies and markets are experiencing, and
have experienced in recent periods, high inflation rates. In
response to such inflation, government authorities have implemented
significant fiscal and monetary policies such as increasing
interest rates and quantitative tightening (reduction of money
available in the market) which may adversely affect financial
markets and the broader economy, as well as the Fund’s performance.
Administrative changes, policy reform and/or changes in law or
governmental regulations can result in expropriation or
nationalization of the investments of a company in which the Fund
invests.
Prepayment Risk. Certain debt
instruments, including loans and mortgage- and other asset-backed
securities, are subject to the risk that payments on principal may
occur more quickly or earlier than expected. In this event, the
Fund might be forced to forego future interest income on the
principal repaid early and to reinvest income or proceeds at
generally lower interest rates, thus reducing the Fund’s
yield.
Short Sales Risk. The Fund may
make short sales of securities. A short sale is a transaction in
which the Fund sells a security it does not own. If the price of
the security sold short increases between the time of
16 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
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MANAGEMENT’S
DISCUSSION OF |
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FUND
PERFORMANCE (Unaudited) continued |
November
30, 2022 |
the short sale and the time the Fund
replaces the borrowed security, the Fund will incur a loss.
Although the Fund’s gain is limited to the price at which it sold
the security short, its potential loss is theoretically
unlimited.
Structured Finance Investments
Risk. The Fund’s structured finance investments may consist of
residential mortgage-backed securities (“RMBS”) and commercial
mortgage-backed securities (“CMBS”) issued by governmental entities
and private issuers, asset-backed securities (“ABS”), structured
notes, credit-linked notes and other types of structured finance
securities. Holders of structured finance investments bear risks of
the underlying investments, index or reference obligation and are
subject to counterparty risk. The Fund may have the right to
receive payments only from the structured product, and generally
does not have direct rights against the issuer or the entity that
sold the assets to be securitized. The Fund may invest in
structured finance products collateralized by low grade or
defaulted loans or securities. Investments in such structured
finance products are subject to the risks associated with below
investment grade securities. Such securities are characterized by
high risk. It is likely that an economic recession could severely
disrupt the market for such securities and may have an adverse
impact on the value of such securities. Moreover, other types of
events, domestic or international, may affect general economic
conditions and financial markets, such as pandemics, armed
conflicts, energy supply or price disruptions, natural disasters
and man-made disasters, which may have a significant effect on the
underlying assets. Structured finance securities are typically
privately offered and sold, and thus are not registered under the
securities laws. As a result, investments in structured finance
securities may be characterized by the Fund as illiquid securities;
however, an active dealer market may exist which would allow such
securities to be considered liquid in some
circumstances.
Mortgage-Backed Securities (“MBS”) Risk. MBS
represent an interest in a pool of mortgages. The risks associated
with MBS include: (1) credit risk associated with the performance
of the underlying mortgage properties and of the borrowers owning
these properties; (2) risks associated with their structure and
execution (including the collateral, the process by which principal
and interest payments are allocated and distributed to investors
and how credit losses affect the return to investors in such MBS);
(3) risks associated with the servicer of the underlying mortgages;
(4) adverse changes in economic conditions and circumstances, which
are more likely to have an adverse impact on MBS secured by loans
on certain types of commercial properties than on those secured by
loans on residential properties; (5) prepayment risk, which can
lead to significant fluctuations in the value of the MBS; (6) loss
of all or part of the premium, if any, paid; and (7) decline in the
market value of the security, whether resulting from changes in
interest rates, prepayments on the underlying mortgage collateral
or perceptions of the credit risk associated with the underlying
mortgage collateral. Income from and values of MBS also may be
greatly affected by demographic trends, such as population shifts
or changing tastes and values, or increasing vacancies or declining
rents resulting from legal, cultural technological, global or local
economic developments, as well as reduced demand for properties. In
addition, the general effects of inflation on the U.S. economy can
be wide-ranging, as evidenced by rising interest rates, wages and
costs of consumer goods and necessities. The long-term effects of
inflation on the general economy and on any individual mortgagor
are unclear, and in certain cases, rising inflation may affect a
mortgagor’s ability to repay its related mortgage loan, thereby
reducing the amount received by the holders of MBS with respect to
such mortgage loan. Additionally, increased rates of inflation, as
are currently being
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 17
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MANAGEMENT’S
DISCUSSION OF |
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FUND
PERFORMANCE (Unaudited) continued |
November
30, 2022 |
experienced, may negatively affect
the value of certain MBS in the secondary market. MBS are
particularly sensitive to changes in interest rates. Rising
interest rates generally result in a decline in the value of
mortgage-related securities, such as CMBS and RMBS.
Commercial Mortgage-Backed
Securities Risk. CMBS are subject to particular risks,
including lack of standardized terms, shorter maturities than
residential mortgage loans and providing for payment of all or
substantially all of the principal only at maturity rather than
regular amortization of principal. In addition, commercial lending
generally is viewed as exposing the lender to a greater risk of
loss than residential lending. Economic downturns and other events
that limit the activities of and demand for commercial retail and
office spaces adversely impact the value of such securities. For
example, economic decline in the businesses operated by the tenants
of office properties may increase the likelihood that the tenants
may be unable to pay their rents or that properties may be unable
to attract or retain tenants.
Residential Mortgage-Backed
Securities Risk. Credit-related risk on RMBS arises from losses
due to delinquencies and defaults by the borrowers in payments on
the underlying mortgage loans and breaches by originators and
servicers of their obligations under the underlying documentation
pursuant to which the RMBS are issued. The rate of delinquencies
and defaults on residential mortgage loans and the aggregate amount
of the resulting losses will be affected by a number of factors,
including general economic conditions, particularly those in the
area where the related mortgaged property is located, the level of
the borrower’s equity in the mortgaged property and the individual
financial circumstances of the borrower. Asset-Backed Securities
Risk. While traditional fixed-income securities typically pay a
fixed rate of interest until maturity, when the entire principal
amount is due, an ABS represents an interest in a pool of assets,
such as automobile loans, credit card receivables, unsecured
consumer loans or student loans, that has been securitized and
provides for monthly payments of interest, at a fixed or floating
rate, and principal from the cash flow of these assets. This pool
of assets (and any related assets of the issuing entity) is the
only source of payment for the ABS. The ability of an ABS issuer to
make payments on the ABS, and the timing of such payments, is
therefore dependent on collections on these underlying assets. The
recoveries on the underlying collateral may not, in some cases, be
sufficient to support payments on these securities, which may
result in losses to investors in an ABS. ABS are particularly
subject to interest rate risk and credit risk. Compared to other
fixed income investments with similar maturity and credit, ABS
generally increase in value to a lesser extent when interest rates
decline and generally decline in value to a similar or greater
extent when interest rates rise.
CLO, CDO and CBO Risk. In
addition to the general risks associated with credit securities
discussed herein, collateralized loan obligations (“CLOs”),
collateralized debt obligations (“CDOs”), and collateralized bond
obligations (“CBOs”) are subject to additional risks due to their
complex structure and highly leveraged nature. CLOs, CDOs and CBOs
are subject to risks associated with the possibility that
distributions from collateral securities may not be adequate to
make interest or other payments. The value of securities issued by
CLOs, CDOs and CBOs also may change because of changes in market
value; changes in the market’s perception of the creditworthiness
of the servicer of the assets, the originator of an asset in the
pool, or the financial institution or fund providing the credit
support or enhancement; loan performance and prices; broader market
sentiment, including expectations
18 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
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MANAGEMENT’S
DISCUSSION OF |
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FUND
PERFORMANCE (Unaudited) continued |
November
30, 2022 |
regarding future loan defaults;
liquidity conditions; and supply and demand for structured
products. Additionally, the indirect investment structure of CLOs,
CDOs and CBOs presents certain risks to the Fund such as less
liquidity compared with holding the underlying assets directly.
CLOs, CDOs and CBOs normally charge management fees and
administrative expenses, which would be borne by the
Fund.
Valuation Risk. The Fund may
invest without limitation in unregistered securities, restricted
securities and securities for which there is no readily available
trading market. It may be difficult for the Fund to purchase and
sell a particular investment at the price at which it has been
valued by the Fund for purposes of the Fund’s net asset value,
causing the Fund to be unable to realize what the Fund believes
should be the price of the investment. The Fund’s ability to sell
an instrument under favorable conditions may also be negatively
impacted by, among other things, other market participants selling
the same or similar instruments at the same time or legal
restrictions on the instrument’s resale. Valuation of portfolio
investments may be difficult, such as during periods of market
turmoil or reduced liquidity, and for investments that may, for
example, trade infrequently or irregularly. In these and other
circumstances, an investment may be valued using fair value
methodologies, which are inherently subjective, reflect good faith
judgments based on available information and may not accurately
estimate the price at which the Fund could sell the investment at
that time. Based on its investment strategies, a significant
portion of the Fund’s investments can be difficult to value and
thus particularly prone to the foregoing risks. In addition to the
foregoing risks, investors should note that the Fund reserves the
right to merge or reorganize with another fund, liquidate or
convert into an open-end fund, in each case subject to applicable
approvals by shareholders and the Fund’s Board of Trustees as
required by law and the Fund’s governing documents.
Investment Funds Risk. As an alternative
to holding investments directly, the Fund may also obtain
investment exposure to Income Securities and Common Equity
Securities by investing up to 30% of its total assets in other
investment companies, including registered investment companies,
private investment funds and/or other pooled investment vehicles
(collectively, “Investment Funds”). These investments include
open-end funds, closed-end funds, exchange-traded funds and
business development companies as well as other pooled investment
vehicles. Investments in Investment Funds present certain special
considerations and risks not present in making direct investments
in Income Securities and Common Equity Securities. Investments in
Investment Funds subject the Fund to the risks affecting such
Investment Funds and involve operating expenses and fees that are
in addition to the expenses and fees borne by the Fund. Such
expenses and fees attributable to the Fund’s investment in another
Investment Fund are borne indirectly by Common Shareholders.
Accordingly, investment in such entities involves expense and fee
layering. Fees charged by other Investment Funds in which the Fund
invests may be similar to the fees charged by the Fund and can
include asset-based management fees and administrative fees payable
to such entities’ advisers and managers, thus resulting in
duplicative fees. To the extent management fees of Investment Funds
are based on total gross assets, it may create an incentive for
such entities’ managers to employ Financial Leverage, thereby
adding additional expense and increasing volatility and risk
(including the Fund’s overall exposure to leverage risk). Fees
payable to advisers and managers of Investment Funds may include
performance-based incentive fees calculated as a percentage of
profits. Such incentive fees directly reduce the return that
otherwise would have been earned by investors over the applicable
period. A performance-based fee
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 19
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MANAGEMENT’S
DISCUSSION OF |
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FUND
PERFORMANCE (Unaudited) continued |
November
30, 2022 |
arrangement may create incentives for an adviser
or manager to take greater investment risks in the hope of earning
a higher profit participation. Investments in Investment Funds
frequently expose the Fund to an additional layer of Financial
Leverage. The use of leverage by Investment Funds may cause the
Investments Funds’ market price of common shares and/or NAV to be
more volatile and can magnify the effect of any losses. Investments
in Investment Funds expose the Fund to additional management risk.
The success of the Fund’s investments in Investment Funds will
depend in large part on the investment skills and implementation
abilities of the advisers or managers of such entities. Decisions
made by the advisers or managers of such entities may cause the
Fund to incur losses or to miss profit opportunities. While the
Sub-Adviser will seek to evaluate managers of Investment Funds and
where possible independently evaluate the underlying assets, a
substantial degree of reliance on such entities’ managers is
nevertheless present with such investments. In October 2020, the
SEC adopted certain regulatory changes and took other actions
related to the ability of an investment company to invest in
another investment company (which, in certain instances, may also
limit a fund’s ability to invest in certain types of structured
finance vehicles). These changes include, among other things,
amendments to the existing regulatory framework, the adoption of
new Rule 12d1-4 under the 1940 Act, and the rescission of certain
exemptive relief issued by the SEC permitting such investments in
excess of statutory limits and the withdrawal of certain related
SEC staff no-action letters. These changes and actions may
adversely impact the Fund’s investment strategies and operations,
as well as those of the underlying investment vehicles in which the
Fund invests or other funds that invest in the
Fund.
This material is not intended
as a recommendation or as investment advice of any kind, including
in connection with rollovers, transfers, and distributions. Such
material is not provided in a fiduciary capacity, may not be relied
upon for or in connection with the making of investment decisions,
and does not constitute a solicitation of an offer to buy or sell
securities. All content has been provided for informational or
educational purposes only and is not intended to be and should not
be construed as legal or tax advice and/or a legal opinion. Always
consult a financial, tax and/or legal professional regarding your
specific situation.
20 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
|
|
|
FUND
SUMMARY (Unaudited) |
|
|
|
November
30, 2022 |
|
Fund
Statistics |
|
|
|
|
|
Share
Price |
|
|
|
|
$16.30 |
Net
Asset Value |
|
|
|
|
$12.92 |
Premium
to NAV |
|
|
|
|
26.16% |
Net
Assets ($000) |
|
|
|
|
$1,449,307 |
AVERAGE
ANNUAL TOTAL RETURNS FOR THE |
|
|
|
PERIOD
ENDED NOVEMBER 30, 2022 |
|
|
|
|
Six
month |
|
|
|
|
|
(non- |
One |
Three |
Five |
Ten |
|
annualized) |
Year |
Year |
Year |
Year |
Guggenheim
Strategic Opportunities Fund |
|
|
|
|
NAV |
(1.93%) |
(8.69%) |
4.62% |
4.71% |
8.00% |
Market |
(2.40%) |
(0.79%) |
7.09% |
6.64% |
9.61% |
Bloomberg
U.S. Aggregate |
|
|
|
|
Bond
Index |
(4.06%) |
(12.84%) |
2.59% |
0.21% |
1.09% |
Performance data quoted represents
past performance, which is no guarantee of future results and
current performance may be lower or higher than the figures shown.
All NAV returns include the deduction of management fees, operating
expenses and all other Fund expenses. The deduction of taxes that a
shareholder would pay on Fund distributions or the sale of Fund
shares is not reflected in the total returns. For the most recent
month-end performance figures, please visit
guggenheiminvestments.com/gof. The investment return and principal
value of an investment will fluctuate with changes in market
conditions and other factors so that an investor’s shares, when
sold, may be worth more or less than their original
cost.
The referenced index is unmanaged and
not available for direct investment. Index performance does not
reflect transaction costs, fees or expenses.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 21
|
|
FUND
SUMMARY (Unaudited) continued |
November
30, 2022 |
|
Portfolio
Breakdown |
%
of Net Assets |
Investments |
|
Corporate
Bonds |
47.3% |
Senior
Floating Rate Interests |
32.1% |
Asset-Backed
Securities |
15.1% |
Common
Stocks |
14.5% |
Preferred
Stocks |
6.8% |
Exchange-Traded
Funds |
6.0% |
Collateralized
Mortgage Obligations |
5.0% |
Closed-End
Funds |
2.4% |
U.S.
Government Securities |
1.2% |
Money
Market Funds |
0.8% |
Other |
0.4% |
Total
Investments |
131.6% |
Options
Written |
(0.3)% |
Other
Assets & Liabilities, net |
(31.3%) |
Net
Assets |
100.0% |
Ten
Largest Holdings |
%
of Net Assets |
SPDR
S&P 500 ETF Trust |
2.0% |
Invesco
QQQ Trust Series |
2.0% |
iShares
Russell 2000 Index ETF |
2.0% |
Madison
Park Funding LIII Ltd., 9.99% |
1.1% |
Sprite
Ltd., 3.75% |
0.9% |
U.S.
Treasury Bonds |
0.8% |
Delta
Air Lines, Inc., 7.00% |
0.7% |
Morgan
Stanley Finance LLC, 1.50% |
0.7% |
Midcap
Funding XLVI Trust, 7.35% |
0.6% |
CIFC
Funding Ltd., 11.08% |
0.6% |
Top
Ten Total |
11.4% |
“Ten Largest Holdings” excludes any
temporary cash or derivative investments.
Portfolio breakdown and holdings are
subject to change daily. For more information, please visit
guggenheiminvestments.com/gof. The above summaries are provided for
informational purposes only and should not be viewed as
recommendations. Past performance does not guarantee future
results.
22 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
FUND
SUMMARY (Unaudited) continued |
November
30, 2022 |
|
Portfolio
Composition by Quality Rating1 |
|
|
|
%
of Total |
Rating |
Investments |
Fixed
Income Investments |
|
AAA |
2.7% |
AA |
0.0%* |
A |
3.9% |
BBB |
11.1% |
BB |
20.0% |
B |
26.5% |
CCC |
3.5% |
CC |
0.1% |
C |
0.1% |
NR
2 |
9.0% |
Other
Investments |
23.1% |
Total
Investments |
100.0% |
1 |
|
Source:
BlackRock Solutions. Credit quality ratings are measured on a scale
that generally ranges from AAA (highest) to D (lowest). All
securities except for those labeled “NR” have been rated by
Moody’s, Standard & Poor’s (“S&P”), or Fitch, each of which
is a Nationally Recognized Statistical Rating Organization
(“NRSRO”). For purposes of this presentation, when ratings are
available from more than one agency, the highest rating is used.
Guggenheim Investments has converted Moody’s and Fitch ratings to
the equivalent S&P rating. Security ratings are determined at
the time of purchase and may change thereafter. |
2 |
|
NR (not
rated) securities do not necessarily indicate low credit
quality. |
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 23
|
|
FUND
SUMMARY (Unaudited) continued |
November
30, 2022 |

All or a portion of the above
distributions may be characterized as a return of capital. For the
calendar year ended December 31, 2022, 48% of the distributions
were characterized as ordinary income, 8% of the distributions were
characterized as long-term capital gains and 44% of the
distributions were characterized as return of capital. The final
determination of the tax character of the distributions paid by the
Fund in 2022 will be reported to shareholders in January
2023.
24 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) |
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% |
|
|
Financial
– 3.7% |
|
|
KKR
Acquisition Holdings I Corp. — Class A*,1 |
783,534 |
$
7,874,512 |
RXR
Acquisition Corp. — Class A*,1 |
160,538 |
1,613,407 |
TPG
Pace Beneficial II Corp.*,1 |
160,210 |
1,574,865 |
Colicity,
Inc. — Class A*,1 |
120,524 |
1,211,266 |
MSD
Acquisition Corp. — Class A*,1 |
116,869 |
1,173,365 |
AfterNext
HealthTech Acquisition Corp. — Class A*,1 |
107,300 |
1,068,708 |
Conyers
Park III Acquisition Corp. — Class A*,1 |
99,600 |
981,060 |
Acropolis
Infrastructure Acquisition Corp. — Class
A*,1 |
98,300 |
971,204 |
Waverley
Capital Acquisition Corp. 1 — Class A*,1 |
93,900 |
935,244 |
Blue
Whale Acquisition Corp. I — Class A*,1 |
57,300 |
558,675 |
Arch
Capital Group Ltd.* |
8,223 |
492,640 |
Everest
Re Group Ltd.2 |
1,300 |
439,322 |
Globe
Life, Inc.2 |
3,580 |
429,457 |
Aflac,
Inc.2 |
5,945 |
427,624 |
Ameriprise
Financial, Inc.2 |
1,284 |
426,224 |
JPMorgan
Chase & Co.2 |
3,081 |
425,733 |
Travelers
Companies, Inc.2 |
2,235 |
424,225 |
Willis
Towers Watson plc2 |
1,721 |
423,641 |
Simon
Property Group, Inc. REIT2 |
3,539 |
422,698 |
American
International Group, Inc.2 |
6,681 |
421,638 |
Principal
Financial Group, Inc.2 |
4,699 |
421,406 |
Hartford
Financial Services Group, Inc.2 |
5,476 |
418,202 |
Goldman
Sachs Group, Inc.2 |
1,082 |
417,814 |
MetLife,
Inc.2 |
5,439 |
417,171 |
W R
Berkley Corp.2 |
5,429 |
414,124 |
Synchrony
Financial2 |
11,008 |
413,680 |
Chubb
Ltd. |
1,881 |
413,049 |
Berkshire
Hathaway, Inc. — Class B*,2 |
1,283 |
408,764 |
Charles
Schwab Corp.2 |
4,935 |
407,335 |
Citizens
Financial Group, Inc.2 |
9,593 |
406,551 |
Prudential
Financial, Inc.2 |
3,730 |
402,952 |
Huntington
Bancshares, Inc.2 |
26,017 |
402,743 |
Cincinnati
Financial Corp.2 |
3,623 |
402,008 |
State
Street Corp.2 |
5,039 |
401,457 |
Invesco
Ltd.2 |
20,896 |
399,322 |
Bank
of America Corp.2 |
10,527 |
398,447 |
Nasdaq,
Inc.2 |
5,815 |
398,095 |
Raymond
James Financial, Inc.2 |
3,393 |
396,642 |
Federal
Realty Investment Trust2 |
3,534 |
392,627 |
Regency
Centers Corp. REIT2 |
5,901 |
392,003 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 25
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Financial
– 3.7% (continued) |
|
|
Mastercard,
Inc. — Class A2 |
1,093 |
$
389,545 |
Wells
Fargo & Co.2 |
8,116 |
389,162 |
Allstate
Corp.2 |
2,906 |
389,113 |
Visa,
Inc. — Class A2 |
1,792 |
388,864 |
Discover
Financial Services2 |
3,588 |
388,796 |
Arthur
J Gallagher & Co.2 |
1,952 |
388,663 |
Aon
plc — Class A2 |
1,259 |
388,125 |
Equinix,
Inc. REIT2 |
558 |
385,383 |
Intercontinental
Exchange, Inc.2 |
3,557 |
385,259 |
Regions
Financial Corp.2 |
16,564 |
384,450 |
Kimco
Realty Corp. REIT2 |
16,714 |
383,085 |
Morgan
Stanley2 |
4,112 |
382,704 |
Bank
of New York Mellon Corp.2 |
8,326 |
382,163 |
Marsh
& McLennan Companies, Inc.2 |
2,206 |
382,035 |
Host
Hotels & Resorts, Inc. REIT2 |
20,118 |
381,035 |
BlackRock,
Inc. — Class A2 |
529 |
378,764 |
Progressive
Corp.2 |
2,859 |
377,817 |
PNC
Financial Services Group, Inc.2 |
2,237 |
376,398 |
Cboe
Global Markets, Inc.2 |
2,967 |
376,334 |
Loews
Corp.2 |
6,444 |
374,719 |
Franklin
Resources, Inc.2 |
13,946 |
373,892 |
Fifth
Third Bancorp2 |
10,268 |
373,345 |
VICI
Properties, Inc. REIT2 |
10,910 |
373,122 |
KeyCorp2 |
19,702 |
370,595 |
T.
Rowe Price Group, Inc.2 |
2,957 |
369,359 |
American
Express Co.2 |
2,320 |
365,609 |
Iron
Mountain, Inc. REIT2 |
6,661 |
361,892 |
CBRE
Group, Inc. — Class A*,2 |
4,532 |
360,747 |
Alexandria
Real Estate Equities, Inc. REIT2 |
2,316 |
360,393 |
Truist
Financial Corp.2 |
7,586 |
355,101 |
Healthpeak
Properties, Inc. REIT2 |
13,446 |
353,092 |
Citigroup,
Inc.2 |
7,260 |
351,457 |
Mid-America
Apartment Communities, Inc. REIT2 |
2,127 |
350,700 |
U.S.
Bancorp2 |
7,711 |
350,002 |
Capital
One Financial Corp.2 |
3,383 |
349,261 |
Realty
Income Corp. REIT2 |
5,502 |
347,011 |
Weyerhaeuser
Co. REIT2 |
10,591 |
346,432 |
Northern
Trust Corp.2 |
3,702 |
344,693 |
Ventas,
Inc. REIT2 |
7,385 |
343,624 |
Welltower,
Inc. REIT2 |
4,721 |
335,333 |
Brown
& Brown, Inc.2 |
5,624 |
335,134 |
See notes to financial
statements.
26 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Financial
– 3.7% (continued) |
|
|
Prologis,
Inc. REIT2 |
2,838 |
$
334,288 |
M&T
Bank Corp.2 |
1,961 |
333,409 |
Vornado
Realty Trust REIT2 |
13,176 |
333,221 |
SBA
Communications Corp. REIT2 |
1,111 |
332,522 |
Digital
Realty Trust, Inc. REIT2 |
2,945 |
331,195 |
Camden
Property Trust REIT2 |
2,721 |
327,418 |
Zions
Bancorp North America2 |
6,270 |
324,911 |
Public
Storage REIT2 |
1,085 |
323,287 |
CME
Group, Inc. — Class A2 |
1,824 |
321,936 |
UDR,
Inc. REIT2 |
7,667 |
317,950 |
Comerica,
Inc.2 |
4,350 |
312,069 |
American
Tower Corp. — Class A REIT2 |
1,406 |
311,077 |
Equity
Residential REIT2 |
4,764 |
308,993 |
Boston
Properties, Inc. REIT2 |
4,257 |
306,844 |
First
Republic Bank2 |
2,359 |
301,032 |
AvalonBay
Communities, Inc. REIT2 |
1,715 |
299,953 |
Crown
Castle, Inc. REIT2 |
2,106 |
297,852 |
Extra
Space Storage, Inc. REIT2 |
1,823 |
292,938 |
Essex
Property Trust, Inc. REIT2 |
1,320 |
290,902 |
Invitation
Homes, Inc. REIT |
8,898 |
290,342 |
Assurant,
Inc.2 |
2,238 |
286,956 |
Lincoln
National Corp.2 |
7,222 |
281,225 |
Signature
Bank2 |
1,989 |
277,466 |
SVB
Financial Group*,2 |
866 |
200,722 |
Pershing
Square Tontine Holdings, Ltd. — Class
A*,†††,1 |
1,042,740 |
104 |
Sparta
Systems*,††† |
1,922 |
– |
Total
Financial |
|
52,901,720 |
|
Consumer,
Non-cyclical – 2.9% |
|
|
Biogen,
Inc.*,2 |
1,737 |
530,080 |
Gilead
Sciences, Inc.2 |
5,635 |
494,922 |
ABIOMED,
Inc.*,2 |
1,303 |
492,260 |
Universal
Health Services, Inc. — Class B2 |
3,546 |
463,994 |
Merck
& Company, Inc.2 |
4,206 |
463,165 |
Dexcom,
Inc.*,2 |
3,960 |
460,469 |
Moderna,
Inc.*,2 |
2,585 |
454,727 |
Intuitive
Surgical, Inc.*,2 |
1,662 |
449,388 |
Eli
Lilly & Co.2 |
1,158 |
429,711 |
Quest
Diagnostics, Inc.2 |
2,824 |
428,768 |
AmerisourceBergen
Corp. — Class A2 |
2,496 |
426,042 |
Amgen,
Inc.2 |
1,485 |
425,304 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 27
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Consumer,
Non-cyclical – 2.9% (continued) |
|
|
Humana,
Inc.2 |
769 |
$
422,873 |
Cardinal
Health, Inc.2 |
5,264 |
422,015 |
Gartner,
Inc.*,2 |
1,202 |
421,145 |
Bristol-Myers
Squibb Co.2 |
5,220 |
419,061 |
IDEXX
Laboratories, Inc.*,2 |
983 |
418,630 |
AbbVie,
Inc.2 |
2,595 |
418,262 |
United
Rentals, Inc.*,2 |
1,182 |
417,282 |
General
Mills, Inc.2 |
4,846 |
413,364 |
Cigna
Corp.2 |
1,256 |
413,086 |
Rollins,
Inc.2 |
10,185 |
411,881 |
Campbell
Soup Co.2 |
7,669 |
411,595 |
Monster
Beverage Corp.*,2 |
3,980 |
409,383 |
Viatris,
Inc.2 |
36,992 |
408,022 |
Waters
Corp.*,2 |
1,173 |
406,562 |
Conagra
Brands, Inc.2 |
10,704 |
406,538 |
J M
Smucker Co.2 |
2,638 |
406,278 |
Incyte
Corp.*,2 |
5,092 |
405,680 |
Mondelez
International, Inc. — Class A2 |
5,990 |
404,984 |
Hologic,
Inc.*,2 |
5,302 |
403,800 |
HCA
Healthcare, Inc.2 |
1,674 |
402,128 |
Lamb
Weston Holdings, Inc.2 |
4,627 |
402,086 |
Henry
Schein, Inc.*,2 |
4,925 |
398,531 |
Vertex
Pharmaceuticals, Inc.*,2 |
1,259 |
398,348 |
Automatic
Data Processing, Inc.2 |
1,506 |
397,795 |
Elevance
Health, Inc.2 |
745 |
397,025 |
Kraft
Heinz Co.2 |
10,063 |
395,979 |
Corteva,
Inc.2 |
5,884 |
395,169 |
PepsiCo,
Inc.2 |
2,124 |
394,023 |
Johnson
& Johnson2 |
2,213 |
393,914 |
Cintas
Corp.2 |
853 |
393,898 |
Kimberly-Clark
Corp.2 |
2,894 |
392,513 |
Archer-Daniels-Midland
Co.2 |
4,022 |
392,145 |
Procter
& Gamble Co.2 |
2,622 |
391,098 |
McCormick
& Company, Inc.2 |
4,579 |
390,039 |
Molson
Coors Beverage Co. — Class B2 |
7,040 |
387,974 |
Boston
Scientific Corp.*,2 |
8,567 |
387,828 |
Zimmer
Biomet Holdings, Inc.2 |
3,209 |
385,401 |
UnitedHealth
Group, Inc.2 |
702 |
384,528 |
Charles
River Laboratories International, Inc.*,2 |
1,682 |
384,455 |
Pfizer,
Inc.2 |
7,664 |
384,196 |
See notes to financial
statements.
28 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Consumer,
Non-cyclical – 2.9% (continued) |
|
|
Constellation
Brands, Inc. — Class A2 |
1,491 |
$
383,709 |
McKesson
Corp.2 |
1,005 |
383,588 |
Hershey
Co.2 |
1,626 |
382,387 |
Regeneron
Pharmaceuticals, Inc.*,2 |
508 |
381,864 |
Illumina,
Inc.*,2 |
1,745 |
380,549 |
Sysco
Corp.2 |
4,382 |
379,087 |
Philip
Morris International, Inc.2 |
3,776 |
376,354 |
Quanta
Services, Inc.2 |
2,507 |
375,749 |
Coca-Cola
Co.2 |
5,897 |
375,108 |
Altria
Group, Inc.2 |
8,037 |
374,363 |
Stryker
Corp.2 |
1,599 |
373,990 |
Avery
Dennison Corp.2 |
1,926 |
372,354 |
Kellogg
Co.2 |
5,104 |
372,337 |
Laboratory
Corporation of America Holdings2 |
1,544 |
371,641 |
MarketAxess
Holdings, Inc.2 |
1,378 |
369,194 |
Clorox
Co.2 |
2,483 |
369,098 |
Hormel
Foods Corp.2 |
7,843 |
368,621 |
Equifax,
Inc.2 |
1,866 |
368,292 |
Cooper
Companies, Inc.2 |
1,164 |
368,231 |
Church
& Dwight Company, Inc.2 |
4,492 |
367,760 |
CVS
Health Corp.2 |
3,601 |
366,870 |
Moody’s
Corp.2 |
1,228 |
366,276 |
Keurig
Dr Pepper, Inc.2 |
9,468 |
366,128 |
Brown-Forman
Corp. — Class B2 |
5,007 |
365,611 |
Colgate-Palmolive
Co.2 |
4,711 |
365,008 |
Abbott
Laboratories2 |
3,384 |
364,051 |
CoStar
Group, Inc.* |
4,487 |
363,627 |
PerkinElmer,
Inc.2 |
2,592 |
362,180 |
Thermo
Fisher Scientific, Inc.2 |
646 |
361,902 |
Bio-Techne
Corp.2 |
4,240 |
360,358 |
IQVIA
Holdings, Inc.*,2 |
1,648 |
359,297 |
ResMed,
Inc.2 |
1,559 |
358,882 |
Robert
Half International, Inc.2 |
4,551 |
358,528 |
Molina
Healthcare, Inc.*,2 |
1,056 |
355,629 |
Teleflex,
Inc.2 |
1,509 |
353,287 |
Verisk
Analytics, Inc. — Class A2 |
1,916 |
351,988 |
S&P
Global, Inc.2 |
997 |
351,621 |
Becton
Dickinson and Co.2 |
1,399 |
348,827 |
Centene
Corp.*,2 |
3,999 |
348,113 |
Kroger
Co.2 |
7,075 |
348,019 |
Danaher
Corp.2 |
1,267 |
346,411 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 29
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Consumer,
Non-cyclical – 2.9% (continued) |
|
|
Baxter
International, Inc.2 |
6,122 |
$
346,077 |
Zoetis,
Inc.2 |
2,236 |
344,657 |
Estee
Lauder Companies, Inc. — Class A2 |
1,453 |
342,603 |
FleetCor
Technologies, Inc.*,2 |
1,661 |
325,888 |
Dentsply
Sirona, Inc.2 |
10,755 |
325,446 |
STERIS
plc |
1,743 |
323,745 |
Medtronic
plc2 |
4,086 |
322,958 |
Tyson
Foods, Inc. — Class A2 |
4,839 |
320,729 |
Organon
& Co.2 |
12,231 |
318,250 |
PayPal
Holdings, Inc.*,2 |
3,823 |
299,761 |
Bio-Rad
Laboratories, Inc. — Class A*,2 |
721 |
299,006 |
Edwards
Lifesciences Corp.*,2 |
3,783 |
292,237 |
DaVita,
Inc.*,2 |
3,962 |
292,118 |
Global
Payments, Inc.2 |
2,774 |
287,886 |
West
Pharmaceutical Services, Inc.2 |
1,173 |
275,256 |
Align
Technology, Inc.*,2 |
1,394 |
274,144 |
Catalent,
Inc.*,2 |
3,811 |
191,046 |
Cengage
Learning Holdings II, Inc.*,†† |
11,126 |
129,618 |
Save-A-Lot*,†† |
40,316 |
13,425 |
Total
Consumer, Non-cyclical |
|
41,950,083 |
Consumer,
Cyclical – 1.8% |
|
|
ATD
New Holdings, Inc.*,†† |
23,593 |
1,686,900 |
Wynn
Resorts Ltd.*,2 |
5,849 |
489,327 |
Royal
Caribbean Cruises Ltd.*,2 |
7,772 |
465,776 |
Ross
Stores, Inc.2 |
3,934 |
462,914 |
Las
Vegas Sands Corp.*,2 |
9,638 |
451,444 |
TJX
Companies, Inc.2 |
5,522 |
442,036 |
O’Reilly
Automotive, Inc.*,2 |
510 |
440,915 |
PACCAR,
Inc.2 |
4,158 |
440,374 |
DR
Horton, Inc.2 |
5,015 |
431,290 |
AutoZone,
Inc.*,2 |
167 |
430,693 |
Ralph
Lauren Corp. — Class A2 |
3,799 |
429,743 |
Starbucks
Corp.2 |
4,148 |
423,926 |
Cummins,
Inc.2 |
1,684 |
422,953 |
Copart,
Inc.*,2 |
6,336 |
421,724 |
Walgreens
Boots Alliance, Inc.2 |
10,076 |
418,154 |
Norwegian
Cruise Line Holdings Ltd.* |
25,392 |
417,445 |
Genuine
Parts Co.2 |
2,260 |
414,326 |
Tractor
Supply Co.2 |
1,829 |
413,921 |
Darden
Restaurants, Inc.2 |
2,807 |
412,601 |
See notes to financial
statements.
30 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Consumer,
Cyclical – 1.8% (continued) |
|
|
United
Airlines Holdings, Inc.*,2 |
9,337 |
$
412,415 |
Best
Buy Company, Inc.2 |
4,822 |
411,317 |
Walmart,
Inc.2 |
2,688 |
409,705 |
Yum!
Brands, Inc.2 |
3,166 |
407,338 |
BorgWarner,
Inc.2 |
9,534 |
405,291 |
Lennar
Corp. — Class A2 |
4,609 |
404,808 |
Aptiv
plc*,2 |
3,790 |
404,279 |
NVR,
Inc.*,2 |
86 |
398,955 |
Home
Depot, Inc.2 |
1,227 |
397,536 |
Delta
Air Lines, Inc.*,2 |
11,213 |
396,604 |
Bath
& Body Works, Inc.2 |
9,278 |
394,315 |
PulteGroup,
Inc.2 |
8,788 |
393,527 |
Tapestry,
Inc.2 |
10,357 |
391,184 |
Domino’s
Pizza, Inc.2 |
999 |
388,341 |
WW
Grainger, Inc.2 |
642 |
387,165 |
MGM
Resorts International2 |
10,493 |
386,772 |
McDonald’s
Corp.2 |
1,417 |
386,543 |
Ulta
Beauty, Inc.*,2 |
831 |
386,282 |
Caesars
Entertainment, Inc.*,2 |
7,602 |
386,258 |
Hilton
Worldwide Holdings, Inc.2 |
2,707 |
386,072 |
Southwest
Airlines Co.*,2 |
9,555 |
381,340 |
Dollar
Tree, Inc.*,2 |
2,535 |
380,985 |
Dollar
General Corp.2 |
1,488 |
380,452 |
Lowe’s
Companies, Inc.2 |
1,789 |
380,252 |
Alaska
Air Group, Inc.*,2 |
7,901 |
374,823 |
Marriott
International, Inc. — Class A2 |
2,264 |
374,353 |
American
Airlines Group, Inc.*,2 |
25,846 |
372,958 |
LKQ
Corp.2 |
6,857 |
372,541 |
Costco
Wholesale Corp.2 |
686 |
369,925 |
Fastenal
Co.2 |
7,169 |
369,275 |
NIKE,
Inc. — Class B2 |
3,305 |
362,525 |
General
Motors Co.2 |
8,910 |
361,390 |
Target
Corp.2 |
2,118 |
353,854 |
Carnival
Corp.*,2 |
35,166 |
349,198 |
Chipotle
Mexican Grill, Inc. — Class A*,2 |
213 |
346,542 |
Exide
Technologies*,††† |
342 |
341,710 |
Pool
Corp.2 |
1,028 |
338,633 |
Whirlpool
Corp.2 |
2,289 |
335,407 |
Ford
Motor Co.2 |
23,858 |
331,626 |
Advance
Auto Parts, Inc.2 |
2,032 |
306,812 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 31
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Consumer,
Cyclical – 1.8% (continued) |
|
|
Live
Nation Entertainment, Inc.*,2 |
3,944 |
$
286,965 |
Hasbro,
Inc.2 |
4,502 |
282,816 |
CarMax,
Inc.*,2 |
4,028 |
279,382 |
VF
Corp.2 |
8,438 |
276,935 |
Newell
Brands, Inc.2 |
20,174 |
261,657 |
Tesla,
Inc.*,2 |
1,227 |
238,897 |
Total
Consumer, Cyclical |
|
26,262,422 |
Industrial
– 1.8% |
|
|
Caterpillar,
Inc.2 |
1,928 |
455,798 |
Deere
& Co.2 |
988 |
435,708 |
Xylem,
Inc.2 |
3,798 |
426,705 |
General
Electric Co.2 |
4,963 |
426,669 |
Lockheed
Martin Corp.2 |
871 |
422,600 |
Honeywell
International, Inc.2 |
1,918 |
421,097 |
Johnson
Controls International plc2 |
6,326 |
420,299 |
Boeing
Co.*,2 |
2,335 |
417,685 |
Allegion
plc2 |
3,675 |
417,664 |
AMETEK,
Inc.2 |
2,925 |
416,579 |
Mettler-Toledo
International, Inc.*,2 |
283 |
415,885 |
IDEX
Corp.2 |
1,751 |
415,845 |
Emerson
Electric Co.2 |
4,331 |
414,780 |
Old
Dominion Freight Line, Inc.2 |
1,369 |
414,273 |
Agilent
Technologies, Inc.2 |
2,673 |
414,261 |
Eaton
Corporation plc2 |
2,525 |
412,711 |
Expeditors
International of Washington, Inc.2 |
3,556 |
412,709 |
Raytheon
Technologies Corp.2 |
4,158 |
410,478 |
Westinghouse
Air Brake Technologies Corp.2 |
4,027 |
407,090 |
Illinois
Tool Works, Inc.2 |
1,781 |
405,124 |
Dover
Corp.2 |
2,836 |
402,570 |
General
Dynamics Corp.2 |
1,588 |
400,795 |
Trane
Technologies plc2 |
2,245 |
400,553 |
Northrop
Grumman Corp.2 |
748 |
398,901 |
Textron,
Inc.2 |
5,583 |
398,514 |
Teledyne
Technologies, Inc.*,2 |
948 |
398,255 |
Snap-on,
Inc.2 |
1,646 |
396,028 |
A O
Smith Corp.2 |
6,513 |
395,600 |
Ingersoll
Rand, Inc.2 |
7,324 |
395,276 |
Parker-Hannifin
Corp.2 |
1,319 |
394,302 |
Vulcan
Materials Co.2 |
2,141 |
392,510 |
Otis
Worldwide Corp.2 |
5,004 |
390,763 |
See notes to financial
statements.
32 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Industrial
– 1.8% (continued) |
|
|
Amphenol
Corp. — Class A2 |
4,847 |
$
389,844 |
J.B.
Hunt Transport Services, Inc.2 |
2,114 |
388,744 |
Carrier
Global Corp.2 |
8,724 |
386,648 |
Keysight
Technologies, Inc.*,2 |
2,134 |
386,019 |
Howmet
Aerospace, Inc.2 |
10,104 |
380,618 |
Rockwell
Automation, Inc.2 |
1,440 |
380,477 |
Martin
Marietta Materials, Inc.2 |
1,032 |
378,207 |
Norfolk
Southern Corp.2 |
1,472 |
377,568 |
Fortive
Corp.2 |
5,572 |
376,389 |
Garmin
Ltd.2 |
4,027 |
374,471 |
3M
Co.2 |
2,970 |
374,131 |
TransDigm
Group, Inc.2 |
593 |
372,701 |
Nordson
Corp.2 |
1,570 |
371,289 |
Jacobs
Solutions, Inc.2 |
2,933 |
371,142 |
Fortune
Brands Home & Security, Inc.2 |
5,670 |
370,478 |
CSX
Corp.2 |
11,274 |
368,547 |
Amcor
plc |
29,840 |
368,524 |
Huntington
Ingalls Industries, Inc.2 |
1,563 |
362,553 |
TE
Connectivity Ltd.2 |
2,851 |
359,568 |
Packaging
Corporation of America2 |
2,623 |
356,440 |
Pentair
plc2 |
7,786 |
356,365 |
Masco
Corp.2 |
7,013 |
356,120 |
Waste
Management, Inc.2 |
2,122 |
355,902 |
L3Harris
Technologies, Inc.2 |
1,554 |
352,882 |
Sealed
Air Corp.2 |
6,618 |
352,276 |
United
Parcel Service, Inc. — Class B2 |
1,851 |
351,190 |
Trimble,
Inc.*,2 |
5,825 |
348,044 |
Republic
Services, Inc. — Class A2 |
2,491 |
346,971 |
Union
Pacific Corp.2 |
1,587 |
345,061 |
Ball
Corp.2 |
6,151 |
344,948 |
Westrock
Co.2 |
8,963 |
339,877 |
Stanley
Black & Decker, Inc.2 |
4,067 |
332,355 |
Mohawk
Industries, Inc.*,2 |
3,212 |
325,472 |
CH
Robinson Worldwide, Inc.2 |
3,219 |
322,608 |
FedEx
Corp.2 |
1,758 |
320,343 |
Generac
Holdings, Inc.*,2 |
1,537 |
162,184 |
BP
Holdco LLC*,†††,3 |
121,041 |
73,398 |
Vector
Phoenix Holdings, LP*,††† |
121,040 |
28,923 |
Total
Industrial |
|
26,057,304 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 33
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Technology
– 1.4% |
|
|
Hewlett
Packard Enterprise Co.2 |
27,270 |
$
457,591 |
Microchip
Technology, Inc.2 |
5,494 |
435,070 |
NVIDIA
Corp.2 |
2,534 |
428,829 |
International
Business Machines Corp.2 |
2,837 |
422,429 |
Leidos
Holdings, Inc.2 |
3,830 |
418,734 |
Applied
Materials, Inc.2 |
3,795 |
415,932 |
Analog
Devices, Inc.2 |
2,380 |
409,146 |
DXC
Technology Co.*,2 |
13,621 |
404,135 |
KLA
Corp.2 |
1,026 |
403,372 |
Oracle
Corp.2 |
4,846 |
402,363 |
Ceridian
HCM Holding, Inc.*,2 |
5,787 |
396,062 |
Roper
Technologies, Inc.2 |
897 |
393,684 |
PTC,
Inc.*,2 |
3,066 |
390,026 |
Texas
Instruments, Inc.2 |
2,155 |
388,891 |
Qorvo,
Inc.*,2 |
3,911 |
388,167 |
HP,
Inc.2 |
12,889 |
387,186 |
Broadcom,
Inc.2 |
702 |
386,823 |
ON
Semiconductor Corp.*,2 |
5,130 |
385,776 |
Teradyne,
Inc.2 |
4,119 |
384,920 |
Lam
Research Corp.2 |
813 |
384,045 |
NXP
Semiconductor N.V.2 |
2,179 |
383,155 |
Accenture
plc — Class A2 |
1,265 |
380,676 |
MSCI,
Inc. — Class A2 |
749 |
380,365 |
Akamai
Technologies, Inc.*,2 |
3,994 |
378,871 |
Electronic
Arts, Inc.2 |
2,844 |
371,938 |
Micron
Technology, Inc.2 |
6,369 |
367,173 |
Synopsys,
Inc.*,2 |
1,081 |
367,043 |
Fortinet,
Inc.*,2 |
6,834 |
363,295 |
Cadence
Design Systems, Inc.*,2 |
2,106 |
362,316 |
ANSYS,
Inc.*,2 |
1,421 |
361,360 |
Fiserv,
Inc.*,2 |
3,456 |
360,668 |
Salesforce,
Inc.*,2 |
2,249 |
360,402 |
Paychex,
Inc.2 |
2,901 |
359,811 |
Microsoft
Corp.2 |
1,391 |
354,900 |
QUALCOMM,
Inc.2 |
2,779 |
351,516 |
Autodesk,
Inc.*,2 |
1,738 |
350,989 |
Intel
Corp.2 |
11,573 |
348,000 |
Jack
Henry & Associates, Inc.2 |
1,837 |
347,836 |
Cognizant
Technology Solutions Corp. — Class A2 |
5,587 |
347,567 |
Activision
Blizzard, Inc.2 |
4,684 |
346,382 |
See notes to financial
statements.
34 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Technology
– 1.4% (continued) |
|
|
Apple,
Inc.2 |
2,338 |
$
346,094 |
NetApp,
Inc.2 |
5,078 |
343,324 |
Skyworks
Solutions, Inc.2 |
3,578 |
342,128 |
Paycom
Software, Inc.*,2 |
994 |
337,066 |
Intuit,
Inc.2 |
817 |
333,001 |
Advanced
Micro Devices, Inc.*,2 |
4,279 |
332,179 |
Tyler
Technologies, Inc.*,2 |
955 |
327,317 |
ServiceNow,
Inc.*,2 |
781 |
325,130 |
Zebra
Technologies Corp. — Class A*,2 |
1,192 |
322,174 |
Adobe,
Inc.*,2 |
931 |
321,130 |
Broadridge
Financial Solutions, Inc.2 |
2,134 |
318,201 |
Monolithic
Power Systems, Inc.2 |
823 |
314,353 |
EPAM
Systems, Inc.*,2 |
851 |
313,662 |
Western
Digital Corp.*,2 |
8,319 |
305,723 |
Take-Two
Interactive Software, Inc.*,2 |
2,872 |
303,542 |
Fidelity
National Information Services, Inc.2 |
4,004 |
290,610 |
Seagate
Technology Holdings plc2 |
5,303 |
280,900 |
Qlik
Technologies, Inc. – Class A*,††† |
112 |
168,441 |
Qlik
Technologies, Inc. – Class B*,††† |
27,624 |
3 |
Total
Technology |
|
20,952,422 |
Communications
– 0.9% |
|
|
Netflix,
Inc.*,2 |
1,575 |
481,210 |
Interpublic
Group of Companies, Inc.2 |
12,852 |
441,594 |
Etsy,
Inc.*,2 |
3,332 |
440,124 |
Juniper
Networks, Inc.2 |
12,645 |
420,320 |
Omnicom
Group, Inc.2 |
5,222 |
416,507 |
AT&T,
Inc.2 |
21,407 |
412,727 |
Arista
Networks, Inc.*,2 |
2,957 |
411,910 |
Motorola
Solutions, Inc.2 |
1,470 |
400,134 |
Cisco
Systems, Inc.2 |
8,034 |
399,450 |
CDW
Corp.2 |
2,095 |
395,201 |
VeriSign,
Inc.*,2 |
1,930 |
385,633 |
Booking
Holdings, Inc.*,2 |
185 |
384,698 |
T-Mobile
US, Inc.*,2 |
2,525 |
382,437 |
Comcast
Corp. — Class A2 |
10,300 |
377,392 |
FactSet
Research Systems, Inc.2 |
811 |
374,106 |
Corning,
Inc.2 |
10,921 |
372,734 |
Gen
Digital, Inc.2 |
16,140 |
370,574 |
eBay,
Inc.2 |
8,147 |
370,200 |
Expedia
Group, Inc.*,2 |
3,351 |
358,021 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 35
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Communications
– 0.9% (continued) |
|
|
F5,
Inc.*,2 |
2,292 |
$
354,366 |
Charter
Communications, Inc. — Class A*,2 |
899 |
351,770 |
Verizon
Communications, Inc.2 |
8,633 |
336,514 |
Warner
Bros Discovery, Inc.*,2 |
27,993 |
319,120 |
Walt
Disney Co.*,2 |
3,194 |
312,597 |
Paramount
Global — Class B2 |
15,414 |
309,513 |
Vacasa,
Inc. — Class A* |
196,839 |
309,037 |
News
Corp. — Class A2 |
16,017 |
306,725 |
DISH
Network Corp. — Class A*,2 |
18,940 |
303,987 |
Match
Group, Inc.*,2 |
5,851 |
295,827 |
Amazon.com,
Inc.*,2 |
2,760 |
266,450 |
Meta
Platforms, Inc. — Class A*,2 |
2,168 |
256,041 |
Fox
Corp. — Class A2 |
7,477 |
242,629 |
Lumen
Technologies, Inc.2 |
36,662 |
200,541 |
Alphabet,
Inc. — Class A*,2 |
1,742 |
175,925 |
Alphabet,
Inc. — Class C*,2 |
1,559 |
158,161 |
Fox
Corp. — Class B2 |
3,433 |
104,775 |
News
Corp. — Class B2 |
4,962 |
96,511 |
Figs,
Inc. — Class A* |
10,450 |
81,823 |
Total
Communications |
|
12,377,284 |
Utilities
– 0.8% |
|
|
TexGen
Power LLC*,†† |
68,676 |
1,785,576 |
PG&E
Corp.* |
29,788 |
467,672 |
Constellation
Energy Corp.2 |
4,204 |
404,088 |
AES
Corp.2 |
13,412 |
387,875 |
Atmos
Energy Corp.2 |
3,115 |
374,423 |
Pinnacle
West Capital Corp.2 |
4,775 |
373,978 |
FirstEnergy
Corp.2 |
8,855 |
365,180 |
PPL
Corp.2 |
12,324 |
363,804 |
American
Water Works Company, Inc.2 |
2,375 |
360,430 |
NRG
Energy, Inc.2 |
8,478 |
359,891 |
Consolidated
Edison, Inc.2 |
3,648 |
357,650 |
Entergy
Corp.2 |
3,066 |
356,484 |
Edison
International2 |
5,322 |
354,765 |
Sempra
Energy2 |
2,117 |
351,824 |
CenterPoint
Energy, Inc.2 |
11,199 |
348,401 |
NextEra
Energy, Inc.2 |
4,092 |
346,592 |
Ameren
Corp.2 |
3,848 |
343,703 |
WEC
Energy Group, Inc.2 |
3,456 |
342,628 |
American
Electric Power Company, Inc.2 |
3,513 |
340,058 |
See notes to financial
statements.
36 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
Utilities
– 0.8% (continued) |
|
|
NiSource,
Inc.2 |
12,064 |
$
337,068 |
Xcel
Energy, Inc.2 |
4,779 |
335,581 |
Duke
Energy Corp.2 |
3,345 |
334,266 |
Eversource
Energy2 |
4,015 |
332,683 |
Exelon
Corp.2 |
8,011 |
331,415 |
Alliant
Energy Corp.2 |
5,833 |
328,398 |
Public
Service Enterprise Group, Inc.2 |
5,410 |
327,576 |
CMS
Energy Corp.2 |
5,265 |
321,534 |
DTE
Energy Co.2 |
2,715 |
314,967 |
Southern
Co.2 |
4,626 |
312,903 |
Evergy,
Inc.2 |
5,244 |
310,497 |
Dominion
Energy, Inc.2 |
4,424 |
270,351 |
Total
Utilities |
|
12,242,261 |
Energy
– 0.7% |
|
|
Schlumberger
Ltd.2 |
9,201 |
474,312 |
Halliburton
Co.2 |
12,244 |
463,925 |
Phillips
662 |
4,142 |
449,158 |
APA
Corp.2 |
9,554 |
447,605 |
Marathon
Petroleum Corp.2 |
3,660 |
445,825 |
Targa
Resources Corp. |
5,794 |
431,016 |
Hess
Corp.2 |
2,994 |
430,866 |
Valero
Energy Corp.2 |
3,215 |
429,588 |
Marathon
Oil Corp.2 |
13,863 |
424,624 |
Exxon
Mobil Corp.2 |
3,800 |
423,092 |
EOG
Resources, Inc.2 |
2,959 |
419,971 |
Chevron
Corp.2 |
2,288 |
419,413 |
Baker
Hughes Co.2 |
14,373 |
417,104 |
ConocoPhillips2 |
3,274 |
404,372 |
Diamondback
Energy, Inc.2 |
2,706 |
400,542 |
ONEOK,
Inc.2 |
5,869 |
392,754 |
Occidental
Petroleum Corp.2 |
5,604 |
389,422 |
Williams
Companies, Inc.2 |
11,179 |
387,911 |
Enphase
Energy, Inc.*,2 |
1,203 |
385,670 |
Kinder
Morgan, Inc.2 |
20,028 |
382,935 |
Devon
Energy Corp.2 |
5,344 |
366,171 |
Pioneer
Natural Resources Co.2 |
1,525 |
359,885 |
SolarEdge
Technologies, Inc.*,2 |
1,175 |
351,160 |
Coterra
Energy, Inc. — Class A2 |
12,269 |
342,428 |
Equities
Corp. |
7,293 |
309,296 |
Permian
Production Partners LLC*,††† |
184,043 |
150,916 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 37
|
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
|
November
30, 2022 |
|
|
|
|
|
Shares |
Value |
COMMON
STOCKS† – 14.5% (continued) |
|
|
|
Energy
– 0.7% (continued) |
|
|
|
Legacy
Reserves, Inc.*,††† |
|
2,359 |
$
20,641 |
Bruin
E&P Partnership Units*,††† |
|
40,617 |
910 |
Total
Energy |
|
|
10,321,512 |
Basic
Materials – 0.5% |
|
|
|
Freeport-McMoRan,
Inc.2 |
|
11,317 |
450,417 |
Air
Products and Chemicals, Inc.2 |
|
1,432 |
444,149 |
DuPont
de Nemours, Inc.2 |
|
6,266 |
441,816 |
Linde
plc |
|
1,276 |
429,348 |
FMC
Corp.2 |
|
3,258 |
425,625 |
Newmont
Corp.2 |
|
8,379 |
397,751 |
PPG
Industries, Inc.2 |
|
2,872 |
388,352 |
Nucor
Corp.2 |
|
2,563 |
384,322 |
CF
Industries Holdings, Inc.2 |
|
3,548 |
383,858 |
Sherwin-Williams
Co.2 |
|
1,527 |
380,498 |
LyondellBasell
Industries N.V. — Class A2 |
|
4,333 |
368,348 |
Dow,
Inc.2 |
|
7,215 |
367,749 |
Albemarle
Corp.2 |
|
1,225 |
340,538 |
Celanese
Corp. — Class A2 |
|
3,158 |
338,853 |
Eastman
Chemical Co.2 |
|
3,908 |
338,511 |
International
Flavors & Fragrances, Inc.2 |
|
3,197 |
338,307 |
Mosaic
Co.2 |
|
6,541 |
335,553 |
International
Paper Co.2 |
|
8,777 |
325,802 |
Ecolab,
Inc.2 |
|
2,131 |
319,288 |
Schur
Flexibles GmbH |
EUR
660 |
— |
Total
Basic Materials |
|
|
7,199,085 |
Industrials
– 0.0% |
|
|
|
Targus
Inc*,††† |
|
45,049 |
17,102 |
Targus
Inc*,††† |
|
45,049 |
1,328 |
Targus
Inc*,††† |
|
45,049 |
1,328 |
Targus
Inc*,††† |
|
45,049 |
436 |
Targus
Inc*,††† |
|
45,049 |
5 |
Targus
Inc*,††† |
|
45,049 |
5 |
Total
Industrials |
|
|
20,204 |
Total
Common Stocks |
|
|
|
(Cost
$171,564,920) |
|
|
210,284,297 |
See notes to financial
statements.
38 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
|
Shares |
Value |
PREFERRED
STOCKS†† – 6.8% |
|
|
Financial
– 6.5% |
|
|
Bank
of America Corp. |
|
|
4.38% |
2,925,000 |
$
7,358,750 |
6.50%2 |
2,000,000 |
1,972,858 |
6.30% |
1,000,000 |
991,000 |
4.13% |
26,000 |
459,940 |
Wells
Fargo & Co. |
|
|
4.75% |
183,750 |
3,452,662 |
3.90% |
3,300,000 |
2,875,125 |
4.70% |
148,000 |
2,754,280 |
4.38% |
50,000 |
880,000 |
First
Republic Bank |
|
|
4.50% |
200,000 |
3,720,000 |
4.25% |
158,000 |
2,823,460 |
4.13% |
84,800 |
1,472,976 |
Reinsurance
Group of America, Inc. |
|
|
7.13%
due 10/15/52 |
294,000 |
7,708,680 |
Lincoln
National Corp. |
|
|
9.25% |
7,200,000 |
7,560,000 |
9.00%* |
1,350 |
35,734 |
Citigroup,
Inc. |
|
|
3.88%2 |
4,000,000 |
3,337,500 |
4.15% |
2,000,000 |
1,615,000 |
4.00%2 |
1,750,000 |
1,516,299 |
Kuvare
US Holdings, Inc. |
|
|
7.00%
due 02/17/515 |
6,400,000 |
6,432,000 |
Charles
Schwab Corp. |
|
|
5.38%2 |
3,000,000 |
2,948,700 |
4.00%*,2 |
3,150,000 |
2,464,875 |
Equitable
Holdings, Inc. |
|
|
4.95%2 |
3,650,000 |
3,448,885 |
4.30% |
82,000 |
1,491,580 |
Markel
Corp. |
|
|
6.00% |
4,770,000 |
4,625,258 |
Public
Storage |
|
|
4.63% |
144,400 |
2,911,104 |
4.13% |
16,400 |
291,428 |
W R
Berkley Corp. |
|
|
4.13%
due 03/30/61 |
126,000 |
2,438,100 |
4.25%
due 09/30/60 |
36,800 |
733,056 |
PartnerRe
Ltd. |
|
|
4.88% |
128,000 |
2,571,520 |
JPMorgan
Chase & Co. |
|
|
4.55% |
49,000 |
955,500 |
4.20% |
40,000 |
732,000 |
4.63% |
24,000 |
476,160 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 39
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
PREFERRED
STOCKS†† – 6.8% (continued) |
|
|
Financial
– 6.5% (continued) |
|
|
Prudential
Financial, Inc. |
|
|
4.13%
due 09/01/60 |
103,875 |
$
2,041,144 |
American
Financial Group, Inc. |
|
|
4.50%
due 09/15/60 |
100,000 |
1,919,000 |
MetLife,
Inc. |
|
|
3.85%2 |
1,820,000 |
1,652,797 |
CNO
Financial Group, Inc. |
|
|
5.13%
due 11/25/60 |
80,000 |
1,448,800 |
Assurant,
Inc. |
|
|
5.25%
due 01/15/61 |
58,000 |
1,244,100 |
American
Equity Investment Life Holding Co. |
|
|
5.95% |
46,000 |
999,120 |
Arch
Capital Group Ltd. |
|
|
4.55% |
38,000 |
731,120 |
Selective
Insurance Group, Inc. |
|
|
4.60% |
36,000 |
619,560 |
RenaissanceRe
Holdings Ltd. |
|
|
4.20% |
13,000 |
228,150 |
Globe
Life, Inc. |
|
|
4.25%
due 06/15/61 |
11,000 |
203,170 |
B
Riley Financial, Inc. |
|
|
6.75%
due 05/31/24 |
1,415 |
35,205 |
Total
Financial |
|
94,176,596 |
Government
– 0.2% |
|
|
Farmer
Mac |
|
|
5.75% |
112,000 |
2,455,040 |
AgriBank
FCB |
|
|
6.88% |
4,000 |
397,000 |
Total
Government |
|
2,852,040 |
Consumer,
Cyclical – 0.1% |
|
|
Exide
Technologies*,††† |
761 |
888,847 |
Total
Preferred Stocks |
|
|
(Cost
$114,166,523) |
|
97,917,483 |
WARRANTS†
– 0.0% |
|
|
KKR
Acquisition Holdings I Corp. – Class A |
|
|
Expiring
12/31/271 |
195,882 |
12,928 |
Aequi
Acquisition Corp. |
|
|
Expiring
11/30/271 |
246,299 |
12,315 |
Conyers
Park III Acquisition Corp. – Class A |
|
|
Expiring
08/12/28 |
33,200 |
8,396 |
See notes to financial
statements.
40 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
WARRANTS†
– 0.0% (continued) |
|
|
Ginkgo
Bioworks Holdings, Inc. |
|
|
Expiring
08/01/26 |
26,852 |
$
8,056 |
Acropolis
Infrastructure Acquisition Corp. – Class A |
|
|
Expiring
03/31/261 |
32,766 |
4,446 |
AfterNext
HealthTech Acquisition Corp. – Class A |
|
|
Expiring
07/09/231 |
35,766 |
4,292 |
Blue
Whale Acquisition Corp. – Class A |
|
|
Expiring
07/09/231 |
14,324 |
2,435 |
Waverley
Capital Acquisition Corp. – Class A |
|
|
Expiring
04/30/271 |
31,300 |
2,191 |
MSD
Acquisition Corp. – Class A |
|
|
Expiring
05/13/231 |
23,373 |
1,402 |
RXR
Acquisition Corp. – Class A |
|
|
Expiring
03/08/261 |
32,105 |
161 |
Colicity,
Inc. – Class A |
|
|
Expiring
12/31/271 |
24,102 |
24 |
Pershing
Square Tontine Holdings, Ltd. – Class A |
|
|
Expiring
07/24/25†††,1 |
115,860 |
12 |
Total
Warrants |
|
|
(Cost
$1,643,400) |
|
56,658 |
EXCHANGE-TRADED
FUNDS† – 6.0% |
|
|
SPDR
S&P 500 ETF Trust2 |
72,996 |
29,759,009 |
Invesco
QQQ Trust Series2 |
98,441 |
28,878,652 |
iShares
Russell 2000 Index ETF2 |
153,098 |
28,685,972 |
Total
Exchange-Traded Funds |
|
|
(Cost
$63,758,700) |
|
87,323,633 |
CLOSED-END
FUNDS† – 2.4% |
|
|
BlackRock
Taxable Municipal Bond Trust2 |
292,122 |
5,480,209 |
Nuveen
Taxable Municipal Income Fund |
289,790 |
4,694,598 |
Nuveen
AMT-Free Municipal Credit Income Fund |
292,391 |
3,707,518 |
Invesco
Municipal Opportunity Trust |
229,099 |
2,258,916 |
Invesco
Trust for Investment Grade Municipals |
212,335 |
2,176,434 |
BlackRock
Corporate High Yield Fund, Inc.2 |
237,682 |
2,162,906 |
Blackstone
Strategic Credit Fund2 |
186,741 |
2,057,886 |
BlackRock
Credit Allocation Income Trust2 |
184,289 |
1,968,206 |
Invesco
Municipal Trust |
188,704 |
1,870,057 |
Eaton
Vance Limited Duration Income Fund |
141,764 |
1,474,346 |
Invesco
Advantage Municipal Income Trust II |
163,240 |
1,457,733 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 41
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Shares |
Value |
CLOSED-END
FUNDS† – 2.4% (continued) |
|
|
Guggenheim
Active Allocation Fund3 |
90,002 |
$
1,255,177 |
BlackRock
Municipal Income Trust |
108,502 |
1,130,591 |
Ares
Dynamic Credit Allocation Fund, Inc. |
68,740 |
843,440 |
BlackRock
Debt Strategies Fund, Inc.2 |
83,425 |
815,062 |
Western
Asset High Income Opportunity Fund, Inc.2 |
160,170 |
650,290 |
Nuveen
AMT-Free Quality Municipal Income Fund |
32,289 |
375,198 |
Nuveen
Quality Municipal Income Fund |
26,690 |
316,543 |
BlackRock
MuniVest Fund, Inc. |
24,898 |
174,784 |
Total
Closed-End Funds |
|
|
(Cost
$42,159,755) |
|
34,869,894 |
MONEY
MARKET FUNDS† – 0.8% |
|
|
Dreyfus
Treasury Securities Cash Management Fund — |
|
|
Institutional
Shares, 3.62%6 |
8,895,905 |
8,895,905 |
Dreyfus
Treasury Obligations Cash Management Fund — |
|
|
Institutional
Shares, 3.69%6 |
2,804,515 |
2,804,515 |
Total
Money Market Funds |
|
|
(Cost
$11,700,420) |
|
11,700,420 |
|
Face |
|
|
Amount~ |
|
CORPORATE
BONDS†† – 47.3% |
|
|
Financial
– 12.8% |
|
|
Morgan
Stanley Finance LLC |
|
|
1.50%
due 10/23/297 |
13,500,000 |
9,895,500 |
NFP
Corp. |
|
|
6.88%
due 08/15/285 |
6,925,000 |
5,857,373 |
7.50%
due 10/01/302,5 |
3,700,000 |
3,551,522 |
Dyal
Capital Partners III |
|
|
4.40%
due 06/15/40††† |
10,000,000 |
8,097,900 |
Accident
Fund Insurance Company of America |
|
|
8.50%
due 08/01/325 |
7,000,000 |
7,046,486 |
Wilton
RE Ltd. |
|
|
6.00%
†††,4,5,8 |
7,800,000 |
6,708,234 |
United
Wholesale Mortgage LLC |
|
|
5.50%
due 11/15/252,5 |
4,060,000 |
3,762,158 |
5.50%
due 04/15/292,5 |
1,925,000 |
1,592,937 |
5.75%
due 06/15/275 |
1,250,000 |
1,106,250 |
Jefferies
Finance LLC / JFIN Company-Issuer Corp. |
|
|
5.00%
due 08/15/282,5 |
7,500,000 |
6,237,825 |
Hunt
Companies, Inc. |
|
|
5.25%
due 04/15/292,5 |
7,325,000 |
6,075,130 |
Iron
Mountain, Inc. |
|
|
5.63%
due 07/15/322,5 |
6,500,000 |
5,742,021 |
See notes to financial
statements.
42 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Financial
– 12.8% (continued) |
|
|
Maple
Grove Funding Trust I |
|
|
4.16%
due 08/15/512,5 |
8,000,000 |
$
5,546,610 |
OneMain
Finance Corp. |
|
|
4.00%
due 09/15/302 |
2,200,000 |
1,652,185 |
6.13%
due 03/15/24 |
1,500,000 |
1,462,950 |
7.13%
due 03/15/26 |
1,100,000 |
1,065,674 |
3.88%
due 09/15/28 |
800,000 |
634,720 |
6.63%
due 01/15/28 |
450,000 |
413,775 |
Cushman
& Wakefield US Borrower LLC |
|
|
6.75%
due 05/15/282,5 |
4,800,000 |
4,584,435 |
National
Life Insurance Co. |
|
|
10.50%
due 09/15/395 |
3,400,000 |
4,525,551 |
Kennedy-Wilson,
Inc. |
|
|
5.00%
due 03/01/312 |
3,750,000 |
2,957,305 |
4.75%
due 02/01/302 |
1,450,000 |
1,149,125 |
4.75%
due 03/01/292 |
425,000 |
344,994 |
Liberty
Mutual Group, Inc. |
|
|
4.30%
due 02/01/615 |
7,300,000 |
4,277,508 |
LPL
Holdings, Inc. |
|
|
4.00%
due 03/15/292,5 |
4,172,000 |
3,639,382 |
4.38%
due 05/15/315 |
550,000 |
472,843 |
RXR
Realty LLC |
|
|
5.25%
due 07/17/25††† |
4,200,000 |
4,038,048 |
Hampton
Roads PPV LLC |
|
|
6.62%
due 06/15/53†††,5 |
4,680,000 |
3,988,310 |
QBE
Insurance Group Ltd. |
|
|
7.50%
due 11/24/434,5 |
3,000,000 |
2,988,750 |
5.88%
4,5,8 |
950,000 |
871,569 |
Ceamer
Finance LLC |
|
|
6.92%
due 05/15/38††† |
4,000,000 |
3,807,760 |
NatWest
Group plc |
|
|
7.47%
due 11/10/264 |
3,500,000 |
3,647,013 |
Rocket
Mortgage LLC / Rocket Mortgage Company-Issuer, Inc. |
|
|
4.00%
due 10/15/332,5 |
4,031,000 |
2,962,785 |
3.88%
due 03/01/315 |
825,000 |
638,175 |
GLP
Capital Limited Partnership / GLP Financing II, Inc. |
|
|
3.25%
due 01/15/32 |
3,250,000 |
2,566,341 |
5.30%
due 01/15/29 |
1,050,000 |
987,157 |
Global
Atlantic Finance Co. |
|
|
4.70%
due 10/15/514,5 |
2,700,000 |
1,995,202 |
3.13%
due 06/15/315 |
1,750,000 |
1,288,917 |
Standard
Chartered plc |
|
|
7.78%
due 11/16/252,4,5 |
3,100,000 |
3,197,576 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 43
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Financial
– 12.8% (continued) |
|
|
Jane
Street Group / JSG Finance, Inc. |
|
|
4.50%
due 11/15/292,5 |
3,500,000 |
$
3,072,755 |
Host
Hotels & Resorts, LP |
|
|
3.50%
due 09/15/302 |
3,610,000 |
3,013,185 |
Toronto-Dominion
Bank |
|
|
8.13%
due 10/31/824 |
2,850,000 |
2,921,250 |
Barclays
plc |
|
|
7.75%
2,4,8 |
3,000,000 |
2,880,000 |
HUB
International Ltd. |
|
|
5.63%
due 12/01/292,5 |
2,500,000 |
2,189,074 |
7.00%
due 05/01/265 |
550,000 |
544,533 |
Americo
Life, Inc. |
|
|
3.45%
due 04/15/312,5 |
3,511,000 |
2,704,187 |
Sherwood
Financing plc |
|
|
6.00%
due 11/15/265 |
GBP
2,000,000 |
1,819,273 |
4.50%
due 11/15/265 |
EUR
1,000,000 |
815,754 |
BBC
Military Housing-Navy Northeast LLC |
|
|
6.30%
due 10/15/49††† |
2,800,000 |
2,630,057 |
Home
Point Capital, Inc. |
|
|
5.00%
due 02/01/262,5 |
4,214,000 |
2,539,483 |
Ares
Finance Company IV LLC |
|
|
3.65%
due 02/01/522,5 |
4,100,000 |
2,539,466 |
Bank
of Nova Scotia |
|
|
8.63%
due 10/27/824 |
2,150,000 |
2,211,528 |
Corebridge
Financial, Inc. |
|
|
6.88%
due 12/15/524,5 |
2,400,000 |
2,202,857 |
Lincoln
National Corp. |
|
|
4.38%
due 06/15/502 |
2,560,000 |
1,915,823 |
Fort
Knox Military Housing Privatization Project |
|
|
5.82%
due 02/15/525 |
1,853,646 |
1,794,199 |
Kane
Bidco Ltd. |
|
|
5.00%
due 02/15/27 |
EUR
2,050,000 |
1,726,429 |
AmWINS
Group, Inc. |
|
|
4.88%
due 06/30/295 |
1,725,000 |
1,490,627 |
First
American Financial Corp. |
|
|
4.00%
due 05/15/302 |
1,740,000 |
1,469,005 |
Newmark
Group, Inc. |
|
|
6.13%
due 11/15/23 |
1,450,000 |
1,446,331 |
PHM
Group Holding Oy |
|
|
4.75%
due 06/18/265 |
EUR
1,400,000 |
1,232,394 |
OneAmerica
Financial Partners, Inc. |
|
|
4.25%
due 10/15/505 |
1,730,000 |
1,225,547 |
Allianz
SE |
|
|
3.50%
2,4,5,8 |
1,400,000 |
1,188,250 |
See notes to financial
statements.
44 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Financial
– 12.8% (continued) |
|
|
Weyerhaeuser
Co. |
|
|
6.88%
due 12/15/332 |
1,100,000 |
$
1,187,918 |
Ryan
Specialty Group LLC |
|
|
4.38%
due 02/01/305 |
1,100,000 |
940,500 |
Reinsurance
Group of America, Inc. |
|
|
3.15%
due 06/15/302 |
1,000,000 |
856,198 |
Pershing
Square Holdings Ltd. |
|
|
3.25%
due 10/01/31 |
1,100,000 |
823,933 |
PartnerRe
Finance B LLC |
|
|
4.50%
due 10/01/504 |
950,000 |
788,500 |
Alliant
Holdings Intermediate LLC / Alliant Holdings
Company-Issuer |
|
|
4.25%
due 10/15/272,5 |
725,000 |
652,500 |
Fort
Benning Family Communities LLC |
|
|
6.09%
due 01/15/51†††,5 |
700,068 |
643,272 |
Pacific
Beacon LLC |
|
|
5.63%
due 07/15/515 |
673,346 |
622,915 |
Prudential
Financial, Inc. |
|
|
5.13%
due 03/01/524 |
700,000 |
598,434 |
Greystar
Real Estate Partners LLC |
|
|
5.75%
due 12/01/252,5 |
600,000 |
582,816 |
Macquarie
Bank Ltd. |
|
|
3.62%
due 06/03/305 |
640,000 |
518,174 |
Assurant,
Inc. |
|
|
7.00%
due 03/27/484 |
400,000 |
382,000 |
Atlas
Mara Ltd. |
|
|
due
12/31/21†††,9,10 |
709,271 |
238,315 |
Fort
Gordon Housing LLC |
|
|
6.32%
due 05/15/51†††,5 |
200,000 |
198,936 |
USI,
Inc. |
|
|
6.88%
due 05/01/255 |
150,000 |
147,017 |
Total
Financial |
|
186,131,431 |
Consumer,
Non-cyclical – 8.1% |
|
|
US
Foods, Inc. |
|
|
6.25%
due 04/15/252,5 |
3,000,000 |
3,028,020 |
4.63%
due 06/01/302,5 |
2,500,000 |
2,218,525 |
4.75%
due 02/15/292,5 |
2,250,000 |
2,005,020 |
CPI
CG, Inc. |
|
|
8.63%
due 03/15/262,5 |
6,348,000 |
6,115,749 |
Medline
Borrower, LP |
|
|
5.25%
due 10/01/292,5 |
5,200,000 |
4,238,000 |
3.88%
due 04/01/295 |
2,000,000 |
1,719,520 |
Cheplapharm
Arzneimittel GmbH |
|
|
5.50%
due 01/15/282,5 |
6,945,000 |
5,771,910 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 45
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Consumer,
Non-cyclical – 8.1% (continued) |
|
|
BCP V
Modular Services Finance II plc |
|
|
6.13%
due 10/30/285 |
GBP
4,250,000 |
$
4,258,670 |
4.75%
due 10/30/285 |
EUR
1,550,000 |
1,349,990 |
Sabre
GLBL, Inc. |
|
|
7.38%
due 09/01/252,5 |
3,725,000 |
3,548,063 |
9.25%
due 04/15/252,5 |
2,050,000 |
2,044,875 |
Williams
Scotsman International, Inc. |
|
|
4.63%
due 08/15/282,5 |
3,675,000 |
3,341,310 |
6.13%
due 06/15/252,5 |
1,683,000 |
1,666,170 |
Bausch
Health Companies, Inc. |
|
|
4.88%
due 06/01/282,5 |
8,025,000 |
4,916,115 |
Sotheby’s |
|
|
7.38%
due 10/15/272,5 |
4,899,000 |
4,771,602 |
Altria
Group, Inc. |
|
|
3.70%
due 02/04/512 |
6,000,000 |
3,884,926 |
Reynolds
American, Inc. |
|
|
5.70%
due 08/15/352 |
4,150,000 |
3,831,222 |
KeHE
Distributors LLC / KeHE Finance Corp. |
|
|
8.63%
due 10/15/265 |
3,632,000 |
3,577,520 |
JBS
USA LUX S.A. / JBS USA Food Company / JBS USA Finance,
Inc. |
|
|
4.38%
due 02/02/525 |
4,800,000 |
3,489,408 |
Post
Holdings, Inc. |
|
|
4.50%
due 09/15/312,5 |
3,925,000 |
3,344,963 |
FAGE
International S.A. / FAGE USA Dairy Industry, Inc. |
|
|
5.63%
due 08/15/262,5 |
3,301,000 |
3,021,172 |
Rent-A-Center,
Inc. |
|
|
6.38%
due 02/15/292,5 |
3,625,000 |
2,981,562 |
Acadia
Healthcare Company, Inc. |
|
|
5.00%
due 04/15/292,5 |
2,400,000 |
2,214,264 |
5.50%
due 07/01/285 |
550,000 |
517,096 |
Legends
Hospitality Holding Company LLC / Legends Hospitality Co-Issuer,
Inc. |
|
|
5.00%
due 02/01/262,5 |
3,000,000 |
2,624,656 |
Nathan’s
Famous, Inc. |
|
|
6.63%
due 11/01/255 |
2,676,000 |
2,622,480 |
Garden
Spinco Corp. |
|
|
8.63%
due 07/20/302,5 |
2,450,000 |
2,601,025 |
Par
Pharmaceutical, Inc. |
|
|
due
04/01/275,9 |
3,345,000 |
2,517,113 |
DaVita,
Inc. |
|
|
4.63%
due 06/01/302,5 |
1,900,000 |
1,538,012 |
3.75%
due 02/15/315 |
1,200,000 |
882,000 |
Avantor
Funding, Inc. |
|
|
4.63%
due 07/15/282,5 |
1,700,000 |
1,564,000 |
3.88%
due 11/01/295 |
925,000 |
793,187 |
Castor
S.p.A. |
|
|
6.25%
(3 Month EURIBOR + 5.25%, Rate Floor: 5.25%) due
02/15/29◊,5 |
EUR
2,300,000 |
2,308,756 |
See notes to financial
statements.
46 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Consumer,
Non-cyclical – 8.1% (continued) |
|
|
Sotheby’s/Bidfair
Holdings, Inc. |
|
|
5.88%
due 06/01/292,5 |
2,700,000 |
$
2,247,031 |
Option
Care Health, Inc. |
|
|
4.38%
due 10/31/292,5 |
2,275,000 |
1,936,713 |
ADT
Security Corp. |
|
|
4.13%
due 08/01/292,5 |
1,050,000 |
916,450 |
4.88%
due 07/15/322,5 |
1,000,000 |
865,210 |
Gartner,
Inc. |
|
|
4.50%
due 07/01/285 |
1,700,000 |
1,600,414 |
Spectrum
Brands, Inc. |
|
|
5.50%
due 07/15/302,5 |
1,700,000 |
1,455,846 |
Endo
Luxembourg Finance Company I SARL / Endo US, Inc. |
|
|
due
04/01/295,9 |
1,900,000 |
1,422,777 |
Royalty
Pharma plc |
|
|
3.55%
due 09/02/502 |
2,100,000 |
1,405,168 |
APi
Group DE, Inc. |
|
|
4.75%
due 10/15/295 |
1,225,000 |
1,051,354 |
4.13%
due 07/15/295 |
400,000 |
332,448 |
HealthEquity,
Inc. |
|
|
4.50%
due 10/01/292,5 |
1,550,000 |
1,357,955 |
Grifols
Escrow Issuer S.A. |
|
|
4.75%
due 10/15/282,5 |
1,350,000 |
1,134,513 |
Kronos
Acquisition Holdings, Inc. / KIK Custom Products, Inc. |
|
|
7.00%
due 12/31/275 |
1,038,000 |
861,540 |
5.00%
due 12/31/265 |
250,000 |
227,910 |
TreeHouse
Foods, Inc. |
|
|
4.00%
due 09/01/28 |
1,150,000 |
979,766 |
Central
Garden & Pet Co. |
|
|
4.13%
due 10/15/30 |
625,000 |
520,312 |
4.13%
due 04/30/315 |
400,000 |
330,260 |
AMN
Healthcare, Inc. |
|
|
4.63%
due 10/01/275 |
725,000 |
670,234 |
WW
International, Inc. |
|
|
4.50%
due 04/15/295 |
950,000 |
548,036 |
Catalent
Pharma Solutions, Inc. |
|
|
3.50%
due 04/01/305 |
625,000 |
509,375 |
Carriage
Services, Inc. |
|
|
4.25%
due 05/15/295 |
675,000 |
506,587 |
Performance
Food Group, Inc. |
|
|
6.88%
due 05/01/255 |
450,000 |
450,000 |
Prestige
Brands, Inc. |
|
|
3.75%
due 04/01/315 |
300,000 |
253,476 |
Nidda
Healthcare Holding GmbH |
|
|
3.50%
due 09/30/24 |
EUR
175,000 |
169,016 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 47
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Consumer,
Non-cyclical – 8.1% (continued) |
|
|
Albertsons
Companies Incorporated / Safeway Inc / New Albertsons |
|
|
Limited
Partnership / Albertsons LLC |
|
|
5.88%
due 02/15/285 |
100,000 |
$
95,622 |
Endo
Dac / Endo Finance LLC / Endo Finco, Inc. |
|
|
due
07/31/275,9 |
181,000 |
25,340 |
Total
Consumer, Non-cyclical |
|
117,180,254 |
Consumer,
Cyclical – 6.5% |
|
|
Delta
Air Lines, Inc. |
|
|
7.00%
due 05/01/252,5 |
10,535,000 |
10,735,037 |
JB
Poindexter & Company, Inc. |
|
|
7.13%
due 04/15/262,5 |
5,275,000 |
5,097,285 |
Suburban
Propane Partners Limited Partnership/Suburban Energy Finance
Corp. |
|
|
5.88%
due 03/01/272 |
3,210,000 |
3,037,293 |
5.00%
due 06/01/312,5 |
1,800,000 |
1,539,259 |
Penn
Entertainment, Inc. |
|
|
4.13%
due 07/01/292,5 |
4,925,000 |
4,013,875 |
Air
Canada Class A Pass Through Trust |
|
|
5.25%
due 04/01/292,5 |
4,042,405 |
3,813,154 |
Delta
Air Lines, Inc. / SkyMiles IP Ltd. |
|
|
4.75%
due 10/20/282,5 |
3,950,000 |
3,744,210 |
Crocs,
Inc. |
|
|
4.25%
due 03/15/292,5 |
3,188,000 |
2,616,252 |
4.13%
due 08/15/312,5 |
1,400,000 |
1,118,684 |
Fertitta
Entertainment LLC / Fertitta Entertainment Finance Company,
Inc. |
|
|
4.63%
due 01/15/292,5 |
4,100,000 |
3,619,890 |
Hawaiian
Brand Intellectual Property Ltd. / HawaiianMiles Loyalty
Ltd. |
|
|
5.75%
due 01/20/262,5 |
3,725,000 |
3,530,332 |
Station
Casinos LLC |
|
|
4.63%
due 12/01/312,5 |
4,200,000 |
3,521,238 |
Wabash
National Corp. |
|
|
4.50%
due 10/15/282,5 |
4,100,000 |
3,466,873 |
Live
Nation Entertainment, Inc. |
|
|
6.50%
due 05/15/272,5 |
3,350,000 |
3,356,342 |
Mileage
Plus Holdings LLC / Mileage Plus Intellectual Property Assets
Ltd. |
|
|
6.50%
due 06/20/272,5 |
3,182,500 |
3,166,556 |
Walgreens
Boots Alliance, Inc. |
|
|
4.10%
due 04/15/502 |
3,800,000 |
2,855,052 |
Air
Canada |
|
|
4.63%
due 08/15/295 |
CAD
2,900,000 |
1,835,876 |
3.88%
due 08/15/262,5 |
825,000 |
754,876 |
PetSmart,
Inc. / PetSmart Finance Corp. |
|
|
4.75%
due 02/15/282,5 |
2,725,000 |
2,489,642 |
Aramark
Services, Inc. |
|
|
6.38%
due 05/01/252,5 |
2,300,000 |
2,295,446 |
5.00%
due 02/01/285 |
110,000 |
102,869 |
See notes to financial
statements.
48 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Consumer,
Cyclical – 6.5% (continued) |
|
|
United
Airlines, Inc. |
|
|
4.63%
due 04/15/292,5 |
2,575,000 |
$
2,292,309 |
Scotts
Miracle-Gro Co. |
|
|
4.00%
due 04/01/312 |
2,150,000 |
1,634,000 |
4.38%
due 02/01/32 |
700,000 |
538,497 |
HP
Communities LLC |
|
|
6.82%
due 09/15/53†††,5 |
929,348 |
968,565 |
6.16%
due 09/15/53†††,5 |
1,000,000 |
930,750 |
Yum!
Brands, Inc. |
|
|
4.63%
due 01/31/322 |
1,987,000 |
1,758,495 |
Superior
Plus Limited Partnership / Superior General Partner,
Inc. |
|
|
4.50%
due 03/15/292,5 |
2,000,000 |
1,707,901 |
Hyatt
Hotels Corp. |
|
|
5.75%
due 04/23/302 |
1,690,000 |
1,677,184 |
Michaels
Companies, Inc. |
|
|
5.25%
due 05/01/282,5 |
2,200,000 |
1,611,357 |
CD&R
Smokey Buyer, Inc. |
|
|
6.75%
due 07/15/252,5 |
1,650,000 |
1,462,312 |
Wyndham
Hotels & Resorts, Inc. |
|
|
4.38%
due 08/15/282,5 |
1,625,000 |
1,453,175 |
1011778
BC ULC / New Red Finance, Inc. |
|
|
3.88%
due 01/15/282,5 |
850,000 |
758,614 |
4.00%
due 10/15/305 |
725,000 |
610,566 |
Boyne
USA, Inc. |
|
|
4.75%
due 05/15/295 |
1,250,000 |
1,112,400 |
Hilton
Domestic Operating Company, Inc. |
|
|
3.63%
due 02/15/325 |
1,350,000 |
1,111,468 |
Clarios
Global, LP / Clarios US Finance Co. |
|
|
8.50%
due 05/15/275 |
1,050,000 |
1,027,537 |
Wolverine
World Wide, Inc. |
|
|
4.00%
due 08/15/295 |
1,350,000 |
999,000 |
Vail
Resorts, Inc. |
|
|
6.25%
due 05/15/255 |
1,000,000 |
998,960 |
Clarios
Global, LP |
|
|
6.75%
due 05/15/255 |
990,000 |
989,369 |
Six
Flags Theme Parks, Inc. |
|
|
7.00%
due 07/01/255 |
969,000 |
971,399 |
Tempur
Sealy International, Inc. |
|
|
3.88%
due 10/15/315 |
700,000 |
543,417 |
4.00%
due 04/15/295 |
500,000 |
414,537 |
Allison
Transmission, Inc. |
|
|
3.75%
due 01/30/315 |
1,100,000 |
921,151 |
Scientific
Games Holdings Limited Partnership/Scientific Games US FinCo,
Inc. |
|
|
6.63%
due 03/01/305 |
850,000 |
715,040 |
See notes to financial
statements.
GOF l
GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT l 49
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Consumer,
Cyclical – 6.5% (continued) |
|
|
United
Airlines Class AA Pass Through Trust |
|
|
3.45%
due 12/01/27 |
452,195 |
$
408,995 |
Superior
Plus, LP |
|
|
4.25%
due 05/18/285 |
CAD
350,000 |
219,313 |
Hanesbrands,
Inc. |
|
|
4.88%
due 05/15/265 |
225,000 |
204,750 |
Ferrellgas
Limited Partnership / Ferrellgas Finance Corp. |
|
|
5.38%
due 04/01/265 |
150,000 |
138,000 |
Exide
Technologies |
|
|
due
10/31/24†††,9 |
2,353,687 |
2 |
Total
Consumer, Cyclical |
|
94,889,104 |
Communications
– 5.7% |
|
|
Altice
France S.A. |
|
|
5.50%
due 10/15/292,5 |
8,175,000 |
6,555,859 |
5.13%
due 07/15/292,5 |
3,025,000 |
2,384,033 |
8.13%
due 02/01/275 |
1,300,000 |
1,238,250 |
McGraw-Hill
Education, Inc. |
|
|
8.00%
due 08/01/292,5 |
6,300,000 |
5,345,676 |
5.75%
due 08/01/282,5 |
3,525,000 |
3,132,844 |
Cogent
Communications Group, Inc. |
|
|
7.00%
due 06/15/272,5 |
7,500,000 |
7,312,500 |
VZ
Secured Financing BV |
|
|
5.00%
due 01/15/322,5 |
6,850,000 |
5,668,375 |
British
Telecommunications plc |
|
|
4.88%
due 11/23/812,4,5 |
5,550,000 |
4,479,891 |
4.25%
due 11/23/814,5 |
950,000 |
798,947 |
Paramount
Global |
|
|
4.95%
due 05/19/502 |
6,390,000 |
4,749,676 |
Cengage
Learning, Inc. |
|
|
9.50%
due 06/15/242,5 |
4,976,000 |
4,720,980 |
UPC
Broadband Finco BV |
|
|
4.88%
due 07/15/312,5 |
4,550,000 |
3,890,773 |
LCPR
Senior Secured Financing DAC |
|
|
6.75%
due 10/15/272,5 |
2,114,000 |
1,999,696 |
5.13%
due 07/15/292,5 |
1,900,000 |
1,570,424 |
Corning,
Inc. |
|
|
4.38%
due 11/15/572 |
4,100,000 |
3,233,786 |
Vodafone
Group plc |
|
|
5.13%
due 06/04/812,4 |
4,100,000 |
2,924,694 |
AMC
Networks, Inc. |
|
|
4.25%
due 02/15/292 |
3,450,000 |
2,571,526 |
See notes to financial
statements.
50 l GOF
l GUGGENHEIM STRATEGIC OPPORTUNITIES FUND SEMIANNUAL
REPORT
|
|
|
SCHEDULE
OF INVESTMENTS (Unaudited) continued |
|
November
30, 2022 |
|
|
|
|
Face |
|
|
Amount~ |
Value |
CORPORATE
BONDS†† – 47.3% (continued) |
|
|
Communications
– 5.7% (continued) |
|
|
CCO
Holdings LLC / CCO Holdings Capital Corp. |
|
|
4.50%
due 06/01/332,5 |
1,225,000 |
$
972,172 |
4.25%
due 02/01/315 |
850,000 |
690,030 |
4.25%
due 01/15/345 |
750,000 |
584,250 |
4.50%
due 05/01/32 |
325,000 |
268,211 |
Ciena
Corp. |
|
|
4.00%
due 01/31/302,5 |
2,150,000 |
1,803,312 |
Rogers
Communications, Inc. |
|
|
4.55%
due 03/15/525 |
2,200,000 |
1,790,676 |
TripAdvisor,
Inc. |
|
|
|