About Guggenheim Investments - Security Benefit Agent

US Bank Loans Composite
Schedule of Investment Performance for the Period 01.01.2003 - 12.31.2012.
Period
Composite
Gross of Fees
Rates of Return (%) 3-Year Standard Deviation (%)
Composite
Net of Fees
CS Leveraged
Loan Index
Composite
CS Leveraged
Loan Index
No. of Accounts Dispersion (%)
Composite
Assets ($m)
Firm Assets
($m)
2012 10.79 9.83 9.43 3.63 4.13 9 0.63 3,787 113,588
2011 4.23 3.50 1.82 6.18 7.63 8 0.59 3,642 75,740
2010 14.24 13.16 9.97 10.41 13.10 6 N/A 2,333 55,911
2009 39.18 38.04 44.87 10.32 13.12 ≤5 N/A 2,133 45,263
2008 -21.05 -21.63 -28.75 7.98 10.24 ≤5 N/A 1,657 32,988
2007 5.46 4.69 1.88 1.81 2.59 6 N/A 2,662 30,957
2006 9.22 8.31 7.33 0.49 0.70 ≤5 N/A 1,891 27,121
2005 7.36 6.52 5.69 0.63 1.25 ≤5 N/A 893 24,301
2004 7.56 6.72 5.60 N/A N/A ≤5 N/A 427 21,390
2003 10.12 9.18 11.01 N/A N/A ≤5 N/A 420 18,088
Guggenheim Investments Asset Management (GIAM) is a global investment management firm providing fixed income,
equity and alternative investment services primarily to institutional investors and is comprised of the following affiliated
entities of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC (GPIM), Guggenheim
Partners Europe Limited (GPE), Transparent Value Advisors, LLC (TVA), and, as of February 2012, Security Investors, LLC
(SI). GPIM was formed in June 2012 as the result of the merger of Guggenheim Partners Asset Management, Inc. (GPAM)
and Guggenheim Investment Management, LLC (GIM). Also, in June 2012, GIAM broadened the definition of the GIPS
firm to include GIAM’s historically affiliated advisors GPAM, GIM, GPE and TVA since each entity’s inception.
GIAM claims compliance with the Global Investment Performance Standards (GIPS ® ) and has prepared and presented
this report in compliance with the GIPS standards. GIAM has been independently verified for the periods January 1, 1999
through December 31, 2011. The verification reports are available upon request.
Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS
standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance
in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.
The US Bank Loans Composite (“the Composite”) is comprised of accounts that predominantly invest in U.S.-based
corporate bank loans. The creation date for this Composite is September 1, 2010. The Composite has a minimum asset
level of $10,000,000. Formerly, this Composite was known as Bank Loans - Domestic Composite.
For comparison purposes the Composite is measured against the Credit Suisse Leveraged Loan Index. The Credit Suisse
Leveraged Loan Index is designed to mirror the investable universe of the US dollar denominated leveraged loan market.
All performance is expressed in U.S. dollars.
Gross returns are presented net of non-reclaimable foreign withholding taxes applicable to the U.S. investors and include
the reinvestment of income. Net returns are calculated by reducing gross returns with a model fee that includes 1) the
greater of a) the highest management fee charged to an account in the Composite or b) the highest tier of the current
management fee schedule, and 2) estimated performance fees where applicable. Net returns using actual fees may vary
from calculated returns using the model fee depending on, amongst other things, type of client, portfolio size, and
performance based fees. For the period 2008, the net returns presented reflect actual fees on a cash basis, not a model
fee. The following example demonstrates the effect of performance fees on investment returns. Assume an account value
of $1 million on January 1 with a 10% performance fee. If the account value rises by 10% during the year (net of all other
applicable fees) to be valued at $1.1 million, the investor will pay a performance fee of 10% on the $100 thousand increase
($10,000), resulting in a balance of $1.09 million and a 9% net return.
The current management fee schedule for this Composite is:
First $100M: 0.55% Next $200M: 0.45% Above $300M: 0.40%
The Composite dispersion is calculated using the asset-weighted standard deviation of all accounts within the Composite.
Dispersion will be calculated only if the number of accounts in the Composite is greater than five and will only include
accounts that have been in the Composite for the entire year.
This Composite contains carve-outs of accounts that are managed separately with their own cash balances.
The firm’s list of Composite descriptions, as well as information regarding the firm’s policies for valuing investments,
calculating performance, and preparing compliant presentations, is available upon request.
Past performance may not be indicative of future returns. The value of any investment may rise or fall over time. Principal
is not guaranteed, and investors may receive less than the full amount of principal invested at the time of redemption if
asset values have declined. Individual account performance may be greater than or less than the performance presented
for this Composite.