(Adds quotes from Minerd on Federal Reserve's unwind of balance
By Jennifer Ablan
NEW YORK May 1 Guggenheim Investments, overseen
by Global Chief Investment Officer Scott Minerd, had positive
net flows of more than $944 million into its fixed-income mutual
funds and exchange-traded funds in April, the firm said on
Guggenheim's flagship Total Return Bond Fund, an
intermediate-term fund that has outperformed 99 percent of its
rivals over one, three, and five years, according to
Morningstar, took in $250 million in April, the firm said.
The $6.1 billion fund has experienced net inflows for 40
consecutive months, Guggenheim added.
"I tend to look for big trades and big trades take a long
time to play out," Minerd said in a telephone interview. "The
big trade we’ve been doing...betting on a flattening of the
yield curve, has worked pretty well for us."
"We've been in very high-quality, long duration assets like
30-year Treasury STRIPS," he said, using an acronym for Separate
Trading of Registered Interest and Principal of Securities.
Meanwhile, the Guggenheim Macro Opportunities Fund, a $5.3
billion non-traditional bond fund that has also outperformed 99
percent of its rivals over five years, took in $250 million in
April, the firm said.
Guggenheim Limited Duration Fund, a short-term bond fund
with $1.5 billion in assets under management, experienced its
41st consecutive month of net inflows since its December 2013
inception. It has outperformed 99 percent of funds in its
Morningstar category over three years.
Guggenheim said its BulletShares suite of defined maturity
ETFs had $138 million in net flows in April, which helped the
firm reach an all-time high with $35 billion in ETF assets under
On the Federal Reserve, Minerd said he has been contacted by
the central bank regarding the unwinding of the balance sheet
"They're concerned primarily, at this point, with what the
market expects. This is my opinion, they don't want to surprise
the market like they did when the 'Taper Tantrum' occurred. So
they really want to avoid, in my opinion, having the market
suddenly react badly."
Fed staffers are seeking bond fund manager feedback on how
the central bank should tailor and communicate its exit from
record holdings of Treasuries and mortgage-backed securities.
Fed officials are intent on shrinking their crisis-era $4.48
trillion balance sheet in a way that is not disruptive and does
not supplant the federal funds rate as the main policy tool.
Minerd said he believes the Fed will announce its intention
to wind down the balance sheet.
(Reporting by Jennifer Ablan; Editing by Bernadette Baum and