Guggenheim Partners is combining its asset management businesses in a move that will bring together several of its management groups with exchange traded fund provider Rydex|SGI and will result in combined assets of about $119 billion.
Guggenheim last year acquired Rydex’s parent, Security Benefit Corp.
The firm’s revamped ETF business will have assets of $12 billion, ranking it as the eighth-largest provider of ETFs in the U.S., Reuters reported.
“The ETF product lines are complementary with little overlap,” said Guggenehim Chief Operating Officer Richard Goldman. “We’re excited to integrate all the strengths of these combined companies and leverage the Guggenheim brand in the institutional, broker dealer and retail channels.”
Guggenheim also acquired ETF manager Claymore Group in 2009.
With the integration of Rydex, Guggenheim will offer a lineup of more than 100 exchange traded funds and products. The consolidated ETF family, including BulletShares, CurrencyShare, and RydexShares pure style and equal weight products, will be marketed under the Guggenheim name.
“From a product and distribution standpoint they have better breadth,” said Christian Magoon, an ETF consultant and former president of Claymore Securities, in the Reuters report. The challenge will be “giving the different product lines sufficient distribution and marketing support.”
The Claymore ETFs were rebranded under the Guggenheim name after the acquisition.
Guggenheim manages ETFs, separately managed accounts, mutual funds and closed-end funds.
The company announced the change via Webcast to its 1,200 investment management employees on Tuesday, Reuters reported.
The Rydex brand of ETFs had just over $8 billion in assets, while the Guggenheim ETFs have gathered about $3.12 billion in ETF assets, IndexUniverse reported.
“Over the years we have strategically grown our investment management capabilities both organically and through acquisition,” said Todd Boehly, president of Guggenheim Partners and head of Guggenheim Investments, in a press release. “Every step of this process was guided by a desire to provide our clients with a wide array of innovative investment solutions to help achieve their financial goals.”
Read the disclaimer; Tom Lydon is a board member of the Funds for Rydex|SGI.