Updated with correction, Sept. 22, 2011
Guggenheim Partners acquired Rydex/SGI and will combine the exchange-traded fund manager and its existing asset management businesses into a single unit, Guggenheim Investments, confirmed Jeaneen Pisarra, a Guggenheim Investments spokeswoman.
In 2009, Guggenheim Partners assumed management of Rydex parent Security Benefit Corp.'s $4 billion general account. And in February 2010, Guggenheim Partners was the lead investor in buying a controlling interest in Security Benefit Corp.
Through the deal announced Wednesday, Guggenheim Partners will essentially acquire Rydex in exchange for making Security Benefit Corp. the second-largest institutional shareholder in Guggenheim Partners.
Ms. Pisarra said terms of the deal are not being disclosed.
The executive team of Guggenheim Investments is headed by Todd Boehly, who remains president of Guggenheim Partners. Scott Minerd, chief investment officer of Guggenheim Partners, now also is CIO of the new investment unit. Don Cacciapaglia, chief administrative officer of Guggenheim Partners, has assumed the same role at Guggenheim Investments, and Richard Goldman, who was CEO of Rydex/SGI, is COO.
The Guggenheim Partners and Rydex/SGI money management businesses ran an aggregate $119 billion as of June 30, 65% of which was managed in fixed income and credit strategies, Mr. Goldman said. About 60% of total assets were managed for institutional investors worldwide.
On the retail side, Guggenheim Investments offers a variety of investment vehicles, including 77 mutual funds and 108 ETFs with nearly $19 billion under management.
Over the next few months, all of the ETF series offered by Rydex/SGI and Guggenheim businesses will be consolidated into a single ETF family bearing the Guggenheim Investments name, Mr. Goldman confirmed.
Jeff Benjamin, a reporter for InvestmentNews, contributed to this story.