(NYSE: TYW) Today, Guggenheim Funds Investment Advisors, LLC
announced that the shareholders of TS&W / Claymore
Tax-Advantaged Balanced Fund a diversified closed-end management
investment company (NYSE: TYW or the “Fund”), have approved a
reorganization into an open-end fund, Rydex | SGI Municipal Income
Fund (the “Rydex | SGI Fund”), a series of Security Income
Fund.
The closing of the reorganization is expected to occur on or
about January 13, 2012, subject to satisfaction of certain closing
conditions (the “Closing Date"). Upon the Closing Date, Rydex | SGI
Fund will acquire substantially all of the assets and will assume
the stated liabilities of TYW, in exchange for shares of Rydex |
SGI Fund (the “New Shares”) to be issued to TYW. The New Shares of
Rydex | SGI Fund issued to TYW will be distributed as a liquidating
distribution to the common shareholders of TYW in complete
liquidation and termination of TYW. Thus, common shareholders of
TYW will become shareholders of Rydex | SGI Fund. Following the
Reorganization, TYW will dissolve.
Approximately two weeks prior to the Closing Date, on or about
December 30, 2011, common shares of TYW will cease trading on the
New York Stock Exchange (“NYSE”) in order to allow time to transfer
shareholder information to the Rydex | SGI Fund and its transfer
agent. During this time period, holders of common shares of TYW
will not be able to sell their common shares and their investment
will temporarily be illiquid. After the closing of the
reorganization, however, such holders may redeem New Shares of
Rydex | SGI Fund at net asset value. Shareholders will be able to
redeem New Shares of Rydex | SGI Fund received in the
reorganization as of the close of business of the first business
day following the Closing Date, which will be January 17, 2012
assuming the reorganization closes on January 13, 2012, at the net
asset value per share next determined after the time when such
shares are tendered for redemption.
Rydex | SGI Fund will seek to provide current income with an
emphasis on income exempt from federal income tax, while also
considering capital appreciation. In pursuit of its objective,
Rydex | SGI Fund will invest, under normal market conditions, at
least 80% of its assets in a diversified portfolio of municipal
securities whose interest is free from federal income tax. Rydex |
SGI Fund will allocate assets across different market sectors and
maturities and may invest in municipal bonds rated in any rating
category or in unrated municipal bonds. Rydex | SGI Fund, however,
will invest under normal market conditions, at least 80% of its
assets in investment grade securities.
Security Global InvestorsSM will serve as investment adviser to
the Rydex | SGI Fund and Rydex Distributors, LLC will distribute
the Rydex | SGI Fund. Guggenheim Partners Asset Management, LLC
(“GPAM”) will serve as investment sub-adviser to the Rydex | SGI
Fund. GPAM is a subsidiary of Guggenheim Partners, LLC and Security
Global InvestorsSM and Rydex Distributors, LLC are subsidiaries of
Security Benefit Corporation, which is a subsidiary of Guggenheim
SBC Holdings, LLC, an entity managed by an affiliate of Guggenheim
Partners, LLC. GPAM will manage the Rydex | SGI Fund utilizing a
dynamic strategy that combines a rigorous municipal security
selection process with a relative value analysis. There can be no
assurance that the Rydex | SGI Fund will be successful in achieving
its investment objective.
In connection with the reorganization, TYW will redeem 100% of
its outstanding auction market preferred shares (“AMPS”). The
redemption price will be equal to the liquidation preference per
share, plus accumulated but unpaid dividends as of the applicable
redemption date (as noted in the table below).
Series CUSIP Number
Number
ofSharesRedeemed
AmountRedeemed
RedemptionDate
M7 87280R207 2,100
$52,500,000 January 10, 2012 T28
87280R306 2,100
$52,500,000 January 11, 2012
Additional Information
The foregoing is not an offer to sell, nor a solicitation of an
offer to buy, shares of TYW.
Guggenheim Funds Investment Advisors, LLC acts as the Investment
Adviser for TYW.
With assets exceeding $115 billion*, Guggenheim Investments has
a long, distinguished history of serving institutional investors,
ultra-high-net-worth individuals, family offices and financial
intermediaries. We offer clients a wide range of differentiated
capabilities built on a proven commitment to investment excellence.
Guggenheim Investments has offices in Chicago and New York along
with a global network of offices throughout the United States,
Europe, and Asia.
Guggenheim Investments represents the investment management
businesses of Guggenheim Partners, LLC (“GP”). The following
businesses comprise Guggenheim Investments: Security Investors, LLC
(SI) doing business as Security Global InvestorsSM and Rydex
Investments, Guggenheim Partners Asset Management, LLC, (“GPAM”),
Guggenheim Investment Management, LLC, (“GIM”), Guggenheim Funds
Investment Advisors, LLC, Guggenheim Funds Distributors, Inc.,
Guggenheim Aviation, GS GAMMA Advisors, LLC, Guggenheim Real
Estate, LLC, Guggenheim Structured Real Estate, Guggenheim Partners
Europe, Claymore Investments, Inc., Transparent Value Advisors, LLC
and Guggenheim Partners India Management.
* Asset figure is based upon the best available information as
of 9/30/2011 and consists of assets under management and serviced
assets of the various asset managers comprising Guggenheim
Investments. The total asset figure includes $8.7B of leverage for
assets under management and $0.8B of leverage for serviced
assets.
Investors should consider the investment objectives and
policies, risk considerations, charges and expenses of TYW
carefully before they invest. For this and more information, please
contact a securities representative or Guggenheim Funds, 2455
Corporate West Drive, Lisle, Illinois 60532, 800-345-7999.
The foregoing does not constitute an offer of any securities
for sale. The proxy statement/prospectus relating to the
Reorganization contains important information relating to the
foregoing and shareholders are urged to read it. Free copies of the
proxy statement/prospectus are available by calling Guggenheim
Funds at 800-345-7999 or on the SEC's web site at
www.sec.gov.
Following the closing of the Reorganization, Rydex | SGI
Fund intends to commence a continuous offering of its
securities. Other than in the Reorganization, securities of the
Rydex | SGI Fund may not be sold nor may offers to buy be
accepted prior to that time. A registration statement relating to
these securities has been filed with the Securities and Exchange
Commission and is effective; however, the Rydex | SGI Fund has not
yet commenced offering its shares. Information contained herein is
subject to completion or amendment. This communication shall not
constitute an offer to sell or a solicitation of any offer to buy;
nor shall there be any sale of these securities in any state where
the offer, solicitation, or sale is not permitted.
NOT FDIC - INSURED • NOT BANK - GUARANTEED •
MAY LOSE VALUE
Member FINRA/SIPC (11/11)
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