Bloomberg News

Guggenheim Partners Confirms Review of Claymore ETF Division

November 17, 2011

Nov. 17 (Bloomberg) -- Guggenheim Partners LLC confirmed it’s considering options including a sale of Claymore Investments, the Canadian provider of exchange-traded funds it acquired two years ago.

“The opportunistic decision to review strategic alternatives reflects the tremendous value created in a short time,” Guggenheim said in an e-mailed statement today. Claymore had $6.8 billion of assets under management as of Oct. 31.

The money manager, based in Chicago and New York, said it remains committed to the U.S. ETF market, where it’s one of the 10 biggest managers, according to data compiled by BlackRock Inc.

Guggenheim acquired the business through its purchase of Claymore Group LLC, announced in July 2009 and completed later that year. In 2010, when it rebranded Claymore’s U.S.-registered funds and business units under the Guggenheim name, Toronto- based Claymore Investments kept its brand.

Claymore Investments, founded in 2005 and run by Chief Executive Officer Som Seif, claims on its website to have produced several “firsts” for the industry, including the first actively managed ETF, the first ETF to invest in the so- called BRIC nations of Brazil, Russia, India and China, and the first to offer an investment in physical gold with a Canadian dollar hedge.

“We couldn’t be more pleased with our partnership with Som and his team and remain confident in the company’s growth prospects,” Guggenheim said in the statement. The company confirmed JPMorgan Chase & Co. and Royal Bank of Canada are advising on the review.

$6.6 Billion

Claymore’s $6.6 billion in ETF assets under management as of Oct. 31 amounts to 16 percent of the Canadian market, according to New York-based BlackRock. Only BlackRock’s iShares unit is bigger, with $28.5 billion.

In the U.S., Guggenheim and its Rydex unit together had $12.9 billion of ETF’s and similar products under management as of June 30, making the combined firm the eighth-biggest, according to BlackRock data.

Guggenheim, founded in 2000 with backing from the Guggenheim family, oversees more than $125 billion in customer assets, according to the company’s website.

--Editors: Steven Crabill, Christian Baumgaertel, Josh Friedman

To contact the reporters on this story: Zachary R. Mider in New York at zmider1@bloomberg.net; Christopher Condon in Boston at ccondon4@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net


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