Guggenheim Equal Weight fund prices $175 million shares in IPO

By Toni Weeks

San Diego, Oct. 27 - Guggenheim Equal Weight Enhanced Equity Income Fund announced it has priced 8.75 million shares at $20.00 each, potentially raising $175 million, according to a press release.

The fund's initial public offering was led by a syndicate of underwriters led by Wells Fargo Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and RBC Capital Markets LLC. The offering is scheduled to close Oct. 31.

There is a greenshoe for 1.31 million shares, which must be exercised within 45 days.

The fund's investment objective is to provide a high level of risk-adjusted total return with an emphasis on current income. It seeks to achieve this through a two-part strategy, which includes investing, under normal circumstances, most of its managed assets in a portfolio of common stocks included in the S&P 500 Equal Weight index and using a call option writing strategy to seek to generate current income and mitigate portfolio volatility. The fund will also use leverage, which may increase its volatility.

Shareholder transaction expenses include a sales load of 4.5% of the offering price and offering expenses of 0.2% of the offering price.

The fund's common shares began trading on the New York Stock Exchange on Thursday under the symbol "GEQ."

Lisle, Ill.-based Guggenheim Funds Investment Advisors, LLC will serve as the fund's investment adviser, with Security Investors, LLC as the subadviser for the fund's portfolio of equity securities and Guggenheim Partners Asset Management, LLC as the subadviser for the fund's options strategy.

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