Guggenheim Build America Bonds trust to change some policies, its name

By Wendy Van Sickle

Columbus, Ohio, May 20 – Guggenheim Funds Investment Advisors said Guggenheim Build America Bonds Managed Duration Trust’s board of directors approved modifications to some non-fundamental investment policies and the name of the trust.

The changes will become effective July 26.

According to a press release, the trust will change its policy for investing under normal market conditions to stipulate that it will invest at least 80% of managed assets in taxable municipal securities, including in Build America Bonds. Its current policy is to invest at least 80% of managed assets in Build America Bonds exclusively.

However, because there have been no new issuances of Build America Bonds, the board re-evaluated the non-fundamental investment policies. The re-evaluation by the board was stated as a possibility in the trust’s 2010 initial public offering prospectus, because there was uncertainty regarding the continuation of the Build America Bonds at that time, according to the release.

Under the revised policy, the remaining up to 20% of the managed assets may be invested in securities other than taxable municipal securities, including tax-exempt municipal securities, asset-backed securities, senior loans and other income-producing securities. The current policy permits the up to 20% portion to be invested in securities other than Build America Bonds, including taxable municipal securities that do not qualify for federal subsidy payments under the American Reinvestment and Recovery Act, tax-exempt municipal securities, asset-backed securities, senior loans and other income producing securities.

The name of the trust will change to Guggenheim Taxable Municipal Managed Duration Trust. It will continue to trade on the New York Stock Exchange under its current ticker symbol, “GBAB”.

It will also continue its primary investment objective of providing current income with a secondary objective of long-term capital appreciation.

Guggenheim Funds Investment Advisors is a subsidiary of Guggenheim Partners, LLC, a financial services firm based in Chicago and New York.

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