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Guggenheim Credit Allocation Fund Modifies Certain Non-Fundamental Investment Policies

CHICAGO, Nov. 25, 2014 (GLOBE NEWSWIRE) -- Guggenheim Credit Allocation Fund ("GGM" or the "Fund") today announced that the Fund's Board of Trustees (the "Board") approved modifications to certain non-fundamental investment policies.

GGM is a diversified, closed-end management investment company. The Fund's investment objective is to seek total return through a combination of current income and capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in fixed-income securities, debt securities and loans and investments with economic characteristics similar to fixed-income securities, debt securities and loans (collectively, "credit securities"). Credit securities in which the Fund may invest consist of corporate bonds, loans and loan participations, asset-backed securities (all or a portion of which may consist of collateralized loan obligations), mortgage-backed securities (both residential mortgage-backed securities and commercial mortgage-backed securities), U.S. Government and agency securities, mezzanine and preferred securities, convertible securities, commercial paper, municipal securities and sovereign government and supranational debt securities. The Fund will seek to achieve its investment objective by investing in a portfolio of credit securities selected from a variety of sectors and credit qualities. The Fund may invest in credit securities that are rated below investment grade, or, if unrated, determined to be of comparable quality (also known as "high yield securities" or "junk bonds"). The Fund may invest in credit securities of any duration or maturity. Credit securities in which the Fund may invest may pay fixed or variable rates of interest. The Fund may invest without limitation in securities of non-U.S. issuers, including issuers in emerging markets.

Non-Fundament Investment Policies Modifications

The Fund's Board approved the modification of certain non-fundamental investment policies relating to the Fund's ability to invest in asset-backed securities ("ABS"). The Fund has eliminated its policies that provided that the Fund would not invest more than 20% of its managed assets in ABS and would not invest in ABS that were, at the time of investment, below investment grade. As a result of these modifications, the Fund now has the ability to invest without limitation in ABS of any credit quality, subject to the Fund's general policy that, under normal market conditions, the Fund will not invest more than 25% of its managed assets in credit securities that are, at the time of investment, rated Caa1 or below by Moody's Investors Service, Inc. or CCC+ or below by Standard & Poor's Ratings Services or Fitch Ratings, or that are unrated but determined by the Fund's adviser to be of comparable quality. The goal of this modification is to provide additional investment flexibility to seek to further enhance shareholder value.

Investment in below investment grade securities, which are commonly referred to as "high-yield" or "junk" bonds, involves substantial risk of loss. Securities of below investment grade quality are considered predominantly speculative with respect to the issuer's capacity to pay interest and repay principal when due and therefore involve a greater risk of default or decline in market value due to adverse economic and issuer-specific developments. In addition to the general risks associated with credit securities, ABS are subject to additional risks. ABS may be particularly sensitive to changes in prevailing interest rates. Payment of interest and repayment of principal on ABS is largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds or other credit enhancements. There is the possibility that recoveries on the underlying collateral may not, in some cases, be available to support payments on these securities, which may result in losses to investors in an ABS transaction. Due to their often complicated structures, certain ABS may be difficult to value and may constitute illiquid investments.

For additional information regarding GGM, please visit www.guggenheiminvestments.com/GGM.

About Guggenheim Investments

Guggenheim Investments represents the investment management division of Guggenheim Partners, LLC ("Guggenheim"), which consists of investment managers with approximately $194.2 billion in combined total assets*. Collectively, Guggenheim Investments has a long, distinguished history of serving institutional investors, ultra-high-net-worth individuals, family offices and financial intermediaries. Guggenheim Investments offers clients a wide range of differentiated capabilities built on a proven commitment to investment excellence. Guggenheim Investments has offices in Chicago, New York City and Santa Monica, along with a global network of offices throughout the United States, Europe, and Asia.

Guggenheim Investments is comprised of several investment management entities within Guggenheim, which includes Guggenheim Funds Distributors, LLC and Guggenheim Funds Investment Advisors, LLC (together, "Guggenheim Funds"). Guggenheim Funds Investment Advisors, LLC serves as Investment Adviser for GGM.

* Guggenheim Investments total asset figure is as of September 30, 2014. The assets include leverage of $12.14bn for assets under management and $0.465bn for assets for which we provide administrative services. Guggenheim Investments represents the following affiliated investment management businesses: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Aviation, Guggenheim Real Estate, LLC, Transparent Value Advisors, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.

This information does not represent an offer to sell securities of the Fund and it is not soliciting an offer to buy securities of the Fund. There can be no assurance that the Fund will achieve its investment objectives. Investment in the Fund involves operating expenses and fees. The net asset value of the Fund will fluctuate with the value of the underlying securities. It is important to note that closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value. Past performance is not indicative of future performance. An investment in closed-end funds is subject to investment risk, including the possible loss of the entire amount that you invest. Some general risks and considerations associated with investing in a closed-end fund include: Investment and Market Risk; Lower Grade Securities Risk; Equity Securities Risk; Foreign Securities Risk; Interest Rate Risk; Illiquidity Risk; Derivative Risk; Management Risk; Anti-Takeover Provisions; Market Disruption Risk and Leverage Risk. See www.guggenheiminvestments.com/GGM for a detailed discussion of fund-specific risks.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of any investment before they invest. For this and more information visit www.guggenheiminvestments.com or contact a securities representative or Guggenheim Funds Distributors, LLC 227 West Monroe Street, Chicago, IL 60606, 800-345-7999.

NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE

Member FINRA/SIPC (11/14)

CONTACT: Analyst Inquiries William T. Korver cefs@guggenheimfunds.comSource: Guggenheim Investments Illinois