NEW YORK, NY – Scott Minerd, Chairman of Investments and Global Chief Investment Officer, has joined the International Monetary Fund’s (IMF) external advisory group to help develop global policy to mitigate the economic impact of the coronavirus pandemic.
“We are already facing the worst global human and economic crisis since the 1930s, and what we have experienced so far merely presages what is to follow as emerging-market economies deteriorate,” said Minerd, who has authored a series of commentaries as the crisis has developed. “It is critical at this juncture that policy experts from around the world pool their collective knowledge to develop effective policies to stave off the worst of the coming crisis—and hopefully position the global economy for a more sustainable and equitable future.”
Convened by IMF Managing Director Kristalina Georgieva, the group includes former and current government officials, private-sector experts and academics. In an April 7 speech before announcing the creation of the group on April 10, Georgieva warned “There is no question that 2020 will be exceptionally difficult. If the pandemic fades in the second half of the year—thus allowing a gradual lifting of containment measures and reopening of the economy—our baseline assumption is for a partial recovery in 2021. But again, I stress there is tremendous uncertainty around the outlook: it could get worse depending on many variable factors, including the duration of the pandemic. And crucially, everything depends on the policy actions we take now.”
Georgieva noted that all 187 IMF member nations had taken significant and often coordinated action to help stabilize their economies, but the uncertainty around the outlook means a more long-term, structured approach was necessary. The creation of the IMF’s external advisory group is the first step in answering that call.
In addition to Minerd, the group of external advisors includes: Ana Botin executive chair of Santander Group; Mohamed El-Erian, chief economic advisor at Allianz and a former IMF official; Kristin Forbes, professor, Massachusetts Institute of Technology and former White House economic advisor; Nyaradzayi Gumbonzvanda, chair of ActionAid International; Mark Malloch-Brown, former United Nations deputy secretary general; Ngozi Okonjo-Iweala, former finance minister of Nigeria and longtime World Bank official; Raghuram Rajan, professor, University of Chicago, and former Reserve Bank of India governor, who also served at the IMF; Carmen Reinhart, professor, Harvard University; Kevin Rudd, former prime minister of Australia; Tharman Shanmugaratnam, senior minister of Singapore and chairman of its monetary authority; Feike Sijbesma, former CEO, Royal DSM. The panel will meet with Georgieva and other senior IMF officials several times a year.
Minerd has a long history of collaborating to serve the greater good. He serves on the Federal Reserve Bank of New York’s Investor Advisory Committee on Financial Markets, and is on the Board of Overseers of the Hoover Institution. Minerd is also a board member of Robert F. Kennedy Human Rights.
For more information, please visit http://www.guggenheiminvestments.com.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with more than $215 billion¹ in total assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 290+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification opportunities and attractive long-term results.
About Guggenheim Partners
Guggenheim Partners is a global investment and advisory firm with more than $275 billion² in assets under management. Across our three primary businesses of investment management, investment banking, and insurance services, we have a track record of delivering results through innovative solutions. With over 2,400 professionals based in offices around the world, our commitment is to advance the strategic interests of our clients and to deliver long-term results with excellence and integrity. We invite you to learn more about our expertise and values by visiting GuggenheimPartners.com and following us on Twitter at twitter.com/guggenheimptnrs.
1Assets under management as of 12.31.2019 and include leverage of $11.8bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.
2Assets under management are as of 12.31.2019 and include consulting services for clients whose assets are valued at approximately $67bn.
Investing involves risk, including the possible loss of principal. Investments in fixed-income instruments are subject to the possibility that interest rates could rise, causing their values to decline. High yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility. Investors in asset-backed securities, including collateralized loan obligations (“CLOs”), generally receive payments that are part interest and part return of principal. These payments may vary based on the rate loans are repaid. Some asset-backed securities may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices volatile and they are subject to liquidity and valuation risk. CLOs bear similar risks to investing in loans directly, such as credit, interest rate, counterparty, prepayment, liquidity, and valuation risks. Loans are often below investment grade, may be unrated, and typically offer a fixed or floating interest rate.
This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.
This material contains opinions of the author, but not necessarily those of Guggenheim Partners, LLC or its subsidiaries. The opinions contained herein are subject to change without notice. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC.