Share Classes and Breakpoints

To meet varying investor needs, Calamos Investments offers different share classes of our funds. Each share class invests in the same portfolio of securities and follows the same objective. Share classes differ from one another in terms of their expenses, and likely in their share prices. They may also have different investment minimums and eligibility requirements. Below, we outline some differences in share classes. Each share class has distinct advantages and disadvantages for different investors. Your financial advisor can help you determine which share class is most appropriate for you. Or, contact us at 800-582-6959.

How much does it cost to buy Class A shares?

Class A shares are sold at the NAV per share, which is the value of a Fund share excluding any sales charges, plus an initial sales charge. The sales charge varies depending on the amount of your purchase, as follows:

Sales Charge
For all Calamos Mutual Funds except Calamos Total Return Bond Fund

Calamos Total Return Bond Fund Sales Charge

How can I reduce sales charges for Class A purchases?

As the sales charge table above shows, the larger your investment, the lower your initial sales charge on Class A shares. There is no initial sales charge for investments of $1,000,000 or more. Each investment threshold that qualifies for a lower sales charge is known as a ''breakpoint.'' You may be able to qualify for a breakpoint on the basis of a single purchase or by aggregating the amounts of more than one purchase, as discussed below.

Can I combine purchases of Calamos Funds to reach a breakpoint?

Yes. The practice of combining purchases to reach a breakpoint is called "rights of accumulation." You may combine the value at the current public offering price of Class A, B and C shares of any Funds within the CALAMOS FAMILY OF FUNDS (including shares of the Prime Obligations Fund, a portfolio of First American Funds (''Prime Obligations Shares''), previously purchased through use of the exchange privilege offered by the CALAMOS FAMILY OF FUNDS) already owned with a new purchase of Class A shares of any Fund within the CALAMOS FAMILY OF FUNDS in order to reduce the sales charge on the new purchase. Then, the sales charge for the new shares will be figured at the rate in the table above that applies to the combined value of your current and new investment.

The Funds receive purchase orders through a variety of distribution channels, including financial intermediaries and cannot always identify accounts that should be combined for purposes of assessing the amount of a sales charge. When you buy shares, be sure to specify to your intermediary any other accounts that may entitle you to a reduced sales charge.

Can shares purchased over time be combined to reach a breakpoint?

Yes. You can purchase additional Class A shares of any Fund over a 13-month period and receive the same sales charge as if you had purchased all the shares at once under a letter of intent. A letter of intent does not obligate you to purchase or sell additional Class A shares.

You may purchase a Fund's Class A shares at the NAV without a sales charge provided that the total amount invested in Class A shares of the Fund or other Funds within the CALAMOS FAMILY OF FUNDS totals at least $1,000,000. With a $1,000,000 purchase order, you will pay a contingent deferred sales charge of 0.50% on shares that are sold within two years after purchase, excluding shares purchased from the reinvestment of dividends or capital gains distributions.

What accounts are eligible for reduced sales charges on Class A shares?

You may aggregate your eligible accounts with the eligible accounts of members of your immediate family to obtain a breakpoint discount. The types of eligible accounts that may be aggregated to obtain the breakpoint discounts described above include:

• Individual accounts
• Joint accounts
• Certain IRA accounts

For the purposes of obtaining a breakpoint discount, members of your ''immediate family'' include your spouse, child, stepchild, parent, sibling, grandchild and grandparent, in each case including in-law and adoptive relationships. In addition, a fiduciary can count all shares purchased for a trust, estate or other fiduciary account (including one or more employee benefit plans of the same employer) that has multiple accounts. Eligible accounts include those registered in the name of your financial intermediary through which you own CALAMOS FAMILY OF FUNDS shares. For more information regarding eligible accounts, please see ''How can I purchase Class A shares without a sales charge?''

How do I obtain a breakpoint discount?

Certain investors may purchase shares at a reduced sales charge or at NAV. The steps necessary to obtain a breakpoint discount depends on how your account is maintained with the CALAMOS FAMILY OF FUNDS. To obtain any of the breakpoint discounts indicated above, you must notify us or your financial advisor at the time you purchase shares of the existence of each eligible account maintained by you or a member of your immediate family. For example, if an initial investment that was less than $1,000,000 grows to over $1,000,000, you must tell us or your financial advisor that you qualify to purchase Class A shares without an initial sales charge when you make a subsequent investment. If you do not let us or your financial advisor know of all of the holdings or planned purchases that make you eligible for a reduction, you may not receive a discount to which you are otherwise entitled. If you make your investment through a financial advisor, it is your financial advisor's sole responsibility to ensure that you receive discounts for which you are eligible and the Funds are not responsible for a financial advisor's failure to apply the eligible discount to your account.

You may be asked by the Funds or your financial advisor for account statements or other records to verify your discount eligibility, including, where applicable, records for accounts opened with a different financial advisor and records of accounts established by members of your immediate family. If you own shares exclusively through an account maintained with the Funds' transfer agent, you will need to provide the foregoing information to the Funds at the time you purchase shares. Information regarding sales loads and discounts applicable to the Funds may be found in the Funds' Statement of Additional Information.

How can I purchase Class A shares without a sales charge?

Class A shares of a Fund may be purchased at NAV, with no initial sales charge, under the following scenarios, provided you notify CFS, the Funds' distributor, or your financial advisor, in writing at the time of purchase, that you are eligible:

1. any investor buying shares through a wrap account or other investment program whereby the investor pays the investment professional directly for services;
2. any investor buying shares by exchange of Prime Obligation Shares previously purchased through use of the exchange privilege offered by the CALAMOS FAMILY OF FUNDS for which a sales charge has previously been incurred with respect to the exchanged shares;
3. any investor buying shares through a qualified employee benefit plan where such plan has at least $1,000,000 in assets or 100 employees, or where the administrator for such plan acts as the administrator for qualified employee benefit plans with assets of at least $1,000,000;
4. any company exchanging shares with a Fund pursuant to a merger, acquisition or exchange offer;
5. any investor, including any investment company, that has entered into an investment advisory agreement or other arrangements with CALAMOS ADVISORS or its affiliates;
6. any insurance company separate account;
7. any current or retired trustee of the Trust, or other registered investment company where CALAMOS ADVISORS acts as the sole investment adviser; or any associated trust, person, profit sharing or other benefit plan of such current or retired trustee;
8. any employee of CFS, its affiliates or an entity with a selling group agreement with CFS and its employees; and
9. any member of the immediate family of a person qualifying under (g) or (h), including a spouse, child, stepchild, parent, sibling, grandchild and grandparent, in each case including in-law and adoptive relationships.

In addition, Class A shares of the Convertible Fund may be bought without an initial sales charge by any shareholder of the Convertible Fund who has been a shareholder since April 30, 1992. Furthermore, proceeds of Class A shares redeemed from a Fund within the previous sixty days may be reinvested in Class A shares of that Fund at net asset value without the payment of any sales charge.

What sales charges and redemption fees are associated with Class B shares?

With Class B shares, you pay no initial sales charge, but a Fund pays an aggregate distribution and service fee at the annual rate of 1.00% of average net assets. As a result, the annual expenses for Class B shares are somewhat higher compared to Class A shares, which pay an aggregate 0.25% distribution and/or service fee.  After eight years, Class B shares automatically convert to Class A shares, which has the effect of lowering the annual expenses from the ninth year on.

Class B shares have a contingent deferred sales charge that declines over the years you own shares, and terminates completely after six years of ownership, measured from the first day of the month in which the shares were purchased. For any shares you sell within those six years, you may be charged at the following rates:

Class B Shares: Sales Charge Schedule
For all Calamos Mutual Funds except Calamos Total Return Bond Fund

Calamos Total Return Bond Fund Class B Shares: Sales Charge Schedule

The contingent deferred sales charge will not be applied to the purchase of shares from the reinvestment of dividends or capital gains distributions. The contingent deferred sales charge on the sale of Class B shares will be charged based on the lesser of cost or market value. For purposes of determining the contingent deferred sales charge, Class B shares are considered sold on a first-in, first-out basis.

No order for Class B shares of any Fund may exceed $100,000.

What are the sales charges and redemption fees associated with Class C shares?

With Class C shares, you pay no initial sales charge, but a Fund pays an aggregate distribution and service fee at the annual rate of 1.00% of average net assets. As a result, similar to Class B shares, the annual expenses for Class C shares are somewhat higher compared to Class A shares, which pay an aggregate 0.25% distribution and/or service fee.

Class C shares have a contingent deferred sales charge of 1% for any shares redeemed within one year of purchase. A contingent deferred sales charge on the sale Class C shares will be charged based on the lesser of cost or market value. For purposes of determining the contingent deferred sales charge, Class C shares are considered sold on a first-in, first-out basis.

Class C shares have a lower contingent deferred sales charge than Class B shares, but Class C shares DO NOT convert to Class A shares.

No order for Class C shares of any Fund may exceed $1,000,000.

Who can invest in Class R shares?

Class R shares are designed for individuals investing in retirement plans; individual investors cannot purchase R shares directly. Class R shares may only be purchased through certain tax-exempt retirement plans held in plan level or omnibus accounts, including 401(K) plans, 457 plans, employer-sponsored 403(B) plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans.  The offering price for Class R shares is the NAV per share with no initial sales charge. Each Fund pays an aggregate distribution and service fee at the annual rate of 0.50% of average net assets.

Who can invest in Class I shares?

Class I shares are offered primarily for direct investment by investors through certain tax-exempt retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) and by institutional clients, provided such plans or clients have assets of at least $1 million. Class I shares may also be offered to certain other entities or programs including, but not limited to, investment companies, under certain circumstances. The Fund may also waive the minimum initial investment.