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Introducing Calamos Short-Term Bond Fund: Seeking Current Income and Lower Volatility

Christian Brobst
September 19, 2018

Today we introduce Calamos Short-Term Bond Fund (CSTIX), for investors seeking current income accompanied by lower volatility over a one-year to two-year time horizon.

fund facts short term bond

Using a multi-sector fixed income strategy, the fund invests predominantly in U.S. issuers with the goal of generating a high level of current income with preservation of principal.

Key features include:

  • We construct the portfolio bond-by-bond with a focus on being well compensated for risks taken.
  • A broader investable universe enhances portfolio construction and risk management.
  • We conduct robust, independent credit research.
  • We assess how ESG factors impact a company’s cash flow and risk profile, making CSTIX one of just four funds in its Morningstar category that screens for Environmental, Social and Governance (ESG).
  • We apply a macro overlay to capitalize on misunderstood industries and sectors.

"In today’s market environment, it is possible to attain yield close to that of the 30-year Treasury while taking on limited interest rate risk," says Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager. "The shape of the yield curve has created the best opportunity to achieve this goal since 2008.”

As shown in the graph below, adds Christian Brobst, Vice President and Associate Portfolio Manager, “Over a number of economic cycles and various conditions, from the Cold War era to the tech bubble and through the Great Financial Crisis, the benchmark (Bloomberg Barclays U.S. Government/Credit 1-3 Years Index) has experienced positive returns in each calendar year since its inception.”

US short maturity bonds historically generate positive returns

Financial advisors, for more information about CSTIX or the Calamos Fixed Income Credit Analysis Process, talk to a Calamos Investment Consultant at 888-571-2567 or email caminfo@calamos.com.




    Before investing, carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.

    Portfolios are managed according to their respective strategies which may differ significantly in terms of security holdings, industry weightings, and asset allocation from those of the benchmark(s). Portfolio performance, characteristics and volatility may differ from the benchmark(s) shown.

    Environmental, Social and Governance (ESG) is based on the premise of investing in companies that have good environmental records, are ethically run and have a positive social impact.

    Bloomberg Barclays U.S. Government/Credit 1-3 Years Index includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of between 1 and 3 years and are publicly issued. Unmanaged index returns assume reinvestment of any and all distributions and, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.

    The Bloomberg Barclays U.S. Government/Credit 1-3 Years is not intended to act as a proxy for the Calamos Short-Term Bond Fund.

    Important Risk Information. An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.

    The principal risks of investing in the Calamos Short-Term Bond Fund include: interest rate risk consisting of loss of value for income securities as interest rates rise, credit risk consisting of the risk of the borrower to miss payments, high yield risk, liquidity risk, mortgage-related and other asset-back securities risk, including extension risk and prepayment risk, U.S. Government security risk, foreign securities risk, non-U.S. Government obligation risk and portfolio selection risk. As a result of political or economic instability in foreign countries, there can be special risks associated with investing in foreign securities, including fluctuations in currency exchange rates, increased price volatility and difficulty obtaining information. In addition, emerging markets may present additional risk due to potential for greater economic and political instability in less developed countries.

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    Exp. 09/2019

    Archived material may contain dated performance, risk and other information. Current performance may be lower or higher than the performance quoted in the archived material. For the most recent month-end performance information, please CLICK HERE. Archived material may contain dated opinions and estimates based on our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions at the time of publishing. We believed the information provided here was reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

    Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance reflected at NAV does not include the Fund’s maximum front-end sales load. Had it been included, the Fund’s return would have been lower. For the most recent month-end fund performance information visit www.calamos.com.

    Archived material may contain dated performance, risk and other information. Current performance may be lower or higher than the performance quoted in the archived material. For the most recent month-end fund performance information visit www.calamos.com. Archived material may contain dated opinions and estimates based on our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions at the time of publishing. We believed the information provided here was reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

    Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance reflected at NAV does not include the Fund’s maximum front-end sales load. Had it been included, the Fund’s return would have been lower.

    Archived on September 19, 2019