Calamos Investment Team Outlooks, July 2021
Economic recovery, pent-up consumer demand, and corporate profitability provide a favorable backdrop for investors. However, uncertainty surrounding inflation, interest rate hikes, Covid variants and fiscal policy will contribute to choppy markets in the second half of 2021.
Global Equity: Diversified Emerging Mkts
CNWIX
Evolving World Growth Fund
5 Stars
Among 699 Diversified Emerging Mkts funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 5 stars for 3 years, 5 stars for 5 years and 5 stars for 10 years out of 699, 597 and 315 Diversified Emerging Mkts Funds, respectively, for the period ended 8/31/2021.
The fund offers an active, risk-managed strategy to access growth opportunities in emerging markets. The fund invests in emerging market-domiciled and developed market-domiciled companies with significant revenue exposures attributable to emerging markets.
Global Equity: World Allocation
CGCIX
Global Opportunities Fund
5 Stars
Among 418 World Allocation funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 5 stars for 3 years, 5 stars for 5 years and 5 stars for 10 years out of 418, 361 and 235 World Allocation Funds, respectively, for the period ended 8/31/2021.
The fund invests primarily in global equity and convertible securities in an attempt to balance risk/reward while providing growth and income.
U.S. Equity: U.S. Equities and Convertibles
CGIIX
Growth and Income Fund
5 Stars
Among 289 Allocation--70% to 85% Equity funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 5 stars for 3 years, 5 stars for 5 years and 4 stars for 10 years out of 289, 263 and 185 Allocation--70% to 85% Equity Funds, respectively, for the period ended 8/31/2021.
The fund invests primarily in U.S. equity and convertible securities in an attempt to balance risk/reward while providing growth and income.
Alternative: Options-based
CIHEX
Hedged Equity Fund
4 Stars
Among 85 Options Trading funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 4 stars for 3 years and 4 stars for 5 years out of 85 and 55 Options Trading Funds, respectively, for the period ended 8/31/2021.
Aims to achieve the total return of equity markets with lower volatility. It utilizes a covered call strategy, which invests in a diversified portfolio of equities while using options to generate income and manage risk.
Global Equity: Foreign Large Growth
CIGIX
International Growth Fund
4 Stars
Among 385 Foreign Large Growth funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 4 stars for 3 years, 4 stars for 5 years and 3 stars for 10 years out of 385, 327 and 226 Foreign Large Growth Funds, respectively, for the period ended 8/31/2021.
The fund offers a dynamic approach to accessing international growth opportunities. We apply our active investment approach to build a portfolio of companies with superior growth and quality attributes across developed and emerging markets.
Alternative: Market Neutral
CMNIX
Market Neutral Income Fund
As of April 30, 2021, Morningstar assigned CMNIX to a new category, Relative Value Arbitrage. This category is not assigned a star rating by Morningstar due to its small peer set. For more information about the changes, click here.
Core market strategies include covered call writing and convertible arbitrage. Together, these strategies are intended to provide the fund with an enhanced potential for risk-managed returns due to their differing responses to volatility.
U.S. Equity: Small Growth
CTSIX
Timpani Small Cap Growth Fund
4 Stars
Among 575 Small Growth funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 4 stars for 3 years, 4 stars for 5 years and 4 stars for 10 years out of 575, 506 and 380 Small Growth Funds, respectively, for the period ended 8/31/2021.
The Fund invests in the equity securities of small capitalization companies with high, sustainable growth potential, which may exceed market expectations.
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Today’s Alternatives Snapshot is out—Does Historically High Sharpe Ratio Spell Lower Future Returns? >> bit.ly/2VUh9Cc #liquidalts
On the Blogs
Investment Ideas
For Your Clients as This Record-breaking Year Heads Toward the Finish Line
September 20, 2021
Use our latest brief report to talk to your clients about this extraordinary year in the stock market and how to think about what may be ahead.
Investment Team Voices
Volatility Creates Opportunity in China’s Equity Market
September 10, 2021
Co-CIO Nick Niziolek discusses why the Calamos Global Equity Team is positive on the long-term prospects of many Chinese equities. He also discusses how the team is using convertible securities to purse risk-managed participation in the Chinese equity market.
Featured Newsletters
Newsletter
Calamos Alternative Snapshot
September 20, 2021
Does Historically High Sharpe Ratio Spell Lower Future Returns?
All About Convertible Securities
Our Convertible Securities: Structures, Valuation, Market Environment and Asset Allocation guide is a resource on how convertible bonds work. It’s written by Calamos Founder, Chairman and Global Chief Investment Officer John P. Calamos, Sr.
The Morningstar Relative Value Arbitrage Category is comprised of funds that seek out pricing discrepancies between pairs or combinations of securities regardless of asset class.
The Morningstar Options Trading Category is comprised of funds that use a variety of options trades, including put writing, options spreads, options-based hedged equity, and collar strategies, among others.
Morningstar Allocation—70% to 85% Equity funds seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds and cash. These portfolios are dominated by domestic holdings and have equity exposures between 70% and 85%.
The Morningstar Diversified Emerging Markets Category is comprised of funds with at least 50% of assets invested in emerging markets.
Morningstar World Allocation Category funds seek to provide both capital appreciation and income by investing in three major areas: stocks, bonds, and cash. While these portfolios do explore the whole world, most of them focus on the U.S., Canada, Japan, and the larger markets in Europe. It is rare for such portfolios to invest more than 10% of their assets in emerging markets.
Morningstar Foreign Large Growth Category focuses on high-priced growth stocks, mainly outside of the United States. Most of these portfolios divide their assets among a dozen or more developed markets, including Japan, Britain, France, and Germany. These portfolios typically will have less than 20% of assets invested in U.S. stocks.
Morningstar Small Growth Category funds focus on faster-growing companies whose shares are at the lower end of the market-capitalization range. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields).