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CICVX Named Top Bond Fund, Among the Best for 2019
March 26, 2019
Calamos Convertible Fund (CICVX) has been named to the Investor’s Business Daily (IBD) list of Best U.S. Taxable Bond Funds.
In its article headlined What Are The Best Bond Funds To Invest In This Year? IBD notes the obstacle course that 2018 presented as interest rates rose across the board and the credit sector experienced increased volatility as spreads widened.
CICVX, IBD's top convertible bond fund among those open to new investors, finished 2018 and the last 10 years well ahead of the Bloomberg Barclays U.S. Aggregate Bond Index (see performance below).
Last year showcased the advantages offered by convertible bonds, Senior Vice President and Co-Portfolio Manager Joseph Wysocki, CFA, told the publication.
As a fixed income security with an embedded equity option, convertibles’ optionality enabled them to participate in much of the equity market upside during the first three quarters of 2018. The holdings’ principal protection “kicked in” during the fourth quarter’s sharp correction to help protect those gains, Wysocki explained. (For more, see How CICVX’s Active Management Won the Latest Bout of Equity Volatility.)
Wysocki describes 2019 as continuing to be “quite healthy” for converts. Convertible issuance last year was at a 10-year high, and included new companies that keep the market fresh. Issuers are in some of the most exciting areas of the market and they provide strong secular and cyclical growth opportunities, according to Wysocki.
Financial advisors, please contact your Calamos Investment Consultant at 888-571-2567 or email [email protected] for more information about CICVX.
Data as of 12/31/18
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 1-800-582-6959. Read it carefully before investing.
The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed rate and hybrid ARM pass-throughs), ABS, and CMBS sectors.
The ICE BofAML All U.S. Convertibles Index (VXA0) comprises approximately 700 issues of only convertible bonds and preferreds of all qualities. Source ICE Data Indices, LLC, used with permission. ICE permits use of the ICE BofAML indices and related data on an ‘as is’ basis, makes no warranties regarding same, does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofAML Indices or data included in, related to, or derived therefrom, assumes no liability in connection with the use of the foregoing and does not sponsor, endorse or recommend Calamos Advisors LLC or any of its products or services.
The S&P 500 Index is a market-value weighted index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is widely regarded as the standard for measuring U.S. stock-market performance.
The Value Line Convertible Index is an equally weighted index of the largest convertibles. 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.
Morningstar Convertibles Category funds are designed to offer some of the capital appreciation potential of stock portfolios while also supplying some of the safety and yield of bond portfolios. To do so, they focus on convertible bonds and convertible preferred stocks. Convertible bonds allow investors to convert the bonds into shares of stock, usually at a preset price. These securities thus act a bit like stocks and a bit like bonds.
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 Convertible Fund include: convertible securities risk consisting of the potential for a decline in value during periods of rising interest rates and the risk of the borrower to miss payments, synthetic convertible instruments risk consisting of fluctuations inconsistent with a convertible security and the risk of components expiring worthless, foreign securities risk, equity securities risk, interest rate risk, credit risk, high yield risk, portfolio selection risk and liquidity 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.