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Consistency Across Market Cycles: CGIIX's Top-Decile Performance Helped Keep Clients Invested
November 28, 2018
Clients will always be tempted to retreat from the market when volatility increases and stock indexes register big one-day drops—in other words, during a month like November.
But there’s a cost to trying to time the market. As Calamos Founder, Chairman and Global CIO John P. Calamos, Sr. explained in last week’s post, market-timers were likely losers this year.
Many financial advisors seeking performance consistency across market cycles use Calamos Growth and Income Fund (CGIIX). CGIIX’s not-at-all-secret weapon is convertible securities, which can help even out the extremes of market upside and downside performance. Convertible holdings—which have helped to moderate volatility across standard time periods and contributed to the fund's top-decile performance—are a differentiator among CGIIX's peers in the Morningstar Allocation - 70% to 85% Equity Funds category.
Also consider the fund’s performance over time in comparison to the S&P 500.
As we look ahead, we see few good reasons to get out of the market—and more than a few to remain invested, including:
- Strong corporate earnings and GDP growth.
- The U.S. economy continues to exhibit solid fundamentals.
- U.S. equities have been outperforming other global markets.
Financial advisors, for more information about CGIIX and how it could help you manage the risks of today’s uncertain markets, talk to a Calamos Investment Consultant at 888-571-2567 or email [email protected].
Data as of 9/30/18
|Total Expense Ratio†
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.
Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is 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. The opinions and views of third parties do not represent the opinions or views of Calamos Investments LLC. Opinions are subject to change due to changes in the market, economic conditions or changes in the legal and/or regulatory environment and may not necessarily come to pass. This information is provided for informational purposes only and should not be considered tax, legal, or investment advice. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations.
The principal risks of investing in the Calamos Growth and Income 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, equity securities risk, growth stock risk, small and mid-sized company risk, interest rate risk, credit risk, liquidity risk, high yield risk, forward foreign currency contract risk and portfolio selection risk.
ICE BofAML All U.S. Convertibles ex Mandatory Index (V0A0) represents the U.S. convertible market excluding mandatory convertibles. 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.
†Morningstar Allocation—70% to 85% Equity Category 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 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.
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