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Calamos Short-Term Bond Fund: Risk-Adjusted Returns + Yield

  • Risk-Adjusted Returns. Calamos Short-Term Bond Fund (CSTIX) one-year rolling Sharpe ratios have beat the Morningstar category average every month since inception.
  • Yield. CSTIX has an attractive yield versus its category, which also provides favorable yields right now versus longer-duration investments because of the inverted yield curve.

Sharpe Ratios above the Category Since Inception

CSTIX has produced Sharpe ratios above the Morningstar Short-Term Bond Category average since the fund’s inception. The below chart highlights CSTIX’s rolling one-year Sharpe ratio and performance percentiles compared with the category.

CSTIX Rolling One-Year Sharpe Ratios and Performance vs. Morningstar Category

Past Performance is no guarantee of future results. Source: Morningstar Direct as of 2/28/2023

Attractive Yields from CSTIX and Short-Term Bonds

Based on its bond-by-bond, credit-focused research process, CSTIX offers an attractive yield versus its Morningstar Category, which—because of the yield curve—is also broadly attractive right now versus categories with longer-duration portfolios.

sec yield

Source: Morningstar Direct as of 2/28/2023.

As our investment team illustrated earlier this year, a flatter or inverted yield curve makes short-duration investments especially attractive as investors are rewarded with more yield without having to take additional duration risk. The chart below highlights how the yield curve has inverted over the past 12 months.

Higher and Inverted Daily Treasury Yield Curve

cstix treasury yield

Source: U.S. Department of the Treasury. Daily Treasury par yield curve.

For additional information about the potential long-term benefits of including Calamos Short-Term Bond Fund within a fixed income asset allocation, please contact your Calamos Investment Consultants at 888-571-2567 or [email protected].

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.

Calamos Short-Term Bond Fund average annual returns and expense ratio

Unmanaged index returns, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.

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, US Government security risk, foreign securities risk, non-US 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 the potential for greater economic and political instability in less developed countries.

Average effective duration provides a measure of the Fund’s interest-rate sensitivity—the longer a fund’s duration, the more sensitive it is to shifts in interest rates.

Sharpe ratio is a calculation that reflects the reward per each unit of risk in a portfolio. The higher the ratio, the better the portfolio’s risk-adjusted return is.

30-day SEC yield reflects the dividends and interest earned by the Fund during the 30-day period ended as of the date stated above after deducting the Fund’s expenses for that same period.

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