Starting this month and throughout the rest of the year, watch for our advertising campaign and key content placements designed to awareness and understanding of Calamos’ approach to emerging markets.
Calamos Evolving World Growth Fund, celebrating its eighth anniversary on August 15, was created as a means for clients to get exposure to emerging markets opportunities while potentially protecting against the downside. What was true in 2008 is even more true today: we believe emerging markets should be a core portfolio allocation. And yet we hear from advisors that volatility and the risk of portfolio drawdowns is the main reason clients resist emerging markets exposure.
We take a rational, differentiated approach to accessing growth in emerging markets, including:
Owning companies with higher quality fundamentals and durable secular themes
Widening the opportunity set (via revenue mapping and multinationals) to unlock more opportunities to target growth themes and enable active management
Employing an advantaged pool of securities and convertible securities to manage the risk and reward profile
Emphasizing investment in economies that are enacting structural reforms, with rising economic freedoms
We call it “EM investing our way,” and that’s the theme of the ad campaign underway. Hear more about the fund’s backstory and approach in this video with Nick Niziolek, Co-CIO, Head of International and Global Strategies, Senior Co-Portfolio Manager.
Emerging Markets Rally 2016
“Our Way” speaks to the investment management discipline that financial advisors and their clients can expect from Calamos.
For example, consider what happened the first four months of 2016. Emerging markets rallied but take a closer look at where the gains came from—state-owned enterprises and lower quality countries of Brazil, Russia and South Africa—and there should be no surprise that Calamos underperformed in the short term.
Those are rallies we will miss, more likely than not. Where we invest is where we believe capital is treated well and we can manage the significant and inevitable risk of emerging markets. That’s what advisors count on us to do.
We can wait our turn, and in fact, since April, higher quality growth emerging markets stocks have started to rally. These are the companies that we believe have strong fundamentals and are positioned to take advantage of secular themes.
Since 2008 our way has enabled Calamos Evolving World Growth Fund to access EM growth, historically capturing the upside while limiting losses to produce a smoother and better return to the shareholder 73% of the time.
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.
Data as of 6/30/16.
Beta. A common measure of historic volatility, beta measures how much of an investment’s performance is attributable to market-wide factors (such as a rising stock market). An investment that goes up or down as much as a broad market measure has a beta of 1. An investment that captures only half of the market’s movements would have a beta of 0.5.
Standard Deviation. Measures the overall risk of a fund.
Upside capture ratio measures a manager’s performance in up markets relative to the named index itself. It is calculated by taking the security’s upside capture return and dividing it by the benchmark’s upside capture return.
Downside capture ratio measures manager’s performance in down markets as defined by the named index.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.
The principal risks of investing in the Calamos Evolving World Growth Fund include: equity securities risk, growth stock risk, foreign securities risk, emerging markets risk, convertible securities 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.
The value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors also may have an effect on the convertible security’s investment value.
The principal risks of investing in Calamos Emerging Market Equity Fund: equity securities risk consisting of market prices declining in general, growth stock risk consisting of potential increased volatility due to securities trading at higher multiples, foreign securities risk, emerging markets risk, currency risk, geographic concentration risk, American depository receipts, mid-size company risk, small company risk, portfolio turnover risk and portfolio selection risk.
The MSCI Emerging Markets Index-is a free float-adjusted market capitalization index. As of August 2005, the index consisted of the following 26 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela. The index represents companies within these countries that are available to investors worldwide. 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.
MSCI Emerging Markets Value Index captures large and mid cap securities exhibiting overall value style characteristics across 23 Emerging Markets (EM) countries. MSCI Emerging Markets Growth Index captures large and mid cap securities exhibiting overall growth style characteristics across 23 Emerging Markets (EM) countries.
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. 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.