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Evergrande Is Not China’s ‘Lehman Moment’: Niziolek in Video Quick Take

The pending Evergrande bankruptcy is not a systemic shock with the potential to ripple through financial markets, says Nick Niziolek, CFA, Co-CIO, Head of Global Strategies, Senior Co-Portfolio Manager, in this Quick Take video. 

There’s a key difference, he says, between Evergrande and the Sept. 15, 2008, collapse of Lehman Brothers, which required an emergency response from global policymakers at the start of what would turn into the Great Financial Crisis. In contrast, Niziolek says, the Chinese government for the last year has signaled that they would curtail their support of China’s highly leveraged property market and that defaults were to be expected.

Watch to learn the two signs that would indicate to the Global Equity team that conditions may be getting out of control, and could be more concerning.

TRANSCRIPT

Watch this video for Niziolek on the Calamos Evolving World Growth Fund (CNWIX)’s underweight in China, and where the team specifically believes the country continues to offer opportunities. He comments on why he considers China an ideal market to use convertible securities, to help dampen the downside while pursuing the potential for equity upside. He also touches on the fund’s positioning in India.

TRANSCRIPT

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.

Past performance is no guarantee of future results.

Video recorded on September 21, 2021. 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 material has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon 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 should not be relied upon as advice or interpreted as a recommendation.

The principal risks of investing in the Calamos Evolving World Growth Fund include: 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, 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, 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.

Top 10 Holdings

As of 6/30/21
Company Security Type Industry %
Taiwan Semiconductor Mfg Co. Stocks Semiconductors 5.6%
Samsung Electronics Company, Ltd. Stocks Technology Hardware, Storage & Peripherals 3.8%
Tencent Holdings, Ltd. Stocks Interactive Media & Services 3.2%
HDFC Bank, Ltd. Stocks Diversified Banks 2.8%
Cemex, SAB de CV Stocks Construction Materials 2.2%
Meituan Convertible Bonds Internet & Direct Marketing Retail 2.0%
MediaTek, Inc. Stocks Semiconductors 1.9%
Alibaba Group Holding, Ltd. Stocks Internet & Direct Marketing Retail 1.9%
Wuxi Biologics Cayman, Inc. Stocks Life Sciences Tools & Services 1.9%
Taiwan Semiconductor Mfg (ADR) Stocks Semiconductors 1.6%
Total 26.9%

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