We’ve (Been) Moved! New Morningstar Category for Growth and Income Fund
December 7, 2016
Financial advisors, if you’re looking for Calamos Growth and Income Fund (CGIIX) on Morningstar, you’ll find that the fund has been moved to a new category: Allocation—70% to 85% Equity.
The move is part of changes made in late November when Morningstar combined mutual funds and exchange-traded funds into a single peer group for the calculation of the Morningstar rating for funds, percentage ranks, category averages, and other statistics based upon category, firm or fee level groups.
"Investors increasingly see open-end funds and ETFs as interchangeable options when choosing investments," Ben Johnson, Morningstar's director of global ETF research, told InvestmentNews in September. "By combining them into the same peer group, investors can more easily compare investments regardless of product structure."
This is CGIIX’s second Morningstar category move of the year. In May, Morningstar expanded its category framework for allocation funds—the fund was moved from the Moderate Allocation category to the Allocation 50%-70% Equity category.
CGIIX invests primarily in U.S. equity and convertible securities in an attempt to balance risk and reward while providing growth and income.
Funds in Morningstar’s Allocation—70% to 85% Equity category 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 difference-maker—CGIIX’s use of convertible securities—has enabled it to historically capture a significant amount of upside during bull markets and limited losses when markets have plunged. The result: in losing less the fund has outperformed the benchmark with a beta of 0.64 and alpha of 3.76% since fund inception (11.06% I shares vs. 10.13% for the S&P 500 Index).
For more information, please talk to your Calamos Investment Consultant at 888-571-2567 or email@example.com.
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.
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 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 midsized company risk, interest rate risk, credit risk, liquidity risk, high yield risk, forward foreign currency contract risk and portfolio selection risk.
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 of 4.75% 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.
The BofA ML All U.S. Convertibles Index (VXA0) returns start date is 12/31/87. Morningstar Moderate Allocation funds seek to provide both capital appreciation and income by investing in three major areas: stocks, bonds, and cash. These portfolios tend to hold larger positions in stocks than conservative allocation portfolios. These portfolios typically have 70% to 85% of assets in equities and the remainder in fixed income and cash. BofA Merrill Lynch All U.S. Convertibles Ex Mandatory Index (V0A0) represents the U.S. convertible market excluding mandatory convertibles. Value Line Convertible Index is an equally weighted index of the largest convertibles. The S&P 500 Index is generally considered representative of the U.S. stock market.
Convertible Securities Risk: 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. Alpha is the measurement of performance on a risk adjusted basis. A positive alpha shows that performance of a portfolio was higher than expected given the risk. A negative alpha shows that the performance was less than expected given the risk. Beta is an historic measure of a fund’s relative volatility, which is one of the measures of risk; a beta of 0.5 reflects 1/2 the market’s volatility as represented by the fund’s primary benchmark, while a beta of 2.0 reflects twice the volatility.
Class I shares are offered primarily for direct investment by investors through certain tax-exempt retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) and by institutional clients, provided such plans or clients have assets of at least $1 million. Class I shares may also be offered to certain other entities or programs, including, but not limited to, investment companies, under certain circumstances.
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