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More Relevant Than Ever as a Bond Portfolio Diversifier, CMNIX Marks 30th Year

Investment professionals, here are four questions for you as you consider your fixed income allocations:

the fixed income challenge ultra low rates
  • What are the odds of your investment grade bonds earning a positive rate of return?
  • What are the odds of your investment grade bonds earning a positive rate of return…net of inflation?
  • What are the odds of your investment grade bonds earning a positive rate of return net of inflation…and any conceivable wrap fee?
  • How do you wrap assets that have a lower expected return than your wrap fee?

cmnix 30 years logo

Today’s exceptionally low yields fundamentally change the risk vs. reward proposition of traditional fixed income—and they challenge the expectations of the role they can play in helping your clients achieve their investment objectives.

As an alternative, we invite you to consider Calamos Market Neutral Income Fund (CMNIX). One of the earliest liquid alts, CMNIX last month marked its 30th year as a bond portfolio diversifier with proven experience in capitalizing on equity volatility.

Join us as we celebrate CMNIX’s long record of performance results, including its:

  • Resilience in rising rate environments (see this chart)
  • Historic lower sensitivity to drawdowns, thanks to its hedged equity strategy (see this interactive chart)
  • Historically smaller drawdowns followed by performance gains, thanks to its convertible arbitrage strategy (see this interactive chart)
  • Performance consistency, as reflected in its series of four and five star Morningstar rankings since the Market Neutral Category was created (see this graphic).

Calamos Market Neutral Income Fund (CMNIX)

Morningstar Overall RatingTM Among 101 Market Neutral funds. The Fund's risk-adjusted returns based on load-waived Class I Shares had 4 stars for 3 years, 5 stars for 5 years and 5 stars for 10 years out of 101, 74 and 22 Market Neutral Funds, respectively, for the period ended 9/30/2020.

In 1990, Calamos Founder, Chairman and Global Chief Investment Officer John P. Calamos, Sr. broke ground with the concept of offering a sophisticated alternative investment strategy in a mutual fund wrapper.

“The fundamental driver was that individual investors—like the institutional players that were beginning to diversify into hedge funds and other low beta strategies at the time—also deserved access to an investment product that would help them reduce risk while still participating in market upside,” John recalls.

Today, with historically low rates, continuously high equity volatility and investment professionals’ need to build ballast into client portfolios, 30-year-old CMNIX has never been more relevant. For more information, see the fund’s anniversary page or contact your Calamos Investment Consultant at 888-571-2567 or caminfo@calamos.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.

Click here to view CMNIX's standardized performance.

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. 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.

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 Calamos Market Neutral Income Fund include: equity securities risk consisting of market prices declining in general, 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, convertible hedging risk, covered call writing risk, options risk, short sale risk, interest rate risk, credit risk, high yield risk, liquidity risk, portfolio selection risk, and portfolio turnover risk.

The S&P 500 Index is generally considered representative of the U.S. stock market.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Morningstar RatingsTM are based on Class I shares and will differ for other share classes. Morningstar ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly historical performance (reflecting sales charges), placing more emphasis on downward variations and rewarding consistent performance. Within each asset class, the top 10%, the next 22.5%, 35%, 22.5%, and the bottom 10% receive 5, 4, 3, 2 or 1 star, respectively. Each fund is rated exclusively against U.S. domiciled funds. The information contained herein is proprietary to Morningstar and/ or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Source: ©2020 Morningstar, Inc. All rights reserved.

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