Investment Ideas Home Page

Our Guide to Maximizing the Opportunity in Convertible Securities

If there’s just one thing investment professionals associate with Calamos (although of course we hope there are more!), it’s our rich heritage in convertible securities.

John P. Calamos, Sr.
John P. Calamos, Sr.
Founder, Chairman and Global Chief Investment Officer

“I was intrigued by the risk management attributes of the asset class, and increasingly recognized that with active management, convertible securities could potentially provide the “best of both worlds” offered by stocks and bonds. Importantly, convertible securities were extremely compelling for strategic allocation—they lessened the temptation for investors to make timing calls about the direction of the market, interest rates, or even the economy.”

We were one of the first to launch a convertible fund for retail investors, and we are the only U.S. provider to offer a global convertible fund. Convertibles are core to our largest liquid alternative fund, they’re part of two of our global funds’ strategies, and they’re what differentiate Calamos Growth and Income Fund from other balanced funds.

In the 1970s, when Calamos Founder, Chairman and Global Chief Investment Officer John P. Calamos, Sr. first began using convertibles to pursue returns and manage risk, the asset class was not well understood. John, widely recognized for his pioneering work with convertibles, saw a unique set of opportunities.

Sustained Tailwinds for Global Risk Assets

Over the ensuing decades, we at Calamos have broadened the application of our proprietary research, selectively adding strategies and building a seasoned team with deep experience in the asset class. Today, thanks to clients that include major corporations, pension funds, endowments, foundations and individuals, as well as the investment professionals and consultants who serve them, Calamos is a convertible powerhouse, managing $11.9 billion in convertible assets as of September 30, 2020.

For more on John’s perspectives on an asset class that has distinguished itself in this year of extreme uncertainty and volatility, and to learn more about how each of our six convertible-using funds maximizes the opportunities, download this guide.

Investment professionals, we are always happy to talk convertibles. For more information, 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.

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.

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 principal risks of investing in the Calamos Convertible 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, foreign securities risk, equity securities risk, interest rate risk, credit risk, high yield risk, portfolio selection risk and liquidity 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 principal risks of investing in the Calamos Global Convertible 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, currency risk, geographic concentration risk, American depository receipts, mid-size company risk, small company risk, portfolio turnover 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 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 mid-sized company risk, interest rate risk, credit risk, liquidity risk, high yield risk, forward foreign currency contract risk and portfolio selection risk.

802199 1020