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Unlocking Potential Performance and Societal Returns through Sustainable Investing

Tony Tursich
Jim Madden
Beth Williamson
March 28, 2023

Calamos Antetokounmpo Global Sustainable Equities ETF (SROI) draws on decades of proprietary and pioneering expertise to offer investors a global core growth stock portfolio that focuses on unlocking performance and delivering societal returns. On March 15, 2023, the portfolio management team discussed the benefits of SROI’s approach. We’ve summarized some key points below, and you can access the webcast replay here.

SROI: HELPING TO FUND SOCIETAL RETURNS

SROI is part of a broader partnership between Calamos and NBA superstar Giannis Antetokounmpo, who together have committed to donating a portion of the partnership’s profits to charity.

The SROI team brings authentic experience

Co-Portfolio Manager Tony Tursich, CFA, explained: “This is a continuation of the process that we developed in the 1990s now under a new ETF wrapper. Our team brings decades of proven expertise and historical investment returns to the table.”

  • The team has a combined 70 years of experience that predates ESG and most competitors.
  • The team has a 26-year track record to support its ESG approach.

The benefits of an integrated approach to sustainable investing

“What does ESG investing mean?” Co-Portfolio Manager Jim Madden mused. “The answer gets more confusing as the space gets more crowded.” He went on to describe three approaches:

  1. Impact investing is based on a single issue looking for a solution. Performance returns are a secondary consideration.
  2. Screen or value-space investing involves identifying things investors want to invest in or things they do not want to invest in. Again, performance is a secondary consideration.
  3. An integrated approach involves incorporating the analysis of financial metrics and material, nonfinancial information when evaluating a company. Societal returns and performance returns are given equal consideration.

“An integrated approach,” Madden explained, “is the approach that our team has taken for more than 25 years. We use that information to make better investment decisions with a goal of superior financial returns.”

Identifying high-quality growth companies

“The integration of financial and nonfinancial metrics to identify high-quality growth opportunities and strong return potential is key,” Beth Williamson, Head of Sustainable Equities Research, explained before describing the four-part process:

  • We identify established companies with strong long-term secular growth trends, which means our market cap, trading volume and risk-based thresholds serve as exclusionary screens.
  • We assess companies for strong financial metrics seeking for example higher returns, lower debt and higher margins.
  • We conduct materiality assessments. We analyze a company’s performance against key industry-specific and material ESG issues.
  • We evaluate nonfinancial metrics. We score companies based on our proprietary, one planet prosperity criteria. We believe companies that promote the two drivers of one planet prosperity—improving human lives and reducing ecological impact—offer more compelling investment prospects.

A Global Core Growth Portfolio

Williamson and Tursich provided a deeper dive into the portfolio:

  • Alpha from stock selection. The team does not make big country or sector bets because it intends that the performance of SROI’s holdings should be the main driver of performance for the fund, so our alpha has historically come from stock selection.
  • Sector weights are fairly in line with the benchmark MSCI ACWI (net) Index with the exception of the energy sector because it’s mostly limited to the fossil fuels industries, which the team believes are in long-term decline.
  • Electrons not molecules. While steering away from fossil fuels, the team is bullish on energy. However, their view differs from many managers in the broader market. The shift to clean energy creates opportunities across the economy, spanning multiple sectors—and SROI is participating.
SROI webcast replay

Tursich concluded, “We are looking forward to the next decade as we believe a core, high-quality growth portfolio is the key to competitive returns with lower risks.”

To learn more about how SROI’s integrated financial and nonfinancial strategy strives to capitalize on high-quality, sustainable growth opportunities around the globe—including examples of their security selection process in action—listen to the full replay and Q&A with Tony Tursich, CFA, Jim Madden, CFA and Beth Williamson here.

SROI can be purchased through your trusted investment professional or at most online brokerages. Explore the opportunity here.

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.

Environmental, social and governance (ESG) is based on the premise of investing in companies that have good environmental records, are ethically run and have a positive social impact.

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 Antetokounmpo Global Sustainable Equities ETF 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, value stock risk, foreign securities risk, forward foreign currency contract risk, emerging markets risk, small and mid-sized company 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 the potential for greater economic and political instability in less developed countries.

The Fund’s ESG policy could cause it to perform differently compared to similar funds that do not have such a policy. The application of the social and environmental standards of Calamos Advisors may affect the Fund’s exposure to certain issuers, industries, sectors, and factors that may impact the relative financial performance of the Fund— positively or negatively—depending on whether such investments are in or out of favor.

The Adviser is jointly owned and controlled by Calamos Advisors LLC and, indirectly, by Mr. Antetokounmpo, a well-known professional athlete. Unanticipated events, including, without limitation, death, adverse reputational events or business disputes, could result in Mr. Antetokounmpo no longer being associated or involved with the Adviser. Any such event could adversely impact the Fund and result in shareholders experiencing substantial losses.

Calamos Antetokounmpo Asset Management LLC (“CGAM”), an investment adviser registered with the SEC under the Investment Advisers Act of 1940, serves as the Fund’s adviser (“Adviser”). CGAM is jointly owned by Calamos Advisors LLC and Original C Fund, LLC, an entity whose voting rights are wholly owned by Original PE, LLC which, in turn, is wholly owned by Giannis Sina Ugo Antetokounmpo.

Mr. Antetokounmpo serves on the Adviser’s Board of Directors and has indirect control of half of the Adviser’s Board.

Mr. Antetokounmpo is not a portfolio manager of the Fund and will not be involved in the day-to-day management of the Fund’s investments, and neither Original C nor Mr. Antetokounmpo shall provide any “investment advice” to the Fund. Mr. Antetokounmpo provided input in selecting the initial strategy for the Fund.

Mr. Antetokounmpo will be involved with marketing efforts on behalf of the Adviser.

 If Mr. Antetokounmpo is no longer involved with the Fund or the Adviser then “Antetokounmpo” will be removed from the name of the Fund and the Adviser. Further, shareholders would be notified of any change in the name of the Fund or its strategy.

Alpha is a 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.

The MSCI ACWI (net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets and emerging markets. Unmanaged index returns, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.

Foreside Financial Services, LLC, Distributor

 

Calamos Antetokounmpo Asset Management LLC 2020 Calamos Court | Naperville, IL 60563-2787 866.363.9219 | www.calamos.com | caminfo@calamos.com © 2023 Calamos Investments LLC. All Rights Reserved. Calamos® and Calamos Investments® are registered trademarks of Calamos Investments LLC.

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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.

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.

Archived on March 28, 2024