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Could a Fixed Income Alternative Reduce the Interest Rate Sensitivity of Your Retirement Portfolios?
October 18, 2018
Fixed income has long played a role in retirement portfolios, but there’s no avoiding it: Fixed income assets’ interest rate sensitivity can take a toll on performance.
Financial advisors, let us show you how substituting a fixed income alternative can provide the same level of income—or more. Download this hypothetical illustration to see how Calamos Market Neutral Income Fund would have matched the income provided by an investment pegged to the Bloomberg Barclays U.S. Aggregate Bond Index over the last 28 years.
The fund’s advantage over fixed income: Since its inception, the fund has outperformed the index in every period when the 10-year Treasury yield increased more than 100 basis points. The fund’s core market strategies include covered call writing and convertible arbitrage. Together, the strategies are intended to provide an enhanced potential for risk-managed returns due to their differing responses to volatility.
To learn more, download this PDF or talk to your Calamos Investment Consultant. Call 888-571-2567 or email [email protected].
Calamos ranks fifth on the list of alternative fund managers by assets under management in the Morningstar Alternatives Category as of 9/30/18.
Data as of 9/30/18
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 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.
Alternative investments are not suitable for all investors.
The principal risks of investing in the 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.
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).
Bloomberg Barclays U.S. Government/Credit Index comprises long-term government and investment grade corporate debt securities and is generally considered representative of the performance of the broad U.S. bond market. Unlike convertible bonds, U.S. Treasury bills are backed by the full faith and credit of the U.S. government and offer a guarantee as to the timely repayment of principal and interest.
Citigroup 30-Day T-Bill Index is generally considered representative of the performance of short-term money market instruments.
Morningstar Market Neutral Category represents funds that attempt to eliminate the risks of the market by holding 50% of assets in long positions in stocks and 50% of assets in short positions.