Calamos: 'Lost Decade' Shows Potential Value of Active Management
All 6 Calamos Funds with 10-Year Records Outperformed the S&P 500 Index from 2000-2009
NAPERVILLE, Ill., Feb. 3 /PRNewswire-FirstCall/ -- The "Lost Decade" lesson for investors is that active management of investment portfolios can be extremely beneficial, according to a white paper unveiled today by Calamos Investments. The white paper is posted on the firm's website at http://fundinvestor.calamos.com/lostdecade.aspx.
From 2000 to 2009, equities as an asset class (as measured by the S&P 500 Index) failed to provide positive returns for investors, "but this doesn't mean investing in the capital markets was not worthwhile," the paper says. "On the contrary, based on our experience, we believe the 'Lost Decade' reaffirms the value and importance of carefully considered, actively managed security selection."
A chart illustrates the outperformance of six Calamos funds with track records of 10 years or longer vs. the S&P 500 Index from 2000-2009, especially when returns are calculated on a cumulative basis. Actively managed Calamos funds referenced in the paper include:
- Calamos Convertible Fund
- Calamos Growth & Income Fund
- Calamos Growth Fund
- Calamos Market Neutral Income Fund
- Calamos Global Growth & Income Fund
- Calamos High Yield Fund
Average Annual Returns as of 12/31/2009, Calamos Funds–Class A shares
Fund (ticker) and inception 1 Yr 3 Yr 5 Yr 10 Yr
--------------------------- ---- ---- ---- -----
CONVERTIBLE (CCVIX)-6/21/85
---------------------------
At NAV 34.00% 2.94% 4.13% 4.89%
------ ----- ---- ---- ----
Load adjusted 27.67 1.28 3.11 4.38
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Value Line Convertible Index 49.30 3.44 4.86 4.39
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GROWTH & INCOME (CVTRX)-9/22/88
-------------------------------
At NAV 37.02 1.19 4.23 5.58
------ ----- ---- ---- ----
Load adjusted 30.50 -0.43 3.21 5.07
------------- ----- ----- ---- ----
S&P 500 Index 26.46 -5.63 0.42 -0.95
------------- ----- ----- ---- -----
BofA ML All U.S. Convertibles ex.
Mandatory Index 47.19 0.88 2.90 2.41
--------------------------------- ----- ---- ---- ----
GROWTH FUND (CVGRX)-9/4/90
--------------------------
At NAV 52.47 -2.24 0.56 5.49
------ ----- ----- ---- ----
Load adjusted 45.25 -3.81 -0.42 4.98
------------- ----- ----- ----- ----
Russell Midcap(R) Growth Index 46.29 -3.18 2.40 -0.52
---------------------------- ----- ----- ---- -----
MARKET NEUTRAL INCOME (CVSIX)-9/4/90
------------------------------------
At NAV 13.80 1.49 2.11 4.98
------ ----- ---- ---- ----
Load adjusted 8.37 -0.13 1.13 4.47
------------- ---- ----- ---- ----
Barclays Capital U.S. Govt/Credit Bond
Index 4.52 5.81 4.71 6.34
-------------------------------------- ---- ---- ---- ----
Citigroup 30-Day Treasury Index 0.09 1.98 2.72 2.67
------------------------------- ---- ---- ---- ----
GLOBAL GROWTH & INCOME (CVLOX)-9/9/96
-------------------------------------
At NAV 31.59 -0.59 6.29 4.12
------ ----- ----- ---- ----
Load adjusted 25.39 -2.18 5.26 3.61
------------- ----- ----- ---- ----
MSCI World Index 30.79 -5.09 2.57 0.23
---------------- ----- ----- ---- ----
HIGH YIELD FUND (CHYDX)-8/2/99
------------------------------
At NAV 46.52 3.46 4.53 6.82
------ ----- ---- ---- ----
Load adjusted 39.48 1.80 3.51 6.30
------------- ----- ---- ---- ----
Credit Suisse High Yield Index 54.22 5.33 5.99 7.07
------------------------------ ----- ---- ---- ----
Sources: State Street Corporation, Lipper, Inc. and Mellon Analytical Solutions, LLC.
Past performance does not guarantee or indicate future results. Current performance may be lower or higher than the performance quoted.
The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by visiting www.calamos.com. Average annual total return measures net investment income and capital gain or loss from portfolio investments as an annualized average. All performance shown assumes reinvestment of dividends and capital gains distributions. Class A shares load-adjusted returns are adjusted for the maximum front-end sales load of 4.75%. The Funds also offer Class B and C shares, the performance of which may vary. Performance shown reflects an expense reimbursement that improved results. As of the prospectus dated 3/1/09, the gross expense ratio for Class A shares of the Funds are as follows: Convertible, 1.15%; Growth and Income, 1.07%; Growth, 1.22%; Market Neutral Income, 1.14%; Global Growth and Income, 1.36%; High Yield Fund, 1.21%.
About Calamos Asset Management, Inc.
Calamos Asset Management, Inc. (Nasdaq: CLMS) is a globally diversified investment firm offering equity, fixed income, convertible and alternative investment strategies, among others. The firm serves institutions and individuals around the world via separately managed accounts and a family of open-end and closed-end funds, offering a risk-managed approach to capital appreciation and income- producing strategies. For more information, visit www.calamos.com.
Fund Risk Considerations:
Growth Fund: The Fund may invest in mid-size and small companies which present greater risk and higher volatility than investments in larger companies.
Growth Fund, Growth and Income Fund, Convertible Fund and High Yield Fund may invest up to 25% of its assets in the securities of foreign issuers. Global Growth and Income Fund may invest up to 100% of its assets in the securities of foreign issuers. As a result of political or economic instability in foreign countries, there can be special risks associated with investing foreign securities, including fluctuations in currency exchange rates, increased price volatility, and difficulty obtaining information.
Growth and Income Fund, Convertible Fund, Market Neutral Income Fund and High Yield Fund: In addition to market risk, there are certain other risks associated with an investment in a convertible bond, such as default risk, the risk that the company issuing debt securities will be unable to repay principal and interest, and interest rate risk, the risk that the security may decrease in value if interest rates increase.
High Yield Fund: The Fund invests in lower-rated securities, which present greater risks than investments in higher-rated securities. This is because there is a greater likelihood that the company issuing the lower-rated securities may default on income and principal payments.
Calamos Market Neutral Income Fund: Risk considerations also include those associated with convertible arbitrage, short sales and options: Convertible arbitrage entails risks associated with equity securities, short sales and fixed income securities, including convertible securities. Proper correlation must be used to provide a proper safeguard in hedging the risks inherent in the positions. The Fund engages in short sales of convertible securities' underlying stock, which may increase volatility and portfolio turnover. Short sale risk includes the risk of loss due to increase in the market value of borrowed securities between the date of short sale and the date the Fund replaces the security. As the writer of a covered call option on a security, the Fund foregoes, during the option's life, the opportunity to profit from increases in the market value of the security, covering the call option above the sum of the premium and the exercise price of the call.
About Indexes:
The Barclays Capital U.S. Government/Credit Bond 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. The BofA ML All U.S. Convertibles ex. Mandatory Index: Represents the U.S. convertible market excluding mandatory convertibles. The index includes 660 issues with a total value of $227 billion. The Citigroup 30 Day T-Bill Index is generally considered representative of the performance of short-term money market instruments. The Credit Suisse High Yield Index is an unmanaged index of high yield debt securities. The MSCI World Index is a market capitalization weighted index composed of companies representative of the market structure of developed market countries in North America, Europe, and Asia/Pacific region. The Russell Midcap® Growth Index measures the performance of those Russell Midcap companies whose average market capitalization is approximately $4.2 billion, with higher price-to-book ratios and higher growth values. The S&P 500 Index is generally considered representative of the U.S. stock market. The Value Line Convertible Index is an equally weighted index of the largest convertibles, representing 90% of the market.
Unmanaged index returns assume reinvestment of any and all distributions and, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.
Before investing, carefully consider the fund's investment objectives, risks, charges and expenses. Contact 800.582.6959 for a prospectus containing this and other information. Read it carefully.
Calamos Financial Services LLC, Distributor.
SOURCE Calamos Asset Management, Inc.
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