New Year, New Risks: What to Know About Putting Convertible Securities to Work in 2021

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As a sequel to Advisor Perspectives’ best-attended sponsored webcast of 2020, our Feb. 4 webcast will prepare you to put convertibles to work to anticipate risks that include a new administration with new priorities, rising rates, and even the ever-changing convertible market. 

Convertibles were by far the best performing major asset class last year, and hundreds of investment professionals experienced the benefit of using them for the first time. Join us as our panel of preeminent experts—including John P. Calamos, Sr., who is widely recognized as the pioneer of using converts to manage risk/reward—advance the discussion. You’ll learn about evolving convertible market dynamics (including near-record levels of issuance and new issuers) and the additive effect of actively managed convertibles as a risk-managed allocation.

Headlining our webcast panel will be Calamos Founder, Chairman and Global Chief Investment Officer John P. Calamos, Sr. Joining John will be:

• Eli Pars, CFA, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies,
  Senior Co-Portfolio Manager, including of Calamos Market Neutral Income Fund (CMNIX)
• Joseph Wysocki, CFA, Senior Vice President, Co-Portfolio Manager, including of Calamos Convertible Fund (CICVX)

The webcast will cover:

• Convertibles’ performance throughout the challenges of 2020, including their outperforming the S&P 500 (ICE BofA All U.S. Convertibles Index 2020 return of 46.22% versus S&P 500 18.40%).
• The structural benefits of risk-managed convertibles, including:
  • • Opportunity for upside equity participation
    • Resilience to equity market downside
    • Less vulnerability to rising interest rates than traditional bonds
    • An overview of the U.S. and global convertible markets, including issuance, performance and credit quality
    • A short course on convertible index construction
    • Historical case studies: Navigating market corrections and compounding wealth with convertibles

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For Investment Professional Use Only. Not For Use With The Public.

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.

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.

Alternative investments may not be suitable for all investors, and the risks of alternative investments vary based on the underlying strategies used. Many alternative investments are highly illiquid, meaning that you may not be able to sell your investment when you wish to.

Some of the risks associated with investing in alternatives may include hedging risk—hedging activities can reduce investment performance through added costs; derivative risk- derivatives may experience greater price volatility than the underlying securities; short sale risk—investments may incur a loss without limit as a result of a short sale if the market value of the security increases; interest rate risk—loss of value for income securities as interest rates rise; credit risk—risk of the borrower to miss payments; liquidity risk—low trading volume may lead to increased volatility in certain securities; non-U.S. government obligation risk—non-U.S. government obligations may be subject to increased credit risk; portfolio selection risk—investment managers may select securities that fare worse than the overall market. Alternative investments may not be suitable for all investors.

Class I shares are offered primarily for direct investment by investors through certain tax-exempt retirement plans (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) and by institutional clients, provided such plans or clients have assets of at least $1 million. Class I shares may also be offered to certain other entities or programs, including, but not limited to, investment companies, under certain circumstances.

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 ICE BofA All U.S. Convertibles Index (VXA0) comprises approximately 700 issues of only convertible bonds and preferreds of all qualities.
 

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

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Speakers

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

John P. Calamos, Sr. is Chairman and Global CIO of Calamos Investments, a firm he founded in 1977. With origins as an institutional convertible bond manager, the firm has grown into a global asset management firm with major institutional and individual clients around the world. The firm is headquartered in the Chicago metropolitan area with additional offices in New York, San Francisco, Milwaukee and the Miami area.

Mr. Calamos has established research and investment processes centered around a team-based approach designed to deliver superior risk-adjusted performance over full market cycles through a range of U.S. and global investment strategies including equity, fixed income, convertible and alternative investments.

With 50 years of industry experience, he is often quoted as an authority on risk-managed investment strategies, markets and the economy. He is a frequent speaker at investment seminars and conferences around the world and appears regularly on CNBC, Bloomberg TV and Fox Business Channel.

Mr. Calamos has written two books: Investing in Convertible Securities: Your Complete Guide to the Risks and Rewards and Convertible Securities: the Latest Instruments, Portfolio Strategies, and Valuation Analysis.

He received his B.A. in Economics and an M.B.A. in Finance from the Illinois Institute of Technology. He joined the United States Air Force after graduation where he served as a combat pilot during the Vietnam War and ultimately earned the rank of Major.

Eli Pars, CFA
Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Sr. Co-PM
Calamos Investments

As a Co-Chief Investment Officer, Eli Pars is responsible for oversight of investment team resources, investment processes, performance and risk. As Head of Alternative Strategies and Co-Head of Convertible Strategies, he manages investment team members and has portfolio management responsibilities for those investment verticals. He is also a member of the Calamos Investment Committee, which is charged with providing a top-down framework, maintaining oversight of risk and performance metrics, and evaluating investment process. Eli has 32 years of industry experience, including 13 at Calamos. Prior to returning to Calamos in 2013, he was a Portfolio Manager at Chicago Fundamental Investment Partners, where he co-managed a convertible arbitrage portfolio. Previously, he held senior roles at Mulligan Partners LLC, Ritchie Capital and SAM Investments/The Hampshire Company. Earlier in his career, Eli was a Vice President and Assistant Portfolio Manager at Calamos. He received a B.A. in English Literature from the University of Illinois and an M.B.A. with a specialization in Finance from the University of Chicago Graduate School of Business.

Joe Wysocki, CFA
Senior Vice President, Co-Portfolio Manager
Calamos Investments

Joseph Wysocki is responsible for portfolio management and investment research. He joined Calamos in 2003 and has 20 years of industry experience. Prior to joining Calamos, he worked on the fixed income team at Strong Capital Management. Joe received a B.A. in Economics with a minor in Computer Science from Lake Forest College and an M.B.A. from Northern Illinois University.

Robert F. Behan, CFA
President and Head of Global Distribution
Calamos Investments

Robert F. Behan leads Global Distribution, which includes the firm’s Intermediary, Institutional, International, and Strategic Partner channels. His duties include distribution, market analysis, and product optimization, selection and placement. A member of the executive management team, he is responsible for distribution execution and strategic growth initiatives, as well as the firm’s overall global distribution strategy and execution. Bob serves as Vice President to the Calamos Investment Trust.

He joined the firm in 2007 and has 30 years of industry experience. He has extensive industry experience in several senior positions including Vice President – Head of Sales for Citizens Advisers, Vice President – Head of Institutional Northeast Distribution for Strong Capital Management, and Vice President–Large Market Institutional for CIGNA Retirement and Investment Services.

At each of his prior firms, Bob attained #1 producer status, and at age 29 was the youngest person to join CIGNA’s prestigious “Gold Circle.” Bob is frequently sought out for his insights on trends in the financial services industry. He has recently been quoted in Ignites, Fund Action, MFWire, and Pensions & Investments. He received a B.A. in Economics from Syracuse University and is also a CFA charterholder.

Robert Huebscher
CEO and Founder
Advisor Perspectives

Robert Huebscher is the founder and CEO of Advisor Perspectives and serves as its editor-in-chief. He is a frequent speaker at industry conferences and has written extensively on topics including investment management, portfolio construction, financial planning and global economics.