NAPERVILLE, Ill., Sept. 13, 2000 (PRIMEZONE) -- John P. Calamos, President and Chief Investment Officer of CALAMOS ASSET MANAGEMENT, has announced that the firm has introduced the CALAMOS Convertible Technology Fund effective September 11.
In commenting on the new Fund, Calamos said, "We believe that technology is at the heart of innovation. Not only is it the fastest growing sector in our economy, but it is fundamental to ever-increasing productivity gains in every other sector.
"However, the exceptional volatility we have witnessed in tech stocks is unsettling to some investors. We believe the CALAMOS Convertible Technology Fund may be an excellent choice for them. A convertible bond, which is a hybrid of a stock and a bond, gives the investor access to the equity potential of the dynamic technology sector. At the same time, it may provide the possibility of greater current income than direct equity investing since a convertible bond, like a corporate bond, typically pays interest regularly. Convertibles can also help moderate the risk inherent in technology today."
Tech Sector Growing Rapidly
CALAMOS is introducing the Fund as investors more fully acknowledge the tech sector's importance. Technology is now the largest sector in the equity markets -- and it is growing the fastest. With telecommunications included, it represents over 40% of the S&P 500, a striking figure considering that tech claimed only 22% of the index just two years ago. Yet these figures measure only the tip of the iceberg since CALAMOS believes tech is a driving force behind productivity gains throughout the economy.
The CALAMOS Convertible Technology Fund seeks high long-term total return through capital appreciation and current income. It offers investors a nondiversified portfolio of convertible securities from the tech sector, including the electronics, computers/software, semiconductor, telecommunication services and Internet/E-commerce industries. The Fund may include companies of all sizes, including small caps and mid caps.
A Rigorous Investment Process
CALAMOS has provided convertible-centered investment services to the largest public and private institutions as well as to individuals since 1977. At the core of the firm's in-depth investment process is the CALAMOS Convertible Evaluation System. This sophisticated set of proprietary quantitative models evaluates protection of principal, company growth prospects, convertible risk/reward and convertible fit within the overall portfolio. The results are then subjected to qualitative assessment.
CALAMOS brings to the Convertible Technology Fund years of specialized experience in both convertible and technology investing. One of the firm's other funds, the CALAMOS Growth Fund, an equity fund, was 49% invested in technology as of June 30, 2000. That Fund has a 5-star overall Morningstar rating out of 3,642 domestic equity funds as of June 30, 2000 (5 stars for the 3- and 5-year periods out of 3,642 and 2,328 funds respectively)(see note 2).
Lipper ranked the Growth Fund Number 2 for 5 years out of 81 Mid-Cap Growth Funds as of June 30, 2000 (Number 11 out of 222 Mid-Cap Growth Funds for 1 year)(see note 3).
The firm's expertise in convertible investing is reflected in the CALAMOS Convertible Growth and Income Fund (see note 1), the most aggressively positioned among the Family's three convertible funds with track records. The Fund was 50% invested in tech as of June 30, 2000, and has a 5-star overall Morningstar rating out of 3,642 domestic equity funds as of June 30, 2000 (4 stars for the 3-year period and 5 stars for the 5- and 10-year periods out of 3,642, 2,328 and 783 funds respectively) (see note 2). Lipper ranked the Convertible Growth and Income Fund Number 1 for 10 years out of 17 Convertible Funds as of June 30, 2000 (Number 2 out of 34 Convertible Funds for 5 years and Number 6 out of 64 Convertible Funds for 1 year)(see note 3).
The CALAMOS Convertible Technology Fund is the seventh fund in the CALAMOS Family of Funds, which are distributed by CALAMOS FINANCIAL SERVICES, INC.
About CALAMOS ASSET MANAGEMENT, INC.
CALAMOS ASSET MANAGEMENT, INC. is an independent asset management firm specializing in convertible bond research and management. Headquartered in Naperville, Illinois, CALAMOS provides professional money management services to clients that include major corporations, public and private institutions, pension funds, insurance companies and individuals. The firm has experience in convertible bonds since 1977 and currently manages approximately $5.6 billion in assets. The firm also is investment advisor to a family of seven mutual funds.
RE: CALAMOS Convertible Fund (CCVIX)
CALAMOS Convertible Growth and Income Fund (CVTRX)
CALAMOS Market Neutral Fund (CVSIX)
CALAMOS Growth Fund (CVGRX)
CALAMOS Global Convertible Fund (CVLOX)
CALAMOS High Yield Fund
CALAMOS Convertible Technology Fund
For a prospectus containing more information including fees and expenses, call CALAMOS FINANCIAL SERVICES, INC., the Funds' distributor, at 1-800-582-6959. Please read it carefully before investing.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate and redemption value may be more or less than the original cost.
The Fund may invest up to 25% of its assets in foreign securities, which have special risk considerations such as fluctuations in foreign currencies.
The Fund assets are concentrated in technology, which may present increased risk compared to a more diversified Fund. Many technology companies are smaller companies that may have limited business and financial resources, making them vulnerable to business and economic risks.
In addition to market risk, there are certain risks associated with an investment in the Fund(s), such as default risk (risk that the company issuing a convertible security will be unable to repay principal and interest), and interest rate risk (risk that the Fund(s) investments may decrease in value if interest rates increase).
Note 1. Formerly named the CALAMOS Growth and Income Fund.
Note 2. Morningstar proprietary ratings reflect historical risk-adjusted performance and are subject to change every month. Ratings are calculated from a Fund's 3-, 5-, and 10-year average annual returns in excess of 90-day T-bill returns with appropriate fee adjustments and a risk factor that reflects fund performance below 90-day T-bill returns. The top 10% of funds in an investment category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars. Morningstar Overall rating is a weighted average based on the 3, 5, and 10 year star rating as applicable to the fund. Ratings reflect the effect of sales charge.
Note 3. Lipper Analytical Services, Inc. Lipper rankings are based on net total return performance, and do not reflect the effect of sales charges; if they had, results may have been less favorable. Ratings shown are for Class A shares. The Funds offer other classes of shares, the performance of which will vary from that shown.