Two Calamos funds halt new investors due to low convertibles issuance

By Toni Weeks

San Diego, Dec. 20 - Calamos Investments announced that its Calamos Growth and Income Fund and Calamos Global Growth and Income Fund will be closed to new investors as of Jan. 20, with some exceptions.

The investment strategies of both funds use convertible securities to lower the funds' volatility, and this restriction follows a lower-than-normal issuance of convertibles due to persistently low interest rates, said John P. Calamos, Sr., chief executive officer and co-chief investment officer of Calamos Advisors LLC, in a company press release.

In addition, convertible issuance has come predominantly from companies with non-investment-grade ratings, and the funds are biased toward securities with higher credit quality. Calamos also said that convertible redemptions are currently exceeding issuance in the United States, reducing the size of the market.

"We believe this decision to be in the best interest of current shareholders in both of these Calamos funds," he said. "We believe that in order to maintain the funds' quality and integrity, it is necessary to limit inflows at this time."

Current shareholders will be allowed to add to their accounts, and the funds will accept reinvestment of dividends and capital gains distributions on shares. New investors from some platform level asset allocation models within fee-based programs and retirement plans will be accepted.

The restrictions pertain to class A, class B, class C, class I and class R shares.

The investment manager is located in Naperville, Ill.

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