Calamos Investments highlighted the benefits of its actively-managed, low-volatility equity strategies on Monday for investors rattled by continued market volatility and a shaky economic recovery. The company claims the strategies are a "meaningful alternative for investors who are afraid to be in the markets, but at the same time understand that meeting long-term savings goals most usually includes an equity allocation."
"We believe that many investors are concerned about investing in equities because of the roller coaster pattern of recent markets," said John P. Calamos, Sr., chairman, CEO and co-chief investment officer of Calamos Advisors, in a statement. "We also believe strongly that over the long term, well-constructed portfolios need to include an equity component to achieve the growth that investors require to meet their objectives."
Two Calamos Funds that claim to offer a low-volatility equity strategy to U.S. investors are the Calamos Growth & Income Fund (CVTRX) and the Calamos Global Growth & Income Fund (CVLOX).
Both pursue long-term total return through capital appreciation. According to the company, The Calamos Growth & Income Fund has earned a five star Overall Morningstar Rating based on 1,545 large growth funds as of June 30. The Calamos Global Growth & Income Fund has earned a five star Overall Morningstar Rating based on 594 world stock funds as of June 30.
Each fund primarily combines equities and equity-like convertible securities. The added flexibility of hybrid securities helps with risk management and distinguishes the strategies from higher beta equity funds.
"What we strive for is equity-like returns over the longer term with reduced downside risk," Calamos said. "We believe our returns during challenging market periods are an achievement. That's the kind of resilience you look for in a low-volatility equity investment."