Before investing, carefully consider the fund's investment objectives, risks, charges and expenses. Please see the prospectus containing this and other information or call 800-582-6959. Read it carefully.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
Calamos Financial Services LLC, Distributor
Important Fund Information
In addition to market risk, there are certain risks associated with an investment in the Fund, 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.
The Fund may invest 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.
The Fund may invest in derivative securities, including options, futures contracts and swap agreements. The use of derivatives presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. There is no assurance that any derivative strategy used by the Fund will succeed.
You should also know that the Fund may invest up to 35% of its assets in the securities of foreign issuers. As a result of political and economic instability in foreign countries, there can be special risks associated with investments in foreign securities, including fluctuations in currency exchange rates, increased price volatility, and difficulty obtaining information.
The Fund may invest in securities issued by companies in emerging markets; these may present additional risk due to the potential for greater economic and political instability in less developed countries.
The Fund may seek to purchase index put options to help reduce downside exposure however, the effectiveness of the Fund’s index option-based risk management strategy may be reduced if the Fund’s portfolio does not correlate to the performance of the underlying option positions. The Fund also risks losing all or part of the cash paid for purchasing index options. Unusual market conditions or lack of a ready market of any particular option at a specific time may reduce the effectiveness of the Fund’s option strategies, and for these and other reasons, the Fund’s option strategies may not reduce the Fund’s volatility to the extent desired. From time to time, the Fund may reduce its holdings of put options, resulting in an increased exposure to a market decline.
NOTES
Annualized Standard Deviation-A statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns. More generally, a measure of the extent to which numbers are spread around their average.
Barclays Capital U.S. Aggregate Bond Index-Is an unmanaged index covering the USD-denominated, investment-grade, fixed-rate, taxable-bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS and CMBS sectors. U.S. Agency Hybrid Adjustable Rate Mortgage (ARM) securities were added to the U.S. Aggregate Index on April 1, 2007. The U.S. Aggregate Index is a component of the U.S. Universal Index in its entirety.
Beta-Is a historic measure of a fund's relative volatility, which is one of the measures of risk; a beta of 0.5 reflects 1/2 the market's volatility as represented by the S&P 500 Index, while a beta of 2.0 reflects twice the market's volatility.
Bond Call Exposure-The call schedule put in the indenture.
Bond Credit Quality-Reflects the higher of the ratings of Standards & Poor’s Corporation and Moody’s Investors Service, Inc. Ratings are relative, subjective and not absolute standards of quality and are adjusted to the scale shown. Excludes equity securities and cash.
Current (SEC) Yield-Reflects the dividends and interest earned by the Fund during the 30-day period ended as of the date stated above after deducting the Fund's expenses for that same period.
Debt/Capital Ratio-Is a measure of a company s financial leverage, calculated as the company’s debt divided by its total capital.
Distribution Rate-The percentage rate at which a fund distributes income to its shareholders. It is calculated by dividing a fund's annual distributions by its current price; this figure can vary from the SEC yield of the same fund because of the multiple ways of treating different asset classes.
Effective Duration-Measures the responsiveness of a bond's price to interest rate changes. This is a duration measure in which recognition is given to the fact that yield changes may change the expected cash flows.
PEG Ratio-Is price/earnings ratio divided by estimated earnings growth rate in the next year; a lower PEG indicates that less is being paid for each unit of earnings growth.
Price/Book Ratio-Is a stock’s capitalization divided by its book value.
Price/Earnings Ratio-Is the current stock price over trailing 12‐month earnings per share.
Price/Sales Ratio-Is the current stock price over trailing 12‐month sales per share.
ROIC (Return On Invested Capital)-Measures how effectively a company uses the money invested in its operations, calculated as a company’s net income minus any dividends divided by the company’s total capital.
S&P 500 Index-Is generally considered representative of the U.S. stock market.
Turnover-is the percentage of assets in a portfolio that changed over a certain period, often a year; higher turnover indicates greater buying and selling activity.
Weighted Average Life-Refers to the weighted average time to receive all future cash flows on a security. For bonds without embedded prepayment options or sinking funds, the weighted average life is equal to the years to maturity.
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.