Semiannual
Report
April 30, 2010
(Unaudited)
|
Advent Claymore
Convertible
Securities and Income
Fund
|
AVK
|
www.claymore.com/avk | |
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Dear Shareholder
|
|
|
Tracy V.
Maitland
President and Chief
Executive Officer
|
We thank you for your investment
in the Advent Claymore Convertible Securities and Income Fund (the
“Fund”). This report covers the Fund’s performance for the semiannual
period ended April 30, 2010.
Advent Capital Management, LLC
serves as the Fund’s Investment Adviser. Based in New York, New York, with additional investment
personnel in London, England, Advent is a credit-oriented firm
specializing in the management of global convertible, high-yield and
equity securities across three lines of business—long-only strategies,
hedge funds and closed-end funds. As of April 30, 2010, Advent managed
approximately $5.25 billion in assets.
Claymore Securities, Inc.
(“Claymore”) serves as the Servicing Agent to the Fund. Claymore
Securities, Inc. is an affiliate of Claymore Advisors, LLC, the Fund’s
Administrator. Claymore and its associated entities are wholly-owned
subsidiaries of Guggenheim Partners, LLC (“Guggenheim Partners”), a global
diversified financial services firm with more than $100 billion in assets
under supervision. Claymore Securities, Inc. offers strategic investment
solutions for financial advisors and their clients. In total, Claymore
entities provide supervision, management, or servicing on approximately
$15.9 billion in assets as of March 31, 2010.
The Fund’s investment objective is
to provide total return through a combination of capital appreciation and
current income. Under normal market conditions, the Fund will invest at
least 80% of its managed assets in a diversified portfolio of convertible
securities and non-convertible income securities. Under normal market
conditions, the Fund will invest at least 60% of its managed assets in
convertible securities and up to 40% in lower grade, non-convertible
income securities.
All Fund returns cited—whether
based on net asset value (“NAV”) or market price—assume the reinvestment
of all distributions. For the six-month period ending April 30, 2010, the
Fund generated a total return based on market price of 28.27% and a return
of 22.56% based on NAV.
As of April 30, 2010, the Fund’s
market price of $17.64 represented a discount of 8.79% to NAV of $19.34.
As of October 31, 2009, the Fund’s market price of $14.24 represented a
discount of 12.53% to NAV of $16.28. The market value of the Fund’s shares
fluctuates from time to time, and it may be higher or lower than the
Fund’s NAV.
In each month from November 2009
through April 2010, the Fund paid a monthly distribution of $0.0939 per
common share. The current monthly distribution represents an annualized
distribution rate of 6.39% based upon the last closing market price of
$17.64 as of April 30, 2010. There is no guarantee of any future
distributions or that the current returns and distribution rate will be
maintained.
We encourage shareholders to
consider the opportunity to reinvest their distributions from the Fund
through the Dividend Reinvestment Plan (“DRIP”), which is described in
detail on page 28 of this report. When shares trade at a discount to NAV,
the DRIP takes advantage of the discount by reinvesting the monthly
dividend distribution in common shares of the Fund purchased in the market
at a price less than NAV. Conversely, when the market price of the Fund’s
common shares is at a premium above NAV, the DRIP reinvests participants’
dividends in newly-issued common shares at NAV, subject to an Internal
Revenue Service (“IRS”) limitation that the purchase price cannot be more
than 5% below the market price per share. The DRIP provides a
cost-effective means to accumulate additional shares and enjoy the
benefits of compounding returns over time. Since the Fund endeavors to
maintain a steady monthly distribution rate, the DRIP plan effectively
provides an income averaging technique, which
causes
|
The conversion premium reflects
the market price of a convertible relative to the market value of the
common shares into which the convertible security can be
converted.
For example, a bond trading at a
par value of $1,000 that is convertible into 20 shares of common stock
trading at $40 would have a conversion premium of 25% over its conversion
value of $800. The lower the conversion premium, the more upside there is
for convertible investors. If the stock performs poorly, the convertible
normally provides downside protection based on its yield and its
fixed-income
value.
|
Fund
Statistics
|
||||
Share Price
|
|
$17.64
|
||
Common Share Net Asset
Value
|
|
$19.34
|
||
Premium/Discount to
NAV
|
-8.79% | |||
Net Assets Applicable to Common
Shares ($000)
|
|
$456,137
|
Total
Returns
|
||||||||
(Inception
4/30/03)
|
Market
|
NAV
|
||||||
Six Month
|
28.27 | % | 22.56 | % | ||||
One Year
|
67.05 | % | 60.62 | % | ||||
Three Year - average
annual
|
-5.61 | % | -3.52 | % | ||||
Five Year - average
annual
|
4.43 | % | 4.23 | % | ||||
Since Inception -average
annual
|
4.66 | % | 6.15 | % |
Top Ten
Industries
|
% of Long-Term
Investments
|
|||
Banks
|
8.8 | % | ||
Telecommunications
|
8.7 | % | ||
Pharmaceuticals
|
8.0 | % | ||
Insurance
|
7.2 | % | ||
Healthcare
Products
|
6.3 | % | ||
Real Estate Investment
Trusts
|
4.7 | % | ||
Healthcare
Services
|
4.7 | % | ||
Diversified Financial
Services
|
4.0 | % | ||
Computers
|
3.9 | % | ||
Biotechnology
|
3.5 | % |
Top Ten
Issuers
|
% of Long-Term
Investments
|
|||
Medtronic,
Inc.
|
2.5 | % | ||
EMC Corp.
|
2.2 | % | ||
Transocean,
Inc.
|
2.2 | % | ||
Bank of America
Corp.
|
2.2 | % | ||
Ford Motor
Co.
|
2.1 | % | ||
XL Capital
Ltd.
|
1.9 | % | ||
Omnicare,
Inc.
|
1.8 | % | ||
FPL Group,
Inc.
|
1.8 | % | ||
Teva Pharmaceutical Industries
LLC
|
1.7 | % | ||
Citigroup,
Inc.
|
1.7 | % |
Number
of Shares
|
Value
|
|||
Long-Term
Investments – 145.0%
|
||||
Convertible
Preferred Stocks – 37.7%
|
||||
Agriculture
– 1.0%
|
||||
109,100
|
Archer-Daniels-Midland
Co., 6.25%, 2011
|
$
|
4,320,360
|
|
Auto
Manufacturers – 1.7%
|
||||
160,000
|
Ford Motor Co.
Capital Trust II, 6.50%, 2032
|
7,824,000
|
||
Banks
– 8.4%
|
||||
4,550
|
Bank of America
Corp., Ser. L, 7.25%, 2049
|
4,468,054
|
||
85,479
|
Citigroup, Inc.,
7.50%, 2012
|
11,267,842
|
||
72,176
|
Keycorp, Ser. A,
7.75%, 2049
|
7,578,480
|
||
6,000
|
Webster Financial
Corp., Ser. A, 8.50%, 2049
|
6,255,000
|
||
8,602
|
Wells Fargo &
Co., Ser. L, 7.50%, 2049
|
8,481,572
|
||
38,050,948
|
||||
Electric
– 4.3%
|
||||
223,904
|
FPL Group, Inc.,
8.375%, 2012
|
11,698,984
|
||
123,400
|
Great Plains
Energy, Inc., 12.00%, 2012
|
8,088,870
|
||
19,787,854
|
||||
Food
Products – 1.6%
|
||||
623,200
|
Dole Food 2009
Automatic Common Exchange Security Trust,
|
|||
7.00%, 2012
(a)
|
7,332,322
|
|||
Healthcare
Services – 3.0%
|
||||
4,500
|
HealthSouth
Corp., Ser. A, 6.50%, 2049
|
4,090,500
|
||
231,000
|
Omnicare Capital
Trust II, Ser. B, 4.00%, 2033
|
9,429,420
|
||
13,519,920
|
||||
Insurance
– 5.0%
|
||||
210,513
|
Hartford Financial
Services Group, 7.25%, 2013
|
5,584,910
|
||
70,000
|
Reinsurance Group
of America, Equity Security
Unit, 5.75%, 2051
|
4,690,000
|
||
470,667
|
XL Capital Ltd.,
10.75%, 2011 (Cayman
Islands)
|
12,618,582
|
||
22,893,492
|
||||
Pharmaceuticals
– 2.4%
|
||||
8,685
|
Mylan, Inc.,
6.50%, 2010
|
11,118,103
|
||
Pipelines
– 1.5%
|
||||
6,600
|
El Paso Corp.,
4.99%, 2049
|
6,931,650
|
||
Real
Estate – 0.9%
|
||||
65,000
|
Forest City
Enterprises, Inc., Ser. A, 7.00%, 2049
|
4,042,188
|
||
Real
Estate Investment Trusts – 1.8%
|
||||
353,307
|
Alexandria Real
Estate Equities, Inc., Ser. D, 7.00%, 2049
|
8,171,991
|
||
Savings
& Loans – 2.1%
|
||||
192,788
|
New
York
Community Capital Trust V, 6.00%, 2051
|
9,581,564
|
||
Telecommunications
– 4.0%
|
||||
128,095
|
Crown Castle
International Corp., 6.25%, 2012
|
7,246,334
|
||
13,155
|
Lucent
Technologies Capital Trust I, 7.75%, 2017 (France)
|
10,912,072
|
||
18,158,406
|
||||
Principal | ||||
Amount | ||||
Total
Convertible Preferred Stocks – 37.7%
|
||||
(Cost
$145,005,208)
|
171,732,798
|
Convertible
Bonds – 81.7%
|
|||||
Aerospace
& Defense – 1.9%
|
|||||
$
5,445,000
|
Alliant
Techsystems, Inc., BB-, 2.75%, 9/15/11
|
5,608,350
|
|||
3,000,000
|
L-3
Communications Holdings, Inc., BB+, 3.00%, 8/01/35
|
3,161,250
|
|||
8,769,600
|
|||||
Agriculture
– 0.5%
|
|||||
2,500,000
|
Archer-Daniels-Midland
Co., A, 0.875%, 2/15/14
|
2,468,750
|
|||
Airlines
– 2.5%
|
|||||
2,000,000
|
Continental
Airlines, Inc., CCC+, 5.00%, 6/15/23
|
2,330,000
|
|||
9,008,000
|
UAL Corp., CCC,
4.50%, 6/30/21
|
9,108,890
|
|||
11,438,890
|
|||||
Auto
Manufacturers – 1.3%
|
|||||
3,700,000
|
Ford Motor Co.,
CCC, 4.25%, 11/15/16
|
5,776,625
|
|||
Biotechnology
– 5.1%
|
|||||
8,500,000
|
Amgen, Inc., A+,
0.375%, 2/01/13
|
8,595,625
|
|||
6,250,000
|
Amylin
Pharmaceuticals, Inc., NR, 3.00%, 6/15/14
|
5,531,250
|
|||
5,000,000
|
Gilead Sciences,
Inc., NR, 0.50%, 5/01/11
|
5,543,750
|
|||
3,000,000
|
Life Technologies
Corp., BBB-, 3.25%, 6/15/25
|
3,637,500
|
|||
23,308,125
|
|||||
Building
Materials – 1.9%
|
|||||
6,324,000
|
Cemex SAB de CV,
NR, 4.875%, 3/15/15 (Mexico)
(a)
|
7,288,410
|
|||
2,500,000
|
Masco Corp., Ser.
B, NR, 0.00%, 7/20/31 (b)
|
1,275,000
|
|||
8,563,410
|
|||||
Coal
– 1.5%
|
|||||
8,000,000
|
Massey Energy
Co., BB-, 3.25%, 8/01/15
|
6,770,000
|
|||
Computers
– 5.7%
|
|||||
4,150,000
|
DST Systems,
Inc., Ser. C, NR, 4.125%, 8/15/23 (d)
|
4,305,625
|
|||
9,416,000
|
EMC Corp., A-,
1.75%, 12/01/11
|
11,923,010
|
|||
2,000,000
|
EMC Corp., A-,
1.75%, 12/01/13
|
2,615,000
|
|||
3,750,000
|
Maxtor Corp., B,
2.375%, 8/15/12 (Cayman
Islands)
|
4,387,500
|
|||
3,000,000
|
Radisys Corp.,
NR, 2.75%, 2/15/13
|
2,981,250
|
|||
26,212,385
|
|||||
Diversified
Financial Services – 2.7%
|
|||||
5,000,000
|
Affiliated
Managers Group, Inc., BBB-, 3.95%, 8/15/38
|
5,131,250
|
|||
4,320,000
|
Jefferies Group,
Inc., BBB, 3.875%, 11/01/29
|
4,503,600
|
|||
2,681,000
|
Nasdaq OMX Group,
Inc., BBB, 2.50%, 8/15/13
|
2,627,380
|
|||
12,262,230
|
|||||
Electrical
Components & Equipment – 1.0%
|
|||||
5,000,000
|
Suntech Power
Holdings Co. Ltd., NR, 3.00%, 3/15/13 (Cayman
Islands)
|
4,362,500
|
|||
Energy
– Alternate Sources – 0.9%
|
|||||
3,500,000
|
Covanta Holding
Corp., B, 3.25%, 6/01/14 (a)
|
3,906,875
|
|||
Entertainment
– 2.0%
|
|||||
7,000,000
|
International
Game Technology, BBB, 3.25%, 5/01/14 (a)
|
8,951,250
|
|||
Healthcare
Products – 9.2%
|
|||||
7,460,000
|
Beckman Coulter,
Inc., BBB, 2.50%, 12/15/36
|
8,373,850
|
|||
10,569,000
|
Hologic, Inc.,
BB-, 2.00%, 12/15/37 (e)
|
9,564,945
|
|||
3,000,000
|
Integra
LifeSciences Holdings Corp., NR, 2.375%, 6/01/12
(a)
|
2,981,250
|
|||
15,600,000
|
Medtronic, Inc.,
AA-, 1.625%, 4/15/13
|
16,594,500
|
|||
3,950,000
|
NuVasive, Inc.,
NR, 2.25%, 3/15/13
|
4,458,562
|
|||
41,973,107
|
Principal
|
|||||
Amount
|
Value
|
||||
Healthcare
Services – 1.9%
|
|||||
$
|
8,265,000
|
LifePoint
Hospitals, Inc., B, 3.50%, 5/15/14
|
$
|
8,616,263
|
|
Insurance
– 2.0%
|
|||||
6,760,000
|
Old Republic
International Corp., BBB+, 8.00%, 5/15/12
|
9,362,600
|
|||
Internet
– 1.3%
|
|||||
5,600,000
|
Symantec Corp.,
NR, 1.00%, 6/15/13
|
6,020,000
|
|||
Iron/Steel
– 0.6%
|
|||||
2,333,000
|
Steel Dynamics,
Inc., BB+, 5.125%, 6/15/14
|
2,691,699
|
|||
Lodging
– 2.4%
|
|||||
6,973,000
|
MGM Mirage, Inc.
, CCC+, 4.25%, 4/15/15 (a)
|
7,626,719
|
|||
4,250,000
|
Morgans Hotel
Group Co., NR, 2.375%, 10/15/14
|
3,219,375
|
|||
10,846,094
|
|||||
Media
– 1.0%
|
|||||
€
|
1,250,000
|
UnitedGlobalCom,
Inc., B-, 1.75%, 4/15/24
|
1,749,985
|
||
$
|
2,750,000
|
XM Satellite
Radio, Inc., CCC+, 7.00%, 12/01/14 (a)
|
2,945,938
|
||
4,695,923
|
|||||
Mining
– 1.0%
|
|||||
3,250,000
|
Newmont Mining
Corp., BBB+, 1.625%, 7/15/17
|
4,460,625
|
|||
Miscellaneous
Manufacturing – 0.9%
|
|||||
4,850,000
|
Trinity
Industries, Inc., BB-, 3.875%, 6/01/36
|
4,171,000
|
|||
Oil
& Gas – 4.6%
|
|||||
5,900,000
|
Carrizo Oil &
Gas, Inc., NR, 4.375%, 6/01/28
|
5,310,000
|
|||
3,250,000
|
Chesapeake Energy
Corp., BB, 2.75%, 11/15/35
|
3,026,563
|
|||
4,850,000
|
Chesapeake Energy
Corp., BB, 2.25%, 12/15/38
|
3,607,187
|
|||
3,000,000
|
GMX Resources,
Inc., NR, 5.00%, 2/01/13
|
2,471,250
|
|||
2,750,000
|
Goodrich
Petroleum Corp., NR, 3.25%, 12/01/26
|
2,591,875
|
|||
4,000,000
|
Nabors
Industries, Inc., BBB+, 0.94%, 5/15/11 (Bermuda)
|
3,980,000
|
|||
20,986,875
|
|||||
Oil
& Gas Services – 3.7%
|
|||||
2,500,000
|
SESI LLC, BB+,
1.50%, 12/15/26 (c)
|
2,406,250
|
|||
6,000,000
|
Transocean, Inc.,
Ser. B, BBB+, 1.50%, 12/15/37 (Cayman
Islands)
|
5,820,000
|
|||
9,049,000
|
Transocean, Inc.,
Ser. C, BBB+, 1.50%, 12/15/37 (Cayman
Islands)
|
8,562,616
|
|||
16,788,866
|
|||||
Pharmaceuticals
– 8.2%
|
|||||
7,500,000
|
Allergan, Inc.,
NR, 1.50%, 4/01/26
|
8,531,250
|
|||
7,282,000
|
King
Pharmaceuticals, Inc., BB, 1.25%, 4/01/26
|
6,553,800
|
|||
4,000,000
|
Medicis
Pharmaceutical Corp., NR, 2.50%, 6/04/32
|
4,160,000
|
|||
3,000,000
|
Omnicare, Inc.,
Ser. OCR, B+, 3.25%, 12/15/35
|
2,583,750
|
|||
4,000,000
|
Shire PLC, Ser.
REGs, NR, 2.75%, 5/09/14 (Channel
Islands)
|
4,022,548
|
|||
9,066,000
|
Teva
Pharmaceutical Industries LLC, Ser. C, A-, 0.25%, 2/01/26 (Israel)
|
11,457,157
|
|||
37,308,505
|
|||||
Real
Estate – 1.1%
|
|||||
4,231,000
|
Forest City
Enterprises, Inc., NR, 3.625%, 10/15/14
|
5,063,978
|
|||
Real
Estate Investment Trusts – 5.1%
|
|||||
2,030,000
|
Annaly Capital
Management, Inc., NR, 4.00%, 2/15/15
|
2,095,975
|
|||
4,200,000
|
BRE Properties,
Inc., BBB, 4.125%, 8/15/26
|
4,257,750
|
|||
2,700,000
|
Home Properties
LP, NR, 4.125%, 11/01/26 (a)
|
2,669,625
|
|||
7,005,000
|
Host Hotels &
Resorts LP, BB+, 2.625%, 4/15/27 (a)
|
6,803,606
|
|||
4,465,000
|
Macerich Co., NR,
3.25%, 3/15/12 (a)
|
4,425,931
|
|||
3,000,000
|
UDR, Inc., BBB,
4.00%, 12/15/35
|
3,075,000
|
|||
23,327,887
|
Retail –
0.3%
|
|||||
1,500,000
|
Asbury Automotive Group, Inc., B-,
3.00%, 9/15/12
|
1,402,500
|
|||
Semiconductors –
5.0%
|
|||||
10,000,000
|
Intel Corp., A-, 2.95%,
12/15/35
|
10,175,000
|
|||
7,840,000
|
Linear Technology Corp., Ser. A,
NR, 3.00%, 5/01/27
|
7,859,600
|
|||
5,209,000
|
Micron Technology, Inc., B,
1.875%, 6/01/14
|
4,844,370
|
|||
22,878,970
|
|||||
Telecommunications –
6.4%
|
|||||
5,000,000
|
ADC Telecommunications, Inc., NR,
0.83075%, 6/15/13 (d)
|
4,450,000
|
|||
3,000,000
|
ADC Telecommunications, Inc., NR,
3.50%, 7/15/15
|
2,520,000
|
|||
6,200,000
|
Anixter International, Inc., BB-,
1.00%, 2/15/13
|
6,269,750
|
|||
5,850,000
|
Ciena Corp., B, 0.25%,
5/01/13
|
5,074,875
|
|||
11,600,000
|
NII Holdings, Inc., B-, 3.125%,
6/15/12
|
11,078,000
|
|||
29,392,625
|
|||||
Total Convertible Bonds –
81.7%
|
|||||
(Cost
$327,189,902)
|
372,778,157
|
||||
Corporate Bonds –
21.1%
|
|||||
Chemicals –
0.8%
|
|||||
3,500,000
|
LBI Escrow Corp., NR, 8.00%,
11/01/17 (a)
|
3,635,625
|
|||
Distribution/Wholesale –
0.7%
|
|||||
3,000,000
|
McJunkin Red Man Corp., B, 9.50%,
12/15/16 (a)
|
3,138,750
|
|||
Diversified Financial Services –
3.2%
|
|||||
5,400,000
|
Capital One Capital V, BB, 10.25%,
8/15/39
|
6,513,750
|
|||
5,000,000
|
CIT Group Funding Co. of Delaware
LLC, B+, 10.25%, 5/01/14
|
5,212,500
|
|||
3,000,000
|
Icahn Enterprises LP, BBB-, 7.75%,
1/15/16 (a)
|
2,932,500
|
|||
14,658,750
|
|||||
Food – 1.7%
|
|||||
2,700,000
|
Smithfield Foods, Inc., B-, 7.00%,
8/01/11
|
2,781,000
|
|||
2,500,000
|
Smithfield Foods, Inc., B+,
10.00%, 7/15/14 (a)
|
2,818,750
|
|||
2,175,000
|
Smithfield Foods, Inc., B-, 7.75%,
7/01/17
|
2,161,406
|
|||
7,761,156
|
|||||
Healthcare Services –
2.0%
|
|||||
5,500,000
|
Apria Healthcare Group, Inc., BB+,
11.25%, 11/01/14 (a)
|
6,070,625
|
|||
3,000,000
|
HCA, Inc., BB-, 9.25%,
11/15/16
|
3,251,250
|
|||
9,321,875
|
|||||
Holding Companies – Diversified –
1.6%
|
|||||
6,800,000
|
Leucadia National Corp., BB+,
8.125%, 9/15/15
|
7,157,000
|
|||
Insurance –
3.4%
|
|||||
7,200,000
|
Liberty Mutual Group, Inc., BB,
10.75%, 6/15/58 (a) (d)
|
8,460,000
|
|||
5,500,000
|
MetLife, Inc., BBB, 10.75%,
8/01/39
|
7,103,899
|
|||
15,563,899
|
|||||
Media –
1.9%
|
|||||
5,344,000
|
Clear Channel Worldwide Holdings,
Inc., B, 9.25%, 12/15/17 (a)
|
5,751,480
|
|||
2,500,000
|
Univision Communication, Inc., B-,
12.00%, 7/01/14 (a)
|
2,775,000
|
|||
8,526,480
|
|||||
Office/Business Equipment –
0.8%
|
|||||
3,500,000
|
Xerox Capital Trust I, BB, 8.00%,
2/01/27
|
3,530,545
|
|||
Pharmaceuticals –
1.1%
|
|||||
4,760,000
|
Axcan Intermediate Holdings, Inc.,
B, 12.75%, 3/01/16
|
5,021,800
|
|||
Pipelines –
0.4%
|
|||||
2,000,000
|
Crosstex Energy LP, B+, 8.875%,
2/15/18 (a)
|
2,090,000
|
Principal | ||||||
Amount |
Value
|
|||||
Retail –
1.3%
|
||||||
$
|
5,550,000
|
Toys R Us Property Co. LLC, B+,
8.50%, 12/01/17 (a)
|
$
|
5,896,875
|
||
Telecommunications –
2.2%
|
||||||
7,272,000
|
iPCS, Inc., BB-, 2.37375%, 5/01/13
(d)
|
6,908,400
|
||||
3,000,000
|
Virgin Media Finance PLC, B,
8.375%, 10/15/19 (United Kingdom)
|
3,157,500
|
||||
10,065,900
|
||||||
Total Corporate Bonds –
21.1%
|
||||||
(Cost
$88,577,486)
|
96,368,655
|
|||||
Number | ||||||
of Shares |
Value
|
|||||
Warrants –
2.9%
|
||||||
Banks –
2.9%
|
||||||
2,586,896
|
Bank of America Corp., expiring
10/28/18 (f)
|
9,778,467
|
||||
251,542
|
JP Morgan Chase & Co.,
expiring 10/28/18 (f)
|
3,493,918
|
||||
(Cost
$9,388,036)
|
13,272,385
|
|||||
Preferred Stocks –
1.6%
|
||||||
Banks –
1.6%
|
||||||
8,800
|
GMAC, Inc., Ser. 144A, 7.00%, 2011
(a)
|
|||||
(Cost
$7,711,000)
|
7,474,225
|
|||||
Principal | ||||||
Amount |
Value
|
|||||
Term Loans (Unfunded) –
0.9%
|
||||||
Chemicals –
0.9%
|
||||||
$
|
3,500,000
|
Lyondell Chemical
Co.,
|
||||
B, 7.69%, 6/03/10
(d)
|
||||||
(Cost
$3,841,250)
|
3,841,250
|
|||||
Total Long-Term Investments –
145.9%
|
||||||
(Cost
$581,712,882)
|
665,467,470
|
Number
|
|||||
of Shares
|
Value
|
||||
Short-Term
Investments – 4.7%
|
|||||
Money
Market Funds – 4.7%
|
|||||
21,381,873
|
Goldman Sachs
Financial Prime Obligations
|
||||
(Cost
$21,381,873)
|
$
|
21,381,873
|
|||
Total
Investments – 150.6%
|
|||||
(Cost
$603,094,755)
|
686,849,343
|
||||
Other assets in
excess of liabilities – 6.8%
|
31,287,837
|
||||
Preferred Stock,
at redemption value – (-57.4% of Net Assets
|
|||||
Applicable to
Common Shareholders or -38.1% of Total Investments)
|
(262,000,000
|
)
|
|||
Net
Assets Applicable to Common Shareholders – 100.0%
|
$
|
456,137,180
|
(a)
|
Securities are
exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 2010, these
securities amounted to 23.2% of net assets applicable to common
shareholders.
|
(b)
|
Zero coupon
bond.
|
(c)
|
Security is
a“step down” bond where the coupon decreases or steps down at a
predetermined date.
|
(d)
|
Floating rate
security.The rate shown is as of April 30,
2010.
|
(e)
|
Security becomes
an accreting bond after December 15, 2013 with a 2.0% principal accretion
rate.
|
(f)
|
Non-income
producing security.
|
Assets
|
||||
Investments in
securities, at value (cost $603,094,755)
|
$ | 686,849,343 | ||
Cash
|
97,944 | |||
Receivable for
securities sold
|
31,151,930 | |||
Interest
receivable
|
5,221,934 | |||
Dividends
receivable
|
859,470 | |||
Other
assets
|
2,915 | |||
Total
assets
|
724,183,536 | |||
Liabilities
|
||||
Payable for
securities purchased
|
5,285,000 | |||
Advisory fee
payable
|
301,939 | |||
Servicing fee
payable
|
100,646 | |||
Dividends payable
- preferred shares
|
100,509 | |||
Administration
fee payable
|
12,027 | |||
Accrued expenses
and other liabilities
|
246,235 | |||
Total
liabilities
|
6,046,356 | |||
Preferred Stock, at redemption
value
|
||||
Auction Market
Preferred Shares
|
||||
$0.001 par value per share; 10,480
authorized, issued and outstanding at $25,000 per share liquidation
preference
|
262,000,000 | |||
Net Assets Applicable to Common
Shareholders
|
$ | 456,137,180 | ||
Composition of Net Assets
Applicable to Common Shareholders
|
||||
Common Stock,
$0.001 par value per share; unlimited number of shares authorized,
23,580,877 shares issued and outstanding
|
$ | 23,581 | ||
Additional
paid-in capital
|
557,792,246 | |||
Net unrealized
appreciation on investments, swaps and foreign currency
translation
|
83,754,575 | |||
Accumulated net
realized gain (loss) on investments, swaps, options and foreign currency
transactions
|
(181,516,232 | ) | ||
Distributions in
excess of net investment income
|
(3,916,990 | ) | ||
Net Assets Applicable to Common
Shareholders
|
$ | 456,137,180 | ||
Net Asset Value Applicable to
Common Shareholders
|
||||
(based on
23,580,877 common shares outstanding)
|
$ | 19.34 |
Investment
Income
|
||||||||
Interest
|
$ | 11,739,329 | ||||||
Dividends
|
5,913,624 | |||||||
Total
income
|
$ | 17,652,953 | ||||||
Expenses
|
||||||||
Advisory
fee
|
1,838,146 | |||||||
Servicing agent
fee
|
714,834 | |||||||
Preferred share
maintenance
|
256,752 | |||||||
Professional
fees
|
118,415 | |||||||
Trustees’ fees
and expenses
|
79,258 | |||||||
Fund
accounting
|
71,118 | |||||||
Administration
fee
|
70,895 | |||||||
Printing
|
50,736 | |||||||
Custodian
|
45,532 | |||||||
Insurance
|
43,783 | |||||||
ICI
dues
|
15,749 | |||||||
Rating agency
fee
|
11,496 | |||||||
NYSE listing
fee
|
10,591 | |||||||
Transfer
agent
|
10,128 | |||||||
Miscellaneous
|
7,165 | |||||||
Total
expenses
|
3,344,598 | |||||||
Advisory and
Servicing agent fees waived
|
(238,278 | ) | ||||||
Net
expenses
|
3,106,320 | |||||||
Net
investment income
|
14,546,633 | |||||||
Realized and Unrealized Gain
(Loss) on Investments,
|
||||||||
Swaps,
Options and Foreign Currency Transactions:
|
||||||||
Net realized gain
(loss) on:
|
||||||||
Investments
|
43,470,602 | |||||||
Swaps
|
(100,625 | ) | ||||||
Foreign currency
transactions
|
(664 | ) | ||||||
Net change in
unrealized appreciation (depreciation) on:
|
||||||||
Investments
|
29,586,349 | |||||||
Swaps
|
97,273 | |||||||
Foreign currency
translation
|
(155,066 | ) | ||||||
Net
realized and unrealized gain on investments, swaps and foreign currency
transactions
|
72,897,869 | |||||||
Distributions to Preferred
Shareholders from net investment income
|
(1,946,443 | ) | ||||||
Net Increase in Net Assets
Applicable to Common Shareholders Resulting from
Operations
|
$ | 85,498,059 |
For the
Six Months
Ended
April 30, 2010
(unaudited)
|
For the
Year Ended
October 31,
2009
|
|||||||
Change in Net Assets Applicable to
Common Shareholders Resulting from Operations:
|
||||||||
Net investment
income
|
$ | 14,546,633 | $ | 25,148,799 | ||||
Net realized gain
(loss) on investments, swaps, options and foreign currency
transactions
|
43,369,313 | (114,591,738 | ) | |||||
Net change in
unrealized appreciation (depreciation) on
investments,
|
||||||||
swaps and foreign
currency translation
|
29,528,556 | 211,224,383 | ||||||
Distributions to Preferred
Shareholders:
|
||||||||
From net
investment income
|
(1,946,443 | ) | (4,771,917 | ) | ||||
Net increase in
net assets applicable to Common Shareholders resulting from
operations
|
85,498,059 | 117,009,527 | ||||||
Dividends and Distributions to
Common Shareholders:
|
||||||||
From and in
excess of net investment income
|
(13,285,466 | ) | (28,249,227 | ) | ||||
Return of
capital
|
– | (152,176 | ) | |||||
Total dividends
and distributions to common shareholders
|
(13,285,466 | ) | (28,401,403 | ) | ||||
Capital Share
Transactions:
|
||||||||
Reinvestment of
dividends
|
– | 214,968 | ||||||
Total increase in
net assets
|
72,212,593 | 88,823,092 | ||||||
Net Assets Applicable to Common
Shareholders
|
||||||||
Beginning of
period
|
383,924,587 | 295,101,495 | ||||||
End of period
(including distributions in excess of net investment
income
|
||||||||
of $3,916,990 and
$3,231,714, respectively)
|
$ | 456,137,180 | $ | 383,924,587 |
AVK |
Advent Claymore
Convertible Securities and Income Fund
|
Financial Highlights |
|
Per share operating
performance
for a share of common stock
outstanding throughout the period
|
For the
Six Months
Ended
April 30, 2010
(unaudited)
|
For the
Year Ended
October 31,
2009
|
For the
Year Ended
October 31,
2008
|
For the
Year Ended
October 31,
2007
|
For the
Year Ended
October 31,
2006
|
For the
Year Ended
October 31,
2005
|
||||||||||||||||||
Net asset value, beginning of
period
|
$
|
16.28
|
$
|
12.52
|
$
|
28.23
|
$
|
26.82
|
$
|
25.69
|
$
|
26.10
|
||||||||||||
Income from investment
operations
|
||||||||||||||||||||||||
Net investment income (a)
|
0.62
|
1.06
|
1.66
|
1.94
|
1.99
|
2.33
|
||||||||||||||||||
Net realized and unrealized
gain/loss on investments, swaps, options and foreign currency
transactions
|
3.08
|
4.10
|
(14.66
|
)
|
2.68
|
2.28
|
0.10
|
|||||||||||||||||
Distributions to preferred
shareholders:
|
||||||||||||||||||||||||
From net investment income (common
share equivalent
basis)
|
(0.08
|
)
|
(0.20
|
)
|
(0.49
|
)
|
(0.52
|
)
|
(0.56
|
)
|
(0.35
|
)
|
||||||||||||
From net realized gains (common
share equivalent basis)
|
–
|
–
|
(0.03
|
)
|
(0.11
|
)
|
–
|
–
|
||||||||||||||||
Total preferred distributions
(common share equivalent basis)
|
(0.08
|
)
|
(0.20
|
)
|
(0.52
|
)
|
(0.63
|
)
|
(0.56
|
)
|
(0.35
|
)
|
||||||||||||
Total from investment
operations
|
3.62
|
4.96
|
(13.52
|
)
|
3.99
|
3.71
|
2.08
|
|||||||||||||||||
Common and preferred
shares’ offering expenses charged to
paid-in-capital in excess of par value
|
–
|
–
|
–
|
–
|
–
|
*
|
–
|
|||||||||||||||||
Distributions to Common
Shareholders:
|
||||||||||||||||||||||||
From and in excess of net investment
income
|
(0.56
|
)
|
(1.19
|
)
|
(2.05
|
)
|
(2.08
|
)
|
(2.58
|
)
|
(2.49
|
)
|
||||||||||||
From net realized
gain
|
–
|
–
|
(0.13
|
)
|
(0.50
|
)
|
–
|
–
|
||||||||||||||||
Return of
capital
|
–
|
(0.01
|
)
|
(0.01
|
)
|
–
|
–
|
–
|
||||||||||||||||
Total distributions to Common
Shareholders
|
(0.56
|
)
|
(1.20
|
)
|
(2.19
|
)
|
(2.58
|
)
|
(2.58
|
)
|
(2.49
|
)
|
||||||||||||
Net asset value, end of
period
|
$
|
19.34
|
$
|
16.28
|
$
|
12.52
|
$
|
28.23
|
$
|
26.82
|
$
|
25.69
|
||||||||||||
Market value, end of
period
|
$
|
17.64
|
$
|
14.24
|
$
|
13.11
|
$
|
25.15
|
$
|
27.03
|
$
|
23.62
|
||||||||||||
Total investment return
(b)
|
||||||||||||||||||||||||
Net asset
value
|
22.56
|
%
|
42.52
|
%
|
-51.06
|
%
|
15.63
|
%
|
15.15
|
%
|
8.14
|
%
|
||||||||||||
Market
value
|
28.27
|
%
|
20.34
|
%
|
-41.96
|
%
|
2.48
|
%
|
26.86
|
%
|
2.52
|
%
|
||||||||||||
Ratios and supplemental
data
|
||||||||||||||||||||||||
Net assets, applicable to Common
Shareholders, end of
period (thousands)
|
$
|
456,137
|
$
|
383,925
|
$
|
295,101
|
$
|
664,306
|
$
|
627,383
|
$
|
599,998
|
||||||||||||
Preferred shares, at redemption
value ($25,000 per share liquidation preference) (thousands)
|
$
|
262,000
|
$
|
262,000
|
$
|
275,000
|
$
|
275,000
|
$
|
275,000
|
$
|
275,000
|
||||||||||||
Preferred shares asset coverage
per share
|
$
|
68,525
|
$
|
61,634
|
$
|
51,827
|
$
|
85,391
|
$
|
82,035
|
$
|
79,545
|
||||||||||||
Ratios to Average Net Assets
applicable to Common Shares:
|
||||||||||||||||||||||||
Net Expenses, after fee
waiver
|
1.48
|
%(c)
|
1.77
|
%
|
1.22
|
%
|
1.08
|
%
|
1.12
|
%
|
1.12
|
%
|
||||||||||||
Net Expenses, before fee
waiver
|
1.59
|
%(c)
|
1.95
|
%
|
1.47
|
%
|
1.37
|
%
|
1.41
|
%
|
1.41
|
%
|
||||||||||||
Net Investment Income, after fee
waiver, prior to effect of dividends to preferred
shares
|
6.91
|
%(c)
|
7.98
|
%
|
7.14
|
%
|
7.09
|
%
|
7.62
|
%
|
8.90
|
%
|
||||||||||||
Net Investment Income, before fee
waiver, prior to effect of dividends to preferred
shares
|
6.80
|
%(c)
|
7.80
|
%
|
6.89
|
%
|
6.80
|
%
|
7.33
|
%
|
8.61
|
%
|
||||||||||||
Net Investment Income, after fee
waiver, after effect of dividends to preferred
shares
|
5.98
|
%(c)
|
6.47
|
%
|
4.92
|
%
|
4.80
|
%
|
5.49
|
%
|
7.56
|
%
|
||||||||||||
Net Investment Income, before fee
waiver, after effect of dividends to preferred
shares
|
5.87
|
%(c)
|
6.29
|
%
|
4.67
|
%
|
4.51
|
%
|
5.20
|
%
|
7.27
|
%
|
||||||||||||
Portfolio turnover rate
|
35
|
%
|
121
|
%
|
87
|
%
|
76
|
%
|
81
|
%
|
64
|
%
|
||||||||||||
* Amount less than
$0.01.
|
(a)
|
Based on average
shares outstanding during the period.
|
(b)
|
Total investment
return is calculated assuming a purchase of a common share at the
beginning of the period and a sale on the last day of the period reported
either at net asset value (“NAV”) or market price per share. Dividends and
distribu- tions are assumed to be reinvested at NAV for NAV returns or the
prices obtained under the Fund’s Dividend Reinvestment Plan for market
value returns. Total investment return does not reflect brokerage
commissions. A return calculated for a period of less than one year is not
annualized.
|
(c)
|
Annualized.
|
Value in
$000s)
|
Quoted Prices
in
Active Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||||||
Description
|
||||||||||||||||
Assets:
|
||||||||||||||||
Convertible Preferred
Stocks:
|
||||||||||||||||
Agriculture
|
$ | 4,320 | $ | – | $ | – | $ | 4,320 | ||||||||
Auto
Manufacturers
|
7,824 | – | – | 7,824 | ||||||||||||
Banks
|
31,796 | 6,255 | – | 38,051 | ||||||||||||
Electric
|
8,089 | 11,699 | – | 19,788 | ||||||||||||
Food
Products
|
– | 7,332 | – | 7,332 | ||||||||||||
Healthcare
Services
|
9,429 | 4,091 | – | 13,520 | ||||||||||||
Insurance
|
22,894 | – | – | 22,894 | ||||||||||||
Pharmaceuticals
|
11,118 | – | – | 11,118 | ||||||||||||
Pipelines
|
– | 6,932 | – | 6,932 | ||||||||||||
Real
Estate
|
– | 4,042 | – | 4,042 | ||||||||||||
Real Estate
Investment Trusts
|
– | 8,172 | – | 8,172 | ||||||||||||
Savings &
Loans
|
9,582 | – | – | 9,582 | ||||||||||||
Telecommunications
|
– | 18,158 | – | 18,158 | ||||||||||||
Convertible
Bonds
|
– | 372,778 | – | 372,778 | ||||||||||||
Corporate
Bonds
|
– | 96,369 | – | 96,369 | ||||||||||||
Warrants
|
13,272 | – | – | 13,272 | ||||||||||||
Preferred
Stocks
|
– | 7,474 | – | 7,474 | ||||||||||||
Term Loans
|
– | 3,841 | – | 3,841 | ||||||||||||
Money Market
Funds
|
21,382 | – | – | 21,382 | ||||||||||||
Total
|
$ | 139,706 | $ | 547,143 | $ | – | $ | 686,849 |
(a)
|
If the average value of the Fund’s
Managed Assets (calculated monthly) is greater than $250 million, the fee
will be a maximum amount equal to 0.54% of the average value of the Fund’s
Managed Assets. At the inception of the Fund, the Advisor agreed to waive
a portion of the management fee from the Fund during the first five years
of the Fund’s operations ending April 30, 2008. Thereafter, the Advisor
agreed to waive fees at a declining rate. Effective May 1, 2009, the
advisory fee waiver was 0.03% of the average Managed Assets. For the six
months ended April 30, 2010, the Advisor waived advisory fees of $102,119.
Effective May 1,
2010, the advisory fee waiver was reduced to 0.01% of the average Managed
Assets.
|
(a)
|
If the average
value of the Fund’s Managed Assets (calculated monthly) is greater than
$250 million, the fee will be a maximum amount equal to 0.21% of the
average value of the Fund’s Managed Assets. At the inception of the Fund,
the Servicing Agent agreed to waive a portion of the servicing fee from
the Fund during the first five years of the Fund’s operations ending April
30, 2008. Thereafter, the Servicing Agent agreed to waive fees at a
declining rate. Effective May 1, 2009, the servicing fee waiver was 0.04%
of the average Managed Assets. For the six months ended April 30, 2010,
the Servicing Agent waived fees of $136,159. Effective May 1, 2010, the
servicing fee waiver was reduced to 0.01% of the average Managed
Assets.
|
Managed
Assets
|
Rate
|
|||
First
$200,000,000
|
0.0275 | % | ||
Next
$300,000,000
|
0.0200 | % | ||
Next
$500,000,000
|
0.0150 | % | ||
Over
$1,000,000,000
|
0.0100 | % |
Cost of
Investments
for Tax
Purposes
|
Gross Tax
Unrealized
Appreciation
|
Gross Tax
Unrealized
Depreciation
|
Net Tax
Unrealized
Appreciation
on
Investments
|
Net Tax
Unrealized
Depreciation
on Derivatives
and
Foreign
Currency
|
|||||||||||||||
$ | 607,492,428 | $ | 84,935,329 | $ | (5,578,414 | ) | $ | 79,356,915 | $ | (– | ) |
Undistributed
|
Undistributed
|
Ordinary
|
Long-Term
|
Income/
|
Gains/
|
(Accumulated
|
(Accumulated
|
Ordinary
Loss)
|
Capital
Loss)
|
$ – | $(223,595,020) |
Effect of Derivative Instruments
on the Statement of Operations (amounts in
thousands)
|
|||||||||
Amount of Realized Gain/(Loss) on
Derivatives
|
|||||||||
Derivatives not accounted for as
hedging instruments
|
Swaps
|
Total
|
|||||||
Credit default
contracts
|
$(101)
|
$(101)
|
|||||||
Change in Unrealized
(Appreciation)/Depreciation on Derivatives
|
|||||||||
Derivatives not accounted for as
hedging instruments
|
Swaps
|
Total
|
|||||||
Credit default
contracts
|
$
97
|
$97
|
Number of
|
||||||||||||
Shares
|
Shares
|
|||||||||||
Redeemed
|
Amount
|
Outstanding
|
||||||||||
Series
|
October 31,
2009
|
Redeemed
|
April 30,
2010
|
|||||||||
M7 | 102 |
$2,550,000
|
2,048 | |||||||||
T28 | 102 |
$2,550,000
|
2,048 | |||||||||
W7 | 102 |
$2,550,000
|
2,048 | |||||||||
W28 | 56 |
$1,400,000
|
1,144 | |||||||||
TH28
|
102 |
$2,550,000
|
2,048 | |||||||||
F7 | 56 |
$1,400,000
|
1,144 |
High
|
Low
|
At April 30,
2010
|
||||||||||
Series M7
|
1.51 | % | 1.46 | % | 1.51 | % | ||||||
Series T28
|
1.50 | 1.48 | 1.50 | |||||||||
Series W7
|
1.51 | 1.46 | 1.51 | |||||||||
Series W28
|
1.51 | 1.48 | 1.51 | |||||||||
Series TH28
|
1.51 | 1.48 | 1.51 | |||||||||
Series F7
|
1.51 | 1.46 | 1.51 |
Trustees
|
The Trustees of the Advent
Claymore Convertible Securities and Income Fund and their principal
occupations during the past five
years:
|
Name, Address, Year of
Birth and Position(s)
Held with
Registrant
|
Term of Office*
and Length of
Time Served
|
Principal Occupations
During
the Past Five Years
and
Other
Affiliations
|
Number of
Funds
in Fund
Complex**
Overseen by
Trustee
|
Other
Directorships
Held by
Trustee
|
||||
Independent
Trustees:
|
||||||||
Daniel Black+
Year of birth:
1960
Trustee
|
Since 2005
|
Partner, the Wicks Group of Cos.,
LLC (2003-present). Formerly, Managing Director and Co-head of the Merchant Banking
Group at BNY Capital Markets, a division of The Bank of
New York Co., Inc.
(1998-2003).
|
3
|
Director of Penn
Foster
Education Group,
Inc.
|
||||
Randall C.
Barnes++
Year of birth:
1951
Trustee
|
Since 2005
|
Private Investor (2001-present).
Formerly, Senior Vice President & Treasurer PepsiCo, Inc.
(1993-1997), President, Pizza Hut
International (1991-1993) and Senior Vice President, Strategic Planning and New
Business Development (1987-1990) of PepsiCo, Inc.
(1987-1997).
|
44
|
None.
|
||||
Derek Medina+
Year of birth:
1966
Trustee
|
Since 2003
|
Senior Vice President, Business
Affairs at ABC News (2008-present). Vice President, Business
Affairs and News Planning at ABC
News (2003-2008). Formerly, Executive Director, Office of the President at ABC
News (2000-2003). Former Associate at Cleary Gottlieb Steen & Hamilton (law firm)
(1995-1998). Former associate in Corporate Finance at J.P. Morgan/ Morgan Guaranty
(1988-1990).
|
3
|
Director of Young Scholar’s
Institute.
|
||||
Ronald A.
Nyberg++
Year of birth:
1953
Trustee
|
Since 2003
|
Partner of Nyberg & Cassioppi,
LLC., a law firm specializing in corporate law, estate planning and business transactions
(2000-present). Formerly, Executive Vice President, General Counsel and Corporate
Secretary of Van Kampen Investments (1982-1999).
|
47
|
None.
|
||||
Gerald L. Seizert,
CFP+
Year of birth:
1952
Trustee
|
Since 2003
|
Chief Executive Officer of Seizert
Capital Partners, LLC, where he directs the equity disciplines of the firm and serves
as a co-manager of the firm’s hedge fund, Proper Associates, LLC (2000-present).
Formerly, Co-Chief Executive (1998-1999) and a Managing
Partner and Chief Investment
Officer-Equities of Munder Capital Management, LLC (1995-1999).
Former Vice President and
Portfolio Manager of Loomis, Sayles & Co., L.P. (asset manager)
(1984-1995). Former Vice President and Portfolio Manager at First of
America Bank (1978-1984).
|
3
|
Former Director of
Loomis,
Sayles and Co.,
L.P.
|
||||
Michael A.
Smart+
Year of birth:
1960
Trustee
|
Since 2003
|
Managing Partner, Cordova, Smart
& Williams, LLC, Advisor First Atlantic Capital Ltd.,
(2001-present). Formerly, a
Managing Director in Investment Banking-The Private Equity
Group (1995-2001) and a Vice
President in Investment Banking-Corporate Finance (1992-1995) at Merrill
Lynch & Co. Founding Partner of The Carpediem Group, (1991-1992).
Associate at Dillon, Read and Co. (investment bank)
(1988-1990).
|
3
|
Director, Country Pure Foods.
Chairman,
Board of Directors, Berkshire Blanket,
Inc. President and Chairman, Board
of Directors, Sqwincher Holdings. Director,
Sprint Industrial Holdings.
Co-chairman,
Board of Directors, H2O
Plus.
|
||||
Interested
Trustees:
|
||||||||
Tracy V. Maitland+φ
Year of birth:
1960
Trustee, President
and
Chief Executive
Officer
|
Since 2003
|
President of Advent Capital
Management, LLC, which he founded in 1995. Prior to June,
2001,
President of Advent Capital
Management, a division of Utendahl Capital.
|
3
|
None.
|
+
|
Address for all Trustees noted: 1065 Avenue of the Americas, 31st Floor, New York, NY 10018. |
++
|
Address for all Trustees noted: 2455 Corporate West Drive, Lisle, IL 60532. |
*
|
After a Trustee’s
initial term, each Trustee is expected to serve a three-year term
concurrent with the class of Trustees for which he serves:
-Messrs. Seizert,
Medina and Barnes, as
Class I Trustees, are expected to stand for re-election at the Fund’s 2010
annual meeting of
shareholders.
|
|
-Messrs. Smart
and Black, as Class II Trustees, are expected to stand for re-election at
the Fund’s 2011 annual meeting of
shareholders.
|
|
-Messrs. Maitland
and Nyberg as Class III Trustees, are expected to stand for re-election at
the Fund’s 2012 annual meeting of
shareholders.
|
**
|
The Claymore Fund
Complex consists of U.S. registered
investment companies advised or serviced by Claymore Advisors, LLC or
Claymore Securities, Inc. The Claymore Fund Complex is overseen by
multiple Boards of Trustees.
|
φ
|
Mr. Maitland is an “interested
person” (as defined in section 2(a)(19) of the 1940 Act) of the Fund
because of his position as an officer of Advent Capital Management, LLC,
the Fund’s Advisor.
|
Name, Address*, Year of Birth
and
|
Term of Office**
and
|
Principal Occupations During the
Past Five Years and
|
||
Position(s) Held with
Registrant
|
Length of Time
Served
|
Other
Affiliations
|
||
Officers:
|
||||
F. Barry
Nelson
Year of birth:
1943
Vice President
and
Assistant
Secretary
|
Since 2003
|
Co-Portfolio Manager at Advent
Capital Management, LLC (June 2001- present). Prior to June 2001, Mr.
Nelson held the same position at Advent Capital Management, a division of
Utendahl Capital.
|
||
Robert White
Year of birth:
1965
Treasurer and
Chief Financial
Officer
|
Since 2005
|
Chief Financial Officer, Advent
Capital Management, LLC (July 2005-present). Previously, Vice President,
Client Service Manager, Goldman Sachs Prime Brokerage
(1997-2005).
|
||
Rodd Baxter
Year of birth:
1950
Secretary and
Chief Compliance
Officer
|
Since 2003
|
General Counsel, Advent Capital
Management, LLC
(2002-present).
|
*
|
Address for all
Officers: 1065 Avenue of the Americas, 31st Floor,
New
York, NY 10018
|
**
|
Officers serve at
the pleasure of the Board of Trustees and until his or her successor is
appointed and qualified or until his or her earlier resignation or
removal.
|
Board of
Trustees
Randall C.
Barnes
Daniel Black
Tracy V.
Maitland*
Chairman
Derek Medina
Ronald A.
Nyberg
Gerald L.
Seizert
Michael A.
Smart
* Trustee is an “interested person” of the Fund as defined
in the Investment Company Act of
1940, as amended, because of his position as an officer of
the Advisor.
|
Officers
Tracy V.
Maitland
President and Chief Executive
Officer
F. Barry
Nelson
Vice President and Assistant
Secretary
Robert White
Treasurer and Chief Financial
Officer
Rodd Baxter
Secretary and Chief Compliance
Officer
|
Investment
Adviser
Advent Capital Management,
LLC
NewYork,
NewYork
Servicing
Agent
Claymore Securities,
Inc.
Lisle,
Illinois
Custodian and Transfer
Agent
The Bank of New York Mellon
New York, New
York
Administrator
Claymore Advisors,
LLC
Lisle,
Illinois
Preferred Stock-
Dividend Paying
Agent
The Bank of New York
Mellon
New York, New
York
Legal Counsel
Skadden, Arps,
Slate,
Meagher & Flom
LLP
New York, New
York
Independent
Registered
Public Accounting
Firm
PricewaterhouseCoopers
LLP
New York, New
York
|
•
|
If your shares
are held in a Brokerage Account, contact your
Broker.
|
•
|
If you have
physical possession of your shares in certificate form, contact the Fund’s
Custodian and Transfer
Agent:
|
|
The Bank of
New
York
Mellon, 101 Barclay 11E, New
York, NY 10286; (866)
488-3559.
|
1
|
Screen the
convertible and high-yield markets for securities with attractive
risk/reward characteristics and favorable cash
flows;
|
2
|
Analyze the
quality of issues to help manage downside
risk;
|
3
|
Analyze
fundamentals to identify catalysts for favorable performance;
and
|
4
|
Continually
monitor the portfolio for improving or deteriorating trends in the
financials of each
investment.
|
Advent Capital Management,
LLC
1065 Avenue of the
Americas
New York, New York 10018
|