The President's Letter
Dear Fellow Shareholder:
I am pleased to present the semi-annual report of the Calamos Family of Funds
for the six-month period ended September 30, 1995.
The Calamos Family of Funds consists of four funds:
Calamos Strategic Income Fund
Calamos Convertible Fund
Calamos Growth and Income Fund
Calamos Growth Fund
September brought a very satisfying close to the third quarter of 1995. We
have been pleased with the performance of the Funds in meeting their
respective investment objectives over the first six months of the Funds'
fiscal year. The equity characteristics of convertible securities added
significant capital appreciation as the equity markets continued their
sustained advance throughout the year. The strong convertible performance is
in marked contrast to the quarter's lackluster bond market.
The outlook for the remainder of the year remains positive for both the
convertible market and the Calamos Family of Funds. Our posture has been
based on an extended business cycle with the resulting favorable earnings
growth. An additional favorable factor is that the boom-bust syndrome of the
seventies and eighties caused by inflation is not recurring. The extended
business cycle and its relatively slow overall growth is favorable for
financial markets. We feel that the economic and longer-term trends are
extremely favorable to convertibles in general.
Inflation continues to remain under control, and we see interest-rate
pressures peaking. Some market analysts believe increases in commodity prices
constitute a bad omen for inflation. However, raw materials in general
constitute a very small portion of the price of finished products. Other
factors, such as this summer's drought and early frost, have led to increased
grain prices. The move up in the Commodities Research Bureau (CRB) Index is
solely a result of this price increase. Therefore, we do not think rising
commodity prices will lead to increased inflation.
Companies are again coming to the new-issue convertible market for capital.
Investor interest in convertibles remains high, as more and more investors now
view them as a major opportunity for generating capital gains in a
fixed-income investment. The straight fixed-income investor who became
accustomed to capital gains as interest rates fell must now look elsewhere.
Convertibles have become the preferred choice for many of these investors.
<PAGE>
With the fixed-income markets in a period of stability as interest rates and
inflation have declined, convertible securities offer fixed-income investors a
means to achieve higher total returns. Equity market volatility, especially
among individual companies and industries, will continue to be high. The
favorable risk/reward of convertible securities is secured by their
fixed-income attributes, and yet it also allows the investor a means to
participate in an exciting equity position defensively. The overall
convertible risk/reward profile remains as favorable as we have seen at any
time in the investment cycle. We recommend that investors remain fully
invested for the best long-term results.
Sincerely,
John P. Calamos
President
November 17, 1995
Naperville, Illinois
<PAGE>
Talking about Convertible Securities
An interview with portfolio manager John P. Calamos
What are convertible securities?
In general, convertibles combine the steady cash flow of a bond with the
capital appreciation potential of common stocks. This results in attractive
returns comparable to those available from equities, but at lower risk. The
convertible security's unique feature is that it can be exchanged for a
specified number of shares of common stock, usually of the same company, at a
pre-stated price. This number is set at the time of issue and is generally
protected for stock dividends and other corporate eventualities.
The universe of convertible securities consists mainly of convertible bonds
and convertible preferred stocks, and both maintain a status senior to that of
their underlying common stock.
Tell me about the convertible market. Is it large enough to allow diversified
portfolios?
The domestic convertible market has grown rapidly over the past twenty years,
expanding from a niche market to one of approximately 1000 issues. Well
diversified among economic and industry sectors, convertibles are beginning to
be recognized as a separate asset class. The global convertible market has
more than $320 billion outstanding. As of August 31, 1995, the new issues for
the year totaled more than $5 billion, bringing the total domestic convertible
market to $112 billion.
Why should I think of convertible bonds as something different from other
corporate bonds?
They are corporate bonds with an important added feature. They offer capital
appreciation potential that traditional bonds do not, since the convertible
can be exchanged for shares of common stock at the option of the holder.
Convertibles combine stock market potential with fixed-income safety.
However, investors should be aware that convertible securities will not
appreciate as much as the underlying stock.
I need to know about some of the risks of convertible securities. What
happens to convertibles when interest rates go up?
It is important to realize that, in general, convertibles are significantly
less interest-rate sensitive than traditional fixed-income securities. While
it is true that rising interest rates will have a negative effect on the bond
value of the convertible security, the fact that the convertible also has
equity value will tend to temper that effect. If the stock market is rising,
convertible values will be more positively affected by rising stock values
than negatively affected by rising interest rates. However, if the stock
market declines at the same time that interest rates rise, it is possible that
convertibles will lose value.
Why are convertible securities such a good idea in today's markets?
There are two different answers to that question, depending on whether your
orientation is to the fixed-income markets or the equity markets.
<PAGE>
From 1981 until 1993, the fixed-income investor became accustomed to
double-digit total returns, first because interest rates were so high, and
later because of declining interest rates, which caused bond prices to
increase. The bull market ended when interest rates bottomed out in 1993, and
1994 saw the worst bond market of the century.
Investors who expect to see a return to double-digit rates of total return are
likely to be disappointed. Many market participants expect to see low
inflation and low, stable interest rates for the next few years. That kind of
environment is unlikely to offer the same opportunities for total return that
were available in the recent past.
How will investors be able to achieve their financial goals? We believe that
one answer is convertible bonds. Convertibles pay a steady stream of income,
although the interest rate is slightly below that available on straight
corporate debt. The convertible also offers significant upside potential from
its convertibility feature. No other fixed-income investment offers this kind
of growth potential.
On the other hand, we expect the equity markets to remain volatile.
Furthermore, some of the most promising investments for equity investors are
in small- to mid-cap companies and in investments in the emerging markets.
The conservative investor can take advantage of the upside potential available
through such companies and yet lower the risk and volatility by using
convertible securities to invest in such companies.
What role do convertibles play in an asset allocation process?
Many investors are starting to understand the importance of asset allocation
in their investment process. An appropriate asset allocation strategy
actually reduces risk while not adversely affecting returns, since one market
sector will always outperform others at any given point in time. Many market
analysts classify convertible securities as a separate asset class. That
means that adding convertibles to almost any portfolio will tend to increase
return and reduce risk.
Other investors consider convertible securities to be a fixed-income style
that can add diversification. We feel that the convertible style can add
value to the fixed-income portion of almost any portfolio.
In our view, allocating 20-30 percent of your total portfolio to convertible
securities will increase the return on the fixed-income component and help
reduce the volatility of the equity component.
How is the convertible market doing at the moment?
The convertible new issue market experienced a flurry of activity during the
third quarter of 1995, continuing to pick up after a rather sluggish year for
new issuances in 1994. Convertibles are attracting an increasing number of
crossover players. This has generated solid interest, with the result that
most new issues are in demand.
The convertible market remains fairly priced. As a result of strong
convertible performance during 1995, valuation levels have gone from
significantly undervalued at the beginning of the year to nearly fairly priced
by the end of the third quarter. However, the convertible market still
contains ample opportunities with competitive yields and attractive values.
Declining interest rates have resulted in increased investment values. The
result is a very favorable risk/reward for the convertible portfolio.
<PAGE>
Performance Review
<TABLE>
The Calamos Strategic Income Fund
<CAPTION>
The total return(1) for the Fund was 8.23% for the six-month period and 8.91%
for the twelve-month period, both ended September 30, 1995. These returns are
based on net asset value and include reinvestment of dividends. Over the
six-month period, the Fund paid a total of $0.24 in income dividends, and no
short-term or long-term capital gains dividends. Over the preceding
twelve-month period, the Fund paid a total of $0.48 in income dividends, and
no short-term or long-term capital gains dividends. The Fund's net asset
value on September 30, 1995, was $10.72 per share, up from its net asset value
of $10.13 per share on March 31, 1995, and $10.31 per share on September 30,
1994.
<S> <C>
NAV (9/30/95) $10.72
AVERAGE ANNUAL TOTAL
RETURN PERFORMANCE(1)
Six Months Ended 9/30/95 6.15%
Twelve Months Ended 9/30/95 3.78%
Five Years Ended 9/30/95 7.70%
Average annual total return
since inception (9/04/90 - 9/30/95) 7.63%
DISTRIBUTION RATE(2) 4.45%
Average net asset value for
12-month period $10.79
SEC yield(3) for the Fund
for 30 days ended 9/30/95 4.44%
</TABLE>
<PAGE>
The goal of the Fund is to provide an above-average income stream for
shareholders while also maintaining a stable net asset value. The Fund uses
convertible securities to accomplish this goal. Convertible securities tend to
participate in price increases on the underlying common stocks while also
paying a higher level of current income than the stocks themselves. The Fund
generates income from the interest and dividends paid on the convertible
securities.
<TABLE>
<CAPTION>
Top Ten Positions - Convertible Securities
Percent of
Company Description Net Assets
<S> <C> <C>
Legg Mason Cv 5.25% 05/01/03 5.16%
The Olsten Corporation Cv 4.875% 05/15/03 5.05%
Thermo Instrument Systems Inc. Euro Cv 3.75% 09/15/00 4.60%
Riverwood International Corporation Cv 6.75% 09/15/03 4.58%
Hospitality Franchise Systems, Inc. Cv 4.50% 10/01/99 4.43%
Network Equipment Technologies Cv 7.25% 05/15/14 4.20%
MascoTech, Inc. Cv 4.50% 12/15/03 3.96%
First Financial Management Corp. Cv 5.00% 12/15/99 3.48%
Thermo Electron Corporation Euro Cv 5.00% 04/15/01 3.47%
USF&G Corporation Cv 0.00% 03/03/09 3.44%
<FN>
- ------------------------------
1 Total return and average annual total return performance measure net
investment income and capital gain or loss from portfolio investments and
reflect changes in share price, reinvestment of income and capital gain
distributions; only average annual total return is adjusted for the 4.75%
sales charge. Past performance is no guarantee of future results.
2 The distribution rate is calculated by dividing the twelve-month total
dividend distribution by the average net asset value for the same period. The
average net asset value for that period was $10.79, and dividends totaling
$0.48 were distributed for the same period.
3 The SEC yield is a yield figure for the Fund calculated according to rules
set forth by the Securities and Exchange Commission (SEC). The figure is
derived by dividing the Fund portfolio's net investment income per share (a
hypothetical figure as defined in SEC rules) during a 30-day period by the
public offering price per share on the last day of the period being
considered.
</TABLE>
<PAGE>
The Calamos Strategic Income Fund (continued)
One of the Fund's key investment strategies is a covered short sale, which is
a short sale of those stocks whose convertibles the Fund also owns. A short
sale is effected by selling the stock at current market prices, and later
repurchasing it. Proceeds from the stock sale create a credit balance which
may earn interest. This short sale acts as a hedge on the value of the
portfolio, meaning that the Fund profits if the stock price decreases. The
percentage of shares sold short -- referred to as the hedge ratio(1)-- enables
the Fund to control the market-related risk of its portfolio. When the stock
price increases, it is the convertible securities that benefit.
Due to the strong bull market over the previous six months, Fund management
reduced the hedge ratio somewhat. The downside protection offered by such a
strategy is less important in such an environment. Although the Fund holds
both hedged and unhedged positions, the hedge strategy will continue to play
an important role in Fund performance.
Fund management uses its in-house credit research capabilities to invest in
so-called emerging credit situations and securities that are undervalued by
the market relative to their inherent credit quality. Emerging credits
involve issuers whose credit quality is improving, such as IMC Fertilizer
Group, Inc. (2.78% of net assets) and Oryx Energy Company (2.55%). IMC
Fertilizer Group, Inc. has benefited from strong operating performance and a
strategic alliance with a former competitor. Oryx Energy Company has
consummated several asset sales that have reduced its outstanding debt
dramatically and improved its credit quality.
There are several conditions which might cause the market to undervalue a
security relative to its intrinsic credit quality. A security that is not
rated by a major rating agency (e.g., Moody's or Standard & Poor's) will often
trade more attractively than a rated security of a company with comparable
credit quality. Examples of this type of situation are IVAX Corporation
(3.10%) and CML Group, Inc. (3.16%). In addition, market inefficiencies can
create opportunities in which issues become available at attractive prices,
relative to their credit quality. An example of this is Data General
Corporation (2.64%).
Investments in the technology sector made a strong contribution to returns,
including Network Equipment Technologies (4.20%). Fund management believes
that many technology investments have become fully priced, and has sold its
positions in Arrow Electronics, Inc., Systems & Computer Technology Corp. and
Rohr, Inc. A heavy weighting in the financial sector also made an important
contribution to returns.
Fund management increased the weighting in the consumer cyclical sector with
the addition of Alaska Air Group, Inc. (2.76%) and ADT Operations, Inc.
(1.27%). One particular high-performer was Hospitality Franchise Systems,
Inc. (4.43%). HFS Inc.'s core businesses are strong and the company's
acquisition of real estate concern Century 21 has been well-received by the
market.
- ------------------------------
1 The hedge ratio is the number of underlying common shares sold (or
represented by an option) divided by the number of shares into which the bonds
are convertible.
NOTE: Share price and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. Past
performance does not guarantee future results.
<PAGE>
Performance Review
<TABLE>
The Calamos Convertible Fund
<CAPTION>
The total return(1) for the Fund was 17.21% for the six-month period and
19.89% for the twelve-month period, both ended September 30, 1995. These
returns are based on net asset value and include reinvestment of dividends.
Over the six-month period, the Fund paid a total of $0.18 in income dividends,
and no short-term or long-term capital gains dividends. Over the preceding
twelve-month period, the Fund paid a total of $0.34 in income dividends, no
short-term dividends and $0.40 in long-term capital gains dividends. The
Fund's net asset value on September 30, 1995 was $14.36 per share, up from its
net asset value of $12.41 per share on March 31, 1995 and $12.71 per share on
September 30, 1994.
<S> <C>
NAV (9/30/95) $14.36
AVERAGE ANNUAL TOTAL
RETURN PERFORMANCE(1)
Six Months Ended 9/30/95 24.54%
Twelve Months Ended 9/30/95 14.23%
Five Years Ended 9/30/95 15.05%
Average Annual Total Return
Since Inception (6/21/85 - 9/30/95) 10.03%
</TABLE>
<PAGE>
Several industry groups have posted strong performance since the beginning of
the year as the equity market continued to perform well during the quarter.
Among these are the financial and technology sectors, and the Fund has
benefited from both groups this year. Fund management remains positive on the
financials, although it believes that some of the technology positions have
become fully priced.
<TABLE>
<CAPTION>
Top Ten Positions - Convertible Securities and Common Stock
Percent of
Company Description Net Assets
<S> <C> <C>
Johnson & Johnson(2) Synthetic Security 3.16%
LM Ericsson Telephone Co. Cv 4.25% American Depository Deb. 6/30/00 3.13%
Automatic Data Processing, Inc. Cv 0.00% 02/20/12 2.90%
First Chicago Corporation Cv Pfd Series B 2.56%
Federal Home Loan Mortgage Corp. Common Stock 2.48%
International Business Machines(3) Synthetic Security 2.46%
Motorola, Inc. Cv 0.00% 09/27/13 2.39%
Fifth Third Bancorp Cv 4.25% 01/15/98 2.30%
General Motors Corporation Dep. Shares Cv Pfd Series C 2.18%
The Travelers Inc. Cv Pfd Series B 2.01%
<FN>
- ------------------------------
1 Total return and average annual total return performance measure net
investment income and capital gain or loss from portfolio investments and
reflect changes in share price, reinvestment of income and capital gain
distributions; only average annual total return is adjusted for the 4.75%
sales charge. Past performance is no guarantee of future results.
2 The Johnson & Johnson position is a synthetic convertible; the position
percentage includes the synthetic's U.S. Treasury Note component (2.22%) and
its call option component (0.94%).
3The International Business Machines position is a synthetic convertible; the
position percentage includes the synthetic's U.S. Treasury Note component
(2.22%) and its call option component (0.24%).
</TABLE>
<PAGE>
The Calamos Convertible Fund (continued)
During the third quarter of 1995, the Fund reduced its bank weighting,
although Fund management continues to believe that the secular disinflation
trend is intact. Some of the bank convertibles were called, such as Republic
New York Corp. and BankAmerica Corp., while The Bank of New York Company hit
Fund management's upside price objectives. The Fund kept its exposure in the
financial sector relatively constant by increasing its investment in the
insurance industry, where the valuations are better and the convertibles offer
more attractive risk/reward ratios. During the quarter, the Fund added to its
positions in the Leucadia National Corp. (1.48% of net assets) and the St.
Paul Companies (1.59%) holdings. The Fund's over-weighting in the financial
sector has been very helpful to performance this year.
The Fund has increased its exposure to consumer cyclicals over the course of
the last two quarters. One of the Fund's more important purchases was the
ADT Operations, Inc. (1.46%) zero-coupon bond. ADT has two main businesses:
commercial and residential security services and used-auto auctions. Fund
management sees ADT as an investment opportunity in the fragmented but growing
electronic security services (ESS) industry. The company's improving cost of
capital makes it better able to acquire portions of the scattered ESS market.
At current prices, the stock trades at more than 13 times this year's and 11
times next year's estimated earnings per share, an attractive valuation,
especially when considering the company's growth prospects.
Exposure to the foreign convertible markets once again created a drag on
overall performance. Although the Fund has been able to find some excellent
bargains overseas, the fiscal and monetary problems in the developed nations
have, in the opinion of the Fund's managers, made for a less-than-robust
economic recovery and mediocre financial market performance.
The energy and consumer growth sectors have performed poorly, although the
Fund is well underweighted in these areas.
- ------------------------------
NOTE: Share price and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. Past
performance does not guarantee future results.
<PAGE>
Performance Review
<TABLE>
The Calamos Growth and Income Fund
<CAPTION>
The total return(1) for the Fund was 17.61% for the six-month period and
20.45% for the twelve-month period, both ended September 30, 1995. These
returns are based on net asset value and include reinvestment of dividends.
Over the six-month period, the Fund paid a total of $0.24 in income dividends,
and no short-term or long-term capital gains dividends. Over the preceding
twelve-month period, the Fund paid a total of $0.39 in income dividends, and
no short-term or long-term capital gains dividends. The Fund's net asset
value on September 30, 1995 was $14.66 per share, up from its net asset value
of $12.68 on March 31, 1995 and $12.53 per share on September 30, 1994.
<S> <C>
NAV (9/30/95) $14.66
AVERAGE ANNUAL TOTAL
RETURN PERFORMANCE(1)
Six Months Ended 9/30/95 25.45%
Twelve Months Ended 9/30/95 14.77%
Five Years Ended 9/30/95 15.56%
Average Annual Total Return
Since Inception (9/22/88 - 9/30/95) 11.97%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Top Ten Positions - Convertible Securities and Common Stock
Percent of
Company Description Net Assets
<S> <C> <C>
Johnson & Johnson(2) Synthetic Security 4.25%
United States Treasury Notes 6.875% 03/31/97 4.08%
Merck & Co.(3) Synthetic Security 3.93%
Pepsico, Inc.(4) Synthetic Security 3.73%
Olympic Financial Ltd. Cv Pfd Cv Pfd 3.48%
Digital Equipment Corporation Common Stock 3.44%
Bristol Meyers Squibb(5) Synthetic Security 3.42%
American Home Products Corp.(6) Synthetic Security 3.42%
International Business Machines(7) Synthetic Security 3.32%
Automatic Data Processing, Inc. 0.00% 02/20/12 3.26%
<FN>
- ------------------------------
1 Total return and average annual total return performance measure net
investment income and capital gain or loss from portfolio investments and
reflect changes in share price, reinvestment of income and capital gain
distributions; only average annual total return is adjusted for the 4.75%
sales charge. Past performance is no guarantee of future results.
2 The Johnson & Johnson position is a synthetic convertible; the position
percentage includes the synthetic's U.S. Treasury Note component (2.95%) and
its call option component (1.30%).
3 The Merck & Co. position is a synthetic convertible; the position percentage
includes the synthetic's U.S. Treasury Note component (2.55%) and its call
option component (1.38%).
4 The Pepsico, Inc. position is a synthetic convertible; the position
percentage includes the synthetic's U.S. Treasury Note component (2.55%) and
its call option component (1.18%).
5 The Bristol Meyer Squibb position is a synthetic convertible; the position
percentage includes the synthetic's U.S. Treasury Note component (2.55%) and
its call option component (0.87%).
6 The American Home Products Corp. position is a synthetic convertible; the
position percentage includes the synthetic's U.S. Treasury Note component
(2.55%) and its call option component (0.87%).
7 The International Business Machines position is a synthetic convertible; the
position percentage includes the synthetic's U.S. Treasury Note component
(2.95%) and its call option component (0.37%).
</TABLE>
<PAGE>
The Calamos Growth and Income Fund (continued)
The Fund's objective is to achieve high long-term total return through capital
appreciation and current income. Its use of a convertible strategy provides a
combination of income and capital gains that is well-suited for achieving a
growth and income objective. The relatively small size of this Fund allows it
to be flexible in its response to changing market conditions, whether it is
shifting its market-cap focus or taking advantage of new instruments. It is
able to invest in attractive smaller issues that might lack the liquidity
necessary for use in a larger fund.
There are three parts to the Fund's structure. Conventional convertible
securities comprised 57% of its portfolio at third quarter end. Because this
Fund seeks both capital appreciation and income, it will tend to hold more
stocks (7%) than other convertible funds. Its third component is synthetic
convertibles, which constitute 33% of its portfolio. (The remainder of the
portfolio is 3% in cash.) A synthetic convertible combines a fixed-income
component, such as a U.S. Treasury note, with a long-term warrant or option.
The Treasury note provides the income typical of a convertible security, and
the warrant or option provides the potential for long-term capital
appreciation. Synthetics expand the convertible universe, and allow
convertible investments in undervalued companies that have not issued any
straight convertible securities.
Two good examples of synthetic convertibles are those Fund management created
by combining Johnson & Johnson1 (4.25% of net assets) and International
Business Machines2 (3.32%) options with U.S. Treasury notes. These positions
reached their upside target. Fund management took profits and rolled over the
positions at higher levels.
Fund management looks for companies that satisfy its investment criteria, and
tends to be diversified across market capitalization size. At quarter end,
the market capitalization of companies the Fund invests in tended to be either
larger or smaller cap. Approximately 43% of the companies (as a percentage of
the portfolio) have capitalization below $500 million, and 35% have
capitalization above $5 billion. Smaller-cap companies generally have a
higher degree of risk than companies with larger capitalization.
The Fund's investments in the financial sector turned in a strong performance
over the previous six months, and the Fund significantly increased the
financial sector's weighting with the addition of Fremont General Corporation
(1.49%) and Fifth Third Bancorp (2.66%). The technology sector of the market
has also made a strong contribution to performance over the past six months,
although Fund management believes that some companies in the technology sector
may have become fully priced. The Fund has therefore reduced its technology
exposure selectively. Going forward, the Fund will wait for the opportunity
to participate further in this sector at lower prices.
- ------------------------------
1 The Johnson & Johnson position is a synthetic convertible; the position
percentage includes the synthetic's U.S. Treasury Note component (2.95%) and
its call option component (1.30%).
2The International Business Machines position is a synthetic convertible; the
position percentage includes the synthetic's U.S. Treasury Note component
(2.95%) and its call option component (0.37%).
NOTE: Share price and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. Past
performance does not guarantee future results.
<PAGE>
Performance Review
<TABLE>
The Calamos Growth Fund
<CAPTION>
The total return(1) for the Fund was 25.94% for the six-month period and
23.25% for the twelve-month period, both ended September 30, 1995. These
returns are based on net asset value and include reinvestment of dividends.
Over the six-month period, the Fund paid a total of $0.07 in income dividends,
no short-term and $0.07 in long-term capital gains dividends. Over the
preceding twelve- month period, the Fund paid a total of $0.07 in income
dividends, no short-term and $0.07 in long-term capital gains dividends. The
Fund's net asset value on September 30, 1995 was $17.70 per share, up from its
net asset value of $14.18 per share on March 31, 1995 and $14.49 per share on
September 30, 1994.
<S> <C>
NAV (9/30/95) $17.70
AVERAGE ANNUAL TOTAL
RETURN PERFORMANCE(1)
Six Months Ended 9/30/95 43.70%
Twelve Months Ended 9/30/95 17.41%
Five Years Ended 9/30/95 13.71%
Average Annual Total Return
Since Inception (9/04/90 - 9/30/95) 12.82%
</TABLE>
The Fund seeks long-term capital growth, and is suitable for investors seeking
long-term capital appreciation through direct equity participation. It
invests primarily in common stocks. Fund management intends to achieve the
highest returns possible for the long term, and does not seek to minimize
short-term volatility. It is the most aggressively traded of the funds, with
high turnover. Its relatively small size allows it great flexibility in
moving in and out of stocks.
<PAGE>
<TABLE>
<CAPTION>
Top Ten Positions - Common Stock
Percent of
Company Description Net Assets
<S> <C> <C>
Optical Data Systems, Inc. Common Stock 2.78%
FSI International Inc. Common Stock 2.64%
Sunglass Hut International, Inc. Common Stock 2.38%
Quick & Reilly Group, Inc. Common Stock 2.36%
Xilink Inc. Common Stock 2.29%
Esterline Technologies Corporation Common Stock 2.17%
Olympic Financial Ltd. Common Stock 2.17%
General Nutrition Co., Inc. Common Stock 2.16%
II-VI, Inc. Common Stock 2.11%
Veterinary Centers of America, Inc. Common Stock 2.09%
<FN>
- ------------------------------
1 Total return and average annual total return performance measure net
investment income and capital gain or loss from portfolio investments and
reflect changes in share price, reinvestment of income and capital gain
distributions; only average annual total return is adjusted for the 4.75%
sales charge. Past performance is no guarantee of future results.
</TABLE>
<PAGE>
The Calamos Growth Fund (continued)
The Fund's strategy is to search for the fastest-growing companies available
in the stock market. The Fund searches for companies with earnings growth
rates significantly above average. The Fund also seeks to invest primarily in
stocks of companies where the earnings growth is expected to be higher than
earnings estimated by analysts. Fund management believes that a company's
earnings trend has a direct relationship to its stock price. By focusing on
expected earnings growth, the Fund's strategy is to recognize undervalued
companies before they become well-known in the marketplace.
Since the fastest-growing companies are typically small- to mid-size
companies, the Fund has the majority of its holdings in this area. Fund
management's decision-making process recognizes that the stock prices of fast-
growing companies are highly volatile. The Fund is therefore traded
aggressively to maintain its portfolio in the top companies representing the
best earnings potential. The companies purchased will be selected according
to both company and sector potential. Although the Fund is diversified by
industry, it may at times be heavily weighted in sectors Fund management
believes to be the most attractive.
Over the last six months, the Fund's investments have been concentrated in the
technology and financial sectors. The technology sector has an above-average
weighting of approximately 30%, mostly in small companies. Although this
sector has been volatile, it has provided significant gains for the Fund.
Financial companies have also provided high earnings growth, and the Fund
continues to maintain a significant weighting in this sector.
The Fund has investments in 50 different companies and is well diversified to
reduce risk. Approximately 13% of the Fund's portfolio is invested in
large-capitalization companies, 36% is in mid-capitalization companies, and
51% is in small-capitalization companies. Fund management believes that the
higher-than-usual weighting of small- to mid-size companies is warranted in
the current investment environment. However, smaller-cap companies generally
have a higher degree of risk than companies with larger capitalization.
Management believes that the Fund is well positioned for the coming months.
The reduction in inflation and interest rates continues to provide an
excellent environment for growth companies. In addition, the post-Cold-War
era has seen the further development of free market economies and has led to
expanding markets worldwide. Although markets will continue to be volatile,
the opportunity for growth is excellent.
- ------------------------------
NOTE: Share price and investment return will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost. Past
performance does not guarantee future results.
<PAGE>
Calamos Family of Funds
<TABLE>
<CAPTION>
Standardized Returns
For Period Ended September 30, 1995
Total Return Average Annual Total Return
1 year 5 years 10 years Since Inception
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Strategic Income Fund 8.91% 3.78% 8.76% 7.70% NA NA 8.67% 7.63%
Inception: 9/4/90
Convertible Fund 19.89% 14.23% 16.17% 15.05% 11.09% 10.55% 10.56% 10.03%
Inception: 6/21/85
Growth and Income Fund 20.45% 14.77% 16.69% 15.56% NA NA 12.75% 11.97%
Inception: 9/22/88
Growth Fund 23.25% 17.41% 14.82% 13.71% NA NA 13.91% 12.82%
Inception: 9/4/90
</TABLE>
This chart provides performance return numbers for the four Funds and shows
returns both non-adjusted and adjusted for the 4.75% sales charge. Total
return and average annual total return performance measure net investment
income and capital gain or loss from portfolio investments and reflect changes
in share price, reinvestment of income and capital gain distributions.
Performance has not been adjusted for the sales charge in the unshaded area of
the chart. Performance has been ad-justed for the 4.75% sales charge in the
shaded area of the chart.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that an investor's shares when redeemed may
be worth more or less than their original cost.
<PAGE>
<TABLE>
Schedule of Investments September 30, 1995
Calamos Strategic Income Fund
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Convertible Bonds (87.1%)
Basic Industries (10.0%)
$45,000 IMC Fertilizer Group, Inc. $48,038
6.250% Conv. Sub. Notes
12/01/2001
35,000 Inco Limited 45,850
5.750% Conv. Deb.
07/01/2004
60,000 Riverwood International Corporation 79,200
6.750% Conv. Sub. Notes
09/15/2003 ----------
173,088
Capital Goods - Industrial (10.2%)
40,000 Thermo Electron Corporation 60,000
5.000% Senior Conv. Euro. Deb
04/15/2001
60,000 Thermo Instrument Systems Inc. 79,500
3.750% Senior Conv. Euro.
Deb. Guaranteed
09/15/2000
30,000 United States Filter Corporation 36,450
5.000% Conv. Sub. Deb.
10/15/2000 ----------
175,950
Capital Goods - Technology (14.8%)
50,000 Data General Corporation 45,563
7.750% Conv. Sub. Deb.
06/01/2001
40,000 EMC Corporation 43,150
4.250% Conv. Sub. Notes
01/01/2001
40,000 First Financial Management Corp. 60,200
5.000% Senior Conv. Deb.
12/15/1999
30,000 Integrated Device Technology, Inc. 33,600
5.500% Conv. Sub. Notes
06/01/2002
55,000 Network Equipment Technologies 72,531
7.250% Conv. Sub. Deb.
05/15/2014 ----------
255,044
Consumer Cyclical (21.3%)
50,000 ADT Operations, Inc. 21,937
0.000% Liquid Yield Option Notes
07/06/2010
50,000 Alaska Air Group, Inc. 47,625
6.500% Conv. Sen. Deb.
06/15/2005
<PAGE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
$45,000 AMR Corporation $46,069
6.125% Conv. Sub. Quarterly
Income Capital Securities
11/01/2024
60,000 Delta Air Lines, Inc. 54,600
3.230% Conv. Sub. Notes
06/15/2003
50,000 Hospitality Franchise Systems, Inc. 76,500
4.500% Conv. Senior Notes
10/01/1999
90,000 MascoTech, Inc. 68,513
4.500% Conv. Sub. Deb.
12/15/2003
50,000 Prime Hospitality Corp. 53,250
7.000% Conv. Sub. Notes
04/15/2002 ----------
368,494
Consumer Growth Staples (17.4%)
200,000 Boston Chicken, Inc. 49,750
0.000% Liquid Yield Option Notes
06/01/2015
70,000 CML Group, Inc. 54,600
5.500% Conv. Sub. Deb.
01/15/2003
50,000 IVAX Corporation 53,625
6.500% Conv. Sub. Notes
11/15/2001
75,000 The Olsten Corporation 87,187
4.875% Conv. Sub. Notes
05/15/2003
45,000 Vencor, Incorporated 55,406
6.000% Conv. Sub. Notes
10/01/2002 ----------
300,568
Energy (4.8%)
35,000 Apache Corporation 38,500
6.000% Conv. Euro Sub. Deb.
01/15/2002
50,000 Oryx Energy Company 44,125
7.500% Conv. Sub. Deb.
05/15/2014 ----------
82,625
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
Schedule of Investments September 30, 1995
Calamos Strategic Income Fund
<TABLE>
<CAPTION>
Principal
Amount/Number
of Shares Value
<S> <C> <C>
Financial (8.6%)
$75,000 Legg Mason $89,250
5.250% Conv. Sub. Deb.
05/01/2003
100,000 USF&G Corporation 59,375
0.000% Conv. Sub. Notes
03/03/2009 ----------
148,625
TOTAL CONVERTIBLE
BONDS 1,504,394
(Cost $1,321,984)
Convertible Preferred Stocks (8.8%)
Capital Goods - Technology (2.1%)
800 Corning Delaware 37,400
6.000% Conv. Monthly Income
Pref. Sec.
Credit Cyclicals (3.3%)
900 Great Western Financial Corporation 56,475
Dep. Shares, 1/5 Share 8.75%
Cum. Conv. Pref. Stock
Financial (3.4%)
600 Penncorp Financial Group, Inc. 36,300
$3.38 Conv. Pref. Stock
400 The Rouse Company 21,950
Series A Conv. Pref. Stock ----------
58,250
TOTAL CONVERTIBLE 152,125
PREFERRED STOCKS
(Cost $147,051)
----------
TOTAL INVESTMENTS (95.9%) 1,656,519
(Cost $1,469,034)
Common Stocks Sold Short (-35.7%)
Basic Industries (-3.7%)
500 Inco Limited (17,125)
2,100 Riverwood International Corporation (47,250)
----------
(64,375)
Capital Goods - Industrial (-5.9%)
772 Thermo Electron Corporation (35,802)
1,987 Thermo Instrument Systems Inc. (55,139)
450 United States Filter Corporation (10,800)
----------
(101,741)
<PAGE>
<CAPTION>
Number of
Shares Value
<S> <C> <C>
Capital Goods-Technology (-7.9%)
630 Corning Incorporated $(18,034)
1,500 EMC Corporation (27,187)
350 First Financial Management Corporation (34,168)
400 Integrated Device Technology (10,000)
1,140 Network Equipment Technologies (47,453)
----------
(136,842)
Consumer Cyclical (-7.0%)
300 ADT Limited (4,125)
900 Alaska Air Group, Inc. (14,063)
230 AMR Corporation (16,589)
240 Delta Air Lines, Inc. (16,620)
800 Hospitality Franchise Systems, Inc. (41,900)
2,500 Prime Hospitality Corp. (25,625)
----------
(118,922)
Consumer Growth Staples (-4.7%)
700 Boston Chicken, Inc. (18,287)
650 The Olsten Corporation (25,269)
1,200 Vencor, Incorporated (38,400)
----------
(81,956)
Credit Cyclicals (-1.2%)
900 Great Western Financial Corporation (21,375)
Energy (-1.2%)
800 Apache Corporation (21,000)
Financial (-4.1%)
875 Legg Mason (26,031)
550 Penncorp Financial Group, Inc. (13,131)
375 The Rouse Company (8,203)
1,200 USF&G Corporation (23,250)
----------
(70,615)
TOTAL COMMON STOCKS ----------
SOLD SHORT (616,826)
(Proceeds $510,140)
----------
CASH DEPOSITS WITH CUSTODIAN 638,258
(INTEREST-BEARING) (36.9%)
OTHER ASSETS,
LESS LIABILITIES (2.9%) 50,058
----------
NET ASSETS (100%) $1,728,009
==========
NET ASSET VALUE PER SHARE $ 10.72
==========
(161,236 shares outstanding)
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Schedule of Investments September 30, 1995
Calamos Convertible Fund
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Convertible Bonds (55.0%)
Basic Industries (3.6%)
$160,000 Fieldcrest Cannon, Inc. $134,800
6.000% Conv. Sub. Deb
03/15/2012
150,000 IMC Fertilizer Group, Inc. 160,125
6.250% Conv. Sub. Notes
12/01/2001
475,000 RPM, Inc. 201,281
0.000% Liquid Yield Option Notes
09/30/2012
125,000 TriMas Corporation 130,625
5.000% Conv. Sub. Deb.
08/01/2003
80,000 Unifi, Inc. 80,800
6.000% Conv. Sub. Notes
03/15/2002 ----------
707,631
Capital Goods - Industrial (6.5%)
200,000 Albany International Corp. 194,000
5.250% Conv. Sub. Deb.
03/15/2002
154,000 Cooper Industries, Inc. 155,732
7.050% Conv. Sub. Deb.
01/01/2015
250,000 Thermo Electron Corporation 375,000
5.000% Senior Conv. Euro. Deb.
04/15/2001
150,000 Thermo Instrument Systems, Inc. 198,750
3.750% Senior Conv. Euro. Deb.
Guaranteed
09/15/2000
400,000 WMX Technologies, Inc. 340,000
2.000% Conv. Sub. Notes
01/24/2005 ----------
1,263,482
Capital Goods - Technology (15.6%)
225,000 Arrow Electronics, Inc. 369,563
5.750% Conv. Sub. Deb.
10/15/2002
1,220,000 Automatic Data Processing, Inc. 65,775
0.000% Liquid Yield Option Notes
02/20/2012
150,000 Compania de Telefonos de Chile S.A. 155,437
4.500% Conv. Sub. Deb.
01/15/2003
195,000 Data General Corporation 177,694
7.750% Conv. Sub. Deb.
06/01/2001
<PAGE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
$160,000 First Financial Management Corp. $240,800
5.000% Senior Conv. Deb.
12/15/1999
1,910,000 LM Ericsson Telephone Company 609,350
SKS
4.250% American Depository Deb
06/30/2000
510,000 Motorola, Inc. 466,013
0.000% Liquid Yield Option Notes
09/27/2013
90,000 Sterling Software 146,250
5.750% Conv. Sub. Deb.
02/01/2003
175,000 Systems & Computer Technology Corp. 315,000
6.250% Conv. Sub. Deb.
09/01/2003 ----------
3,045,882
Consumer Cyclical (12.6%)
650,000 ADT Operations, Inc. 285,187
0.000% Liquid Yield Option Notes
07/06/2010
270,000 AMR Corporation 276,413
6.125% Conv. Sub. Quarterly
Income Capital Securities
11/01/2024
100,000 British Airways Plc 313,374
BPS 9.750% Conv. Capital Bonds
06/15/2005
240,000 Carnival Cruise Lines, Inc. 334,500
4.500% Conv. Sub. Notes
07/01/1997
88,000 Daily Mail and General Trust Plc 171,311
BPS (Reuters Holdings PLC)
5.750% Exch. Bonds
09/26/2003
240,000 Delta Air Lines, Inc. 218,400
3.230% Conv. Sub. Notes
06/15/2003
395,000 The Interpublic Group of Companies, Inc. 359,450
3.750% Conv. Sub. Euro. Deb.
04/01/2002
175,000 MascoTech, Inc. 133,219
4.500% Conv. Sub. Deb.
12/15/2003
190,000 McKesson Corp. 171,950
4.500% Conv. Sub. Deb.
03/01/2004
270,000 Office Depot, Inc. 186,300
0.000% Liquid Yield Option Notes
11/01/2008 ----------
2,450,104
See accompanying Note to Schedule of Investments.
</TABLE>
<PAGE>
Schedule of Investments September 30, 1995
Calamos Convertible Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Consumer Growth Staples (6.5%)
$625,000 Elan International Finance, Ltd. $292,188
0.000% Liquid Yield Option Notes
10/16/2012
160,000 Hasbro, Inc. 177,000
6.000% Conv. Sub. Notes
11/15/1998
250,000 Hollinger Inc. 76,875
0.000% Liquid Yield Option Notes
10/05/2013
715,000 News America Holdings Incorporated 326,218
0.000% Liquid Yield Option Notes
03/11/2013
175,000 The Olsten Corporation 203,438
4.875% Conv. Sub. Deb.
05/15/2003
183,700 Time Warner Inc. 191,967
8.750% Conv. Sub. Deb.
01/10/2015 ----------
1,267,686
Energy (1.9%)
230,000 Pennzoil Company (Chevron) 278,013
6.500% Exch. Senior Deb.
01/15/2003
90,000 Snyder Oil Corporation 82,463
7.000% Conv. Sub. Notes
05/15/2001 ----------
360,476
Financial (8.3%)
180,000 BCP Bank & Trust Co. (Cayman), Ltd. 239,687
ECS
8.750% Guaranteed
Sub. Conv. Bonds
05/21/2002
145,000 Cincinnati Financial Corporation 177,987
5.500% Conv. Senior Deb.
05/01/2002
165,000 Developers Diversified Realty Corp. 162,319
7.000% Conv. Sub. Deb.
08/15/1999
440,000 Fifth Third Bancorp 447,700
4.250% Conv. Sub. Notes
01/15/1998
260,000 Leucadia National Corporation 288,600
5.250% Conv. Sub. Deb.
02/01/2003
100,000 The Mitsubishi Bank, Limited 104,750
3.000% Exch. Guaranteed Notes
11/30/2002
<PAGE>
<CAPTION>
Principal
Amount/Number
of Shares Value
<S> <C> <C>
$924,000 Societe Generale $203,235
FRS 3.500% Conv. Deb
01/01/2000 ----------
1,624,278
TOTAL CONVERTIBLE ----------
BONDS $10,719,539
(Cost $9,321,652)
Convertible Preferred Stocks (21.0%)
Basic Industries (1.4%)
5,550 James River Corporation of Virginia 277,500
Dep. Shares, 1/100 Share
Series P 9.000% Cum. Conv. Pref. Stock
Capital Goods - Industrial (2.0%)
3,800 Ford Motor Company 386,175
Dep. Shares, 1/1000 Share
Series A Cum. Conv. Pref. Stock
Capital Goods - Technology (2.8%)
6,550 General Motors Corporation 424,931
Series C Dep. Shares,
1/10 Series C Conv. Pref. Stock
2,900 Salomon, Inc. 123,250
6.750% DEC (Digital Equipment
Corporation) Common Equity-Linked
Securities, Due 08/02/1996 ----------
548,181
Consumer Growth Staples (0.4%)
3,000 FHP International Corp. 71,250
Series A Cum. Conv. Pref. Stock
Consumer Staples (3.2%)
8,800 ConAgra, Inc. 354,200
$25 Class E Cum. Conv. Voting
Pref. Stock
40,600 RJR Nabisco Holding Corp. 274,050
Series C Dep. Shares,
1/10 Series C Conv. Pref. Stock ----------
628,250
Financial (11.2%)
2,000 Citicorp 389,000
$5.375 Dep. Shares, 1/2000 Share
Conv. Pref. Stock, Series 13
7,780 First Chicago Corporation 499,865
Dep. Shares, 1/100 Share 5.750%
Cum. Conv. Pref. Stock, Series B
See accompanying Note to Schedule of Investments.
</TABLE>
<PAGE>
Schedule of Investments September 30, 1995
Calamos Convertible Fund
<TABLE>
<CAPTION>
Number of
Shares Value
<S> <C> <C>
145 Jardine Strategic Holdings Limited $148,625
7.500% Conv. Cum. Pref. Shares
2,715 The Rouse Company (a) 148,985
Series A Conv. Pref. Stock
5,300 St. Paul Capital LLC 310,050
6.00% Conv. Monthly Income Pref. Sec.
6,000 Public Storage, Inc. 182,250
$2.06 Conv. Pref. Stock
5,300 The Travelers Inc. 392,200
5.500% Conv. Pref. Stock, Series B
750 Webster Financial Corporation 113,063
Series B 7.500% Cum.
Conv. Pref. Stock ----------
2,184,038
TOTAL CONVERTIBLE 4,095,394
PREFERRED STOCKS
(Cost $3,431,672)
Common Stocks (11.6%)
Capital Goods - Industrial (1.1%)
4,200 Chrysler Corporation 222,600
Capital Goods - Technology (2.3%)
14,531 Alcatel Alsthom ADR 247,027
2,000 International Business Machines 188,750
----------
435,777
Consumer Growth Staples (4.2%)
3,000 Gannett Company, Inc. 163,875
3,100 Eli Lilly & Company 278,612
11,000 Reebok International Ltd. 378,125
----------
820,612
Consumer Staples (1.5%)
5,700 Pepsico, Inc. 290,700
Credit Cyclicals (2.5%)
7,000 Federal Home Loan Mortgage Corp. 483,875
----------
TOTAL COMMON STOCKS 2,253,564
(Cost $1,679,749)
Call Options (1.9%)
Capital Goods - Technology (0.2%)
25 International Business Machines (a) 45,625
Long Term Equity Anticipation Securities
Expiring 01/16/1998 Strike Price 100
<PAGE>
<CAPTION>
Number of
Shares/Principal
Amount Value
<S> <C> <C>
Consumer Growth Staples (1.2%)
50 Bristol Myers Squibb (a) $54,375
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 65
105 Johnson & Johnson (a) 181,125
Long Term Equity Anticipation Securities
Expiring 01/19/1996 Strike Price 60 ----------
235,500
Credit Cyclicals (0.4%)
30 Federal National Mortgage Association. (a) 82,125
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 80
Energy (0.1%)
30 Tenneco, Inc. (a) 14,625
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 45
----------
TOTAL CALL OPTIONS 377,877
(Cost $201,636)
U.S. Government Securities (6.6%)
$850,000 United States Treasury Notes 868,853
7.000% 04/15/1999
100,000 United States Treasury Notes 102,687
8.000% 01/15/1997
300,000 United States Treasury Notes 306,375
7.500% 01/31/1997
TOTAL U.S. GOVERNMENT ----------
SECURITIES 1,277,915
(Cost $1,271,453)
----------
TOTAL INVESTMENTS (96.1%) 18,724,287
(Cost $15,906,162)
CASH DEPOSIT WITH CUSTODIAN 763,746
(INTEREST-BEARING) (3.8%)
OTHER ASSETS, LESS
LIABILITIES (0.1%) 5,134
----------
NET ASSETS (100%) $ 19,493,167
============
NET ASSET VALUE PER SHARE $ 14.36
============
(1,357,439 shares outstanding)
<FN>
Note to Schedule of Investments
(a) Non-income producing security
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Schedule of Investments September 30, 1995
Calamos Growth and Income Fund
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Convertible Bonds (36.6%)
Basic Industries (5.8%)
$30,000 Guilford Mills, Inc. $29,550
6.000% Conv. Sub. Deb.
09/15/2012
40,000 IMC Fertilizer Group, Inc. 42,700
6.250% Conv. Sub. Notes
12/01/2001
40,000 Inco Limited 52,400
5.750% Conv. Deb
07/01/2004
50,000 Riverwood International Corporation 66,000
6.750% Conv. Sub. Notes
09/15/2003
40,000 Unifi, Inc. 40,400
6.000% Conv. Sub. Notes
03/15/2002 ----------
231,050
Capital Goods - Industrial (8.6%)
50,000 Browning-Ferris Industries, Inc. 49,937
6.250% Conv. Sub. Deb.
08/15/2012
70,000 Thermo Instrument Systems Inc. 92,750
3.750% Senior Conv. Euro.
Deb. Guaranteed
09/15/2000
30,000 Titan Wheel International Inc. 41,100
4.750% Conv. Sub. Notes
12/01/2000
50,000 USA Waste Services, Inc. 73,563
8.500% Conv. Sub. Deb.
10/15/2002
100,000 WMX Technologies, Inc. 85,000
2.000% Conv. Sub. Notes
01/24/2005 ----------
342,350
Capital Goods - Technology (7.9%)
280,000 Automatic Data Processing, Inc. 129,850
0.000% Liquid Yield Option Notes
02/20/2012
115,000 Motorola, Inc. 105,081
0.000% Liquid Yield Option Notes
09/27/2013
45,000 Systems & Computer Technology Corp. 81,000
6.250% Conv. Sub. Deb.
09/01/2003 ----------
315,931
Consumer Cyclical (5.4%)
35,000 Air Express International Corporation 40,775
6.000% Conv. Sub. Deb.
01/15/2003
<PAGE>
<CAPTION>
Principal
Amount/Number
of Shares Value
<S> <C> <C>
$82,000 AMR Corporation $83,947
6.125% Conv. Sub. Quarterly
Income Capital Securities
11/01/2024
50,000 Delta Air Lines, Inc. 45,500
3.230% Conv. Sub. Notes
06/15/2003
50,000 The Interpublic Group of Companies, Inc. 45,500
3.750% Conv. Sub. Euro. Deb.
04/01/2002 ----------
215,722
Consumer Growth Staples (4.0%)
30,000 Bindley Western Industries, Inc. 32,513
6.500% Conv. Sub. Deb.
10/01/2002
75,000 The Olsten Corporation 87,187
4.875% Conv. Sub. Deb.
05/15/2003
38,400 Time Warner Inc. 40,128
8.750% Conv. Sub. Deb.
01/10/2015 ----------
159,828
Energy (0.7%)
30,000 Pennzoil Company (Chevron) 28,425
4.750% Exch. Senior Deb.
10/01/2003
Financial (4.2%)
104,000 Fifth Third Bancorp 105,820
4.250% Conv. Sub. Notes
01/15/1998
150,000 Fremont General Corp. 59,438
0.000% Liquid Yield Option Notes
10/12/2013 ----------
165,258
TOTAL CONVERTIBLE ----------
BONDS 1,458,564
(Cost $1,299,377)
Convertible Preferred Stocks (20.5%)
Capital Goods - Technology (6.5%)
1,700 General Motors Corporation 110,288
Series C Dep. Shares,
1/10 Series C Conv. Pref. Stock
1,600 LCI International 82,600
5.000% Cum. Conv. Exch.
Pref. Stock
1,500 Lehman Brothers Holdings Inc. 67,312
7.250% Oracle Yield Enhanced
Equity Linked Debt Securities Due 1996 ----------
260,200
See accompanying Note to Schedule of Investments.
</TABLE>
<PAGE>
Schedule of Investments September 30, 1995
Calamos Growth and Income Fund
<TABLE>
<CAPTION>
Number of
Shares Value
<S> <C> <C>
Consumer Staples (3.0%)
3,000 ConAgra, Inc. $120,750
$25 Class E Cum. Conv. Voting Pref. Stock
Energy (1.0%)
1,100 Reading & Bates Corporation 39,600
$1.625 Conv. Pref. Stock
Financial (10.0%)
600 Citicorp 116,700
$5.375 Dep. Shares, 1/2000 Share
Conv. Pref. Stock, Series 13
575 First Bank System, Inc. 47,078
$3.5625 Cum. Conv. Pref. Stock
2,000 First USA 94,500
6.250% Pref. Redeemable Increased
Dividend Equity Securities,
Conv. Pref. Stock
1,100 Olympic Financial Ltd. 138,600
8.000% Cum. Conv. Exch. Pref. Stock ----------
396,878
----------
TOTAL CONVERTIBLE 817,428
PREFERRED STOCKS
(Cost $550,165)
Common Stocks (6.9%)
Capital Goods - Technology (3.4%)
3,000 Digital Equipment Corporation (a) 136,875
Consumer Growth Staples (1.7%)
750 Eli Lilly & Company 67,406
Consumer Staples (1.8%)
2,500 UST, Inc. 71,563
----------
TOTAL COMMON STOCKS 275,844
(Cost $219,938)
Call Options (6.6%)
Capital Goods - Industrial (0.9%)
20 American Home Products Corp. (a) 34,500
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 70
Capital Goods - Technology (0.6%)
11 Apple Computer (a) 10,038
Long Term Equity Anticipation Securities
Expiring 01/17/1998 Strike Price 40
8 International Business Machines (a) 14,600
Long Term Equity Anticipation Securities
Expiring 01/17/1998 Strike Price 100 ----------
24,638
<PAGE>
<CAPTION>
Number of
Shares/Principal
Amount Value
<S> <C> <C>
Consumer Growth Staples (3.6%)
32 Bristol Myers Squibb (a) $34,800
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 65
30 Johnson & Johnson (a) 51,750
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 60
40 Merck & Co. (a) 55,000
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 45 ----------
141,550
Consumer Staples (1.2%)
35 Pepsico, Inc. (a) 46,813
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 40
Energy (0.3%)
55 Occidental Petroleum Corp. (a) 12,034
Long Term Equity Anticipation Securities
Expiring 01/18/1997 Strike Price 22.5
----------
TOTAL CALL OPTIONS 259,535
(Cost $148,220)
U.S. Government Securities (26.3%)
$230,000 United States Treasury Notes 235,101
7.000% 04/15/1999
800,000 United States Treasury Notes 812,000
----------
6.875% 03/31/1997
TOTAL U.S. GOVERNMENT
SECURITIES 1,047,101
(Cost $1,034,997)
----------
TOTAL INVESTMENTS (96.9%) 3,858,472
(Cost $3,252,698)
CASH DEPOSITS WITH CUSTODIAN 76,549
(INTEREST-BEARING) (1.9%)
OTHER ASSETS, LESS
LIABILITIES (1.2%) 46,325
----------
NET ASSETS (100%) $3,981,346
==========
NET ASSET VALUE PER SHARE $ 14.66
==========
(271,504 shares outstanding)
<FN>
Note to Schedule of Investments
(a) Non-income producing security
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Schedule of Investments September 30, 1995
Calamos Growth Fund
<CAPTION>
Number
of Shares Value
<S> <C> <C>
Common Stocks (90.5%)
Basic Industries (4.8%)
700 Cabot Corporation $37,187
5,000 Chart Industries, Inc. 43,750
2,400 NL Industries, Inc. (a) 39,600
----------
120,537
Capital Goods - Industrial (14.5%)
3,000 Data I/O Corporation (a) 26,250
2,000 Esterline Technologies Corporation (a) 54,750
2,000 FSI International Incorporated (a) 66,500
1,300 Graco Incorporated 44,363
800 Helix Technology Corporation 37,000
1,200 Measurex Corporation 41,100
1,100 United Waste Systems, Inc. (a) 45,925
1,800 Zygo Corporation (a) 50,850
----------
366,738
Capital Goods - Technology (26.7%)
330 Broderbund Software (a) 25,121
2,000 Brooktree Corporation (a) 40,000
1,200 Burr Brown Corporation (a) 44,700
1,100 Cadence Design Systems, Inc. (a) 43,175
1,500 Cincinnati Bell, Inc. 40,500
1,600 Hadco Corporation (a) 43,600
2,800 II-VI, Inc. (a) 53,200
3,100 Lo-Jack Corporation (a) 51,150
600 McDonnell Douglas Corporation 49,650
1,800 Optical Data Systems, Inc. (a) 70,200
850 Sanmina Corporation (a) 40,587
1,500 SPSS, Inc. (a) 25,875
1,900 Trident Microsystems, Inc. (a) 41,325
550 U.S. Robotics Holding Corp. 46,888
1,200 Xilink Corporation (a) 57,750
----------
673,721
Consumer Cyclical (2.4%)
1,200 Sunglass Hut International, Inc. (a) 60,000
Consumer Growth Staples (18.2%)
1,000 Amgen, Inc. (a) 49,875
1,300 ConMed Corporation (a) 42,575
900 Diagnostic Product Corporation 34,650
1,200 General Nutrition Co., Inc. (a) 54,600
748 Nellcor Puritan Bennett, Inc. (a) 37,213
2,000 Nu Kote Holding Incorporated (a) 43,500
900 Pulitzer Publishing Company 46,575
1,300 Renal Treatment Centers, Inc. (a) 48,100
950 Schering Plough Corporation 48,925
3,100 Veterinary Centers of America, Inc. (a) 52,700
----------
458,713
<PAGE>
<CAPTION>
Number
of Shares Value
<S> <C> <C>
Credit Cyclicals (1.5%)
3,640 D.R. Horton Incorporated (a) $39,130
Energy (5.3%)
1,500 Canadian Occidental Petroleum 47,625
4,000 Reading & Bates Corporation (a) 48,000
1,200 Sonat Offshore Drilling, Inc. 39,150
----------
134,775
Financial (15.3%)
1,300 Allstate Corporation 45,987
800 Chemical Banking Corporation 48,700
400 CNA Financial Corporation (a) 42,400
1,500 Foothill Group Incorporated 44,813
2,000 Olympic Financial Limited (a) 54,750
1,300 Quick & Reilly Group Incorporated 59,638
800 Union Bank 42,400
700 United Companies Financial Corporation 47,775
----------
386,463
Transportation (1.8%)
1,400 Stolt Nielsen 44,800
----------
TOTAL COMMON STOCKS 2,284,877
(Cost $1,939,892)
----------
TOTAL INVESTMENTS (90.5%) 2,284,877
(Cost $1,939,892)
CASH DEPOSITS WITH CUSTODIAN 356,529
(INTEREST-BEARING) (14.1%)
LIABILITIES, LESS OTHER
ASSETS (-4.6%) (117,902)
----------
NET ASSETS (100%) $2,523,504
==========
NET ASSET VALUE PER SHARE $ 17.70
==========
(142,576 shares outstanding)
<FN>
Note to Schedule of Investments
(a) Non-income producing security
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Assets and Liabilities
September 30, 1995
<CAPTION>
Strategic Growth and
Income Convertible Income Growth
ASSETS Fund Fund Fund Fund
<S> <C> <C> <C> <C>
Investments, at value (cost $1,469,034, $15,906,162,
$3,252,698 and $1,939,892 respectively) $1,656,519 18,724,287 3,858,472 2,284,877
Cash with custodian (interest-bearing) 638,258 763,746 76,589 356,529
Accrued interest and dividends receivable 24,298 142,003 52,332 2,336
Receivable for investments sold 30,822 -- -- 53,928
Receivable for Fund shares sold -- 5,120 -- --
Receivable from Adviser 1,193 -- -- --
---------- ---------- ---------- ----------
Total Assets 2,351,090 19,635,156 3,987,393 2,697,670
---------- ---------- ---------- ----------
LIABILITIES AND NET ASSETS
Common stocks sold short, at value
(proceeds $510,140) 616,826 -- -- --
Payable for investments purchased -- 100,000 -- 171,116
Payable for Fund shares redeemed -- 10,816 -- --
Payable to investment adviser -- 13,591 2,598 378
Accounts payable and accrued liabilities 5,543 9,700 2,677 1,692
Payable to distributor 712 7,882 772 980
---------- ---------- ---------- ----------
Total Liabilities 623,081 141,989 6,047 174,166
---------- ---------- ---------- ----------
NET ASSETS $1,728,009 19,493,167 3,981,346 2,523,504
========== ========== ========== ==========
SHARES OUTSTANDING, NO PAR VALUE 161,236 1,357,439 271,504 142,576
ANALYSIS OF NET ASSETS
Excess of amounts received from issuance
of shares over amounts paid on redemptions
of shares on account of capital $1,745,511 15,615,856 3,248,852 1,812,797
Undistributed net investment income (loss) 13,981 127,883 5,202 (15,220)
Accumulated net realized gain (loss) on investments (112,281) 931,303 121,518 380,942
Unrealized appreciation of investments 80,798 2,818,125 605,774 344,985
---------- ---------- ---------- ----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING $1,728,009 19,493,167 3,981,346 2,523,504
========== ========== ========== ==========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE AT SEPTEMBER 30, 1995 $10.72 14.36 14.66 17.70
========== ========== ========== ==========
MAXIMUM OFFERING PRICE PER
SHARE AT SEPTEMBER 30, 1995
(Net asset value, plus 4.99% of net asset
value or 4.75% of offering price) $11.25 15.08 15.39 18.58
========== ========== ========== ==========
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Six Months Ended September 30, 1995
<CAPTION>
Strategic Growth and
Income Convertible Income Growth
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $69,401 283,684 76,604 3,317
Dividends 3,566 119,281 18,025 8,924
---------- ---------- ---------- ----------
Total Investment Income 72,967 402,965 94,629 12,241
---------- ---------- ---------- ----------
EXPENSES
Investment advisory fees 7,727 67,830 15,149 10,424
Distribution fees 5,151 45,220 10,099 5,212
Transfer agent fees 502 4,404 1,090 405
Custodian fees 1,200 1,775 690 1,665
Trustees' fees 1,800 1,800 1,800 1,800
Registration fees 3,009 3,008 3,009 3,009
Audit and legal fees 13,311 14,891 10,253 8,775
Dividends paid on short sales 2,787 -- -- --
Other 3,558 601 595 5,498
---------- ---------- ---------- ----------
Total Expenses 39,045 139,529 42,685 36,788
Less expense reimbursement 15,654 -- 2,289 15,940
---------- ---------- ---------- ----------
Net Expenses 23,391 139,524 40,396 20,848
---------- ---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) 49,576 263,436 54,233 (8,607)
---------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on investments
(including options) 34,778 1,059,076 166,635 379,989
Change in unrealized appreciation
of investments 83,052 1,506,250 435,898 102,146
---------- ---------- ---------- ----------
NET GAIN ON INVESTMENTS 117,830 2,565,326 602,533 482,135
---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $167,406 $2,828,762 $656,766 $473,528
========== ========== ========== ==========
See accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
Six Months Ended September 1995 and
Eleven Months Ended March 1995
<CAPTION>
Strategic Income Convertible
Fund Fund
Six Eleven Six Eleven
Months Months Months Months
Ended Ended Ended Ended
Sept. 1995 March 1995 Sept. 1995 March 1995
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss) $49,576 $94,396 $263,436 503,795
Net realized gain (loss) on
investments (including options) 34,778 (155,395) 1,059,076 213,470
Change in unrealized appreciation
or depreciation of investments 83,052 45,822 1,506,250 (196,110)
---------- ---------- ---------- ----------
Increase (decrease) in net
assets resulting from
operations 167,406 (15,177) 2,828,762 521,155
---------- ---------- ---------- ----------
DISTRIBUTIONS
TO SHAREHOLDERS
Net investment income (44,511) (85,480) (240,712) (418,340)
Net realized gains -- (51,727) -- (728,776)
In excess of net realized gains -- -- -- (155,203)
---------- ---------- ---------- ----------
Total distributions (44,511) (137,207) (240,712) (1,302,319)
---------- ---------- ---------- ----------
INCREASE (DECREASE) IN
NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (605,741) (640,875) 259,094 404,270
TOTAL INCREASE (DECREASE)
IN NET ASSETS (482,846) (793,259) 2,847,144 (376,894)
NET ASSETS
Beginning of period 2,210,855 3,004,114 16,646,023 17,022,917
---------- ---------- ---------- ----------
End of period $1,728,009 $2,210,855 $19,493,167 $16,646,023
========== ========== =========== ===========
Undistributed net
investment income (loss) 13,981 8,916 127,883 105,159
<PAGE>
<CAPTION>
Growth and Income Growth
Fund Fund
Six Eleven Six Eleven
Months Months Months Months
Ended Ended Ended Ended
Sept. 1995 March 1995 Sept. 1995 March 1995
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss) 54,233 108,513 (8,607) 2,814
Net realized gain (loss) on
investments (including options) 166,635 (68,857) 379,989 8,858
Change in unrealized appreciation
or depreciation of investments 435,898 43,863 102,146 (55,489)
---------- ---------- ---------- ----------
Increase (decrease) in net
assets resulting from
operations 656,766 83,519 473,528 (43,817)
---------- ---------- ---------- ----------
DISTRIBUTIONS
TO SHAREHOLDERS
Net investment income (70,549) (102,250) (9,427) --
Net realized gains -- (107,236) (9,427) (18,542)
In excess of net realized gains -- -- -- --
---------- ---------- ---------- ----------
Total distributions (70,549) (209,486) (18,854) (18,542)
---------- ---------- ---------- ----------
INCREASE (DECREASE) IN
NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (457,430) (684,138) 278,220 (236,499)
TOTAL INCREASE (DECREASE)
IN NET ASSETS 128,787 (810,105) 732,894 (298,858)
NET ASSETS
Beginning of period 3,852,559 4,662,664 1,790,610 2,089,468
---------- ---------- ---------- ----------
End of period $3,981,346 $3,852,559 $2,523,504 $1,790,610
========== ========== ========== ==========
Undistributed net
investment income (loss) 5,202 21,518 (15,220) 2,814
See accompanying Notes to Financial Statements
</TABLE>
<PAGE>
Notes to Financial Statements
Note 1 -- Organization and Significant Accounting Policies
Organization - CFS Investment Trust, a Massachusetts business trust organized
December 21, 1987 (the "Trust"), consists of four series, Calamos Strategic
Income Fund, Calamos Convertible Fund, Calamos Growth and Income Fund and
Calamos Growth Fund. In 1995, the Trust changed its fiscal year end for
financial reporting and income tax purposes from April 30 to March 31.
Portfolio Valuation - The Funds value their portfolio securities on the basis
of market valuation. If no such valuation is readily available, investments
and other assets are valued at fair value as determined by the Board of
Trustees.
Investment Transactions and Investment Income - Investment transactions are
recorded on a trade date basis. Realized gains and losses from investment
transactions are reported on an identified cost basis. Realized foreign
exchange gains of $24,454 and unrealized foreign exchange losses of $120,838
incurred by the Convertible Fund are included as a component of net realized
gains and losses on investments and in unrealized appreciation and
depreciation in investments, respectively. Interest income is recognized
using the accrual method and includes amortization of original issue discount.
Dividend income is recognized on the ex-dividend date.
Federal Income Taxes - No provision has been made for Federal income taxes
since the Funds each elect to be taxed as a "regulated investment company" and
have made such distributions to shareholders as to be relieved of all Federal
income taxes.
Dividends - Dividends payable to its shareholders are recorded by the Funds on
the ex-dividend date. Income and capital gain dividends are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for foreign currency transactions.
Note 2 -- Investment Adviser and Transactions with Affiliates
Pursuant to an investment advisory agreement with Calamos Asset Management,
Inc. ("CAM"), the Funds pay a monthly investment advisory fee based on the
average daily net assets of the Funds and is computed as follows: The
Strategic Income Fund, Convertible Fund, and Growth and Income Fund fees are
based on 0.75% of the first $150 million of each Fund's average daily net
assets and 0.50% of each Fund's average daily net assets in excess of $150
million. The Growth Fund's fee is based on 1.00% of the first $150 million of
average daily net assets and 0.75% of average daily net assets in excess of
$150 million.
CAM has voluntarily undertaken to limit normal operating expenses of the
Strategic Income Fund, Growth and Income Fund and Growth Fund to 2% of average
daily net assets through August 31, 1996. For the six months ended September
30, 1995, CAM waived or absorbed expenses of $15,654, $2,288 and $15,939,
respectively, for those Funds.
While serving as Transfer Agent of the Funds, CAM assumed all expenses of
personnel, office space, office facilities and equipment incidental to such
service.
<PAGE>
Note 2 -- (continued)
While serving as Distributor, Calamos Financial Services, Inc. ("CFS") assumed
all expenses of personnel, office space, office facilities and equipment
incidental to such service. Each Fund has adopted a Distribution Plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940 whereby CFS is
paid an annual service fee of 0.25% and an annual distribution fee of 0.25% of
the Fund's average daily net assets. In return, CFS bears all expenses
incurred in the distribution and promotion of each Fund's shares. Except for
the Convertible Fund, all Funds adopted this plan at inception. This plan was
adopted by the Convertible Fund effective May 1, 1992.
During the six months ended March 31, 1995, CFS received commissions of $94,
$1,277, $794 and $440 from the sale of Strategic Income Fund, Convertible
Fund, Growth and Income Fund and Growth Fund shares, respectively.
Portfolio transactions for the Fund have been executed through CFS, consistent
with the Fund's policy of obtaining best price and execution. During the six
months ended September 30, 1995, the Strategic Income Fund, Convertible Fund,
Growth and Income Fund, and Growth Fund paid brokerage commissions to CFS on
purchases and sales of securities in the amount of $2,534, $6,422, $2,109 and
$8,630, respectively. It is management's opinion that commission rates
charged to the Funds by CFS are consistent with those charged to comparable
unaffiliated customers in similar transactions.
CAM and CFS are wholly owned by John P. Calamos, who is a trustee and an
officer of the Trust.
<PAGE>
Note 3 -- Investments
Purchases and sales of investments other than short-term obligations in the
Funds for the six months ended September 30, 1995, are as follows:
<TABLE>
<CAPTION>
Strategic Income Convertible Growth and Income Growth
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
Purchases $714,686 4,633,936 828,510 2,230,193
Proceeds from sales $1,582,841 4,745,626 1,135,397 2,095,385
The following information is based on the cost basis of investments for
Federal income tax purposes at September 30, 1995:
<CAPTION>
Strategic Income Convertible Growth and Income Growth
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
Cost basis of investments $ 1,469,034 15,906,162 3,252,698 1,939,892
Gross unrealized appreciation $193,960 3,085,758 634,435 370,130
Gross unrealized depreciation $(6,475) (267,633) (28,661) (25,145)
Net unrealized appreciation $ 187,485 2,818,125 605,774 344,985
</TABLE>
Note 4 -- Short Sales
Securities sold short represent obligations to purchase the securities at a
future date at then prevailing prices. These transactions result in
off-balance-sheet risk, i.e., the risk that the ultimate obligation may exceed
the amount shown in the accompanying statement of assets and liabilities. To
the extent a Fund owns equivalent securities, the off-balance-sheet risk is
offset. During the six months ended September 30, 1995, the Strategic Income
Fund incurred losses of $87,449 on short sales that are classified with net
realized loss on investments. No other fund engaged in short sales during the
six months ended September 30, 1995.
Note 5 -- Interest Bearing Cash Deposit with Custodian
The Funds have entered into an arrangement with the custodian, Prudential
Securities, Inc., whereby each Fund is entitled to the current broker call
rate minus one percent on the average daily cash balances on deposit with the
custodian. During the six months ended September 30, 1995, the Strategic
Income Fund, Convertible Fund, Growth and Income Fund, and Growth Funds earned
$16,609, $10,936, $4,100 and $3,317, respectively, in interest income under
this arrangement.
<PAGE>
Note 6-- Capital Share Transactions
The following table summarizes the activity in capital shares of the Funds:
<TABLE>
<CAPTION>
Strategic Income Convertible Growth and Income Growth
Fund Fund Fund Fund
Shares Dollars Shares Dollars Shares Dollars Shares Dollars
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended
September 30, 1995
Shares sold 1,186 $12,557 91,675 $1,259,779 12,443 $166,408 23,346 $387,925
Shares issued in reinvestment
of distributions 2,764 29,366 15,134 210,977 4,209 58,790 1,073 16,775
Less shares redeemed (60,894) (647,664) (90,702) (1,211,662) (49,064) (682,628) (8,157) (126,480)
-------- -------- -------- ---------- -------- -------- -------- --------
Increase (decrease) (56,944) $(605,741) 16,107 $259,094 (32,412) $(457,430) 16,262 $278,220
======== ======== ======== ========== ======== ========= ======== ========
<CAPTION>
Strategic Income Convertible Growth and Income Growth
Fund Fund Fund Fund
Shares Dollars Shares Dollars Shares Dollars Shares Dollars
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Eleven months ended
March 31, 1995
Shares sold 15,940 $166,815 88,293 $1,092,742 37,050 $462,503 13,885 $198,053
Shares issued in reinvestment
of distributions 8,348 85,005 77,835 943,984 9,384 115,464 622 8,796
Less shares redeemed (86,703) (892,695) (130,719) (1,632,456) (101,909) (1,262,105) (31,598) (443,348)
-------- -------- -------- ---------- -------- -------- -------- --------
Increase (decrease) (62,415) $(640,875) 35,409 $404,270 (55,475) $(684,138) (17,091)$(236,499)
======== ======== ======== ========== ======== ========= ======== ========
Note 7 -- Organization Costs
Costs amounting to $16,860, and $13,463 were paid by CAM in
connection with the organization of the Strategic Income Fund
and Growth Fund, respectively. The organization costs are being
amortized and repaid over a period ending five years from
the commencement of each Fund's operations.
Abbreviations
ADRs: American Depository Receipts Cum.: Cumulative Exch.: Exchangeable
ADSs: American Depository Shares Deb.: Debenture Noncum.: Noncumulative
Dep.: Depository Pref.: Preferred Euro.: Eurobond
Sub.: Subordinated Conv.: Convertible
Foreign Currency Abbreviations
BPS: British Pound Sterling ECS: European Currency Unit
DMS: Deutsche Mark FRS: French Franc
SKS: Swedish Krona
</TABLE>
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout the period is as follows:
<TABLE>
Calamos Strategic Income Fund
<CAPTION>
Six Eleven
Months Months
Ended Ended Sept. 4, 1990
Sept. 30,March 31, Year Ended April 30, to
1995 1995 1994 1993 1992 April 30, 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.13 $10.71 $10.96 $10.58 $10.60 $10.00
Income from investment operations:
Net investment income .29 .40 .36 .39 .59 .40
Net realized and unrealized gain (loss)
on investments .54 (.43) .11 .79 .46 .61
------ ------ ------ ------ ------ ------
Total from investment operations .83 (.03) .47 1.18 1.05 1.01
------ ------ ------ ------ ------ ------
Less distributions
Dividends from net investment income (.24) (.36) (.41) (.41) (.51) (.40)
Dividends from net realized capital gains -- (.19) (.31) (.39) (.56) (.01)
------ ------ ------ ------ ------ ------
Total distributions (.24) (.55) (.72) (.80) (1.07) (.41)
------ ------ ------ ------ ------ ------
Net asset value, end of period $10.72 $10.13 $10.71 $10.96 $10.58 $10.60
====== ====== ====== ====== ====== ======
Total return (c) 8.2% (0.2)% 4.2% 11.5% 10.5% 10.2%
Ratios and supplemental data:
Net assets, end of period (000) $1,728 $2,211 $3,004 $2,522 $1,410 $ 595
Ratio of expenses to average net assets (a)(b) 2.3%* 2.4%* 2.2% 2.3% 2.5% 2.6%*
Ratio of net investment income to average
net assets 4.8%* 4.0%* 3.2% 3.9% 5.3% 6.6%*
Portfolio turnover rate 70.8%* 59.9% 79.4% 73.8% 97.0% 108.9%*
<FN>
- --------------------
(a) After the reimbursement and waiver of expenses by the Adviser
equivalent to 1.5%*, 1.1%*, 1.0%, 0.7%, 1.25% and 4.8%* of average net
assets, respectively.
(b) Includes 0.3%, 0.4%*, 0.2%, 0.3%, 0.5% and 0.6%*, respectively,
related to dividend expenses on short positions.
(c) Total return is not annualized for periods that are less than a
full year and does not reflect the effect of sales charges.
* Annualized.
</TABLE>
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout the period is as follows:
<TABLE>
Calamos Convertible Fund
<CAPTION>
Six Eleven
Months Months
Ended Ended
Sept. 30, March 31, Year Ended April 30,
1995 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.41 $13.04 $13.96 $12.72 $11.39 $10.29
Income from investment operations:
Net investment income .20 .38 .40 .42 .41 .49
Net realized and unrealized gain (loss)
on investments 1.93 (.01) .53 1.32 1.43 1.25
------ ------ ------ ------ ------ ------
Total from investment operations 2.13 .37 .93 1.74 1.84 1.74
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income (.18) (.32) (.39) (.40) (.45) (.52)
Dividends from net realized capital gains -- (.56) (1.46) (.10) -- --
Dividends in excess of net realized
capital gains -- (.12) -- -- -- --
Distributions from paid in capital -- -- -- -- (.06) (.12)
------ ------ ------ ------ ------ ------
Total distributions (.18) (1.00) (1.85) (.50) (.51) (.64)
Net asset value, end of period $14.36 $12.41 $13.04 $13.96 $12.72 $11.39
====== ====== ====== ====== ====== ======
Total return (a) 17.2% 3.2% 6.5% 14.0% 16.5% 17.7%
Ratios and supplemental data:
Net assets, end of period (000) $19,493 $16,646 $17,023 $17,213 $16,940 $13,953
Ratio of expenses to average net
assets 1.5%* 1.6%* 1.6% 1.7% 1.2% 1.2%
Ratio of net investment income
to average net assets 2.9%* 3.3%* 2.8% 3.2% 3.4% 4.3%
Portfolio turnover rate 52.8%* 42.1% 73.1% 73.1% 83.8% 63.2%
<PAGE>
<CAPTION>
June 21, 1985
Year Ended April 30, to
1990 1989 1988(b) 1987 April 30, 1986
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.73 $10.56 $11.94 $11.99 $10.00
Income from investment operations:
Net investment income .60 .59 .62 .52 .32
Net realized and unrealized gain (loss)
on investments (.32) .14 (1.24) .50 1.92
------ ------ ------ ------ ------
Total from investment operations .28 .73 (.62) 1.02 2.24
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income (.63) (.56) (.66) (.54) (.25)
Dividends from net realized capital gains -- -- (.10) (.53) --
Dividends in excess of net realized
capital gains -- -- -- -- --
Distributions from paid in capital (.09) -- -- -- --
------ ------ ------ ------ ------
Total distributions (.72) (.56) (.76) (1.07) (.25)
Net asset value, end of period $10.29 $10.73 $10.56 $11.94 $11.99
====== ====== ====== ====== ======
Total return (a) 2.4% 7.2% (5.1%) 9.5% 22.2%
Ratios and supplemental data:
Net assets, end of period (000) $18,664 $21,270 $23,194 23,632 $10,175
Ratio of expenses to average net
assets 1.1% 1.1% 1.2% 1.3% 2.0%*
Ratio of net investment income
to average net assets 5.5% 5.6% 5.6% 4.6% 4.9%*
Portfolio turnover rate 93.4% 84.7% 55.5% 45.0% 30.0%*
<FN>
- --------------------
(a) Total return is not annualized for periods that are less than a full
year and does not reflect the effect of sales charges.
(b) Calamos Asset Management, Inc. became the Fund's investment adviser
on September 1, 1987.
* Annualized.
</TABLE>
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout the period is as follows:
<TABLE>
Calamos Growth and Income Fund
<CAPTION>
Six Eleven
Months Months
Ended Ended Sept. 2, 1988
Sept. 30, March 31, Year Ended April 30, to
1995 1995 1994 1993 1992 1991 1990 April 30,1989
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.68 $12.97 $13.90 $13.57 $11.54 $10.46 $10.49 $10.00
Income from investment operations:
Net investment income .19 .35 .31 .35 .29 .31 .33 .38
Net realized and unrealized gain (loss) 2.03 (.02) .34 1.97 2.02 1.09 .09 .49
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations 2.22 .33 .65 2.32 2.31 1.40 .42 .87
------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income (.24) (.32) (.29) (.36) (.28) (.32) (.28) (.38)
Dividends from net realized capital gains -- (.30) (1.29) (1.63) -- -- (.17) --
------ ------ ------ ------ ------ ------ ------ ------
Total distributions (.24) (.62) (1.58) (1.99) (0.28) (0.32) (0.45) (0.38)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $14.66 $12.68 $12.97 $13.90 $13.57 $11.54 $10.46 $10.49
====== ====== ====== ====== ====== ====== ====== ======
Total return (b) 17.6% 2.8% 4.5% 18.8% 20.2% 13.4% 3.8% 9.0%
Ratios and supplemental data:
Net assets, end of period (000) $3,981 $3,853 $4,663 $3,655 $2,694 $1,821 $1,345 $732
Ratio of expenses to average net assets (a) 2.0%* 2.0%* 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%*
Ratio of net investment income to average
net assets 2.7%* 3.0%* 2.3% 2.6% 2.3% 2.9% 3.0% 4.8%*
Portfolio turnover rate 42.8%* 84.7% 155.2% 132.3% 111.6% 103.6% 103.0% 85.0%*
<FN>
- --------------------
(a) After the reimbursement and waiver of expenses by the Adviser equivalent
to 0.1*, 0.2%*, 0.1%, 0.5%, 0.5%, 1.7%, 2.3% and
8.4%* of average net assets respectively.
(b) Total return is not annualized for periods that are less than a full
year and does not reflect the effect of sales charges.
* Annualized.
</TABLE>
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout the period is as follows:
<TABLE>
Calamos Growth Fund
<CAPTION>
Six Eleven
Months Months
Ended Ended Sept. 4, 1990
Sept. 30, March 31, Year Ended April 30, to
1995 1995 1994 1993 1992 April 30, 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.18 $14.57 $13.95 $14.04 $12.48 $10.00
Income from investment operations:
Net investment income (loss) (.06) .02 .01 (.02) (.01) .07
Net realized and unrealized gain (loss) 3.72 (.28) 1.21 .20 1.60 2.50
------ ------ ------ ------ ------ ------
Total from investment operations 3.66 (.26) 1.22 .18 1.59 2.57
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income (.07) - (.01) - - (0.08)
Dividends from net realized capital gains (.07) (.13) (.59) (.27) (.03) (0.01)
------ ------ ------ ------ ------ ------
Total distributions (.14) (.13) (.60) (.27) (.03) (0.09)
------ ------ ------ ------ ------ ------
Net asset value, end of period $17.70 $14.18 $14.57 $13.95 $14.04 $12.48
====== ====== ====== ====== ====== ======
Total return (b) 25.9% (1.8%) 8.9% 1.4% 12.7% 25.8%
Ratios and supplemental data:
Net assets, end of period (000) $2,524 $1,791 $2,089 $1,861 $1,802 $862
Ratio of expenses to average net assets (a) 2.0%* 2.0%* 2.0% 2.0% 2.0% 2.0%*
Ratio of net investment income (loss) to
average net assets (0.8)%* 0.2%* 0.1% (0.1)% (0.1)% 0.8%*
Portfolio turnover rate 216.1% 104.3% 87.3% 56.8% 47.3% 15.8%*
<FN>
- --------------------
(a) After the reimbursement and waiver of expenses by the Adviser equivalent
to 1.5%*, 1.6%*,1.1%. 0.7%, 0.8%, and 4.5%* of average net assets,
respectively.
(b) Total return is not annualized for periods that are less than a full
year and does not reflect the effect of sales charges.
* Annualized
</TABLE>
<PAGE>
Investment Adviser and Transfer Agent
Calamos Asset Management, Inc.
1111 East Warrenville Road
Naperville, IL 60563-1493
Distributor
Calamos Financial Services, Inc.
1111 East Warrenville Road
Naperville, IL 60563-1493
Counsel
Bell, Boyd & Lloyd
Chicago, Illinois
The Net Asset Values for the Calamos Family
of Funds may be obtained daily by calling
1.800.823.7386 after 5:00 P.M. Central Time.
This report, including the unaudited financial statements contained herein, is
submitted for the general information for the shareholders of the Funds. The
report is not authorized for distribution to prospective investors in the
Funds unless it is accompanied by a currently effective prospectus of the
Funds.
CALAMOS LOGO
Calamos
Strategic Income Fund
Convertible Fund
Growth and Income Fund
Growth Fund
Each a Series of CFS Investment Trust
Semi-Annual Report
September 30, 1995
(unaudited)
GRAPHIC OF SOCRATES, ARISTOTLE AND PLATO
The Wise Investor's Choice(TM)
CFS Investment Trust
1111 East Warrenville Road
Naperville, IL 60563-1493 * 800.823.7386
