<PAGE>
PRESIDENT'S LETTER
DEAR FELLOW SHAREHOLDER,
We are pleased to present the Annual Report of the Calamos Family of Funds(TM)
for the year ending March 31, 1997.
The Calamos Family of Funds consist of five funds:
[PHOTO OF JOHN P. CALAMOS]
Calamos Convertible Fund(TM)
Calamos Growth and Income Fund(TM)
Calamos Strategic Income Fund(TM)
Calamos Growth Fund(TM)
Calamos Global Growth and Income Fund(TM)
Each of these funds accesses what we believe to be some of the unique
investment opportunities available in the financial markets today. The newest
addition, Global Growth and Income Fund, began on September 9, 1996; among the
investments available to it are international convertible bonds. We are
excited about this new Fund and think this investment opportunity comes at the
right time. We believe the global economy has entered a period of
unprecedented growth: once-closed economies embrace open markets,
industrialized nations work towards freer trade, and emerging markets offer
the opportunity for explosive economic development. In our view, these
fundamental economic changes translate into tremendous investment
opportunities for those willing to look beyond the U.S. We also believe that
the international convertible bond market offers the relative safety of a bond
with the capital appreciation potential of the common stock.
CONVERTIBLE SECURITIES
The Convertible Fund, Growth and Income Fund, and the Strategic Income Fund
have convertible bonds and convertible preferred stocks as their core
holdings. Each Fund utilizes different sectors of the convertible market to
further its respective investment objectives.
The Convertible Fund looks for convertibles that provide a balance between the
downside safety that comes from a convertible's fixed-income characteristics
and the equity potential afforded by its right to convert to common stock.
The Growth and Income Fund uses growth convertibles as well as additional
techniques that allow us to construct a convertible's risk and reward by using
a combination of securities. This additional flexibility makes this Fund
unique. The Fund participates in the aggressive growth sector (below
investment-grade) of the convertible market.
The Strategic Income Fund uses convertibles from the lower end of the credit-
rating spectrum. These often have the higher yields associated with below-
investment-grade ratings. The Fund attempts to offset the risk of holding
lower-grade credits by utilizing hedging techniques. However, lower-grade
securities often have greater volatility than securities with a higher rating.
<PAGE>
COMMON STOCK
The Growth Fund invests in the common stocks of companies we believe have
exceptional growth characteristics. This Fund is managed aggressively, meaning
it takes advantage of investment opportunities in primarily the small- to mid-
size companies that, although they offer higher potential rewards, may have a
higher risk profile than larger-cap companies.
LONG-TERM VIEW
The Calamos Family of Funds offers shareholders the opportunity to select a
fund or a combination of funds that we believe can help them meet their
investment goals. Setting those goals with an eye toward the future is
difficult considering the vagaries of the financial markets. Our view of the
future provides the foundation for our management strategies. In this report
we discuss factors that will affect the financial markets over the long term
and over the next year.
Our long-term view is positive. In a sense, the scenario we see for the next
few years really is "different this time." Lower inflation and globalization
are factors that may not be properly accounted for by many investors. One of
the important factors extending the business cycle and driving growth is the
widespread acceptance of free markets worldwide that has occurred since the
end of the cold war. There is an increased recognition by market participants
that the discipline of investors' capital allocates resources more efficiently
than public funding. This is a trend that is fostering both privatization and
infrastructure rebuilding in both emerging and developed markets. Many
companies have come to rely on convertible debt financing as a source of
capital that provides investors with debt instruments that have capital
appreciation potential.
We are positive about the long-term growth opportunities of the companies that
the Funds invest in, partly due to the macro factors discussed above. However,
the flip side of increased opportunity is volatility and risk. We believe
there will be increased volatility in the bond and stock markets both in 1997
and beyond. Therefore, our goal has been to position Fund investments to
cushion volatility whenever practicable.
We also believe that the byproduct of low inflation is that straight bond
investments will continue to underperform convertible bonds. The trading range
in bond yields will play havoc with bond investors. We expect bond volatility
to remain high but within certain limits according to the interest-rate
environment, but the equity component of convertible bonds will provide an
added advantage.
SHORT-TERM: NEXT TWELVE MONTHS
We continue to expect high volatility. However, nervous markets are good for
convertibles, because convertibles attract money from worried equity investors
who are anxious to find some protection. Investors are interested in buying a
security that can both cushion volatility and provide income while waiting for
the value to increase, although convertibles tend to appreciate less than
common stock in a rising market.
On the bright side, the downward pressure on small-company stocks over the
past twelve months has resulted in prices that are quite attractive. We will
therefore be looking for opportunities in small and mid-size companies. We
will also be paying close attention to opportunities in the technology sector,
because of its significant role in today's economy.
We expect convertibles to continue to perform well relative to both stock and
bond markets. For the remainder of the year, investors must cope with the
anxiety about whether the strong earnings trend of 1996 and the first quarter
of 1997 will continue. Higher interest rates may bring a slower economy in
their wake. A stronger dollar suggests that large-cap companies may experience
a less favorable earnings environment than smaller companies.
2
<PAGE>
Our strategy for 1997 is to be diligent in maintaining the proper balance
between upside potential and the downside protection afforded by the fixed-
income characteristics of convertible securities. Market sector performance in
the convertible market tends to reflect that of the equity market. In
addition, the shifting interest among various market sectors that was seen so
clearly in 1996 will continue to be high throughout 1997, as industries
navigate a slow economic expansion. Careful sector and industry selection will
be necessary to anticipate shifting trends. Capital gains will be available
only for the very nimble. We are still focusing on companies and industries
that can sustain profitability in the face of a somewhat slower economy.
LONG-TERM BULLISH, SHORT-TERM SCARED
Our approach to the market has been characterized as being long-term bullish
and short-term scared. Given a market environment where the Dow Jones
Industrial Average can move up 300 points and down 300 points within a two-
week period, there is good reason to be defensive. It has been said that bull
markets climb a wall of fear; this has surely been the case in this stock
market. Investor fears of higher interest rates have now been realized with
the Federal Reserve action early this year. What effect will higher interest
rates have on corporate earnings? Investors have reacted with confusion. Was
this preemptive strike on inflation really necessary? After all, it was only a
few weeks prior to the increase in rates, when Alan Greenspan complained to
Congress that the CPI was measuring inflation artificially higher than it
actually has been. Our sense is that the productivity measures are not
accurately reflected in the economic data, and we believe this means that the
economy can grow at a faster rate without causing inflation, resulting in an
extended business cycle.
The financial markets will continue to be volatile in the future. Short-term
volatility tends to make investors nervous, which often leads to investment
errors. Investment decisions are best made from a longer-term perspective. We
are primarily concerned about risk and how to control it. Controlling risk is
our underlying principle for successful wealth creation. However, we believe
that the highest probability for investment success over the longer term comes
from remaining fully invested and applying risk control measures. The
attributes of selected convertible securities that are well researched provide
an important risk control mechanism in these volatile markets.
Sincerely,
/s/ John P. Calamos
John P. Calamos
President
May 16, 1997
3
<PAGE>
PERFORMANCE REVIEW
CALAMOS CONVERTIBLE FUND LOAD-ADJUSTED
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Convertible Fund LB G/C S&P 500 Index
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning Balance 9,525 10,000 10,000
Sep-85 -2.0% 9,335 2.0% 10,200 -4.1% 9,586
Dec-85 1985 9.2% 10,197 7.6% 10,973 17.2% 11,232
Mar-86 13.7% 11,593 8.5% 11,909 14.1% 12,811
Jun-86 3.6% 12,005 1.3% 12,066 5.7% 13,541
Sep-86 -3.9% 11,534 2.0% 12,310 -7.0% 12,600
Dec-86 1986 2.7% 11,842 3.1% 12,687 5.4% 13,278
Mar-87 10.1% 13,034 1.5% 12,875 21.3% 16,108
Jun-87 -0.1% 13,019 -1.9% 12,631 5.2% 16,939
Sep-87 2.9% 13,394 -2.9% 12,284 6.6% 18,059
Dec-87 1987 -15.5% 11,312 5.8% 12,979 -22.7% 13,966
Mar-88 6.3% 12,023 3.6% 13,443 5.8% 14,770
Jun-88 4.2% 12,526 1.0% 13,576 6.5% 15,735
Sep-88 -3.6% 12,074 1.9% 13,830 0.4% 15,794
Dec-88 1988 -0.4% 12,028 1.0% 13,963 3.0% 16,271
Mar-89 4.3% 12,543 1.1% 14,117 7.0% 17,413
Jun-89 5.6% 13,247 8.0% 15,252 8.8% 18,945
Sep-89 7.7% 14,262 0.9% 15,395 10.7% 20,963
Dec-89 1989 -1.7% 14,022 3.6% 15,951 2.0% 21,386
Mar-90 -2.5% 13,677 -1.2% 15,767 -3.1% 20,732
Jun-90 3.5% 14,158 3.6% 16,335 6.3% 22,038
Sep-90 -10.1% 12,728 0.6% 16,435 -13.8% 18,997
Dec-90 1990 6.2% 13,523 5.1% 17,271 9.0% 20,703
Mar-91 15.7% 15,642 2.7% 17,737 14.6% 23,717
Jun-91 -0.1% 15,623 1.5% 18,005 -0.2% 23,667
Sep-91 7.0% 16,715 5.8% 19,041 5.4% 24,940
Dec-91 1991 10.6% 18,492 5.3% 20,057 8.4% 27,025
Mar-92 0.4% 18,562 -1.5% 19,756 -2.6% 26,336
Jun-92 -2.1% 18,174 4.1% 20,557 2.0% 26,855
Sep-92 3.8% 18,872 4.9% 21,562 3.1% 27,688
Dec-92 1992 5.5% 19,901 0.1% 21,579 5.1% 29,102
Mar-93 5.5% 20,987 4.7% 22,582 4.3% 30,357
Jun-93 3.3% 21,671 3.0% 23,260 0.5% 30,506
Sep-93 5.2% 22,807 3.3% 24,030 2.6% 31,286
Dec-93 1993 2.6% 23,395 -0.3% 23,960 2.3% 32,009
Mar-94 -3.6% 22,555 -3.1% 23,210 -3.8% 30,790
Jun-94 -4.2% 21,610 -1.2% 22,922 0.4% 30,910
Sep-94 4.0% 22,470 0.5% 23,037 4.9% 32,430
Dec-94 1994 -3.2% 21,749 0.4% 23,122 0.0% 32,434
Mar-95 5.7% 22,984 5.0% 24,274 9.7% 35,590
Jun-95 10.0% 25,281 6.5% 25,849 9.5% 38,981
Sep-95 6.6% 26,941 1.9% 26,343 8.0% 42,096
Dec-95 1995 4.4% 28,112 4.7% 27,570 5.9% 44,596
Mar-96 5.3% 29,359 -2.3% 26,925 5.5% 47,027
Jun-96 2.3% 30,020 0.5% 27,052 4.5% 49,162
Sep-96 0.6% 30,192 1.8% 27,528 3.1% 50,676
Dec-96 1996 7.8% 32,547 3.1% 28,370 8.5% 54,963
Mar-97 1997-1 2.1% 33,224 -0.9% 28,126 2.7% 56,436
</TABLE>
The Convertible Fund was up 12.94% for the fiscal year ended March 31, 1997, and
outperformed the Lipper Convertible Mutual Fund Average. (Please see page 13 for
a complete description of performance for A and C shares, both load-adjusted and
non-load-adjusted.)
The most positive influence on portfolio performance throughout the Fund's
fiscal year resulted from our exposure in the financial sector. By the middle of
1996, it became apparent that inflation was not a problem and the Fed would not
raise interest rates. Financial firms benefitted along with the bond market. We
increased the financial sector in the fourth quarter. It continued to provide
positive returns in the first quarter of 1997, although by then we were
decreasing the size of our position. A large number of issues were called.
The energy sector has also made an important contribution to performance over
the past fiscal year. The proportion invested in this sector has remained
relatively constant at 7-8%, although the structure of the exposure has evolved.
We are in the process of decreasing our exposure to integrated oil companies
while increasing our exposure to oil service and drilling companies. We expect
to see better than 2% annual growth rates in oil demand, which should result in
increased drilling activities.
We have slowly increased our technology exposure over the fiscal year. While
we believe that sector will continue to offer opportunities, we may have been
a bit premature in increasing our exposure in the Convertible Fund. It
constituted a drag on performance in the first quarter of 1997.
<TABLE>
<CAPTION>
Trailing Since
One-Year Five-Year Ten-Year Inception
<S> <C> <C> <C> <C>
CONVERTIBLE FUND
A Shares/1/
non-load-adjusted 12.94% 12.47% 9.78% 11.17%
load-adjusted 7.59 11.39 9.25 10.71
C Shares/2/ -- -- -- 11.12
Lipper Convertible, Mutual Fund
Average/3/ 10.51 11.36 8.87 10.43
</TABLE>
/1/Average annual total returns, net of expenses. Inception date for A
Shares was June 21, 1985.
/2/Total return, net of expenses, not annualized. Inception date for C
Shares was July 5, 1996.
/3/The Lipper Convertible Mutual Fund Average is composed of all the mutual
funds that invest primarily in convertible securities. Lipper mutual fund
averages are equally weighted and reflects reinvestment of capital gain
distributions and income dividends.
Source: Lipper Analytical Services.
No graph has been included for C Shares since performance has been less than
one year.
4
<PAGE>
By the end of 1996, with market valuations at high levels, in the face of
declining earnings momentum and rising interest rates, we systematically lowered
the overall risk posture in the Fund as convertibles increased in value. That
meant we often sold convertibles that were priced in excess of 130% of par and
swapped them into other convertibles that were trading near par and had a good
balance of risk and reward. The result for the portfolio was improved credit
quality and reduced downside risk. The shortened years-to-maturity also
contribute to downside protection. This defensive posture had a beneficial
effect in the first quarter of 1997.
We continue to emphasize downside protection and good quality in the securities
we buy. The Fund remains approximately two-thirds investment grade, which has
been achieved through restructuring and upgrades in risk/reward posture this
year. Consequently, we believe the Fund is well situated to endure the
volatility that has pervaded the market over the last few months, and, at the
same time, to participate in any rise in the markets.
CALAMOS GROWTH AND INCOME FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
CALAMOS GROWTH & INCOME LOAD ADJUSTED
Growth & Income LB G/C Int S&P 500 Index
<S> <C> <C> <C> <C> <C> <C> <C>
Sep-88 Beginning Balance 9,525 10,000 10,000
Dec-88 1988 0.9% 9,611 1.0% 10,096 3.0% 10,302
Mar-89 4.3% 10,025 1.1% 10,207 7.0% 11,025
Jun-89 5.1% 10,540 8.0% 11,028 8.8% 11,995
Sep-89 9.5% 11,544 0.9% 11,131 10.7% 13,273
Dec-89 1989 -3.1% 11,188 3.6% 11,533 2.0% 13,541
Mar-90 -2.3% 10,933 -1.2% 11,401 -3.1% 13,127
Jun-90 6.5% 11,639 3.6% 11,811 6.3% 13,954
Sep-90 -12.2% 10,225 0.6% 11,883 -13.8% 12,028
Dec-90 1990 5.6% 10,801 5.1% 12,488 9.0% 13,108
Mar-91 14.7% 12,389 2.7% 12,825 14.6% 15,017
Jun-91 -0.8% 12,292 1.5% 13,019 -0.2% 14,985
Sep-91 11.1% 13,650 5.8% 13,767 5.4% 15,791
Dec-91 1991 11.3% 15,193 5.3% 14,502 8.4% 17,112
Mar-92 -0.7% 15,094 -1.5% 14,285 -2.6% 16,675
Jun-92 -2.8% 14,671 4.1% 14,863 2.0% 17,004
Sep-92 5.2% 15,427 4.9% 15,590 3.1% 17,531
Dec-92 1992 8.4% 16,729 0.1% 15,603 5.1% 18,427
Mar-93 5.7% 17,682 4.7% 16,328 4.3% 19,221
Jun-93 3.4% 18,275 3.0% 16,818 0.5% 19,315
Sep-93 6.6% 19,474 3.3% 17,375 2.6% 19,809
Dec-93 1993 -1.4% 19,201 -0.3% 17,324 2.3% 20,267
Mar-94 -3.3% 18,563 -3.1% 16,782 -3.8% 19,495
Jun-94 -5.1% 17,626 -1.2% 16,574 0.4% 19,571
Sep-94 4.2% 18,372 0.5% 16,657 4.9% 20,534
Dec-94 1994 -1.0% 18,182 0.4% 16,719 0.0% 20,536
Mar-95 3.5% 18,817 5.0% 17,551 9.7% 22,534
Jun-95 8.5% 20,418 6.5% 18,690 9.5% 24,682
Sep-95 8.4% 22,130 1.9% 19,047 8.0% 26,654
Dec-95 1995 6.1% 23,480 4.7% 19,935 5.9% 28,237
Mar-96 6.6% 25,023 -2.3% 19,468 5.5% 29,776
Jun-96 3.6% 25,925 0.5% 19,560 4.5% 31,128
Sep-96 1.6% 26,329 1.8% 19,904 3.1% 32,086
Dec-96 1996 6.3% 27,990 3.1% 20,513 8.5% 34,801
Mar-97 1997-1 1.0% 28,259 -0.9% 20,337 2.7% 35,733
</TABLE>
The Growth and Income Fund was up 12.86% for the fiscal year ended March 31,
1997. (Please see page 13 for a complete description of performance for A and C
shares, both load-adjusted and non-load-adjusted.)
<TABLE>
<CAPTION>
Trailing Since
One-Year Five-Year Inception
<S> <C> <C> <C>
GROWTH AND INCOME FUND
A Shares/1/
non-load-adjusted 12.86% 13.34% 13.60%
load-adjusted 7.49 12.25 12.95
C Shares/2/ - - 10.83
Lipper Growth & Income Funds Index/3/ 15.42 14.93 13.98
</TABLE>
/1/Average annual total returns, net of expenses. Inception date for A
Shares was September 22, 1988.
/2/Total return, net of expenses, not annualized. Inception date for C
Shares was August 5, 1996.
/3/The Lipper Growth and Income Funds Index includes those mutual funds whose
investment objective is both growth and income. Lipper mutual funds averages
are equally weighted, composed of the largest mutual funds within their
respective investment objectives, and reflects the reinvestment of capital
gains distribution and income dividends.
Source: Lipper Analytical Services, as reported by Frank Russell Company.
No graph has been included for Class C shares since performance is for less
than one year.
5
<PAGE>
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 Fund emphasizes small- to mid-cap issues
because of their greater potential for capital appreciation, although such
issues might be more volatile than larger-cap issues.
The Fund tends to be diversified across market capitalization size. Over the
past year, there has been a significant swing in the average market
capitalization of the companies the Fund has invested in. The portfolio
percentage invested in small-capitalization companies a year ago was
approximately 43%, and it is now 41%. There has been a large change in
investments in the mid- and large-cap sectors: a year ago, the Fund had
approximately 15% of the portfolio invested in mid-cap companies, whereas the
percentage as of March 31, 1997, was approximately 44%. Similarly, the
percentage invested in large-cap companies has fallen from 42% to 15%.
Our focus on mid-cap companies is due to their growth potential, but smaller-
cap companies generally have a higher degree of risk than companies with
larger capitalization. Although this particular strategy has worked well at
various times over the past year, it did not contribute to positive
performance in the first quarter, where the general sell-off in the markets
affected small- and mid-cap companies more adversely than it affected larger
companies.
There are three parts to the Fund's structure, with conventional convertible
securities comprising 62% of its portfolio at quarter end. Stocks comprised
15% of the portfolio, synthetic convertibles comprised 19%, and cash provided
the remaining 4%.
Synthetic convertibles are constructed by combining a fixed-income security,
such as a highly liquid U.S. Government Treasury Note, with a long-term equity
warrant or Long-term Equity AnticiPation Securities (LEAPS). A LEAP is a long-
term equity option, and is preferable to regular call options, which would
incur significant market risk due to their short time to expiration. The
Treasury Note provides an income stream and repays principal at maturity like
the bond portion of a convertible security. The warrant or LEAP offers the
potential to own the underlying equity, like the convertible feature of the
straight convertible security.
We will continue to make use of synthetics as long as the yield curve is flat.
This offers the opportunity to capture the higher yields available in the
intermediate U.S. Treasury Bonds while reducing duration and credit risk in
the portfolio.
The Fund's investments in the financial sector turned in a strong performance
over the entire fiscal year, and we increased financial exposure slowly during
this period. While FIRST CHICAGO NBD CORPORATION was called (so we converted
and sold), we replaced that exposure with NATIONAL AUSTRALIA BANK (2.1% of net
assets). BANCO BILBAO VIZCAYA (BBV) (1.9%), a Spanish bank, has performed well
for us, slightly exceeding analysts expectations. We sold FREMONT GENERAL
CORPORATION, to reduce our financial exposure.
The Fund reduced its technology exposure selectively over the fiscal year.
While the clear leaders in the technology sector performed well during most of
1996, and then held up in the sell-off in the first quarter of 1997, most of
the other players were particularly hard hit. Although we will look for
opportunities in this group because we believe it is part of a strong long-
term move to replace human capital with less expensive technology, along with
the need to increase business productivity, we intend to be extremely
selective in what we buy at the
6
<PAGE>
moment. Both technology and energy made negative contributions to performance in
the first quarter of 1997.
One particular company that has shown excellent results is SPX CORPORATION
(2.9%). This company provides parts, tools and equipment necessary to maintain
and improve cars, sold mostly to dealers, gas stations, and dealer-related
franchises. From the time of its first purchase in November 1996, to March 31,
1997, it increased 68% in value.
Because of their U.S. Treasury component, our synthetic positions help control
volatility. Over the rest of 1997, we expect to decrease our stock positions and
increase the proportion of the Fund invested in convertibles and bonds. With
extremely volatile market conditions, an emphasis on income can be helpful.
CALAMOS STRATEGIC INCOME FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
STRATEGIC INCOME FUND Load-Adjusted
- --------------------------------------------------------------------------------------------
StrgFnd 30day Tbills LB G/C Int
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning Balance 9,525 10,000 10,000
Dec-90 1990 2.7% 9,782 1.8% 10,175 5.1% 10,509
Mar-91 6.4% 10,403 1.4% 10,317 2.7% 10,793
Jun-91 1.3% 10,541 1.3% 10,452 1.5% 10,956
Sep-91 2.0% 10,751 1.3% 10,587 5.8% 11,586
Dec-91 1991 3.7% 11,149 1.0% 10,693 5.3% 12,204
Mar-92 3.3% 11,513 0.9% 10,790 -1.5% 12,021
Jun-92 1.1% 11,634 0.9% 10,887 4.1% 12,508
Sep-92 3.4% 12,032 0.7% 10,963 4.9% 13,120
Dec-92 1992 3.8% 12,484 0.6% 11,029 0.1% 13,130
Mar-93 2.9% 12,842 0.7% 11,101 4.7% 13,741
Jun-93 2.6% 13,172 0.8% 11,185 3.0% 14,153
Sep-93 4.4% 13,752 0.7% 11,263 3.3% 14,622
Dec-93 1993 1.8% 13,998 0.7% 11,342 -0.3% 14,579
Mar-94 -1.7% 13,757 0.7% 11,421 -3.1% 14,123
Jun-94 -4.5% 13,141 0.8% 11,513 -1.2% 13,948
Sep-94 1.3% 13,306 1.0% 11,628 0.5% 14,017
Dec-94 1994 -2.6% 12,959 1.1% 11,756 0.4% 14,069
Mar-95 3.3% 13,392 1.4% 11,920 5.0% 14,770
Jun-95 5.3% 14,106 1.5% 12,093 6.5% 15,729
Sep-95 2.8% 14,494 1.4% 12,264 1.9% 16,029
Dec-95 1995 2.3% 14,833 1.4% 12,432 4.7% 16,777
Mar-96 2.6% 15,244 1.3% 12,592 0.0% 16,774
Jun-96 1.5% 15,477 1.3% 12,752 0.5% 16,852
Sep-96 1.6% 15,730 1.3% 12,919 1.8% 17,149
Dec-96 1996 2.2% 16,077 1.3% 13,087 3.1% 17,674
Mar-97 1997-1 1.9% 16,376 1.2% 13,243 -0.9% 17,522
- --------------------------------------------------------------------------------------------
</TABLE>
The Strategic Income Fund was up 7.42% over the year ending March 31, 1997.
(Please see page 13 for a complete description of performance for A shares, both
load-adjusted and non-load-adjusted.)
<TABLE>
<CAPTION>
Trailing Since
One-Year Five-Year Inception
<S> <C> <C> <C>
STRATEGIC INCOME FUND
A Shares/1/
non-load-adjusted 7.42% 7.26% 8.59%
load-adjusted 2.34 6.21 7.79
30-Day Treasury Bills/2/ 5.01 4.10 4.38
Lehman Bros. Govt/Corp. Bond Index/2/ 4.46 7.32 8.64
</TABLE>
/1/Average annual total returns, net of expenses. Inception date for A
shares was September 4, 1990.
/2/The Lehman Brothers Government/Corporate Bond Index is an unmanaged index
comprising intermediate and long-term government and investment-grade
corporate debt securities. The 30-Day Treasury Bill Index is an unmanaged
index generally considered representative of the performance of short-term
money instruments. U.S. Treasury Bills are backed by the full faith and
credit of the U.S. Government and offer a guarantee as to the repayment of
principal and interest at maturity. Both indexes reinvest dividends and
earnings.
Source: Lipper Analytical Services, as reported by the Frank Russell
Company.
7
<PAGE>
The Fund's goal is to provide an above-average income stream for shareholders
consistent with stability of principle primarily through the use of
convertible securities. Convertible securities tend to participate in price
increases on their 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.
One of the Fund's key investment strategies is a convertible stock hedge, also
known as a covered short sale, which is a short sale of a stock for which the
Fund owns a corresponding convertible security. Proceeds from the stock sale
create a credit balance that may earn interest. Due to the short sale, the
Fund profits if the stock price decreases. (When the stock price increases,
the convertible securities benefit.)
The difference between the current yield on the convertible and the yield on
the underlying common stock represents the convertible's yield advantage,
which is an important consideration when determining candidates for the
convertible hedge strategy. Often the underlying common stock pays no dividend
or a very small one, which means the convertible yield advantage is
attractive. For stocks that pay a dividend, the dividend is an expense of the
Fund and can be paid out of the convertible's yield advantage.
The amount of stock sold short against convertibles varies depending on the
Fund's market outlook. A higher hedge ratio indicates a more defensive
posture. The Fund attempts to balance risk and reward by adjusting the hedge
ratio as the underlying stock prices change. We believe that the hedge ratio
dampens overall volatility and helps stabilize the net asset value in volatile
markets.
Due to the strong bull market in 1996, we reduced the hedge ratio somewhat.
The downside protection offered by hedging is less important in a rising
market. However, the Fund held both hedged and unhedged positions. We expect
the hedge strategy to continue to play an important role in the Fund's
performance.
The volatile equity market provided some opportunity to adjust hedge ratios.
As the stock market advanced, it allowed the hedge ratio of individual
positions to be increased, thereby adding more defensive characteristics to
the portfolio. The volatility exhibited this past quarter provided opportunity
for the portfolio to profit from changing stock prices.
8
<PAGE>
Additionally, we have started to trade the portfolio more actively. The
volatility of the market is providing opportunities to take advantage of what we
view as occasional mispricing. We believe that this made a contribution to
performance over the quarter, although there was, of course, an increase in
turnover (the number of securities bought and sold).
In our view, we continue to be in a period of increasing volatility within the
stock and bond markets. Over the past few years, volatility in both the stock
and bond markets has been very subdued, compared to historical norms. The
financial markets have exhibited increasing volatility during the past six
months. In this environment, we believe the defensive characteristics of the
Strategic Income Fund will be beneficial to stabilized asset values while
securing an above-average income stream.
CALAMOS GROWTH FUND
<TABLE>
<CAPTION>
CALAMOS GROWTH FUND LOAD-ADJUSTED
GROWTH FND S&P 500
---------- -------
<S> <C> <C>
9,525 10,000
Dec-90 1990 10.0% 10,478 9.0% 10,898
Mar-91 18.1% 12,372 14.6% 12,485
Jun-91 -3.6% 11,928 -0.2% 12,459
Sep-91 8.5% 12,938 5.4% 13,129
Dec-91 1991 13.5% 14,690 8.4% 14,226
Mar-92 -2.4% 14,331 -2.6% 13,864
Jun-92 -6.6% 13,387 2.0% 14,137
Sep-92 4.5% 13,991 3.1% 14,575
Dec-92 1992 6.3% 14,878 5.1% 15,320
Mar-93 -0.1% 14,857 4.3% 15,980
Jun-93 -0.9% 14,728 0.5% 16,058
Sep-93 3.0% 15,169 2.6% 16,469
Dec-93 1993 2.3% 15,524 2.3% 16,850
Mar-94 -4.3% 14,851 -3.8% 16,208
Jun-94 -0.5% 14,775 0.4% 16,271
Sep-94 3.9% 15,357 4.9% 17,072
Dec-94 1994 -4.7% 14,635 0.0% 17,073
Mar-95 2.6% 15,019 9.7% 18,735
Jun-95 10.4% 16,585 9.5% 20,520
Sep-95 14.1% 18,915 8.0% 22,160
Dec-95 1995 -1.4% 18,649 5.9% 23,476
Mar-96 8.9% 19,790 5.5% 24,755
Jun-96 15.3% 22,813 4.5% 25,879
Sep-96 3.7% 23,660 3.1% 26,676
Dec-96 1996 6.0% 25,073 8.5% 28,933
Mar-97 1997-1 -6.0% 23,566 2.7% 29,708
</TABLE>
The Growth Fund was up 19.08% for the year ending March 31, 1997, significantly
outperforming the Lipper Growth Funds Index. (Please see page 13 for a complete
description of performance for A and C shares, both load-adjusted and non-load-
adjusted.)
<TABLE>
<CAPTION>
Trailing Since
12-month Five-Year Inception
<S> <C> <C> <C>
GROWTH FUND
A Shares/1/
non-load-adjusted 19.08% 11.04% 14.77%
load-adjusted 13.46 9.97 13.92
C Shares/2/ -- -- 5.35
Lipper Growth Funds Index/3/ 10.97 13.14 15.20
</TABLE>
/1/Average annual total returns, net of expenses. Inception date for A
shares was September 4, 1990.
/2/Total return, net of expenses, not annualized. Inception date for C
shares was September 3, 1996.
/3/The Lipper Growth Funds Index comprises 30 funds which invest in companies
whose long-term earnings are expected to grow significantly faster than the
earnings of the stocks represented in the major unmanaged stock indices.
Lipper mutual funds averages are equally weighted, composed of the largest
mutual funds within their respective investment objectives, and reflects the
reinvestment of capital gains distributions and income dividends.
Source: Lipper Analytical Services, Inc., as reported by the Frank Russell
Company.
No graph has been included for Class C Shares since performance is for less
than one year.
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
9
<PAGE>
aggressively traded of the Funds and has high turnover. Its relatively small
size allows it great flexibility in moving in and out of stocks.
We search for the fastest-growing companies available in the stock market,
with earnings growth rates significantly above average. We also invest
primarily in stocks of companies where we expect the earnings growth rate to
be higher than that estimated by analysts. We believe that a company's
earnings trend has a directly relationship to its stock price, and we want 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. Smaller-cap
companies generally have a higher degree of risk than companies with larger
capitalization. Our decision-making process recognizes that the stock prices
of fast-growing companies are highly volatile. The Fund is traded aggressively
to maintain its portfolio in the top companies representing the best earnings
potential. The companies purchased are selected according to both company and
sector potential. Although the Fund is diversified by industry, it may at
times be heavily weighted in sectors we believe to be the most attractive.
The Fund has investments in 75 different companies and is well diversified to
reduce risk. Approximately 7% of the Fund's portfolio is invested in large-
capitalization companies, 52% is in mid-capitalization companies, and 41% is
in small-capitalization companies.
In the first quarter of 1997, we increased the financial sector five
percentage points, to 19% of the portfolio. This sector showed strong earnings
releases and produced many of the best buys, although with the recent rise in
interest rates, momentum may start to slow. One of our important holdings is
STAR BANC CORPORATION (3.6% of net assets), a multi-bank holding company with
$4 billion in market capitalization. This bank has 263 offices in three
states, Ohio, Kentucky and Indiana.
In the first quarter of 1997, we decreased both the capital goods sector and
the energy sector by about six percentage points. Energy had a good run for
the last six months and peaked at the beginning of this year. Many analysts
started to downgrade the sector. Among the sells in the portfolio were
NEWFIELD EXPLORATION and MARINE DRILLING. In the capital goods sector we sold
SCOTSMAN and DT INDUSTRIES, both of which had a negative earnings surprise
this quarter or had slowing earnings acceleration.
Consumer staples was another sector that showed a large increase in portfolio
representation during the first quarter, by about six percentage points on
March 31, 1997. In the Russell 2000, this was the only sector to show a
positive return in the first quarter of 1997.
The technology sector is one of the most-watched areas of the economy, and
investors are in general very concerned with how a mutual fund handles its
technology investments. Technology has replaced the traditional cyclical
industries as the driving force for growth in the economy. According to
Business Week magazine (issue dated 3/31/97, p. 58), the technology sector
contributed 27% of growth in GDP over the past three years, versus 14% from
residential housing and 4% from autos. Our technology exposure has remained
relatively constant at 18-19% over the past fiscal year, although we increased
it slightly in the most recent quarter, to 21%.
10
<PAGE>
CALAMOS GLOBAL GROWTH AND INCOME FUND
Since inception on September 9, 1996, the Global Growth and Income Fund is up
by 8.04%. (Please see page 13 for a complete description of performance for A
and C shares, both load-adjusted and non-load-adjusted.)
<TABLE>
<CAPTION>
Since
Inception
<S> <C>
GLOBAL GROWTH AND INCOME FUND
A Shares/1/
non-load-adjusted 8.04%
load-adjusted 2.89
C Shares/2/ 7.64
Lipper Global Index/3/ 9.64
</TABLE>
/1/The actual returns, net of expenses, not anualized. Inception date for A
shares was September 9, 1996.
/2/The actual return, net of expenses, not annualized. Inception date for C
shares was September 24, 1996.
/3/The Lipper Global Index is composed of the largest mutual funds within its
investment objective. The Mutual Funds in Global Index allocate their
investments across various asset classes, including both domestic and
foreign stocks, bonds, and money market instruments, with a focus on total
return. At least 25% of its portfolio is invested in securities traded
outside the U.S., including some shares of gold-related investments. Lipper
mutual fund averages are equally weighted and reflect the reinvestment of
capital gains and income dividends.
Source: Lipper Analytical Services, Inc. and Frank Russell Company.
No graph has been included for Class A or C shares since performance is for
less than one year.
Succeeding in today's investment environment requires new strategies that are
global in scope and innovative in design, and we believe that this Fund will
meet that challenge. It seeks a high level of total return consisting of both
capital appreciation and current income. The Fund pursues its investment
objectives through a diversified portfolio of convertible securities, common
stock and fixed-income instruments of issuers from around the world, with an
emphasis on higher-rated convertible securities. We believe that the favorable
risk/reward characteristics of U.S. and international convertible securities
will allow the Fund to control volatility while pursuing its investment
objectives.
The Global Growth and Income Fund's investments are concentrated in the higher
end of the credit-quality spectrum, and the Fund expects to maintain, over the
long term, an average credit quality of BBB or better. However, the Fund may
acquire debt securities which are unrated or which may be rated below
investment grade, which would present increased risk. Such investments
generally involve greater price volatility and greater investment risk.
Although the Fund has no constraint on the percentage of its assets that may
be invested in the securities of foreign issuers that are not publicly traded
in the United States, under normal circumstances the Fund expects to have 60-
70% of total assets invested in such securities. Such investments may be
subject to special risks such as foreign currency risk or substantial
volatility due to adverse political, economic or other developments.
It is expected that the percentage of funds invested in the securities of
emerging nations will generally be 15-25%, although the Fund has no constraint
on the percentage of assets that may be so invested. The risks associated with
investing in securities of foreign issuers may be magnified in countries
considered to be part of the emerging markets, since those countries may have
less established markets and economies, and may have relatively more unstable
political or economic systems.
11
<PAGE>
We are excited about this new Fund. We believe this investment opportunity
comes at the right time. The global economy has entered a period of
unprecedented growth: once-closed economies embrace open markets,
industrialized nations work towards freer trade, and emerging markets offer
the opportunity for explosive economic development. In our view, these
fundamental economic changes translate into tremendous investment
opportunities for those willing to look beyond the U.S.
Driving this growth is the widespread acceptance of free markets worldwide
that has occurred since the end of the cold war. The increased recognition
that the discipline of investors' capital allocates resources more efficiently
than public funding is a trend that is fostering both privatization and
infrastructure rebuilding in emerging and developed markets. Many have come to
rely on convertible debt financing as a source of capital that provides
investors with debt instruments that have capital appreciation potential.
Since inception, the Fund has benefited from its investments in Europe and
Japan in the period ending March 31, 1997. The three biggest winners were in
Europe. They were STET (SOCIETA FINANZIARIA TELEFONICA S.P.A.) (constituting
1.8% of net assets), PHILIPS ELECTRONICS (2.8%) and HAVAS ADVERTISING (2.5%).
STET is the parent of the Italian phone company (Telecom Italia) and benefited
from progress towards its full privatization. Philips is a large Dutch
consumer electronics and electrical components manufacturer. It also owns 75%
of Polygram, the world leader in recorded music. Philips stock benefited from
the continual restructuring efforts of its new CEO, Cor Boonstra. Havas
Advertising (a French company) is one of Europe's largest advertising agencies
and is the eighth largest worldwide. Its stock offers considerable upside
potential as it continues to improve margins and reduce debt.
The Fund's performance was held back by its U.S. and Southeast Asian exposure.
12
<PAGE>
CALAMOS FAMILY OF FUNDS
STANDARDIZED PERFORMANCE
<TABLE>
<CAPTION>
Total Return Average Annual Total Return
------------- -----------------------------------------------
1 Year 5 Years 10 Years Since Inception
------------- ------------- ------------- -------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Convertible Fund
A Shares--
Inception: 6/21/85 12.94% 7.59% 12.47% 11.39% 9.78% 9.25% 11.17% 10.71%
C Shares--
Inception: 7/5/96 NA NA NA NA NA NA 11.12%/1/ NA
Growth and Income Fund
A Shares--
Inception: 9/22/88 12.86% 7.49% 13.34% 12.25% NA NA 13.60% 12.95%
C Shares--
Inception: 8/5/96 NA NA NA NA NA NA 10.83%/1/ NA
Strategic Income Fund
A Shares--
Inception: 9/4/90 7.42% 2.34% 7.26% 6.21% NA NA 8.59% 7.79%
Growth Fund
A Shares--
Inception: 9/4/90 19.08% 13.46% 11.04% 9.97% NA NA 14.77% 13.92%
C Shares--
Inception: 9/3/96 NA NA NA NA NA NA 5.35%/1/ NA
Global Growth and
Income Fund
A Shares--
Inception: 9/9/96 NA NA NA NA NA NA 8.04%/1/ 2.89%/1/
C Shares--
Inception: 9/24/96 NA NA NA NA NA NA 7.64%/1/ NA
</TABLE>
This chart provides performance return numbers for the five Funds and shows
both non-load-adjusted and load-adjusted returns, taking into consideration
the maximum 4.75% sales charge on A shares. 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. Returns for periods of
less than one year are not annualized.
Performance has not been adjusted for the sales charge in the UNSHADED area of
the chart.
Performance has been adjusted 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.
/1/Total return is not annualized.
13
<PAGE>
REPORT OF INDEPENDENT AUDITORS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
CFS INVESTMENT TRUST
We have audited the accompanying statement of assets and liabilities,
including the schedules of investments, of CFS Investment Trust (comprising
Calamos Convertible Fund, Calamos Growth and Income Fund, Calamos Strategic
Income Fund, Calamos Growth Fund, and Calamos Global Growth and Income Fund)
as of March 31, 1997, and the related statements of operations and changes in
net assets for each of the periods included therein and the financial
highlights for each of the fiscal periods since 1988. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of March 31, 1997, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calamos Convertible Fund, Calamos Growth and Income Fund, Calamos Strategic
Income Fund, Calamos Growth Fund, and Calamos Global Growth and Income Fund at
March 31, 1997, the results of their operations and changes in their net
assets for each of the periods included therein, and the financial highlights
for each of the fiscal periods since 1988, in conformity with generally
accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
May 16, 1997
14
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Convertible Fund
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -----------
<C> <S> <C>
CONVERTIBLE BONDS (41.6%)
BASIC INDUSTRIES (0.6%)
$ 475,000 RPM, Inc. $ 217,906
0.000% Liquid Yield Option Notes
09/30/2012
CAPITAL GOODS--INDUSTRIAL (4.4%)
112,000 Cooper Industries, Inc. 118,270
7.050% Conv. Sub. Deb.
01/01/2015
380,000 Robbins and Myers, Inc. 445,550
6.500% Conv. Sub. Notes
09/01/2003
475,000 Thermo Electron Corporation 493,031
4.250% Conv. Euro. Sub. Deb.
01/01/2003
740,000 WMX Technologies, Inc. 664,257
2.000% Conv. Sub. Notes
01/24/2005
-----------
1,721,108
CAPITAL GOODS--TECHNOLOGY (6.2%)
1,220,000 Automatic Data Processing, Inc. 672,251
0.000% Liquid Yield Option Notes
02/20/2012
800,000 Cyrix Corp. 642,155
5.500% Conv. Sub. Notes
06/01/2001
195,000 Data General 203,775
7.750% Conv. Sub. Deb.
06/01/2001
510,000 Motorola, Inc. 390,953
0.000% Liquid Yield Option Notes
09/27/2013
310,000 National Data Corporation 300,463
5.000% Conv. Sub. Notes
11/01/2003
240,000 Telekom Malaysia Berhad 228,600
4.000% Conv. Bonds
09/29/2004
-----------
2,438,197
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -----------
<C> <S> <C>
CONSUMER CYCLICAL (6.0%)
$ 650,000 ADT Operations, Inc. $ 463,629
0.000% Liquid Yield Option Notes
07/06/2010
415,000 Hilton Hotels Corp. 418,096
5.000% Conv. Sub. Notes
05/15/2006
395,000 The Interpublic Group Of Companies, Inc. 466,811
3.750% Conv. Euro. Sub. Deb.
04/01/2002
1,025,000 Marriott International, Inc. 563,477
0.000% Euro. Liquid Yield Option Notes
03/25/2011
475,000 MascoTech, Inc. 431,063
4.500% Conv. Sub. Deb.
12/15/2003
-----------
2,343,076
CONSUMER GROWTH STAPLES (8.0%)
305,000 Alberto-Culver Company 441,341
5.500% Conv. Euro. Sub. Deb.
06/30/2005
700,000 Alza Corporation 688,909
5.000% Conv. Sub. Deb.
05/01/2006
160,000 Hasbro, Inc. 225,099
6.000% Conv. Sub. Notes
11/15/1998
550,000 Integrated Health Services, Inc. 582,610
6.000% Conv. Sub. Deb.
01/01/2003
1,215,000 News America Holdings Incorporated 521,855
0.000% Liquid Yield Option Notes
03/11/2013
255,000 Proffitt's, Inc. 251,175
4.750% Conv. Sub. Deb.
11/01/2003
300,000 Youth Services International 393,234
7.000% Conv. Sub. Deb.
02/01/2006
-----------
3,104,223
CONSUMER STAPLES (0.6%)
150,000 Allied Domecq plc. 237,486
GBP 6.750% Conv.
07/07/2008
CREDIT CYCLICALS (0.3%)
$100,000 Hysan Development Finance Ltd. 112,375
6.750% Conv. Guaranteed Notes
06/01/2000
</TABLE>
See accompanying Note to Schedule of Investments.
15
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Convertible Fund
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -----------
<C> <S> <C>
ENERGY (5.3%)
$1,100,000 Baker-Hughes, Inc. $ 850,023
0.000% Liquid Yield Option Notes
05/05/2008
330,000 Diamond Offshore Drilling Inc. 349,565
3.750% Conv. Sub. Notes
02/15/2007
500,000 Pennzoil Company (Chevron) 610,070
4.750% Exch. Senior Deb.
10/01/2003
275,000 Swift Energy Co. 270,273
6.250% Conv. Sub. Notes
11/15/2006
-----------
2,079,931
FINANCIAL (6.5%)
550,000 Bilbao Vizcaya Investments 715,000
3.500% Conv. Bonds
07/12/2006
165,000 Developers Diversified Realty Corporation 186,839
7.000% Conv. Sub. Deb.
08/15/1999
800,000 USF&G Corporation 531,383
0.000% Conv. Sub. Notes
03/03/2009
260,000 Leucadia National Corporation 263,900
5.250% Conv. Sub. Deb.
02/01/2003
180,000 Renong Berhad 211,275
2.500% Conv. Euro. Notes
01/15/2005
585,000 The Rouse Company 614,250
5.750% Conv. Euro. Bonds
07/23/2002
-----------
2,522,647
OTHER (3.7%)
225,000 Telecom Chile 334,791
4.500% Conv. Sub. Deb.
01/15/2003
520,000 Grand Metropolitan Public Ltd. 618,384
6.500% Conv. Euro. Notes
01/31/2000
475,000 RFM Capital 509,437
2.750% Conv. Euro. Bond
05/30/2006
-----------
1,462,612
-----------
TOTAL CONVERTIBLE BONDS 16,239,561
(Cost $15,384,933)
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
---------- -----------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (21.8%)
BASIC INDUSTRIES (2.7%)
11,500 International Paper Capital Trust $ 525,066
5.250% Conv. Pref. Securities
10,550 James River Corporation 519,588
Dep. Shares, 1/4 Share Series L
$14 Cum. Conv. Exch. Pref. Stock
-----------
1,044,654
CAPITAL GOODS--TECHNOLOGY (1.7%)
6,100 Corning Incorporated 432,338
6.000% Conv. Monthly Income Pref. Sec.
4,000 Philippine Long Distance Telephone Company 220,000
$3.500 Global Dep. Shares,
One Share of Series III Conv. Pref. Stock
-----------
652,338
CONSUMER CYCLICAL (1.7%)
12,000 Royal Carribean Cruises Ltd. 672,000
$3.625 Series A Conv. Pref. Stock
CONSUMER GROWTH STAPLES (2.3%)
66,500 Mattel, Inc. 665,000
$0.4125 Dep. Shares,
1/25 Share Pref. Series C
1,500 Pacificare Health Systems 51,000
$1.000 Conv. Pref.
3,300 Wendy's International 167,062
5.000% Term Conv. Pref. Sec. Series A
-----------
883,062
CONSUMER STAPLES (2.4%)
145,600 RJR Nabisco Holdings Corp. 964,600
Series C Dep. Shares
1/10 Conv. Pref. Stock
CREDIT CYCLICALS (2.4%)
5,000 H.F. Ahmanson & Company 385,000
Dep. Shares, 1/10 Share Series D
6.000% Cum. Conv. Pref. Stock
10,000 Southdown, Inc. 565,000
$2.875 Cum. Conv. Pref. Series D
-----------
950,000
ENERGY (1.2%)
8,450 Unocal Corp. 463,555
6.250% Series Conv. Pref. Sec.
</TABLE>
See accompanying Note to Schedule of Investments.
16
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Convertible Fund
<TABLE>
<CAPTION>
Number of
Shares Value
---------- -----------
<C> <S> <C>
FINANCIAL (6.0%)
12,000 American Bankers Insurance Group, Inc. $ 727,500
$3.125 Conv. Pref. Series B
32,000 National Australia Bank 800,000
7.875% Perpetual Capital Sec.
6,000 Public Storage 291,750
$2.062 Series X Conv. Pref. Stock
3,900 The Rouse Company 191,100
$3.000 Series B Conv. Pref. Stock
12,000 Security Capital Industrial Trust 324,000
$1.750 Cum. Conv. Redeemable Pref. Series B
-----------
2,334,350
UTILITIES (1.4%)
11,500 AES Trust I Financial 559,187
$2.6875 Term Conv. Sec. Series A
-----------
TOTAL CONVERTIBLE 8,523,746
PREFERRED STOCKS
(Cost $7,920,085)
COMMON STOCKS (16.2%)
CAPITAL GOODS--TECHNOLOGY (1.1%)
4,700 Hitachi Ltd. ADRs 413,013
CONSUMER CYCLICAL (1.3%)
17,900 Toys R' Us (a) 501,200
CONSUMER GROWTH STAPLES (6.2%)
16,800 Fuji Photo Film Company Ltd. ADRs 550,200
7,000 Gannett Company, Inc. 601,125
30,000 American Safety Razor Company (a) 461,250
11,000 Reebok International Ltd. 493,625
900 The Washington Post Company--Class B 309,600
-----------
2,415,800
CONSUMER STAPLES (1.3%)
15,000 Dean Foods Co. 519,375
CREDIT CYCLICALS (1.9%)
28,000 Federal Home Loan Mortgage Co. 763,000
FINANCIAL (2.1%)
10,373 Fifth Third Bancorp 803,907
OTHER (1.0%)
5,800 Sony Corporation ADRs 400,925
TRANSPORTATION (1.3%)
13,812 Carnival Corporation 511,044
-----------
TOTAL COMMON STOCKS 6,328,264
(Cost $4,546,603)
</TABLE>
<TABLE>
<CAPTION>
Number of
Contracts Value
---------- -----------
<C> <S> <C>
CALL OPTIONS (2.6%)
CAPITAL GOODS--TECHNOLOGY (0.3%)
150 EMC Corp. (a) $ 112,500
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 40
CONSUMER CYCLICAL (0.2%)
50 UAL Corp. (a) 98,750
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 55
CONSUMER GROWTH STAPLES (0.9%)
100 Bristol Meyers Squibb Co. (a) 168,750
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 50
70 Merck & Co. (a) 115,500
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 80
90 Biogen, Inc. (a) 90,000
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 37.5
-----------
374,250
CREDIT CYCLICALS (0.2%)
120 Federal National Mortgage Association (a) 64,500
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 40
ENERGY (0.3%)
175 YPF Sociedad Anonima ADRs (a) 107,188
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 22.5
FINANCIAL (0.7%)
150 Conseco, Inc. (a) 157,500
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 30
100 Sunamerica, Inc. (a) 115,000
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 32.5
-----------
272,500
-----------
TOTAL CALL OPTIONS 1,029,688
(Cost $888,155)
</TABLE>
See accompanying Note to Schedule of Investments.
17
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Convertible Fund
<TABLE>
<CAPTION>
Number of
Warrants Value
---------- ------------
<C> <S> <C>
WARRANTS (1.0%)
29,300 Bear Stearns Companies, Inc. (a) $ 369,912
Japanese Yen Put Warrants
Expiring 08/21/1997
------------
TOTAL WARRANTS 369,912
(Cost $175,433)
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -----------
<C> <S> <C>
U.S. GOVERNMENT SECURITIES (14.7%)
$ 200,000 United States Treasury Notes $ 199,449
5.625% 01/31/1998
850,000 United States Treasury Notes 859,367
7.000% 04/15/1999
2,750,000 United States Treasury Notes 2,734,688
6.875% 05/15/2006
2,000,000 United States Treasury Notes 1,937,784
6.500% 10/15/2006
-----------
TOTAL U.S. GOVERNMENT
SECURITIES 5,731,288
(Cost $5,828,867)
-----------
TOTAL INVESTMENTS (97.9%) 38,222,459
(Cost $34,744,076)
CASH DEPOSITS WITH CUSTODIAN 426,200
(INTEREST BEARING) (1.1%)
OTHER ASSETS, LESS LIABILITIES (1.0%) 395,968
-----------
NET ASSETS (100%) $39,044,627
===========
NET ASSET VALUE PER SHARE--CLASS A $ 14.68
===========
(2,448,853 shares outstanding)
NET ASSET VALUE PER SHARE--CLASS C $ 14.63
===========
(211,512 shares outstanding)
</TABLE>
NOTE TO SCHEDULE OF INVESTMENTS
(a) Non-income producing security
See accompanying Notes to Financial Statements.
18
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Growth and Income Fund
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ----------
<C> <S> <C>
CONVERTIBLE BONDS (37.5%)
BASIC INDUSTRIES (3.2%)
$120,000 Guilford Mills, Inc. $ 127,860
6.000% Conv. Sub. Deb.
09/15/2012
150,000 Quanex Corp. 150,750
6.880% Conv. Deb.
06/30/2007
----------
278,610
CAPITAL GOODS--INDUSTRIAL (3.1%)
75,000 Sanifill, Inc. 104,502
5.000% Conv. Sub. Deb.
03/01/2006
140,000 Robbins and Meyers, Inc. 164,150
6.500% Conv. Sub.
09/01/2003
----------
268,652
CAPITAL GOODS--TECHNOLOGY (6.6%)
280,000 Automatic Data Processing, Inc 154,287
0.000% Liquid Yield Option Notes 02/20/2012
170,000 Cyrix Corp. 136,458
5.500% Conv. Sub. Notes
06/01/2001
120,000 Gencorp, Inc. 143,573
8.000% Conv. Sub. Deb.
08/01/2002
145,000 National Data Corporation 140,539
5.000% Conv. Sub. Notes
11/01/2003
----------
574,857
CONSUMER CYCLICAL (3.5%)
120,000 Hilton Hotels Corp. 120,895
5.000% Conv. Sub Notes
05/15/2006
200,000 MascoTech, Inc. 181,500
4.500% Conv. Sub. Deb.
12/15/2003
----------
302,395
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ----------
<C> <S> <C>
CONSUMER GROWTH STAPLES (11.1%)
$120,000 Alberto-Culver Company $ 173,642
5.500% Euro Conv. Sub. Deb.
06/30/2005
175,000 Alza Corporation 172,227
5.000% Conv. Sub. Deb.
05/01/2006
150,000 Beverly Enterprises, Inc. 168,570
5.500% Conv. Sub. Deb.
08/01/2018
175,000 Integrated Health Services, Inc. 185,376
6.000% Conv Sub. Deb.
01/01/2003
265,000 Jacor Communications Inc. 122,894
0.000% Liquid Yield Option Notes
06/12/2011
130,000 Pier 1 Imports, Inc. 150,987
5.750% Conv. Sub. Notes
10/01/2003
----------
973,696
CONSUMER STAPLES (1.5%)
150,000 Standard Commercial Corporation 132,000
7.250% Conv. Sub. Deb.
03/31/2007
ENERGY (5.0%)
250,000 Baker-Hughes, Inc. 193,187
0.000% Liquid Yield Option Notes
05/05/2008
160,000 Diamond Offshore Drilling Inc. 169,486
3.750% Conv. Sub. Notes
02/01/2007
75,000 Swift Energy Co. 73,711
6.250% Conv. Sub. Notes
11/15/2006
----------
436,384
FINANCIAL (3.5%)
130,000 Bilbao Vizcaya Investments 169,000
3.500% Conv.
07/12/2006
200,000 USF&G Corporation 132,846
0.000% Conv. Sub. Notes
03/03/2009
----------
301,846
----------
TOTAL CONVERTIBLE BONDS 3,268,440
(Cost $3,156,973)
</TABLE>
See accompanying Note to Schedule of Investments.
19
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Growth and Income Fund
<TABLE>
<CAPTION>
Number of
Shares Value
--------- ----------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (23.9%)
CAPITAL GOODS--INDUSTRIAL (0.5%)
2,500 Cooper Industries, Inc. $ 45,313
6.000% Exch. Notes
CAPITAL GOODS--TECHNOLOGY (2.3%)
1,500 Corning Incorporated 106,312
6.000% Conv. Monthly Income Pref. Sec.
2,700 US West, Inc. 96,103
7.625% Exch. Notes
----------
202,415
CONSUMER GROWTH STAPLES (2.4%)
21,000 Mattel, Inc. 210,000
$0.4125 Dep. Shares,
1/25 Share Pref. Series C
CREDIT CYCLICALS (1.4%)
2,200 Southdown, Inc. 124,300
$2.875 Cum. Conv. Pref. Series D
ENERGY (5.4%)
3,000 Lomark Petroleum, Inc. 156,399
$2.030 Conv. Exch. Pref. Stock Series C
3,100 Nuevo Financing I 149,188
5.750% Term Conv. Sec. Series A
1,000 Unocal Corp. 54,858
6.250% Series Conv. Pref. Sec. Callable
3,000 Western Gas Resources, Inc. 112,875
$2.625 Pref. Conv.
----------
473,320
FINANCIAL (9.7%)
2,600 American Bankers Insurance Group, Inc. 157,625
$3.125 Conv. Pref. Series B
3,000 Community First Bankshares, Inc. 146,250
$1.750 Dep. Share Rep. 1/4 Pref. Conv.
1,000 First Union Real Estate Equity & Mortgage 44,500
$2.100 Conv. Pref. Series A
7,200 National Australia Bank 180,000
7.875% Perpetual Capital Sec.
500 Jefferson Pilot Corp. 49,375
Exch. Securities Nation Bank Due 01/21/2000
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
--------- ----------
<C> <S> <C>
3,800 The Rouse Company $ 186,200
$3.000 Series B. Conv. Pref. Stock
3,000 Security Capital Industrial Trust 81,000
$1.750 Cum. Conv. Redeemable Pref. Series B
----------
844,950
UTILITIES (2.2%)
4,000 AES Trust I Financial 194,500
$2.6875 Term Conv. Sec. Series A
----------
TOTAL CONVERTIBLE 2,094,798
PREFERRED STOCK
(Cost $1,904,052)
COMMON STOCKS (14.9%)
BASIC INDUSTRIES (3.0%)
4,625 Donnelly Corporation--Class A 74,578
8,000 The Scotts Company--Class A (a) 184,000
----------
258,578
CAPITAL GOODS--INDUSTRIAL (1.4%)
16,000 Matrix Service Company (a) 122,000
CAPITAL GOODS--TECHNOLOGY (1.7%)
1,600 Microsoft Corporation 146,701
CONSUMER CYCLICAL (4.4%)
3,000 Liz Claiborne, Inc. 130,875
5,500 SPX Corporation 249,563
----------
380,438
CONSUMER STAPLES (1.3%)
3,000 Kimball International, Inc.-- Class B 114,000
ENERGY (0.9%)
5,187 Cross Timbers Oil Company 81,047
FINANCIAL (2.2%)
2,451 Fifth Third Bancorp 189,952
----------
TOTAL COMMON STOCKS 1,292,716
(Cost $991,204)
</TABLE>
See accompanying Note to Schedule of Investments.
20
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Growth and Income Fund
<TABLE>
<CAPTION>
Number of
Contracts Value
--------- ----------
<C> <S> <C>
CALL OPTIONS (2.1%)
CAPITAL GOODS--TECHNOLOGY (0.3%)
35 EMC Corp. (a) $ 26,250
Long Term Equity Anticipation
Security Expiring 01/16/1999
Strike Price 40
CONSUMER CYCLICAL (0.2%)
10 UAL Corp. (a) 19,750
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 55
CONSUMER GROWTH STAPLES (0.6%)
25 American Home Products Corp. (a) 16,563
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 65
15 Merck & Co. (a) 24,750
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 80
15 Biogen, Inc. (a) 15,000
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 37.5
----------
56,313
ENERGY (0.4%)
50 YPF Sociedad Anonima ADRs (a) 30,625
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 22.5
FINANCIAL (0.6%)
30 Conseco, Inc. (a) 31,500
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 30
20 Sunamerica, Inc. (a) 23,000
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 32.5
----------
54,500
----------
TOTAL CALL OPTIONS 187,438
(Cost $179,540)
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ----------
<C> <S> <C>
U.S. GOVERNMENT SECURITIES (16.6%)
$230,000 United States Treasury Notes $ 232,535
7.000% 04/15/1999
600,000 United States Treasury Notes 589,127
5.875% 02/15/2000
635,000 United States Treasury Notes 631,464
6.875% 05/15/2006
----------
TOTAL U.S. GOVERNMENT SECURITIES 1,453,126
(Cost $1,464,367)
----------
TOTAL INVESTMENTS (95.0%) 8,296,518
(Cost $7,696,136)
CASH DEPOSITS WITH CUSTODIAN 187,910
(INTEREST BEARING) (2.1%)
OTHER ASSETS, LESS LIABILITIES (2.9%) 254,148
----------
NET ASSETS (100%) $8,738,576
==========
NET ASSET VALUE PER SHARE--CLASS A (541,606
shares outstanding) $ 15.52
==========
NET ASSET VALUE PER SHARE--CLASS C (21,308
shares outstanding) $ 15.50
==========
</TABLE>
NOTE TO SCHEDULE OF INVESTMENTS
(a) Non-income producing security
See accompanying Notes to Financial Statements.
21
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Strategic Income Fund
<TABLE>
<CAPTION>
Principal
Amount Value
--------- -------
<C> <S> <C>
CONVERTIBLE BONDS (79.3%)
CAPITAL GOODS--INDUSTRIAL (17.1%)
$25,000 Imax Corporation 25,375
5.750% Conv. Sub. Deb.
04/01/2003
25,000 Robbins & Meyers, Inc. 29,313
6.500% Conv. Sub. Notes
09/01/2003
70,000 Thermo Electron Corporation 72,657
4.250% Conv. Euro. Sub. Deb.
01/01/2003
30,000 United States Filter Corporation 30,111
4.500% Conv. Sub. Deb.
12/15/2001
65,000 USA Waste Services 68,292
4.000% Conv. Sub. Notes
02/01/2002
-------
225,748
CAPITAL GOODS--TECHNOLOGY (1.9%)
20,000 SCI Systems, Inc. 24,600
5.000% Conv. Sub. Notes
05/01/2006
CONSUMER CYCLICAL (6.2%)
30,000 Continental Airlines, Inc. 36,956
6.750% Conv. Sub. Notes
04/15/2006
80,000 Marriott International, Inc. 43,979
0.000% Euro Liquid Yield Option Notes 03/25/2011
-------
80,935
CONSUMER GROWTH STAPLES (39.6%)
40,000 Careline, Inc. 49,917
8.000% Conv. Sub. Senior Notes 05/01/2001
30,000 Eagle Hardware & Garden 34,650
6.250% Conv. Sub. Deb.
03/15/2001
25,000 Federated Department Stores, Inc. 29,371
5.000% Conv. Sub. Notes
10/01/2003
50,000 FPA Medical Management, Inc. (a) 49,918
6.500% Conv. Euro. Sub. Deb.
12/15/2001
40,000 The Home Depot, Inc. 39,918
3.250% Conv. Sub. Deb.
10/01/2001
45,000 ICN Pharmaceuticals, Inc. 52,256
8.500% Conv. Bonds
11/15/1999
70,000 Jacor Communications Inc. 32,463
0.000% Liquid Yield Option Notes
06/12/2011
30,000 Phycor, Inc. 28,828
4.500% Conv. Sub. Deb.
02/15/2003
</TABLE>
<TABLE>
<CAPTION>
Principal
amount/
Number of
Shares Value
--------- ----------
<C> <S> <C>
$40,000 Pier 1 Imports, Inc. $ 46,458
5.750% Conv. Sub. Notes
10/01/2003
25,000 Quintiles Transnational Corp. 23,802
4.250% Conv. Euro. Sub. Notes
05/31/2000
50,000 Renal Treatment Centers, Inc. 45,826
5.625% Sub. Notes
07/15/2006
55,000 Synetic, Inc. 54,038
5.000% Conv. Sub. Deb.
02/15/2007
30,000 Tenet Healthcare Corporation 34,630
6.000% Exch. Sub. Notes
12/01/2005
----------
522,075
CREDIT CYCLICALS (2.8%)
30,000 BankAtlantic Bankcorp, Inc. 37,237
6.750% Conv. Sub. Deb.
07/01/2006
ENERGY (9.2%)
55,000 Diamond Offshore Drilling Inc. 58,261
3.750% Conv. Sub. Notes
02/01/2007
50,000 Nabors Industries, Inc. 63,322
5.000% Conv. Sub. Notes
05/15/2006
----------
121,583
FINANCIAL (2.5%)
50,000 USF&G Corporation 33,211
0.000% Conv. Sub. Notes
03/03/2009
----------
TOTAL CONVERTIBLE BONDS 1,045,389
(Cost $1,024,515)
CONVERTIBLE PREFERRED STOCKS (17.6%)
CONSUMER CYCLICAL (1.6%)
800 Walbro Corporation 21,200
8% Conv. Trust Pref. Sec.
FINANCIAL (11.5%)
850 American General Corporation (a) 47,813
6.000% Conv. Monthly Income
Pref. Sec.
2,000 National Australia Bank 50,000
7.875% Perpetual Capital Sec.
1,100 The Rouse Company 53,900
$3.000 Series B Conv. Pref. Stock
----------
151,713
</TABLE>
See accompanying Note to Schedule of Investments.
22
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Strategic Income Fund
<TABLE>
<CAPTION>
Number of
Shares Value
--------- ----------
<C> <S> <C>
UTILITIES (4.5%)
1,200 AES Trust 1 Financial $ 58,350
$2.6875 Term Conv. Sec. Series A
----------
TOTAL CONVERTIBLE PREFERRED STOCKS 231,263
(Cost $230,167)
----------
TOTAL INVESTMENTS (96.9%) 1,276,652
(Cost $1,254,682)
COMMON STOCKS SOLD SHORT (-27.3%)
CAPITAL GOODS--INDUSTRIAL (-5.8%)
300 Imax Corporation (10,200)
1,100 Laidlaw, Inc.--Class B (15,125)
200 Robbins & Meyers, Inc. (5,300)
600 Thermo Electron Corporation (18,525)
150 United States Filter Corporation (4,631)
635 USA Waste Services, Inc. (22,543)
----------
(76,324)
CAPITAL GOODS--TECHNOLOGY (-1.1%)
300 SCI Systems, Inc. (15,188)
CONSUMER CYCLICAL (-1.7%)
300 Continental Airlines--Class B (9,413)
140 Marriott International, Inc. (6,965)
320 Walbro Corporation (5,640)
----------
(22,018)
CONSUMER GROWTH STAPLES (-12.7%)
660 Eagle Hardware & Garden, Inc. (11,880)
225 Federated Department Stores, Inc. (7,397)
120 The Home Depot (6,420)
1,575 ICN Pharmaceuticals, Inc. (35,044)
200 Jacor Communications, Inc. (5,525)
300 Phycor, Inc. (8,175)
1,760 Pier 1 Imports, Inc. (31,020)
125 Quintiles Transnational Corp. (6,734)
550 Renal Treatment Centers, Inc. (12,375)
650 Synetic, Inc. (30,713)
300 Vencor, Incorporated (11,362)
----------
(166,645)
CREDIT CYCLICALS (-0.9%)
600 BankAtlantic Bancorp, Inc.--Class B (7,575)
337 BankAtlantic Bancorp, Inc.--Class A (3,959)
----------
(11,534)
ENERGY (-3.2%)
220 Diamond Offshore Drilling Inc. (15,070)
1,380 Nabors Industries Inc. (26,910)
----------
(41,980)
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares/Contracts Value
---------------- ----------
<C> <S> <C>
FINANCIAL (-1.9%)
600 USF&G Corporation $ (12,900)
200 National Australia Bank ADRs (12,375)
----------
(25,275)
----------
TOTAL COMMON STOCKS SOLD SHORT (358,964)
(Proceeds $344,229)
COVERED CALL OPTIONS WRITTEN (-0.1%)
CONSUMER GROWTH STAPLES
9 FPA Medical Management, Inc. (1,519)
May 20 Calls
FINANCIAL
7 American General Corp. Texas (831)
April 40 Calls
----------
TOTAL COVERED CALL OPTIONS WRITTEN (2,350)
(Proceeds $5,619)
CASH DEPOSITS WITH CUSTODIAN 385,549
(INTEREST BEARING) (29.3%)
OTHER ASSETS, LESS LIABILITIES (1.2%) 16,092
----------
NET ASSETS (100%) $1,316,979
==========
NET ASSET VALUE PER SHARE--CLASS A $ 10.81
==========
(121,865 shares outstanding)
</TABLE>
NOTE TO SCHEDULE OF INVESTMENTS
(a) Securities held to cover call options written.
See accompanying Notes to Financial Statements.
23
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Growth Fund
<TABLE>
<CAPTION>
Number of
Shares Value
---------- ----------
<C> <S> <C>
COMMON STOCKS (96.4%)
BASIC INDUSTRIES (6.0%)
3,500 Donnelly Corporation--Class A $ 56,438
1,000 H.B. Fuller & Company 48,750
1,500 Rohm & Haas Co. 112,313
2,700 Specialty Paperboard, Inc. (a) 67,500
3,500 Tubos De Acero De Mexico ADRs (a) 59,938
1,300 Tredegar Industries Inc. 52,488
----------
397,427
CAPITAL GOODS--INDUSTRIAL (6.6%)
3,400 Monaco Coach Corp. (a) 60,775
6,500 Molecular Dynamics, Incorporated (a) 95,875
5,000 Manitowoc Company, Inc. 180,625
2,000 S I Handling System, Incorporated 29,750
2,000 US Industries, Inc. (a) 70,500
----------
437,525
CAPITAL GOODS--TECHNOLOGY (20.9%)
1,700 Compuware Corporation (a) 106,675
2,000 Dell Computer Corporation (a) 135,250
2,400 Electronics For Imaging, Inc. (a) 95,700
6,000 Encore Wire Corporation (a) 109,500
2,000 Jabil Circuit, Inc. (a) 90,126
2,200 Lucent Technologies, Inc. 116,050
1,300 Microsoft Corporation 119,194
2,550 Mastec Inc. (a) 72,037
5,000 Qlogic Corp. (a) 98,750
2,300 Thiokol Corp. 127,075
2,100 Teledata Communications Ltd. (a) 37,800
5,000 Western Digital Corporation (a) 283,125
----------
1,391,282
CONSUMER CYCLICAL (10.4%)
3,000 Action Performance Cos. Inc. (a) 58,500
1,200 Dollar Tree Stores, Inc. (a) 44,400
2,700 Expeditors International Washington, Inc. 64,800
2,300 Fruit of the Loom, Inc.--Class A 95,450
3,000 Jones Apparel Group, Inc. (a) 111,375
1,900 Pacific Sunwear California, Inc. (a) 62,225
3,200 SPX Corporation 145,200
2,500 The TJX Companies, Inc. 106,875
----------
688,825
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value
---------- ----------
<C> <S> <C>
CONSUMER GROWTH STAPLES (9.5%)
2,000 Consolidated Graphics Inc. (a) $ 57,250
5,550 CKE Restaurants, Inc. 122,794
4,000 Funco Incorporated (a) 56,000
5,000 Graham-Field Health 54,375
Products Line
2,100 Hooper Holmes Incorporated 35,700
1,750 McClatchy Newspapers, Inc. 41,781
4,000 NBTY Inc. (a) 60,500
2,800 Samsonite Corp. (a) 121,100
3,000 Showbiz Pizza Time, Inc. (a) 52,500
2,000 Sullivan Dental Products Incorporated (a) 29,250
----------
631,250
CONSUMER STAPLES (10.7%)
1,500 Ethan Allen Interiors, Inc. 65,250
4,000 Furniture Brands 60,000
International, Inc. (a)
3,000 Interstate Bakeries Corp. 141,750
2,100 Miller Herman, Inc 143,325
2,800 Morningstar Group, Inc. (a) 53,900
1,000 DeKalb Genetics Corp.--Class B 53,250
2,500 Stanley Furniture Company, Inc. (a) 48,750
2,200 Safeway, Inc. (a) 102,025
1,100 Quality Food Centers, Inc. (a) 46,200
----------
714,450
CREDIT CYCLICALS (5.2%)
1,500 Anchor Bancorp. Wisconsin, Inc. 66,375
3,200 H.F. Ahmanson & Company 116,800
1,300 Bay View Capital Corporation 66,300
1,800 Greenpoint Financial 92,700
----------
342,175
ENERGY (8.4%)
1,000 Atwood Oceanics Incorporated (a) 62,125
5,700 Clayton Williams Energy, Inc. (a) 69,825
2,500 Energy Ventures, Inc. (a) 154,062
6,000 Global Marine, Inc. (a) 129,000
7,000 Gulf Canada Resources Ltd. (a) 51,625
2,300 Veritas DGC, Inc. (a) 45,425
2,800 The Wiser Oil Company 49,350
----------
561,412
</TABLE>
See accompanying Note to Schedule of Investments.
24
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Growth Fund
<TABLE>
<CAPTION>
Number of
Shares Value
---------- ----------
<C> <S> <C>
FINANCIAL (18.7%)
5,200 Ace Cash Express Incorporated (a) $ 52,977
1,900 Banponce Corporation (a) 67,450
1,900 Brenton Banks Inc. 52,725
3,200 Conseco, Inc. 114,000
3,000 Delphi Financial Group, Inc. (a) 99,750
4,000 Firstplus Financial (a) 120,500
4,000 Imperial Credit Industries, Inc. (a) 80,500
3,000 Life Re Corporation 122,250
1,400 Orion Capital Corporation 86,450
6,000 Star Banc Corporation 239,250
2,000 Triad Guaranty, Inc. (a) 59,000
1,200 Texas Regional Bancshares, Inc.-- 39,000
Class A
2,600 Trans Financial, Inc. 58,500
5,000 Westbridge Capital Corp. 50,625
----------
1,242,977
----------
TOTAL COMMON STOCKS 6,407,323
(Cost $6,008,207)
TOTAL INVESTMENTS (96.4%) 6,407,323
(Cost $6,008,207)
CASH DEPOSITS WITH CUSTODIAN 216,433
(INTEREST BEARING) (3.3%)
OTHER ASSETS, LESS LIABILITIES (0.3%) 20,075
----------
NET ASSETS (100%) $6,643,831
==========
NET ASSET VALUE PER SHARE--CLASS A (389,452
shares outstanding) $ 17.04
==========
NET ASSET VALUE PER SHARE--CLASS C (492 shares
outstanding) $ 16.98
==========
</TABLE>
NOTE TO SCHEDULE OF INVESTMENTS
(a) Non-income producing security
See accompanying Notes to Financial Statements.
25
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Global Growth and Income Fund
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ----------
<C> <S> <C>
CONVERTIBLE BONDS (32.6%)
CAPITAL GOODS--INDUSTRIAL (2.4%)
$90,000 WMX Technologies, Inc. $ 80,788
2.000% Conv. Sub. Notes
01/24/2005
CAPITAL GOODS--TECHNOLOGY (1.6%)
65,000 Cyrix Corp. 52,175
5.500% Conv. Sub. Notes
06/01/2001
CONSUMER CYCLICAL (6.5%)
70,000 Hilton Hotels Corp. 70,522
5.000% Conv. Sub. Notes
05/15/2006
155,000 Marriott International, Inc. 85,209
0.000% Liquid Yield Option Notes
03/25/2011
70,000 Shangrila Asian Capital 59,500
2.875% Conv. Deb.
12/16/2000
----------
215,231
CONSUMER GROWTH STAPLES (1.1%)
85,000 News America Holdings Incorporated 0.000% Liquid Yield 36,508
Option Notes 03/11/2013
ENERGY (3.4%)
60,000 Diamond Offshore Drilling Inc. 63,557
3.750% Conv. Sub. Notes
02/01/2007
50,000 Swift Energy Co. 49,141
6.250% Conv. Sub. Notes
11/15/2006
----------
112,698
FINANCIAL (8.0%)
50,000 Bilbao Vizcaya Investments 65,000
3.500% Conv. Euro. Bonds
07/12/2006
125,000 USF&G Corporation 83,029
0.000% Conv. Sub. Notes
03/03/2009
50,000 Hon Kwok Land 53,000
5.300% Conv. Bonds
07/05/2001
55,000 Renong Berhad 64,556
2.500% Conv. Euro. Notes
01/15/2005
----------
265,585
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount/
Number of
Shares Value
--------- ----------
<C> <S> <C>
OTHER (9.6%)
$70,000 Grand Metropolitan Public Ltd. $ 83,244
6.500% Euro. Conv. Notes
01/31/2000
50,000 Republic of Italy 49,625
5.000% Conv. Deb.
06/28/2001
108,000 Lindt & Sprungli Finance Ltd. 94,770
CHF 3.250% Conv. Deb.
10/18/2001
55,000 New World Infrastructure 63,731
5.000% Conv. Euro. Deb.
07/15/2001
25,000 RFM Capital 26,812
2.750% Conv. Euro. Bond
04/30/2006
----------
318,182
----------
TOTAL CONVERTIBLE BONDS (Cost $1,102,947) 1,081,167
CONVERTIBLE PREFERRED STOCKS (12.8%)
CAPITAL GOODS--TECHNOLOGY (2.8%)
1,685 Philippine Long Distance Telephone Co. 92,675
$3.500 Global Dep. Shares,
One Share Series III Conv. Pref. Stock
CONSUMER CYCLICAL (2.5%)
1,500 Royal Caribbean Cruises Ltd. 84,000
$3.625 Ser. A Conv. Pref. Stock
ENERGY (2.5%)
1,490 Unocal Corp. 81,739
6.250% Series Conv. Pref. Sec.
FINANCIAL (3.2%)
4,250 National Australia Bank Ltd. 106,250
7.875% Perpetual Capital Sec.
OTHER (1.8%)
3,800 AJL Peps Trust 59,850
$1.440 Prem. Exch.
----------
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $429,964) 424,514
</TABLE>
See accompanying Note to Schedule of Investments.
26
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Global Growth and Income Fund
<TABLE>
<CAPTION>
Number of
Shares Value
--------- ----------
<C> <S> <C>
COMMON STOCKS (43.5%)
CAPITAL GOODS--TECHNOLOGY (11.0%)
4,300 Alcatel Alsthom ADRs $ 102,125
850 Hitachi Ltd. ADRs 74,694
600 Matsushita Electric Industrial Ltd. 93,750
2,100 Philips Electronics ADRs 93,450
----------
364,019
CONSUMER CYCLICAL (3.6%)
685 Havas Advertising 81,374
FRF
900 WPP Group plc ADRs 36,675
----------
118,049
CONSUMER GROWTH STAPLES (6.8%)
700 Canon Inc. ADRs 74,550
2,550 Fuji Photo Film Company Ltd. ADRs 83,513
800 Gannett Company, Inc. 68,700
----------
226,763
CONSUMER STAPLES (1.9%)
2,030 Groupe Danone ADRs 64,199
FINANCIAL (14.7%)
7,200 B.A.T. Industries plc ADRs 119,700
1,451 First Chicago NBD Corporation 78,535
635 MBIA, Inc. 60,881
36,500 Peregrine Investment Holding Ltd. ADRs 116,800
2,700 Societe Generale ADRs 63,113
4,600 National Bank of Canada 49,480
CAD
----------
488,509
OTHER (5.5%)
1,750 Sony Corporation ADRs 120,968
1,400 Stet Societa Finanziaria Telefonica ADRs 60,725
----------
181,693
----------
TOTAL COMMON STOCKS (Cost $1,359,801) 1,443,232
</TABLE>
<TABLE>
<CAPTION>
Number of
Contracts Value
--------- ----------
<C> <S> <C>
CALL OPTIONS (1.3%)
CAPITAL GOODS--TECHNOLOGY (0.2%)
10 EMC Corp. (a) $ 7,500
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 40
CONSUMER CYCLICAL (0.2%)
4 UAL Corp. (a) 7,900
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 55
CONSUMER GROWTH STAPLES (0.4%)
5 Merck & Co. (a) 8,250
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 80
5 Biogen, Inc. (a) 5,000
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 37.5
----------
13,250
ENERGY (0.3%)
15 YPF Sociedad Anonima ADRs (a) 9,188
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 22.5
FINANCIAL (0.2%)
5 Conseco, Inc. (a) 5,250
Long Term Equity Anticipation
Securities Expiring 01/16/1999
Strike Price 30
----------
TOTAL CALL OPTIONS (Cost $40,170) 43,088
</TABLE>
See accompanying Note to Schedule of Investments.
27
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1997
Calamos Global Growth and Income Fund
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ----------
<C> <S> <C>
U.S. GOVERNMENT SECURITIES (8.1%)
$200,000 United States Treasury Notes $ 195,152
5.000% 02/15/1999
75,000 United States Treasury Notes 72,666
6.500% 10/15/2006
----------
TOTAL U.S. GOVERNMENT SECURITIES (Cost $270,930) 267,818
----------
TOTAL INVESTMENTS (98.3%) (Cost $3,203,812) 3,259,819
CASH DEPOSITS WITH CUSTODIAN (INTEREST BEARING) (3.3%) 110,631
LIABILITIES LESS OTHER ASSETS (54,629)
(-1.6%)
----------
NET ASSETS (100%) $3,315,821
==========
NET ASSET VALUE PER SHARE--CLASS A (543,033 shares out-
standing) $ 5.39
==========
NET ASSET VALUE PER SHARE--CLASS C (72,566 shares outstand-
ing) $ 5.37
==========
</TABLE>
NOTE TO SCHEDULE OF INVESTMENTS
(a) Non-income producing security
See accompanying Notes to Financial Statements.
28
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1997
<TABLE>
<CAPTION>
GLOBAL
GROWTH AND STRATEGIC GROWTH AND
CONVERTIBLE INCOME INCOME GROWTH INCOME
ASSETS FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments, at value
(cost $34,744,076,
$7,696,136, $1,254,682,
$6,008,207 and
$3,203,812,
respectively) $38,222,459 8,296,518 1,276,652 6,407,323 3,259,819
Cash with custodian
(interest bearing) 426,200 187,910 385,549 216,433 110,631
Accrued interest and
dividends receivable 401,357 63,541 16,624 3,986 24,406
Receivable for
investments sold - 177,897 44,987 - -
Receivable for Fund
shares sold 72,648 35,857 358 29,101 9,171
Due from Advisor - 7,042 11,068 15,396 9,858
--------------------------------------------------------
Total Assets $39,122,664 8,768,765 1,735,238 6,672,239 3,413,885
--------------------------------------------------------
LIABILITIES AND NET
ASSETS
Investments sold short,
at value (proceeds
$344,229) - - 358,964 - -
Covered Call options
written, at value
(proceeds $5,619) - - 2,350 - -
Payable for investments
purchased - - 34,675 - 69,664
Payable for Fund shares
redeemed 8,620 364 - 1,476 9
Payable to investment
adviser 29,213 7,848 2,707 7,803 4,214
Accounts payable and
accrued liabilities 22,031 18,078 19,001 16,206 22,657
Payable to distributor 18,173 3,899 562 2,923 1,520
--------------------------------------------------------
Total Liabilities 78,037 30,189 418,259 28,408 98,064
--------------------------------------------------------
NET ASSETS $39,044,627 8,738,576 1,316,979 6,643,831 3,315,821
========================================================
ANALYSIS OF NET ASSETS
Excess of amounts
received from issuance
of shares over amounts
paid on redemptions of
shares on account of
capital $34,214,503 7,688,651 1,313,030 6,106,339 3,147,189
Undistributed net
investment income 367,208 43,395 4,168 - 92,862
Accumulated net realized
gain (loss) on
investments 984,533 406,148 (10,723) 138,376 21,623
Unrealized appreciation
(depreciation) of
investments 3,478,383 600,382 10,504 399,116 54,147
--------------------------------------------------------
NET ASSETS $39,044,627 8,738,576 1,316,979 6,643,831 3,315,821
========================================================
CLASS A SHARES
Net Assets Applicable to
Shares Outstanding $35,950,445 8,408,322 1,316,979 6,635,476 2,926,019
Shares Outstanding 2,448,853 541,606 121,865 389,452 543,033
Net Asset Value and
Redemption Price Per
Share $ 14.68 15.52 10.81 17.04 5.39
========================================================
Maximum Offering Price
Per Share (Net asset
value, plus 4.99% of
net asset value or
4.75% of offering
price) $ 15.41 16.29 11.35 17.89 5.66
========================================================
CLASS C SHARES
Net Assets Applicable to
Shares Outstanding $ 3,094,182 $ 330,254 N/A $ 8,355 $ 389,802
Shares Outstanding 211,512 21,308 N/A 492 72,566
Net Asset Value and
Redemption Price Per
Share $ 14.63 15.50 N/A 16.98 5.37
========================================================
</TABLE>
29
<PAGE>
STATEMENT OF OPERATIONS
Year Ended March 31, 1997
<TABLE>
<CAPTION>
GLOBAL
GROWTH AND STRATEGIC GROWTH AND
CONVERTIBLE INCOME INCOME GROWTH INCOME
FUND FUND FUND FUND FUND/1/
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $1,016,876 261,845 90,133 11,945 32,524
Dividends 320,539 60,695 5,121 19,315 19,466
----------------------------------------------------------
Total Investment Income 1,337,415 322,540 95,254 31,260 51,990
----------------------------------------------------------
EXPENSES
Investment advisory fees 230,573 54,520 11,203 47,557 13,646
Distribution fees 160,037 36,700 7,469 23,787 7,384
Transfer agent fees 16,947 3,939 1,056 1,466 751
Custodian fees 2,820 2,470 3,315 5,770 3,175
Trustees' fees 4,500 4,500 4,500 4,500 2,100
Registration fees 23,791 19,381 17,281 17,531 3,125
Audit and legal fees 30,663 28,530 28,117 27,582 19,585
Dividends paid on short
sales - - 1,337 - -
Other 643 2,796 2,389 896 2,682
----------------------------------------------------------
Total Expenses 469,974 152,836 76,667 129,089 52,448
Less expense
reimbursement - 7,042 45,456 33,966 24,597
----------------------------------------------------------
Net Expenses 469,974 145,794 31,211 95,123 27,851
----------------------------------------------------------
NET INVESTMENT INCOME
(LOSS) 867,441 176,746 64,043 (63,863) 24,139
----------------------------------------------------------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net realized gain on
investments and foreign
currency contracts
(including options) 2,052,088 575,881 108,232 609,730 95,919
Change in unrealized
appreciation
(depreciation) of
investments and foreign
currency contracts 813,678 87,888 (65,087) (71,043) 54,147
----------------------------------------------------------
NET GAIN ON INVESTMENTS 2,865,766 663,769 43,145 538,687 150,066
----------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $3,733,207 840,515 107,188 474,824 174,205
==========================================================
</TABLE>
/1/For the period September 9, 1996 through March 31, 1997
30
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Years Ended March 31, 1997 and March 31, 1996
<TABLE>
<CAPTION>
Global Growth
Convertible Growth and Income Strategic Income Growth and Income
Fund Fund Fund Fund Fund/1/
--------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996 1997 1996 1997
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income
(loss) $ 867,441 601,361 176,746 114,496 64,043 85,214 (63,863) (19,022) 24,139
Net realized gain on
investments and
foreign currency
contracts (including
options) 2,052,088 2,911,070 575,881 783,008 108,232 86,175 609,730 465,330 95,919
Change in unrealized
appreciation or
depreciation of
investments and
foreign currency
contracts 813,678 1,352,830 87,888 342,618 (65,087) 77,845 (71,043) 227,320 54,147
-------------------------------------------------------------------------------------------------------
Increase in net
assets resulting
from operations 3,733,207 4,865,261 840,515 1,240,122 107,188 249,234 474,824 673,628 174,205
-------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (906,544) (428,439) (140,367) (128,998) (90,304) (72,037) - (9,427) (5,573)
Net realized gains (2,199,711) (1,522,911) (704,715) (202,909) (49,735) - (425,142) (438,209) -
-------------------------------------------------------------------------------------------------------
Total distributions (3,106,255) (1,951,350) (845,082) (331,907) (140,039) (72,037) (425,142) (447,636) (5,573)
-------------------------------------------------------------------------------------------------------
INCREASE (DECREASE)
IN NET ASSETS FROM
CAPITAL SHARE
TRANSACTIONS 13,957,623 4,900,118 2,930,278 1,052,091 (270,076) (768,146) 3,728,475 849,072 3,147,189
-------------------------------------------------------------------------------------------------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS 14,584,575 7,814,029 2,925,711 1,960,306 (302,927) (590,949) 3,778,157 1,075,064 3,315,821
NET ASSETS
Beginning of period 24,460,052 16,646,023 5,812,865 3,852,559 1,619,906 2,210,855 2,865,674 1,790,610 -
-------------------------------------------------------------------------------------------------------
End of period $39,044,627 24,460,052 8,738,576 5,812,865 1,316,979 1,619,906 6,643,831 2,865,674 3,315,821
=======================================================================================================
Undistributed net
investment income $ 367,208 399,745 43,395 7,016 4,168 8,916 - - 92,862
</TABLE>
/1/For the period September 9, 1996 through March 31, 1997
31
<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 five series, Calamos Convertible
Fund, Calamos Growth and Income Fund, Calamos Strategic Income Fund, Calamos
Growth Fund, and Calamos Global Growth and Income Fund. Pursuant to resolution
of the Board of Directors, the name of CFS Investment Trust will change to
Calamos Investment Trust during the fiscal year ending March 31, 1998. In
1995, the Trust changed its fiscal year end for financial reporting and income
tax purposes from April 30 to March 31. In June 1996, the Trust began offering
both Class A and Class C shares for all five series of the Trust.
Portfolio Valuation - Investments are stated at value. Securities for which
quotations are readily available are valued at the last available sales price
on the exchange or market on which they are principally traded, or lacking any
sales, at the mean of the most recently quoted bid and asked prices.
Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Trust's Board of Trustees. Forward currency contracts are
valued using forward currency exchange rates available from a quotation
service.
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. Interest income is
recognized using the accrual method and includes amortization of original
issue discount. Dividend income is recognized on the ex-dividend date.
Foreign Currency Translation - Values of investments denominated in foreign
currencies are converted into U.S. dollars using the spot market rate of
exchange at the time of valuation. Purchases and sales of investments and
dividend and interest income are translated into U.S. dollars using the spot
market rate of exchange prevailing on the respective dates of such
transactions. Realized foreign exchange gain of $6,566 and unrealized foreign
exchange gain of $16,229 for the Convertible Fund, and realized foreign
exchange gain of $74,296 and unrealized foreign exchange loss of $17,333 for
the Global Growth and Income Fund are included as a component of net realized
gains (loss) on investments and forward foreign currency contracts and in
unrealized appreciation (depreciation) in investments and foreign currency
contracts, respectively.
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.
Allocation of Expenses between Classes - Expenses arising in connection with a
specific class of shares are allocated directly. All other expenses are
allocated pro rata based on relative net assets.
Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results may differ from those estimates.
32
<PAGE>
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, computed as follows: The Convertible
Fund, Growth and Income Fund, and Strategic 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 fees are 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.
The Global Growth and Income Fund fees are based on 1.00% of the Fund's
average daily net assets.
CAM has voluntarily undertaken to limit normal operating expenses of the
Growth and Income Fund, Strategic Income Fund, Growth Fund and Global Growth
and Income Fund to 2% of average daily net assets for Class A shares and to
2.5% of average daily net assets for Class C shares through August 31, 1998.
For the year ended March 31, 1997, CAM waived or absorbed expenses of $6,629,
$45,456, $33,956, and $22,647, respectively, for Class A shares of those Funds
and $413, $10 and $1,950, respectively, for Growth and Income Fund, Growth
Fund, and Global Growth and Income Fund Class C shares.
As Transfer Agent of the Funds, CAM assumed all expenses of personnel, office
space, office facilities, and equipment incidental to such service.
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 on Class A shares and an annual service fee of 0.25% and an
annual distribution fee of 0.75% of the Fund's average daily net assets on
Class C shares.
During the year ended March 31, 1997, CFS received commissions of $40,973,
$4,981, $759, and $36 from the sale of Convertible Fund, Growth and Income
Fund, Growth Fund, and Global Growth and Income 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 year
ended March 31, 1997, the Convertible Fund, Growth and Income Fund, Strategic
Income Fund, Growth Fund, and Global Growth and Income Fund paid brokerage
commissions to CFS on purchases and sales of securities in the amount of
$30,227, $11,414, $3,521, $37,360 and $2,429, 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.
Certain officers of the Funds are also officers and directors of CFS and CAM.
All officers serve without direct compensation from the Funds.
33
<PAGE>
NOTE 3 -- INVESTMENTS
Purchases and sales of investments other than short-term obligations in the
Funds for the period ended March 31, 1997, are as follow:
<TABLE>
<CAPTION>
Global
Convertible Growth and Income Strategic Income Growth Growth and Income
Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases $27,466,966 8,839,339 2,197,528 10,993,509 5,226,768
Proceeds from sales $15,381,466 6,125,550 2,525,682 7,838,879 2,123,869
</TABLE>
The following information is based on the cost basis of investments for
Federal income tax purposes at March 31, 1997:
<TABLE>
<CAPTION>
Global
Convertible Growth and Income Strategic Income Growth Growth and Income
Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cost basis of invest-
ments $34,744,076 7,705,511 1,265,405 6,008,207 3,203,812
Gross unrealized appre-
ciation $ 4,206,433 745,883 44,882 725,748 138,570
Gross unrealized depre-
ciation $ (728,050) (154,876) (33,635) (326,632) (82,563)
Net unrealized apprecia-
tion $ 3,478,383 600,382 21,970 399,116 56,007
</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 year ended March 31, 1997, the Strategic Income Fund
incurred net losses of $97,816 on short sales that are classified with net
realized loss on investments. No other fund engaged in short sales during the
year ended March 31, 1997.
NOTE 5 -- COVERED CALL OPTIONS WRITTEN
Transactions in covered call options written by the Strategic Income Fund for
the period ended March 31, 1997 were as follows:
<TABLE>
<CAPTION>
Number of Premiums
Contracts Received
--------- --------
<S> <C> <C>
Outstanding at beginning of period - $ -
Written 35 11,148
Closed or assigned (19) (5,529)
--- -------
Outstanding at end of period 16 $ 5,619
</TABLE>
NOTE 6 -- FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may engage in portfolio hedging with respect to changes in currency
exchange rates by entering into foreign currency contracts to purchase or sell
currencies. A forward foreign currency contract is a commitment to purchase or
sell a foreign currency at a future date at a negotiated forward rate. Risks
associated with such contracts include movement in the value of the foreign
currency relative to the U.S. dollar and the ability of the counterparty to
perform. The net unrealized gain, if any, represents the credit risk to the
Fund on a forward foreign currency contract. The contracts are valued daily at
forward exchange rates and an unrealized gain or loss is recorded. The Funds
realize a gain or loss upon settlement of the contracts. The statement of
operations
34
<PAGE>
reflects net unrealized gains and losses on these contracts. The counterparty
to all forward foreign currency contracts at March 31, 1997 was a
multinational bank.
As of March 31, 1997, the Global Growth and Income Fund had the following open
forward foreign currency contracts:
<TABLE>
<CAPTION>
Settlement Local Current Unrealized
Date Currency Value Gain (Loss)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Swiss Francs.......................... 06/12/97 100,000 $69,669 (1,269)
Japanese Yen.......................... 06/12/97 62,000,000 506,603 9,205
British Pounds Sterling............... 06/12/97 130,000 212,758 (5,148)
French Francs......................... 06/12/97 1,700,000 302,981 (4,648)
------
(1,860)
======
</TABLE>
NOTE 7 -- 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 year ended March 31, 1997, the Convertible Fund, Growth
and Income Fund, Strategic Income Fund, Growth Fund and Global Growth and
Income Fund earned $64,961, $25,115, $15,623, $11,945 and $7,192,
respectively, in interest income under this arrangement.
NOTE 8 -- CAPITAL SHARE TRANSACTIONS
The following table summarizes the activity in capital shares of the Funds:
<TABLE>
<CAPTION>
Convertible Growth and Income Strategic Income Growth Global Growth and
A Shares Fund Fund Fund Fund Income Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED Shares Dollars Shares Dollars Shares Dollars Shares Dollars Shares Dollars
MARCH 31, 1997
Shares sold 824,228 $11,931,314 176,257 $2,735,811 1,500 $ 16,566 217,109 $3,905,631 575,477 $2,944,288
Shares issued in
reinvestment of
distributions 157,231 2,204,225 49,163 731,921 9,775 105,551 23,916 421,022 983 5,101
Less shares
redeemed (220,201) (3,186,620) (55,912) (869,237) (35,798) (392,193) (33,635) (606,145) (33,427) (181,272)
----------------------------------------------------------------------------------------------------------
Increase
(decrease) 761,258 $10,948,919 169,508 $2,598,495 (24,523) $(270,076) 207,390 $3,720,508 543,033 $2,768,117
==========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Growth and Global Growth
C Shares Convertible Fund Income Fund Growth Fund and Income Fund
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED Shares Dollars Shares Dollars Shares Dollars Shares Dollars
MARCH 31, 1997
Shares sold 219,119 $3,118,628 22,630 $351,959 1,060 $ 18,759 74,840 $391,294
Shares issued in rein-
vestment of distribu-
tions 33 464 88 1,360 - - 23 117
Less shares redeemed (7,640) (10,388) (1,410) (21,536) (568) (10,792) (2,297) (12,339)
--------------------------------------------------------------------------
Increase (decrease) 211,512 $3,008,704 21,308 $331,783 492 $ 7,967 72,566 $379,072
==========================================================================
</TABLE>
<TABLE>
<CAPTION>
Convertible Growth and Income Strategic Income Growth
A Shares Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
YEAR ENDED MARCH 31,
1996 Shares Dollars Shares Dollars Shares Dollars Shares Dollars
Shares sold 384,827 $5,437,155 100,923 $1,501,956 5,423 $ 58,500 35,197 $571,748
Shares issued in rein-
vestment of
distributions 121,084 1,654,810 19,957 288,695 4,385 47,093 29,036 408,816
Less shares redeemed (159,648) (2,191,847) (52,698) (738,560) (81,600) (873,739) (8,485) (131,492)
---------------------------------------------------------------------------------
Increase (decrease) 346,263 $4,900,118 68,182 $1,052,091 (71,792) $(768,146) 55,748 $849,072
=================================================================================
</TABLE>
35
<PAGE>
ABBREVIATIONS
ADRS: American Depository CUM.: Cumulative EXCH.: Exchangeable
Receipts DEB.: Debenture NONCUM.: Noncumulative
ADSS: American Depository DEP.: Depository PREF.: Preferred
Shares EURO.: Eurobond SUB.: Subordinated
CONV.: Convertible
FOREIGN CURRENCY ABBREVIATIONS
GBP: British Pound Sterling CAD: Canadian Dollar
FRF: French Franc CHF: Swiss Franc
36
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
CALAMOS CONVERTIBLE FUND
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------------------------------
Eleven
Year Year Months
Ended Ended Ended
March 31, March 31, March 31, Year Ended April 30,
----------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988(b)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period $ 14.49 $ 12.41 $ 13.04 $ 13.96 $ 12.72 $ 11.39 $ 10.29 $ 10.73 $ 10.56 $ 11.94
Income from investment
operations:
Net investment income .36 .40 .38 .40 .42 .41 .49 .60 .59 .62
Net realized and
unrealized gain
(loss) on investments 1.39 3.06 (.01) .53 1.32 1.43 1.25 (.32) .14 (1.24)
----------------------------------------------------------------------------------------------
Total from investment
operations 1.75 3.46 .37 .93 1.74 1.84 1.74 .28 .73 (.62)
----------------------------------------------------------------------------------------------
Less distributions:
Dividends from net in-
vestment income (.45) (.31) (.32) (.39) (.40) (.45) (.52) (.63) (.56) (.66)
Dividends from net re-
alized
capital gains (1.11) (1.07) (.56) (1.46) (.10) - - - - (.10)
Dividends in excess of
net
realized capital gains - - (.12) - - - - - - -
Distributions from paid
in capital - - - - - (.06) (.12) (.09) - -
----------------------------------------------------------------------------------------------
Total distributions (1.56) (1.38) (1.00) (1.85) (.50) (.51) (.64) (.72) (.56) (.76)
----------------------------------------------------------------------------------------------
Net asset value, end of
period $ 14.68 $ 14.49 $ 12.41 $ 13.04 $ 13.96 $ 12.72 $ 11.39 $ 10.29 $ 10.73 $ 10.56
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
Total return (a) 12.9% 28.8% 3.2% 6.5% 14.0% 16.5% 17.7% 2.4% 7.2% (5.1%)
Ratios and supplemental
data:
Net assets, end of pe-
riod (000) $35,950 $24,460 $16,646 $17,023 $17,213 $16,940 $13,953 $18,664 $21,270 $23,194
Ratio of expenses to
average
net assets 1.5% 1.5% 1.6%* 1.6% 1.7% 1.2% 1.2% 1.1% 1.1% 1.2%
Ratio of net investment
income
to average net assets 2.8% 3.0% 3.3%* 2.8% 3.2% 3.4% 4.3% 5.5% 5.6% 5.6%
</TABLE>
<TABLE>
<CAPTION>
Class C
--------------------------------
July 5, 1996 through
March 31, 1997
- ----------------------------------------------------
<S> <C>
Net asset value, beginning of
period $13.87
Income from investment opera-
tions:
Net investment income .30
Net realized and unrealized
gain (loss) on investments 1.21
------
Total from investment opera-
tions 1.51
Less distributions:
Dividends from net investment
income (.25)
Dividends from net realized
capital gains (.50)
======
Total distribution (.75)
------
Net asset value, end of period $14.63
======
Total return (a) 11.1%
Ratios and supplemental data:
Net assets, end of period
(000) $3,094
Ratio of expenses to average
net assets 2.0%*
Ratio of net investment in-
come to average net assets 2.7%*
- ----------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Eleven
Year Year Months
Ended Ended Ended
March 31, March 31, March 31, Year Ended April 30,
------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988(b)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio turnover rate 52.3% 65.2% 42.1% 73.1% 73.1% 83.8% 63.2% 93.4% 84.7% 55.5%
Average commission .0610 .0633 .0936 .0952 .1000 .0966 N/A N/A N/A N/A
</TABLE>
- -----------------------------
(a) Total return is not annualized 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.
37
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
CALAMOS GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------------------
Eleven Sept. 22,
Year Year Months 1988
Ended Ended Ended to
March 31, March 31, March 31, Year Ended April 30, April 30,
- --------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $15.62 $12.68 $12.97 $13.90 $13.57 $11.54 $10.46 $10.49 $10.00
Income from investment
operations:
Net investment income .34 .37 .35 .31 .35 .29 .31 .33 .38
Net realized and
unrealized gain on
investments 1.52 3.70 (0.02) .34 1.97 2.02 1.09 .09 .49
----------------------------------------------------------------------------------
Total from investment
operations 1.86 4.07 .33 .65 2.32 2.31 1.40 .42 .87
----------------------------------------------------------------------------------
Less distributions:
Dividends from net
investment income (.28) (.42) (.32) (.29) (.36) (.28) (.32) (.28) (.38)
Dividends from net
realized
capital gains (1.68) (.71) (.30) (1.29) (1.63) - - (.17) -
----------------------------------------------------------------------------------
Total distributions (1.96) (1.13) (.62) (1.58) (1.99) (0.28) (0.32) (0.45) (0.38)
----------------------------------------------------------------------------------
Net asset value, end of
period $15.52 $15.62 $12.68 $12.97 $13.90 $13.57 $11.54 $10.46 $10.49
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
Total return (b) 12.9% 33.0% 2.8% 4.5% 18.8% 20.2% 13.4% 3.8% 9.0%
Ratios and supplemental
data:
Net assets, end of
period (000) $8,408 $5,813 $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% 2.0%*
Ratio of net investment
income to average net
assets (a) 2.4% 2.6% 3.0%* 2.3% 2.6% 2.3% 2.9% 3.0% 4.8%*
</TABLE>
<TABLE>
<CAPTION>
Class C
--------------------
August 5, 1996 through
March 31, 1997
- ----------------------------------------------------
<S> <C>
Net asset value, beginning
of period $14.52
Income from investment oper-
ations:
Net investment income .26
Net realized and unrealized
gain (loss) on
investments 1.30
------
Total from investment op-
erations 1.56
Less distributions:
Dividends from net invest-
ment income (.25)
Dividends from net realized
capital gains (.33)
------
Total distributions (.58)
------
Net asset value, end of pe-
riod $15.50
======
Total return (b) 10.8%
Ratios and supplemental da-
ta:
Net assets, end of period
(000) $ 330
Ratio of expenses to aver-
age net assets (c) 2.5%*
Ratio of net investment in-
come to average
net assets (c) 2.4%*
</TABLE>
<TABLE>
------------------------------------------------------------------------------
<CAPTION>
Eleven Sept. 22,
Year Year Months 1988
Ended Ended Ended to
March 31, March 31, March 31, Year Ended April 30, April 30,
- ---------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio turnover rate 91.5% 86.4% 84.7% 155.2% 132.3% 111.6% 103.6% 103.0% 85.0%*
Average commission .0609 .0604 .0924 .1002 .1010 .1004 N/A N/A N/A
</TABLE>
- ------------------------------
(a) After the reimbursement and waiver of expenses by the Adviser equivalent to
0.1%, 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 and does not reflect the effect of sales
charges.
(c) After the reimbursement and waiver of expenses by the Adviser equivalent to
0.6%* of average net assets.
* Annualized.
38
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
CALAMOS STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
Eleven Sept. 4,
Year Year Months 1990
Ended Ended Ended to
March, March 31, March 31, Year Ended April 30, April 30,
-------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period $11.07 $10.13 $10.71 $10.96 $10.58 $10.60 $10.00
Income from investment
operations:
Net investment income .50 .53 .40 .36 .39 .59 .40
Net realized and
unrealized gain (loss)
on investments .29 .83 (.43) .11 .79 .46 .61
-------------------------------------------------------------
Total from investment
operations .79 1.36 (.03) .47 1.18 1.05 1.01
-------------------------------------------------------------
Less distributions:
Dividends from net in-
vestment income (.68) (.42) (.36) (.41) (.41) (.51) (.40)
Dividends from net re-
alized capital gains (.37) - (.19) (.31) (.39) (.56) (.01)
-------------------------------------------------------------
Total distributions (1.05) (.42) (.55) (.72) (.80) (1.07) (.41)
-------------------------------------------------------------
Net asset value, end of
period $10.81 $11.07 $10.13 $10.71 $10.96 $10.58 $10.60
=============================================================
Total return (c) 7.4% 13.60% (0.2%) 4.2% 11.5% 10.5% 10.2%
Ratios and supplemental
data:
Net assets, end of pe-
riod (000) $1,317 $1,620 $2,211 $3,004 $2,522 $1,410 $595
Ratio of expenses to
average net assets
(a)(b) 2.1% 2.2% 2.4%* 2.2% 2.3% 2.5% 2.6%*
Ratio of net investment
income to average net
assets (a) 4.3% 4.6% 4.0%* 3.2% 3.9% 5.3% 6.6%*
Portfolio turnover rate 152.5% 81.1% 59.9% 79.4% 73.8% 97.0% 108.9%*
Average commission .0711 .0636 .0966 .0997 .1056 .1200 N/A
</TABLE>
- ------------------------------
(a) After the reimbursement and waiver of expenses by the Adviser equivalent to
3.0%, 1.6%, 1.1%*, 1.0%, 0.7%,1.25% and 4.8%* of average net assets,
respectively.
(b) Includes 0.1%, 0.2%, 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 and does not reflect the effect of sales
charges.
* Annualized.
39
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
CALAMOS GROWTH FUND
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------
Eleven
Year Year Months Sept. 4,
Ended Ended Ended 1990 to
March 31, March 31, March 31, Year Ended April 30, April 30,
---------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period $15.74 $14.18 $14.57 $13.95 $14.04 $12.48 $10.00
Income from investment
operations:
Net investment income
(loss) (.09) (.09) .02 .01 (.02) (.01) .07
Net realized and
unrealized gain (loss)
on investments 3.14 4.69 (.28) 1.21 .20 1.60 2.50
---------------------------------------------------------------
Total from investment
operations 3.05 4.60 (.26) 1.22 .18 1.59 2.57
---------------------------------------------------------------
Less distributions:
Dividends from net in-
vestment income - (.07) - (.01) - - (0.08)
Dividends from net re-
alized capital gains (1.75) (2.97) (.13) (.59) (.27) (.03) (0.01)
---------------------------------------------------------------
Total distributions (1.75) (3.04) (.13) (.60) (.27) (.03) (0.09)
---------------------------------------------------------------
Net asset value, end of
period $17.04 $15.74 $14.18 $14.57 $13.95 $14.04 $12.48
===============================================================
Total return (b) 19.1% 35.2% (1.8%) 8.9% 1.4% 12.7% 25.8%
Ratios and supplemental
data:
Net assets, end of pe-
riod (000) $6,635 $2,866 $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% 2.0%*
Ratio of net investment
income (loss) to
average net
assets (a) (1.3)% (0.8)% 0.2%* 0.1% (0.1)% (0.1)% 0.8%*
</TABLE>
<TABLE>
<CAPTION>
Class C
-------------------------
September 3, 1996 through
March 31, 1997
- ----------------------------------------------------
<S> <C>
Net asset value, begin-
ning of period $ 17.63
Income from investment
operations:
Net investment income
(loss) (.07)
Net realized and
unrealized gain (loss)
on
investments 1.07
-------
Total from investment op-
erations 1.00
-------
Less distributions:
Dividends from net real-
ized capital gains (1.65)
-------
Net asset value, end of
period $ 16.98
=======
Total return (b) 5.4%
Ratios and supplemental
data:
Net assets, end of pe-
riod (000) $ 8
Ratio of expenses to av-
erage net assets (c) 2.5%*
Ratio of net investment
income (loss) to aver-
age
net assets (c) (1.9)%*
</TABLE>
<TABLE>
- ----------------------------------------------------------------------------------
<CAPTION>
Eleven
Year Year Months Sept. 4,
Ended Ended Ended Year Ended 1990 to
March 31, March 31, March 31, April 30, April 30,
---------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Portfolio turnover rate 173.9% 252.4% 104.3% 87.3% 56.8% 47.3% 15.8%*
Average Commission .0614 .0608 .0910 .0996 .1011 .1098 N/A
</TABLE>
- ------------------------------
(a) After the reimbursement and waiver of expenses by the Adviser equivalent to
0.7%, 1.2%, 1.6%*, 1.1%, 0.7%, 0.8%, and 4.5%* of average net assets
respectively.
(b) Total return is not annualized and does not reflect the effect of sales
charges.
(c) After the reimbursement and waiver of expenses by the Adviser equivalent to
0.6% of average net assets.
* Annualized.
40
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD IS AS FOLLOWS:
CALAMOS GLOBAL GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
Class A
-------------------------
September 9, 1996 through
March 31, 1997
- -------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 5.00
Income from investment operations:
Net investment income .04
Net realized and unrealized gain (loss) on invest-
ments .36
------
Total from investment operations .40
------
Less distributions:
Dividends from net investment income (.01)
------
Net asset value, end of period $ 5.39
======
Total return (b) 8.0%
Ratios and supplemental data:
Net assets, end of period (000) $2,926
Ratio of expenses to average net assets (a) 2.0%*
Ratio of net investment income to average net assets
(a) 1.8%*
</TABLE>
<TABLE>
<CAPTION>
Class C
--------------------------
September 24, 1996 through
March 31, 1997
- ------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 5.00
Income from investment operations:
Net investment income .03
Net realized and unrealized gain (loss) on invest-
ments .35
-------
Total from investment operations .38
-------
Less distributions:
Dividends from net investment income (.01)
-------
Net asset value, end of period $ 5.37
=======
Total return (b) 7.6%
Ratios and supplemental data:
Net assets, end of period (000) $ 390
Ratio of expenses to average net assets (a) 2.5%*
Ratio of net investment income to average net as-
sets (a) 1.6%*
- ------------------------------------------------------------------------------
<CAPTION>
September 9, 1996 through
March 31, 1997
- ------------------------------------------------------------------------------
<S> <C>
Portfolio turnover rate 160.4%*
Average Commission .0758
</TABLE>
- ------------------------------
(a) After the reimbursement and waiver of expenses by the Adviser equivalent to
1.8% * of average net assets.
(b) Total return is not annualized and does not reflect the effect of sales
charges.
* Annualized.
41
<PAGE>
FEDERAL TAX STATUS OF FISCAL 1997 DISTRIBUTIONS
The income dividends are taxable as ordinary income. Amounts equal to 17%,
15%, 7%, 5% and 2% of the amount taxable as ordinary income of the Calamos
Convertible Fund, Calamos Growth and Income, Calamos Strategic Income Fund,
Calamos Growth Fund, and Calamos Global Growth and Income Fund, respectively,
qualify for the dividends-received deduction available to corporate
shareholders that meet the holding period requirements for shares of those
Funds owned.
Income dividends paid to shareholders, whether received in cash or reinvested
in shares, must be included in their Federal income tax returns and must be
reported by the Funds to the Internal Revenue Service in accordance with U.S.
Treasury Department Regulations.
42
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
43
<PAGE>
. INVESTMENT ADVISER AND TRANSFER AGENT
Calamos Asset Management, Inc.(TM)
1111 East Warrenville Road
Naperville, IL 60563-1493
. DISTRIBUTOR
Calamos Financial Services, Inc.(TM)
1111 East Warrenville Road
Naperville, IL 60563-1493
. INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, Illinois
. COUNSEL
Bell, Boyd & Lloyd
Chicago, Illinois
The Net Asset Values for the Calamos Family of Funds(TM) may be obtained daily
by calling 800.823.7386 after 5:00 p.m. central time.
This report, including the audited financial statements contained herein, is
submitted for 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.
[ARTWORK APPEARS HERE]
CALAMOS
Convertible Fund
Growth and Income Fund
Strategic Income Fund
Growth Fund
Global Growth and Income Fund
(Each a Series of CFS Investment Trust)
ANNUAL REPORT
March 31, 1997
- -------------------------------------------------------------------------------
CFS Investment Trust . 1111 East Warrenville Road
Naperville, IL 60563 . 800.823.7386
