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CALAMOS(R) FAMILY OF FUNDS
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SUPPLEMENT DATED DECEMBER 15, 2000 TO PROSPECTUS DATED AUGUST 1, 2000
TELEPHONE PURCHASES PERMITTED
Once you have established an account, you may purchase shares over the telephone
by debiting your bank account. To electronically debit your bank account, you
must hold your account at a financial institution that is an Automatic Clearing
House member. To permit telephone purchases, you must authorize telephone
purchases on your account application. Call us at 800.823.7386 to obtain an
account application with the telephone purchase option. If you did not authorize
telephone purchases on your original account application, you may request
telephone purchases by submitting a request in writing along with a voided
check, to Firstar Mutual Fund Services, LLC, 615 E. Michigan Street, Milwaukee,
WI 53202.
To purchase shares by telephone, call 800.823.7386. The purchase price for the
shares will be the net asset value per share next computed after receipt by our
transfer agent of your telephone purchase if you call to place your order by
3:00 p.m. Central time. We will initiate most electronic transfers from your
bank account to pay for the share purchase within that same business day.
We may modify or terminate the ability to purchase shares by telephone at any
time, or from time to time, without notice to shareholders. If your order to
purchase shares of a Fund is canceled because your electronic transfer does not
clear, you will be responsible for any resulting loss incurred by the Fund. We,
and our transfer agent, will be liable for losses resulting from unauthorized
telephone purchases only if we do not follow reasonable procedures designed to
verify the identity of the caller. You should immediately verify your trade
confirmations when you receive them.
SHAREHOLDER FEES
Effective September 11, 2000, a service charge of $12 is deducted from proceeds
of redemption paid by wire.
VOLUNTARY FEE WAIVER FOR CLASS A SHARES OF EACH FUND
Effective April 1, 2000, CALAMOS(R) Asset Management, Inc. voluntarily agreed to
waive fees and/or expenses until August 31, 2001, so that the total annual
operating expenses of Class A shares of each Fund are limited to 1.75%. The
following operating expense table for Class A shares of Market Neutral Fund,
Growth Fund, Global Convertible Fund, High Yield Fund and Convertible Technology
Fund replaces the expense tables for Class A shares of each Fund on pages 30,
36, 46, 53 and 61 of the prospectus:
<TABLE>
<CAPTION>
Market Global High Convertible
Neutral Growth Convertible Yield Technology
Fund Fund Fund Fund Fund
------- ------ ----------- ----- -----------
<S> <C> <C> <C> <C> <C>
ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS)
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Management Fees .75% 1.00% 1.00% .75% 1.00%
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Distribution (12b-1) Fees* .25% .25% .25% .25% .25%
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Other Expenses** 2.25% .53% 1.70% 11.85% 1.70%
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Total Annual Operating Expenses*** 3.25% 1.78% 2.95% 12.85% 2.95%
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Fee Waiver and/or Expense Reimbursement 1.50% .03% 1.20% 11.10% 1.20%
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Net Expenses 1.75% 1.75% 1.75% 1.75% 1.75%
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</TABLE>
* Effective April 1, 2000, the distribution and service (12b-1) fee rate for
Class A shares of the Fund was reduced from .50% to .25% of average net
assets.
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** "Other Expenses" for the Convertible Technology Fund are based on estimated
amounts for the current fiscal year. The Fund is expected to commence
operations on or about September 11, 2000.
*** CALAMOS ASSET MANAGEMENT, INC. ("CAM") has voluntarily decided to waive fees
and/or reimburse fund expenses so that the Total Annual Operating Expenses
are limited to 1.75% for Class A shares. Pursuant to a written agreement,
the fee waiver and/or reimbursement is binding on CAM through August 31,
2001.
The following examples for Class A shares of Market Neutral Fund, Growth Fund,
Global Convertible Fund, High Yield Fund and Convertible Technology Fund replace
the examples shown on pages 31, 37, 47, 54 and 62 of the prospectus:
EXAMPLES (CLASS A SHARES ONLY):
These examples are intended to help you compare the cost of investing in
Class A shares of each Fund with the cost of investing in other mutual
funds.
This example shows an investment made and held for one year, three years,
five years and ten years, except Convertible Technology Fund, which shows
one year and three years only. In each case, we assume that you invest
$10,000 in Class A shares of the Fund for the time periods indicated, and
then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same, except for waivers in the first
year. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
<TABLE>
<CAPTION>
Global Convertible
Market Neutral Fund Growth Fund Convertible Fund High Yield Fund Technology Fund
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<S> <C> <C> <C> <C> <C>
One Year $ 644 $ 644 $ 644 $ 644 $ 644
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Three Years $1,295 $1,000 $1,237 $2,977 $1,237
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Five Years $1,968 $1,379 $1,853 $4,958 --
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Ten Years $3,758 $2,439 $3,509 $8,700 --
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</TABLE>
PROSPECTUSES AND SHAREHOLDER REPORTS
We reduce the number of duplicate prospectuses and annual and semi-annual
reports you receive by sending only one copy of each to those addresses shared
by two or more accounts. Call us at 800.823.7386 or write to us at The Calamos
Family of Funds, c/o Firstar Mutual Fund Services, LLC, 615 E. Michigan Street,
Milwaukee, WI 53202 to request individual copies of these documents. We will
begin sending you individual copies within thirty days of your request.
ELIMINATION OF REDEMPTION FEE
Effective December 15, 2000, each Fund will no longer deduct a redemption fee of
1.00% if you redeem shares held six months or less. However, since frequent
trading and short-term market timing potentially can harm a Fund's portfolio
management, you may not make more than four exchanges from a Fund during any
calendar year. If you exceed this limit, or if a Fund or the distributor
determines, in its sole discretion, that there appears to be a pattern of market
timing or
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other frequent purchases or sales, it reserves the right to reject any exchange,
purchase or redemption order. Although each Fund will attempt to give prior
notice of a suspension or termination of an exchange privilege when it is
reasonably able to do so, the suspension or termination may be effective
immediately, thereby preventing any uncompleted exchange.
SALES COMMISSION WAIVER
Effective December 15, 2000, in addition to those persons or entities described
on pages 67-68 of the prospectus, any investor buying Class A shares of a Fund
through an employee benefit plan, including individual retirement accounts
introduced to Calamos Funds through participation in a company-sponsored
employee benefit plan, may purchase such shares at net asset value without
payment of any sales commission. Call us at 1-800-823-7386 if you have questions
about your ability to purchase Class A shares of a Fund at net asset value.
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