Showing posts with label convertibles. Show all posts
Showing posts with label convertibles. Show all posts

Best Performing Convertible Closed End Funds 2014

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Convertible closed end funds invest mainly in convertible bonds and convertible preferred stocks. Convertible bond portfolios are designed to offer some of the capital-appreciation potential of stock portfolios while also supplying some of the safety and yield of bond portfolios. These securities thus act a bit like stocks and a bit like bonds.

Top Convertibles Funds

These top performing closed end funds are selected based on its year-to-date performance in 2014. Most of these convertible bond mutual funds are also rated among the best in their category. I have also provided some details about its management, performance, expense ratio, initial investment requirement, risk, top holdings, etc.

Best performing convertible closed end funds 2014 are:
    Top Convertible Closed End Funds
  1. Calamos Convertible & High Income Fund (CHY)
  2. AllianzGI Convertible & Income Fund II (NCZ)
  3. Calamos Convertible Opportunities and Income Fund (CHI)
  4. AllianzGI Equity & Convertible Income Fund (NIE)
  5. AllianzGI Conv & Income (NCV)
  6. Bancroft Fund Ltd (BCV)
  7. Ellsworth Fund Ltd (ECF)
  8. Putnam High Income Securities Fund (PCF)
  9. Gabelli Convertible and Income Securities Fund (GCV)
  10. Advent Claymore Convertible Securities and Income Fund (AVK)

Investing in Convertible Closed End Funds

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Investing in convertible closed end funds can be done easily. You can buy these closed end funds from your brokerage.

Convertible Bond Funds

Investing in Convertible Closed End FundsInvesting in convertible securities can be very attractive for investors. Generally, these convertible bonds are interest-paying bonds that can be swapped for shares of the issuing company's stock at a predated price. The bond-like yield aspect of a convertible protects against stock declines, while the ability to convert into stock offers shelter against falling bond prices.

Using closed end funds, investors can maximize its return if there is an arbitrage between the fund’s NAV and fund’s price. The yield of these convertible closed end funds can be higher than convertible ETFs or convertible mutual funds.

Top Closed End Funds

These top performing closed end funds are selected based on its year-to-date performance in 2014. Most of these convertible bond mutual funds are also rated among the best in their category. I have also provided some details about its management, performance, expense ratio, initial investment requirement, risk, top holdings, etc.

Top performing convertible closed end funds in 2014 are:
  1. AGIC Convertible & Income II
  2. Calamos Convertible & High Income
  3. AGIC Convertible & Income
  4. Bancroft Fund
  5. Advent Claymore Convertible Securities & Income
  6. Ellsworth Fund
  7. Calamos Convertible Opportunities & Income
  8. Advent Claymore Convertible & Income
Updated on 5/18/2014

Top Convertible Mutual Funds 2014

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Top convertible mutual funds 2014 are PIMCO Convertible, Columbia Convertible Securities, Miller Convertible Bond, etc.

Convertible Funds

Convertible funds use its assets to purchase portfolio of bonds that can be converted into stocks at a set price. These bond funds also pay a high yield due to lower credit quality of the bonds. You can invest in regular investment account, retirement account, 401(k) account, etc.

These best performing mutual funds are sorted based on its year to date return in 2014. You may find other fund review information: expense ratio, fund’s NAV, management, objective, yield, top holdings, etc.

Best Convertibles Mutual Funds

Top convertible mutual funds 2014 are:
    Top Convertible Mutual Funds 2014
  1. PIMCO Convertible A (PACNX)
  2. Columbia Convertible Securities A (PACIX)
  3. Miller Convertible Bond A (MCFAX)
  4. AllianzGI Convertible A (ANZAX)
  5. Victory Investment Grade Convertible A(SBFCX)
  6. Invesco Convertible Securities A(CNSAX)
  7. Vanguard Convertible Securities Investor (VCVSX)
  8. Harbor Convertible Securities Investor (HICSX)
  9. Franklin Convertible Securities A (FISCX)
  10. Putnam Convertible Securities A(PCONX)

Top Performer Convertible Securities CEFs 2013

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Find top performer convertible securities CEFs June 2013. These closed end funds are hybrid of bond and stock funds.

Convertible Bond Closed End Funds

Convertible bond closed end funds utilizes its assets to purchase portfolio of bonds that can be converted into stocks at a set price. These bonds typically have lower credit quality or unrated. The main risk of investing in this fund is liquidity risk due to low demand. It also has a high yield for income. You can invest in regular investment account, retirement account, 401(k) account, etc.

These best performing closed end funds are sorted based on its 1 year total return up to July, 1 2013. You may find other fund review information: expense ratio, fund’s NAV, management, objective, yield, top holdings, etc.

The top performer convertible securities closed end funds July 2013 are:
    Top Performer Convertible Securities CEFs 2013 | Best Closed End Funds
  1. Gabelli Convertible & Income Securities (GCV)
  2. AllianzGI Convertible & Income II (NCZ)
  3. AllianzGI Convertible & Income (NCV)
  4. Advent Claymore Convertible & Income Securities (AVK)
  5. AllianzGI Equity & Convertible Inc (NIE)
  6. Advent Claymore Convertible Securities & Income (AGC)
  7. Ellsworth Fund Ltd (ECF)
  8. Bancroft Fund Ltd (BCV)
  9. Calamos Convertible Opportunities & Income (CHI)
  10. Calamos Convertible & High Income (CHY)
  11. Putnam High Income Securities (PCF)
Updated on July 6, 2013

Top Performing Convertibles Mutual Funds May 2013

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The top performing convertibles mutual funds May 2013 are Fidelity Convertible Securities fund, Putnam Convertible Securities, etc. These convertible funds provide income for investors.

Convertible Bond Mutual Funds

Top Performing Convertibles Mutual Funds May 2013
Top Funds
Convertibles mutual funds are part of balanced funds. They invest primarily in convertible bonds and convertible preferred stocks. The portfolios provide investors a capital growth opportunity and regular income. The convertible bonds in the mutual fund allow the fund to convert the bonds into shares of stock. The funds act like stocks and like bonds; hence they are part of balanced fund.

Investors can buy this convertibles mutual fund from brokerage such as Vanguard, Fidelity, T. Rowe Price, and other brokers. This fund can be bought with as little as $1,000 or $250 for your investment account or retirement account. You can find the best performing convertibles mutual funds below.

These top performers are sorted based on its 1 year return (up to May 2013). You can find the fund review from this article. Other fund information can be found below such as expense ratio, Morningstar rating, fund’s NAV, managers, fund’s holdings, yield, etc.

The top performing convertibles mutual funds May 2013 are:
  1. Fidelity Convertible Securities fund (FCVSX)
  2. Putnam Convertible Securities fund (PCONX)
  3. Invesco Convertible Securities fund (CNSAX)
  4. AllianzGI Convertible fund (ANZAX)
  5. Columbia Convertible Securities fund (PACIX)
  6. Vanguard Convertible Securities fund (VCVSX)
  7. Lord Abbett Convertible fund (LACFX)
  8. Franklin Convertible Securities fund (FISCX)
  9. RBC BlueBay Global Convertible Bond I (RGCBX)
  10. MainStay Convertible fund (MCOAX)

MainStay Convertible Fund (MCINX)

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MainStay Convertible Fund (Ticker: MCINX) is a balanced mutual fund. This fund focuses on convertible securities including bonds, corporate notes, and preferred stocks.

MainStay Convertible Investor (MCINX)

The investment objective of MainStay Convertible fund is to provide capital appreciation and current income. The fund utilizes its assets to purchase convertible securities such as bonds, debentures, corporate notes, and preferred stocks or other securities. It may also invest in non-convertible debt, dividend equity stocks, U.S. government securities, and cash.

Fund Profile
    MainStay Convertible Fund - MCINX | Mutual Fund Review
  • Fund Inception Date: February 28, 2008
  • Ticker Symbol: MCINX
  • CUSIP: 56062X526
  • Beta (3yr): 1.32
  • Rank in category (YTD): 70%
  • Category: Convertibles
  • Distribution: 1.85%
  • Capital Gains: 0%
  • Expense Ratio: 1.19%
  • Net Assets: $ 710.07 million
  • Number of Years Up: 2 years
  • Number of Years Down: 1 year
  • Effective Duration: 4.2 years
  • Annual Turnover Rate: 80%
Updated on 12/2/2012

Putnam Convertible Securities Fund (PCONX)

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Putnam Convertible Securities Fund (ticker: PCONX) is a balanced mutual fund. The mutual fund invests in convertible securities: bonds, preferred stocks, etc.

Putnam Convertible Securities A (PCONX)

The investment aim of Putnam Convertible Securities fund is to provide current income and capital appreciation. It also has a secondary objective which is capital conservation. This mutual fund invests majority of assets in convertible securities of U.S. companies. Convertible securities mix the investment characteristics of bonds and common stocks.

Convertible securities may include bonds, preferred stocks and other instruments that can be converted into or exchanged for common stock. Many convertible securities are below-investment-grade. The convertible bonds typically have average maturities about three years or longer.

Fund Profile
    Putnam Convertible Securities Fund (PCONX)
  • Fund Inception Date: June 28, 1972
  • Ticker Symbol: PCONX
  • CUSIP: 746476100
  • Beta (3yr): 1.13
  • Rank in category (YTD): 7%
  • Category: Convertibles
  • Distribution: 2.87%
  • Capital Gains: 0%
  • Expense Ratio: 1.12%
  • Net Assets: $ 611.75 million
  • Number of Years Up: 29 years
  • Number of Years Down: 10 years
  • Annual Turnover Rate: 79%
Updated on 11/22/2012

Vanguard Convertible Securities Fund (VCVSX)

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Vanguard Convertible Securities Fund (Ticker: VCVSX) is another popular low cost balanced fund. It invests in U.S. and non-U.S. convertibles.

Vanguard Convertible Securities Investor (VCVSX)

The Vanguard Convertible Securities fund aim is to achieve current income and long-term capital appreciation. It utilizes its assets to purchase U.S. and foreign convertible securities. These convertibles are hybrid securities that have characteristics of bonds and common stocks. It may include corporate bonds and preferred stocks that are convertible into common stock, and debt securities with warrants or common stock attached.

Fund Profile
    Vanguard Convertible Securities Fund - VCVSX
  • Fund Inception Date: June 16, 1986
  • Ticker Symbol: VCVSX
  • CUSIP: 922023106
  • Beta (3yr): 1.16
  • Rank in category (YTD): 3%
  • Category: Convertibles
  • Distribution: 3.84%
  • Capital Gains: 0%
  • Expense Ratio: 0.59%
  • Net Assets: $ 1.66 billion
  • Number of Years Up: 18 years
  • Number of Years Down: 7 years
  • Average Duration: 4.3 years
  • Average Maturity: 4.9 years
  • Annual Turnover Rate: 90.00%
Updated on 11/16/2012

Invesco Convertible Securities Fund CNSAX

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Invesco Convertible Securities Fund (CNSAX) is a balanced mutual fund. It focuses its investment on convertible securities and high yield bonds.

Invesco Convertible Securities A (Ticker: CNSAX)

The investment objective of Invesco Convertible Securities Fund is to seek a high level of total return on its assets. It invests >80% of its net assets in convertible securities. It may invest in high yield bonds or junk bonds, common stocks, non-convertible preferred stock, and/or foreign securities. This balanced fund was first introduced to public market in July 1997. The fund’s manager is Ellen Gold.

Fund Details
    Invesco Convertible Securities Fund
  • Fund Inception Date: Jul 27, 1997
  • Ticker Symbol: CNSAX
  • CUSIP: 00888W403
  • Beta (3yr): 1.06
  • Rank in category (YTD): 4%
  • Category: Convertibles
  • Distribution: 2.05%
  • Capital Gains: 0%
  • Expense Ratio: 0.97%
  • Net Assets: $ 875.90 million
  • Number of Years Up: 9 years
  • Number of Years Down: 5 years
  • Average Duration: 1.03 years
  • Annual Turnover Rate: 38.00%
updated on 10/29/2012

Fidelity Convertible Securities Fund FCVSX

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This Fidelity Convertible Securities fund (Ticker: FCVSX) is a no load balanced mutual fund. It focuses its investment in convertible securities. The fund review is described in this post.

Fidelity Convertible Securities (FCVSX)

The investment aim of Fidelity Convertible Securities fund is to achieve a high level of total return through a mixture of current income and capital appreciation. It typically invests >80% of assets in convertible securities, which are often lower-quality debt securities. This convertible securities act like a stock when the share price is high and more like a bond when the share price is low. It may invest in common stocks, domestic, and foreign issuers.

Fund Profile
Fidelity Convertible Securities fund information
Fidelity Convertible Securities
  • Fund Inception Date: January 4, 1987
  • Ticker Symbol: FCVSX
  • CUSIP: 316145200
  • Beta (3yr): 1.54
  • Rank in category (YTD): 1%
  • Category: Convertibles
  • Distribution: 3.22%
  • Capital Gains: 0%
  • Expense Ratio: 0.61%
  • Net Assets: $ 2.06 billion
  • Number of Years Up: 19 years
  • Number of Years Down: 5 years
  • Annual Turnover Rate: 0.61%
updated on 10/9/2012

YTD Top Performer Convertible Securities CEFs July 15 2012

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The YTD top performer convertible securities closed end funds up to July 15, 2012 are AGIC Convertible & Income, Calamos Convertible & High Income, Putnam High Income Secs, etc.

Top Performer Convertible Securities CEFs logo
Top Convertible Securities CEFs
Best Performing CEFs

These best performing convertible securities CEFs may provide opportunity to investors. Convertible bonds offer investor to the opportunity to convert a bond into the company’s stock. These convertible funds carry potential risks and advantages similar to bonds.

Like stock, the closed end fund can be bought from stock market like NYSE, NASDAQ, AMEX, etc. You can choose your brokerage to purchase these closed-end funds.

The YTD top performer convertible securities closed end funds up to July 15, 2012 are
  1. AGIC Convertible & Income (NCV)
  2. AGIC Convertible & Income II (NCZ)
  3. Calamos Convertible & High Income (CHY)
  4. Gabelli Convertible & Income Securities (GCV)
  5. Putnam High Income Securities (PCF)
  6. AGIC Equity & Convertible Income (NIE)
  7. Advent Claymore Convertible Securities (AVK)
  8. Ellsworth Fund Ltd (ECF)
updated on 7/15/2012

PIMCO Convertible Fund (PACNX)

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One of the popular PIMCO mutual funds is PIMCO Convertible fund. This convertible mutual fund invest in variety of convertible securities. You will find this bond mutual fund review below.

PIMCO Convertible A (Ticker: PACNX)

The investment aim of PIMCO Convertible fund is to achieve maximum total return, consistent with prudent investment management. This PIMCO fund uses its assets to purchase a diversified portfolio of convertible securities. It may use forwards or derivatives such as options, futures contracts or swap agreements. This convertible bond fund may invest in both investment-grade and high-yield bonds.

Fund Profile
  • Fund Inception Date: May 31, 2011
  • Ticker Symbol: PACNX
  • CUSIP: 693391849
  • Beta (3yr): 1.06 
  • Rank in category (YTD): 66%
  • Category: Convertibles
  • Yield: N/A

Calamos Convertible A (CCVIX) Fund

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If you are unsure whether to invest in bond or stock mutual fund, you should consider convertible bond mutual fund. Convertible bond is a type of bond that the investor can convert into shares of company’s common stock at agreed-upon price. It also provides regular income stream. Using mutual fund, investor can easily diversify its choice in these convertible securities. One of the top rated convertible mutual funds is Calamos Convertible fund.

Calamos Convertible A (MUTF: CCVIX)

The Calamos Convertible fund’s objective is to provide current income. Its secondary objective is to provide growth. This mutual fund invests primarily in a diversified portfolio of convertible securities issued by both U.S. and foreign companies. It may invest in any market capitalization companies. The average maturity of the convertible securities purchased will usually range from 2 to 10 years.

Fund Profile
  • Fund Inception Date: June 21, 1985
  • Ticker Symbol: CCVIX
  • CUSIP: 128119401
  • Beta (3yr): 0.99
  • Rank in category (YTD): 79%
  • Category: Convertibles
  • Yield: 1.17%

Best Convertible Bond Securities Mutual Funds 2012

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For conservative investors, convertible securities mutual funds can provide an attractive investment choice. These mutual funds provide income and opportunity for capital appreciation. Some of the best convertible bond mutual funds are: Allianz AGIC Convertible A, Vanguard Convertible Securities Inv, Invesco Convertible Securities A, etc.

Best Convertible Bond Securities Mutual Funds - 2012
Best Convertible Bond Mutual Funds
Intro

Investing in convertible securities can be very attractive due to its hybrids in nature. Generally, these convertible bonds are interest-paying bonds (but sometimes preferred stock) that can be swapped for shares of the issuing company's stock at a predated price. The bond-like yield aspect of a convertible protects against stock declines, while the ability to convert into stock offers shelter against falling bond prices.

Investor can start investing in these convertible securities through mutual funds, etf, cef, individual convertible. Convertible mutual funds have a long term track record and can be used as diversification tools for investors. Convertible securities tend to have credit ratings that are below investment-grade.

Allianz AGIC Convertible A (ANZAX) Fund

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As the top rated convertible bond mutual fund, Allianz AGIC Convertible A fund offers an alternative investment choice for investors. This convertible bond fund provide a choice for investor a fixed income investment with coupon payments (yield) and chance to benefit from an increase in the company’s stock. Details review about this best fund is described below.

Allianz AGIC Convertible A (ANZAX)

Allianz AGIC Convertible A (ANZAX) fund seeks maximum total return which consist of capital appreciation and current income. The fund invests most of its net assets (>80%) in convertible securities. The investment may include corporate bonds, debts, notes or preferred stocks, and their hybrids. It may invest in securities of any size market capitalization or credit quality. It may rarely invest a significant amount of its assets in securities of smaller companies. The fund also invests <20% of net assets in nonconvertible debt securities.

ANZAX Fund Profile
Allianz AGIC Convertible
  • Fund Inception Date: 04/12/2010
  • Ticker Symbol: ANZAX
  • CUSIP: 01900C680
  • Beta (3yr): 1.06
  • Rank in category (2011): 6%
  • Category: Convertibles
  • Yield: 2.70%
  • Expense ratio: 0.96%
  • Sales Load: 5.50%
  • Total Assets: $656.6 million
  • Capital Gains: $1.573 (2011)
  • Number of Years Up: 12 years (Class I)
  • Number of Years Down: 6 years (Class I)
Updated on 2/1/2012

Top 10 Convertible Bond Mutual Funds of 2011 Part 2

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As discusses in my previous part 1 article, convertible bonds can provide additional asset diversification for long term investor and income seeker trader. There are many benefits to invest in this asset class. The rule of thumb is having 2-5% of portfolio asset in this class.

Best Convertible Bond Mutual Funds

The following is part 2 of this article, this article will list the next 5 of 10 Best convertible bonds fund of 2011. The 10 Best convertible bond funds of 2011 (Part 2):
    Top 10 Convertible Bond Mutual Funds of 2011 Part 2
  1. Calamos Convertible A
  2. Fidelity Convertible Securities
  3. Vanguard Convertible Securities Inv
  4. Franklin Convertible Securities A
  5. MainStay Convertible B
  6. Putnam Convertible Income-Growth A
  7. Allianz AGIC Convertible A
  8. Columbia Convertible Securities A
  9. Invesco Van Kampen Harbor A
  10. Lord Abbett Convertible A

Putnam Convertible Income-Growth A (PCONX)

Putnam Convertible Income-Growth investment is seeking for both current income and capital appreciation. It as well aims for conservation of capital. The major net assets investment is in convertible securities with below investment-grade rating and investment-grade rating. The maturity level of these securities is three years or longer (intermediate- to long-term stated maturities).

Putnam Convertible Income-Growth A (PCONX)Robert L. Salvin has managed this convertible bond fund since Dec 30, 2005. This fund has the 1.18% of annual expense ratio.The 12b1 fee is 0.25% and its front-end sales load is 5.75%. The minimum balance to invest in brokerage account of this fund is $500 (same applies for PCNBX, PRCCX and PCNMX), there is no IRA account available. The other class tickers of this fund are PCNBX, PRCCX, PCNMX, PCVRX and PCGYX. The PCGYX fund has the lowest expense ratio in this fund (0.93%).

The top ten holdings as of February 28, 2011 are Emc Corp/Massachusetts, Safeguard Scientifics, Wells Fargo, Chesapeake Energy Corp, Citigroup, El Paso Corp, Hertz Global Holdings, Sandisk Corp, Medtronic and The Interpublic Group of Cos. The top industry sectors as of February 28, 2011 are Technology (19.00%), Financials (16.51%), Consumer Cyclicals (13.85%), Health Care (11.19%), Miscellaneous (10.45%), Communication Services (9.96%), Energy (6.79%), Capital Goods (5.36%), Basic Materials (4.97%) and Cash & Net Other Assets (1.92%).

Allianz AGIC Convertible A (ANZAX)

The investment in Allianz AGIC Convertible Fund seeks for maximum total return. It means that it is aiming for both capital appreciation and current income. The net assets investment of this fund is 80% in convertible securities of any size market capitalization and 20% in nonconvertible debt securities. The convertible securities may include debentures, corporate bonds, notes or preferred stocks and their hybrids.

Douglas G. Forsyth has managed this fund since Dec 31, 1993. This fund has no yield distributed. The expense ratio of this fund is 0.96% per year. The 12b1 fee of this fund is 0.25% with 5.50% front-end sales load. This fund has returned 7.62% over the past three years and 6.22% over the past ten years. The minimum balance to invest in this best mutual fund is $1,000. No IRA account is available.

The purchase of this fund is limited to 19 brokerages such as Scottrade Load, JPMorgan, Fidelity Retail FundsNetwork, Ameriprise Brokerage, CommonWealth Core, Raymond James, CommonWealth Universe, RBC Wealth Management-Network Eligible, TD Ameritrade Retail and DailyAccess Corporation Mid-Atlantic. The other class tickers of this fund are ANNAX, ANZCX, ANZDX, ANNPX, ANCMX and ANZRX. Some asset classes of fund have lower expense ratio fee, and no front end sales charge fee.

The top sectors of this fund as of Feb 28, 2011 are Technology (19.93%), Healthcare (14.30%), Consumer Discretionary (13.82%), Industrials (10.55%) and Financials (10.24%). The top 10 holdings of this fund are EMC Corp (1.40%), Symantec Corp (1.40%), General Motors Co (1.37%), Liberty Media (1.36%), Fifth Third Bancorp (1.31%), Archer Daniels (1.30%), Stanley Black + Decker I (1.30%), Developers Divers R (1.30%), Enersys (1.28%) and Wesco International (1.28%).

Columbia Convertible Securities A (PACIX)

Columbia Convertible Securities investment seeks for total return consistent with capital appreciation and current income. The composition of the net assets investment of this fund is (up to) 80% in below investment-grade convertible securities, (up to) 15% in Eurodollar convertible securities and (up to) 20% in foreign securities.

David L. King has managed this fund since Apr 6, 2010. This fund has 3.14% yield. The expense ratio of this fund is 1.20% per year. There is a 0.25% 12b1 fee and 5.75% front-end sales charge fee. This fund has returned 17.55% over the past one year and 3.45% over the past five years. The minimum balance to invest in the brokerage account of this fund is $2,500 (applies for other class) and $1,000 for IRA account. The other class tickers of this fund are NCVBX, PHIKX and NCIAX. Among all classes, only NCIAX doesn’t apply the 12b1 fee.

Best Convertible Securities Mutual Funds of 2012

The top holdings of this fund as of Dec 31, 2010 are Citigroup (2.8%), Invitrogen (2.5%), Gilead Sciences (2.4%), General Motors Co (2.1%), Ford Motor Company (1.9%), EMC CORP (1.7%), Micron Technology (1.5%), MGM Mirage (1.5%), Alexandria Real Estate (1.5%) and Dollar Financial Corporation (1.5%). The assets allocation of this fund is as below convertible bonds (73.3%), preferred stock (22.0%), common stock (1.0%), corporate bonds (0.5%) and cash & equivalents (3.3%).

Invesco Van Kampen Harbor A (ACHBX)

The investment in Invesco Van Kampen Harbor seeks for both current income and capital appreciation, consistent with capital preservation. This ACHBX fund invests at least 50% in convertible debt securities, up to 45% in common stocks and up to 25% in foreign securities. For the investment reason, this fund may buy and then sell certain derivative instruments (options, futures contracts and options on futures contracts).

Invesco Van Kampen Harbor A (ACHBX)This convertibles fund is managed by Ellen Gold since Aug 23, 2001. The yield for this fund is 3.27%. The expense ratio is 1.04% annually. The 12b1 fee is 0.25% with 5.50% front-end sales charge fee. This fund has returned 6.78% over the past three years and 4.45% over the past ten years. The minimum balance to invest in either brokerage or IRA account of this fund is $1,000. The other class tickers of this fund are ACHAX, ACHCX, ACHJX and ACHIX . The ACHIX has the highest yield among all (3.48%) with no 12b1 fee and no sales load.

The top 10 holdings of this fund as of Feb 28, 2011 are Nielsen Holdings NV, EMC Corp, SBA Communication Corp., Virgin Media Inc., Micron Technology Inc., Chesepeake Energy Corp., Endo Pharmaceut Holdings In, Ciena Corp., Symantec Corp and Alliance Data Sys Corp. The top industrial sectors are Semiconductors (5.52%), Biotechnology (4.90%), Health Care Equipment (3.96%), Pharmaceuticals (3.79%), Internet Software & Services (3.55%), Wireless Telecommunication Services (3.12%), Computer Storage and Peripherals (3.09%), System Software (2.68%), Communication Equipments (2.45%) and Health Care Services (2.32%).

Lord Abbett Convertible A (LACFX)

Lord Abbett Convertible A (LACFX)Lord Abbett Convertible investment seeks for both current income and capital appreciation to result in a high total return. The net assets investment composition of this fund is at least 80% of net assets in convertible securities, up to 25% in investment grade convertible securities, up to 20% in non-convertible debt or equity securities and max of 20% in foreign securities and lower-rated convertible securities.

This balanced fund has been managed by Christopher J. Towle since Jun 30, 2003. This fund has the highest yield among the other mentioned in this list (3.79%). The expense ratio of this fund is the same as the average in the category (1.41%). There is a 0.20% 12b1 fee and 2.25% front-end sales charge fee.

This convertible bond fund has returned 4.33% over the past three years and 4.32% over the past five years. The minimum balance to invest in this fund is $1,000 for brokerage account and $250 for IRA account. This fund can be purchased from 92 brokerages such as Morgan Stanley Advisors, Pershing FundCenter, Schwab Institutional, Td Ameritrade, Inc., Scottrade Load, Merrill Lynch and Edward Jones. The other class tickers of this fund are LBCFX, LACCX, LBFFX, LCFYX, LCFPX, LBCQX and LCFRX. With the minimum investment of $1,000,000, LCFYX has the highest yield in the class (4.09%).

The ten largest holdings as of Feb 28, 2011 are Affiliated Manager Group, Inc. (2.1%), Informatica Corp. (2.0%), Ford Motor Co. (1.7%), Citigroup, Inc. (1.7%), Central Euro Distribution Co. (1.7%), General Motors Co. (1.6%), Archer-Daniels-Midland Co. (1.6%), Intel Corp. (1.5%), Apache Corp. (1.5%) and Bank of America Corp. (1.4%).

Disclosure: No Position

Fund Information

NoMutual Funds DescriptionTickerYieldMorningstar RatingNet Assets (Mil)Expense RatioMin to Invest
6Putnam Convertible Income-Growth APCONX2.68%3$718 1.18%$500
7Allianz AGIC Convertible AANZAXN/A4$641 0.96%$1,000
8Columbia Convertible Securities APACIX3.14%3$510 1.20%$2,500
9Invesco Van Kampen Harbor AACHBX3.27%4$359 1.04%$1,000
10Lord Abbett Convertible ALACFX3.79%3$352 1.41%$1,000
Note: If you need to check the fund performance, please check my first article.

Best Convertible Bond Mutual Funds of 2011

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There are several advantages for investors to invest in convertible securities mutual funds. One of them are getting a regular income. These posts will look into the best convertible mutual funds of 2011 including: Calamos Convertible A, Fidelity Convertible Securities, Vanguard Convertible Securities Inv, etc.

Convertibles Mutual Funds

With interest rate hikes are looming, investing in convertible bonds can be attractive to investors and/or traders. Convertible bonds can provide additional investment portfolio diversification. There are several ways to invest in convertible bonds. Investors can invest in individual convertible bonds, mutual fund, closed end fund (CEF), and exchange traded fund (ETF).

Best Convertible Bond Mutual Funds of 2011Convertible bond buyers or investors usually invest in these asset classes in the hope of obtaining one or more of the following benefits:
  • Investor can participate in upside movement should the stock price increase
  • Investor can limit his/ her loss should the stock price decrease
  • Convertible bonds provide higher yield than regular dividend from company's common stock
  • The price movement of the bond is less volatile than common stock. Convertible bonds traditionally have had a low correlation with fixed income obligations and high, but imperfect, correlation with equities / stocks
  • If the company files for bankruptcy, investor can claim on the issuer's assets senior first to that of the holders of the common stock

How are the funds selected?

These funds are rated based on their asset, Morningstar rating, and expense ratio. These funds have big assets. Big asset means the fund has attracted variety of retail investor and institutional investor to invest in these funds. Most of these funds also have a respectable Morningstar rating of 3 or more stars. With 3 or more star rating, this means the fund has consistently performed under any market condition (bear or bull market) and should perform better than many of its index benchmark. These funds also paid dividend either monthly or quarterly.

The 10 Best Convertible Bonds Mutual Fund of 2011 (Part 1):
  1. Calamos Convertible A
  2. Fidelity Convertible Securities
  3. Vanguard Convertible Securities Inv
  4. Franklin Convertible Securities A
  5. MainStay Convertible B
  6. Putnam Convertible Income-Growth A
  7. Allianz AGIC Convertible A
  8. Columbia Convertible Securities A
  9. Invesco Van Kampen Harbor A
  10. Lord Abbett Convertible A

Calamos Convertible A (CCVIX)

The investment in Calamos Convertible fund primarily is seeking for current income while the capital growth is the secondary purpose. This fund invests the majority (around 80%) of its net assets in convertible securities issued by U.S. and foreign companies. There is no limitation of the market capitalization. The remaining assets might be invested in foreign securities. This fund will be closed to all purchases of shares and exchanges, with limited exceptions, as of January 28, 2011.

Calamos Convertible AJohn Calamos the founder of Calamos Assets Management has managed this fund since 1985. The company is the 16th largest money manager in Chicagoland. This fund has 1.08% expense ratio per year.

The yield of this fund is 2.73%. There is 0.25% 12b1 fee and 4.75% of front-end sales load. This convertibles fund has returned 11.74% over the past one year and 5.16% over the past five years.

The minimum balance to invest in this fund is $2,500 for brokerage account (same applies for CALBX and CCVCX) and $500 for IRA account. This fund can be purchased from 89 brokerages include Schwab Institutional, TD Ameritrade, Inc., Scottrade Load, JPMorgan, Vanguard and Schwab Retail. The other class tickers of this fund are CALBX, CCVCX, CICVX and CCVRX. Eventhough CALBX and CCVCX have the same minimum initial investment, but they have higher expense ratio (1.82%) compared to CCVIX.

The top 10 holdings of this fund are EMC Corp (4.6%), SanDisk Corp (3.4%), Intel Corp (2.6%), Archer-Daniels-Midland Company (2.6%), NetApp, Inc (2.4%), Apache Corp (2.2%), Teva Pharmaceutical Industries Ltd (1.9%), Gilead Sciences Inc (1.8%), Symantec Corp (1.6%), and Navistar International Corp (1.5%). These top 10 companies make up to 24.6% of its total assets. The top sectors of this fund are Information Technology (33.8%), Health Care (15.3%), Energy (10.3%), Industrials (8.4%), Materials (7.6%), Consumer Discretionary (6.6%), Consumer Staples (5.2%) and Financials (4.3%).

Fidelity Convertible Securities (FCVSX)

Fidelity Convertible Securities investment seeks for both current income and capital appreciation. The major net assets investment of this fund is in convertible securities with below investment-grade rating or unrated securities. This best fund may also invest in corporate or U.S. government debt securities, preferred stocks, money-market instruments, and common stocks.

Thomas T. Soviero has been the lead manager since June 21, 2005. This fund has quite low annual expense ratio (0.59%) compared to the average in 1.41%. This fund has a total of $2.72 billion net assets. It doesn’t have any 12b1 fee and front-end sales load. This fund has returned 7.10% over the past five years and 6.80% over the past decade. The minimum balance to invest in this fund and the other class is $2,500 for brokerage account. You can also purchase this fund through Fidelity Advisors fund. The other class tickers of this fund are FCAVX, FCBVX, FCCVX, FICVX and FTCVX. Only FICVX doesn’t have any 12b1 fee and front-end sales load.

The top ten industry sectors of this fund as of Jan 31, 2011 are Energy (23.02%), Information Technology (17.74%), Consumer Discretionary (12.97%), Industrials (12.92%), Financials (12.89%), Health Care (6.99%), Consumer Staples (3.77%), Materials (3.45%) and Telecommunication Services (2.28%). The top ten company holdings are Peabody Energy Cv (4.75%), El Paso Corp (4.99%), Wells Fargo (7.5%), General Motors (4.75%), Ford Motor Conv (4.25%), Intel Conv (3.25%), Celanese Corp Ser A, Chesapeake Enrg Cv (2.5%), Hertz Global Conv (5.25%) and Alpha Nat Res Conv (2.375%). These top 10 holdings make up to 35.62% of the total net assets out of 132 total holdings.

Vanguard Convertible Securities Inv (VCVSX)

Vanguard Convertible Securities Fund (VCVSX)Vanguard Convertible Securities Investor investment is looking for both current income and long-term capital appreciation. The primary net assets investment is in convertible securities. These convertible securities have the below investment-grade rating and combine the investment characteristics of bonds and common stocks. They consist of corporate bonds and preferred stocks that are convertible into common stock.

This fund is managed by Larry Keele since Nov 1, 1996. This fund has 3.64% yield and 0.68% annual expense ratio (the lowest among all mentioned in this list). The minimum balance to invest in this fund is $10,000 for brokerage account and IRA account. This fund applies no 12b1 fee and no sales load. This fund has returned 23.85% over the past one year and 7.82% over the past ten years.

The top 10 holdings of this fund as of Feb 28, 2011 are Micron Technology Inc Cvt, SBA Communications Corp Cvt, General Motors Co Pfd, Interpublic Group of Cos Inc Cvt, Gilead Sciences Inc Cvt, MGM Resorts International Cvt, Equinix Inc Cvt, ArvinMeritor Inc Cvt, Lennar Corp Cvt and Owens-Brockway Glass Container Inc Cvt. These ten largest holdings make up to 22.5% of total net assets and 22.8% of equities.

Franklin Convertible Securities A (FISCX)

Franklin Convertible Securities investment pursues for maximizing the total investment return with considering the consistent reasonable risk. The major net assets investment is in convertible securities including the common stocks received upon conversion of convertible securities. This fund may also invest in other securities, such as common or preferred stocks and non-convertible debt securities. As of Jan 31, 2011 the composition of its net assets investment is 65.00% in convertible bonds, 29.00% in convertible preferred and 6% in cash.

Franklin Convertible Securities Fund (FISCX)Alan Muschott has managed this fund since Jul 1, 2002. He is as well the vice president of the Franklin Advisers, Inc. This fund has 1.22 billion net assets. The yield for this fund is 3.23%. This fund has 0.90% annual expense ratio which is quite low compared to the average in 1.41%. The 12b1 fee is 0.25%. This fund has returned 5.67% over the past three year, with 5.64% of 5-year average return. Minimum balance to invest in brokerage account of this fund is $1,000 and $250 for IRA account.

This fund can be purchased from 60 brokerages such as Morgan Stanley Advisors, Pershing FundCenter, Schwab Institutional, Td Ameritrade, Inc., JPMorgan and Merrill Lynch. The other class tickers of this fund are FCSZX and FROTX. The expense ratio for FCSZX is 0.65% and 1.65% for FROTX.

Best Convertible Securities Mutual Funds of 2012

Top 10 holdings of this fund as of Jan 31, 2011 are WESCO International Inc (2.90%), Microchip Technology Inc (2.30%), NetApp Inc (2.30%), Dendreon Corp (2.20%), SandRidge Energy Inc (2.10%), Salix Pharmaceuticals Ltd (2.10%), Alliance Data Systems Corp (2.10%), Apache Corp (2.00%), Micron Technology Inc (2.00%), and Citigroup Inc (2.00%). These top 10 holdings make up to 22.00% of the total portfolio. The top sectors breakdown are Information Technology (22.20%), Health Care (21.30%), Consumer Discretionary (13.60%), Industrials (9.90%), Energy (8.40%), Financials (6.40%), Materials (5.90%), Utilities (4.60%) and Consumer Staples (1.40%).

MainStay Convertible B (MCSVX)

The investment in MainStay Convertible is looking for both current income and capital appreciation. The primary net assets investment (at least 80% of total) is in investment-grade convertible securities. The other investment options include equity securities, nonconvertible corporate debt, cash or cash equivalents and U.S. government securities. This fund has a total of 1.04 billion net assets.

Edward Silverstein has been the fund manager since May 1, 2001. This fund has 1.18% yield. The expense ratio of this fund is 2.03% per year. This fund has 1.00% of 12b1 fee but no sales load. The minimum balance to invest in either brokerage or IRA account of this fund is $1,000. The other class tickers of this fund are MCOAX, MCCVX, MCNVX and MCINX. Some other class has lower expense ratio.

Top ten holdings of this fund are JPMorgan Chase & Co (3.5%), Core Laboratories LP (2.7%), Cameron International Corp (2.6%), Teva Pharmaceutical Finance Co BV (2.5%), Citigroup Inc (2.2%), Fisher Scientific International Inc (2.1%), Incyte Corp Ltd (2.0%), BioMarin Pharmaceuticals Inc (2.0%), Peabody Energy Corp (2.0%), and Allegheny Technologies Inc (1.9%). The top sectors of this fund are Consumer Non-Cyclical (24.8%), Energy (21.1%), Communications (11.0%), Technology (9.7%), Consumer Cyclical (9.7%), Industrials (6.5%), Financials (6.2%), Asset-Backed Securities (1.9%), Basic Materials (1.7%) and Utilities (0.6%).

Disclosure: No Position.

Fund Info

NoMutual Funds DescriptionTickerYieldMorningstar RatingNet Assets (Mil)Expense RatioMin to Invest
1Calamos Convertible ACCVIX2.73%4$3,660 1.08%$2,500
2Fidelity Convertible SecsFCVSX2.81%2$2,720 0.59%$2,500
3Vanguard Convertible Securities InvVCVSX3.64%5$2,130 0.68%$10,000
4Franklin Convertible Securities AFISCX3.23%3$1,220 0.90%$1,000
5MainStay Convertible BMCSVX1.18%3$1,040 2.03%$1,000
Details on next 5 funds can be found on Top Convertible Bond Mutual Funds pt 2. The following table show the fund performance for 1 year, 3 year, 5 year, and 10 years. Please check my part 2 for the next 5 of these convertible bond funds.

updated on 4/28/2012