Calamos Global Convertible I EUR Acc |
Morningstar's Take
|04/12/2024by Elbie Louw
| Increased confidence in this strategy’s team and process justifies People and Process Pillar upgrades. Morningstar has enhanced the way we assess alpha opportunity for funds, which is a key component in our Morningstar Medalist Rating calculation. More of this strategy's Medalist Ratings than usual may therefore change with this update even in the absence of changes to pillar ratings or fund costs. This strategy’s managers have earned their stripes. The team includes lead manager Eli Pars and comanagers John Hillenbrand and Anthony Vecchiolla. Pars and Hillenbrand each bring more than 30 years of industry experience and serve as Calamos’ co-heads of convertible strategies. Vecchiolla, who joined Calamos in 2014, has been contributing to this strategy for roughly two years before being formally named here in February 2023. Since Vecchiolla’s addition, day-to-day management of the strategy, including top-down positioning and bottom-up selection, has been a collaborative effort between Pars and Vecchiolla, which is encouraging for future succession. Hillenbrand’s contributions to the strategy are primarily through his role in formulating the group’s top-down macro views alongside Pars. Despite some modest turnover lately (three departures over the last five years), the 10-member convertibles analyst team stands out from the competition for its size and experience. The straightforward process in place here has shown resilience in a range of different market environments. The investment framework focuses on credit and equity analysis. Analysts determine each issue’s bond floor and growth prospects and examine the convertibles' structure. Most convertibles in the portfolio are balanced (having both equity-like and bond-like characteristics), which is typical of peers in the global convertible bond Morningstar Category. The team may also use synthetics, a combination of a corporate bond and a listed call option, to get exposure to maturities or yields that aren't readily available in the convertibles market. Although our confidence in both the team and process has grown stronger, expensive fees in some share classes may still limit the strategy’s appeal to investors. |
Our confidence in this strategy has strengthened.To find out how Morningstar rates a fund click here.
| Morningstar Pillars | |
| People | Above Average |
| Parent | Average |
| Process | Above Average |
Morningstar Medalist RatingMorningstar assigns the Medalist Rating to funds that are qualitatively and quantitatively assessed through manager research and algorithmic processes. The assessment turns on three key “pillars” – People, Process, and Parent – that yield an estimate of how well a fund will perform before fees but after adjusting for risk.
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