UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21309
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Advent Claymore Convertible Securities and Income Fund
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(Exact name of registrant as specified in charter)
1065 Avenue of the Americas, New York, NY 10018
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(Address of principal executive offices) (Zip code)
Robert White, Treasurer
1065 Avenue of the Americas, New York, NY 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 479-0675
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The registrant's semi-annual report transmitted to shareholders pursuant to Rule
30e-1 under the Investment Company Act of 1940 is as follows:
SHAREHOLDER
LETTER
April 30, 2008
(Unaudited)
Advent Claymore Convertible | AVK
Securities and Income Fund
Logo: ADVENT CAPITAL MANAGEMENT
Logo: Claymore (R)
www.adventclaymore.com
... YOUR BRIDGE TO THE LATEST,
MOST UP-TO-DATE INFORMATION ABOUT THE
ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND
The shareholder report you are reading right now is just the beginning of the
story. Online at WWW.ADVENTCLAYMORE.COM, you will find:
o Daily, weekly and monthly data on share prices, net asset values, dividends
and more
o Portfolio overviews and performance analyses
o Announcements, press releases and special notices
o Fund and adviser contact information
Advent Capital Management and Claymore are continually updating and expanding
shareholder information services on the Fund's website, in an ongoing effort to
provide you with the most current information about how your Fund's assets are
managed, and the results of our efforts. It is just one more small way we are
working to keep you better informed about your investment in the Fund.
2 | Letter to Shareholders | April 30, 2008 | www.adventclaymore.com
AVK | Advent Claymore Convertible Securities and Income Fund
Photo of: Tracy V. Maitland
Tracy V. Maitland
President and Chief Executive Officer
Dear SHAREHOLDER |
We thank you for your investment in the Advent Claymore Convertible Securities
and Income Fund (the "Fund"). This report covers the Fund's performance for the
semi-annual period ended April 30, 2008, which marks the fifth anniversary of
the Fund.
The Fund's investment objective is to provide total return through a combination
of capital appreciation and current income. Under normal market conditions, the
Fund will invest at least 60% of its managed assets in convertible securities
and up to 40% in lower grade, non-convertible income securities. Convertible
securities represented 80.4% of the portfolio as of April 30, 2008.
All Fund returns cited--whether based on net asset value ("NAV") or market
price--assume the reinvestment of all distributions. For the six-month period
ending April 30, 2008, the Fund provided a total return based on market price of
-2.03% and a return of -8.12% based on NAV. As of April 30, 2008, the Fund's
market price of $23.44 represented a discount of 5.41% from the Fund's NAV of
$24.78.
The Fund currently implements its leverage strategy through the issuance of
Auction Market Preferred Shares ("AMPS"). The broad auction-rate preferred
securities market has experienced considerable disruption in the past few
months, and your Fund was not immune to this disruption. The result has been
failed auctions on nearly all auction-rate preferred shares, including the AMPS
issued by the Fund. We believe that this increase in failed actions is simply a
liquidity issue. Investors need to be aware that a failed auction is not a
default, nor does it require the redemption of a fund's AMPS. Provisions in the
offering documents of the Fund's AMPS provide a mechanism to set a maximum rate
in the event of a failed auction, and, thus, investors in the Fund's AMPs will
continue to be entitled to receive payment for holding these AMPS. This maximum
rate is determined based upon a multiple of or a spread to LIBOR, whichever is
greater.
The Fund has six series of AMPS, three that auction each week and three that
auction every 28 days. The most recent auctions for these series have failed, as
have auctions of most AMPS. The established maximum rates (during the week of
May 26, 2008) ranged from 3.54% to 3.68%. These maximum rates are not
significantly different from, although in many cases are lower than, past
successful auctions. We will continue to evaluate the benefits and impacts of
leverage on the Fund, as well as exploring other methods of utilizing leverage.
The Fund's monthly distributions of $0.1718 per share represent an annualized
distribution rate of 8.80%, based on the Fund's closing market price of $23.44
on April 30, 2008. In the five
Letter to Shareholders | April 30, 2008 | www.adventclaymore.com | 3
AVK | Advent Claymore Convertible Securities and Income Fund |
DEAR SHAREHOLDER continued
years since April 30, 2003, the Fund generated an average annual total return of
10.29% based on NAV and 8.51% based on market price. The Fund has maintained the
$0.1718 per share monthly distribution rates since its first distribution in
June 2003. There is no guarantee of any future distributions or that the current
returns and distribution rate will be maintained.
We encourage shareholders to consider the opportunity to reinvest their
distributions from the Fund through the Dividend Reinvestment Plan ("DRIP"),
which is described in detail on page 17 of the Fund's semi-annual report. When
shares trade at a discount to NAV, the DRIP takes advantage of the discount by
reinvesting the monthly dividend distribution in common shares of the Fund
purchased in the market at a price less than NAV. Conversely, when the market
price of the Fund's common shares is at a premium above NAV, the DRIP reinvests
participants' dividends in newly-issued common shares at NAV, subject to an IRS
limitation that the purchase price cannot be more than 5% below the market price
per share. The DRIP provides a cost-effective means to accumulate additional
shares and enjoy the benefits of compounding returns over time. Since the Fund
endeavors to maintain a steady monthly distribution rate, the DRIP plan
effectively provides an income averaging technique, which causes shareholders to
accumulate a larger number of Fund shares when the share price is depressed than
when the price is higher.
The following Questions & Answers section provides more information about the
factors that affected the Fund's performance.
We are honored that you have chosen the Advent Claymore Convertible Securities
and Income Fund as part of your investment portfolio. For the most up-to-date
information on your investment, please visit the Fund's website at
www.adventclaymore.com.
Sincerely,
/s/ Tracy V. Maitland
Tracy V. Maitland
President and Chief Executive Officer of the Advent Claymore Convertible
Securities and Income Fund
June 2, 2008
4 | Letter to Shareholders | April 30, 2008 | www.adventclaymore.com
AVK | Advent Claymore Convertible Securities and Income Fund
QUESTIONS & ANSWERS |
Advent Claymore Convertible Securities and Income Fund (the "Fund") is managed
by a team of seasoned professionals at Advent Capital Management, LLC
("Advent"), led by Tracy V. Maitland, Advent's President and Chief Investment
Officer. In the following interview, Mr. Maitland discusses the convertible
securities and high-yield markets and the performance of the Fund during the
six-month period ended April 30, 2008.
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WILL YOU REMIND US OF THIS FUND'S OBJECTIVES AND HOW YOU SEEK TO ACHIEVE THEM?
The Fund's investment objective is to provide total return through a combination
of capital appreciation and current income. Under normal market conditions, the
Fund will invest at least 60% of its managed assets in convertible securities
and may invest up to 40% in lower grade, non-convertible income securities.
Historically, convertible securities have generally provided returns similar to
equity returns with lower risk. This is possible because a significant portion
of the return of convertible securities generally comes from yield. Moreover,
movement in the price of the convertible security tends to be more sensitive to
appreciation of the underlying stock than to setbacks in the price of the stock.
More than half of the convertible market and a large portion of the Fund's
convertible investments are in securities issued by growth
companies--particularly companies within the healthcare, financial and
technology sectors. Growth companies generally issue convertible bonds or
convertible preferred stocks as a means of raising capital to build their
businesses. Convertibles represent something of a compromise between equity and
debt as a way to raise capital for growth; convertibles generally have a lower
interest rate than straight bonds, but provide for less dilution than issuing
common stock. Financial companies, while not always considered high growth
companies, also issue a fair amount of convertible securities--typically
convertible preferreds with more attractive yields and higher credit ratings. By
offering preferreds, companies can raise capital while helping to keep their
credit ratings higher than if they offered bonds. This is because issuing bonds
would increase the proportion of debt on an issuing company's balance sheet,
making a downgrade in credit rating more likely, while preferred stock is
classified as equity. Credit ratings are especially important to financial
companies, since a lower credit rating generally results in higher borrowing
costs.
The Fund's flexibility to shift between convertibles and high yield bonds helps
provide diversification on an asset, sector and security level. Among the
attractions of convertible securities are that they generally offer a yield
advantage over common stocks; they have tended to move up in tandem with
equities in strong markets; and the yield advantage has historically provided
inherent downside protection in weaker markets.
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PLEASE TELL US ABOUT THE ECONOMIC AND MARKET ENVIRONMENT OVER THE LAST
SIX MONTHS.
The six-month period from October 31, 2007, through April 30, 2008, was a period
of heightened economic uncertainty and significant turmoil throughout the
capital markets. In the final few months of 2007, what began as a correction in
the U.S. housing market accelerated into a crisis in the sub-prime mortgage
market with potential implications for the entire economy. By early 2008, there
had been pronounced changes in attitudes toward risk in financial markets, as
demonstrated by wider credit spreads, severe dislocation in short-term credit
markets, overall tightening of financial conditions and an increasingly volatile
equity market. The Federal Reserve Board (the "Fed") reduced interest rates
seven times between September 2007 and April 2008, striving to restore liquidity
to financial markets. Even with this stimulus, recent trends in employment and
consumer spending, accompanied by a spike in energy prices, have led many
economists to forecast that the U.S. will experience a recession during 2008.
In this challenging economic environment, most U.S. equity indices posted
negative returns accompanied by extreme volatility. This highly volatile market
provides a reminder of the possible usefulness of investing in convertible
securities as a way to help achieve long-term total returns similar to those of
equities but with historically lower volatility, less downside risk and higher
yields potential. Over the past six months, convertible securities significantly
muted the downward trend in equities: the return of the Merrill Lynch All
Convertibles Index,
Letter to Shareholders | April 30, 2008 | www.adventclaymore.com | 5
AVK | Advent Claymore Convertible Securities and Income Fund |
QUESTIONS & ANSWERS continued
which tracks performance of the U.S. market for convertible securities, was
-5.75%, several percentage points less than the -9.64% loss of the Standard &
Poor's 500 Index ("S&P 500"), which is considered a key indicator of broad U.S.
stock market performance.
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HOW DID THE FUND PERFORM IN THIS ENVIRONMENT?
All Fund returns cited--whether based on net asset value ("NAV") or market
price--assume the reinvestment of all distributions. For the six-month period
ending April 30, 2008, the Fund provided a total return based on market price of
-2.03% and a return of -8.12% based on NAV. AVK shares suffered a smaller loss
at market than the portfolio return because the market discount from NAV abated
somewhat during the six-month period. At the October 31, 2007 close, the market
price discount to NAV was 10.91%. By the close on April 30, 2008, the Fund's
market price of $23.44 represented a discount of 5.41% to the Fund's NAV of
$24.78.
For NAV performance comparison purposes, the S&P 500 Index had a negative return
of -9.64% for the six-month period. Other equity indices generally were weaker
than the S&P 500 during this period. The Fund demonstrated its ability to help
cushion the downside during a weak stock market, but we were unable to
outperform the Merrill Lynch All Convertibles Index, which had a return of
-5.75%. In retrospect, we also might have had a smaller setback if we had had a
higher allocation to high-yield securities. The Merrill Lynch High Yield Master
II Index, which is a measure of the broad high yield market, was off much less,
with a negative return of -0.77%.
Over the five-year history of the Fund since April 30, 2003, the Fund has
demonstrated its ability to provide an equity-like total return. The Fund is
well ahead of both of the aforementioned convertible and high-yield indices on
an NAV basis, with an average annual return of 10.29% versus 8.79% from the
Merrill Lynch All Convertibles Index and 8.31% from the Merrill Lynch High Yield
Master II Index. Moreover, the Fund's NAV return captured nearly all of the S&P
500 return of 10.62%. At market, however, the Fund's return has been inhibited
by the discount from NAV; the market return from April 30, 2003 through April
30, 2008 was 8.51%. Past performance does not guarantee future results.
As the market value of the Fund's shares fluctuates from time to time, the share
price may be higher or lower than the Fund's NAV. We believe that, over the long
term, the progress of the NAV will be reflected in the market price return to
shareholders.
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WHAT WERE THE MAJOR INVESTMENT DECISIONS THAT AFFECTED THE FUND'S PERFORMANCE?
Although it is always disappointing to report a negative return, we are pleased
that we cushioned the downturn relative to the setback suffered by the key stock
market indices. When high yield securities appeared richly valued earlier in
2007, we reduced exposure to the high yield market, which was advantageous as
convertible securities continued to advance while credit spreads widened and
market prices of high-yield securities weakened amid market fears sparked by
subprime mortgages. In the six months through April 30, 2008, however, we were
overweighted in convertibles and underweighted in high yield bonds while high
yield securities held up much better than convertibles. We began to rebuild our
high yield investments early in 2008 after yields had risen.
It is important to understand that the Fund utilizes leverage (borrowing), which
has enhanced our yield and total return over time to common shareholder. But
leverage can be a two-edged sword when markets weaken. The Fund utilizes
leverage to finance the purchase of additional securities that help provide
increased income and greater appreciation potential to common shareholders than
could be achieved from a portfolio that is not leveraged. The Fund currently
implements its leverage strategy through the issuance of Auction Market
Preferred Shares ("AMPS"). Leverage adds to performance only when the return is
greater than the cost of leverage. During the six months through April 30, 2008,
leverage was approximately 32% of managed assets. Since returns were negative,
leverage detracted. Over the long term, we believe that leverage will contribute
to the Fund's performance, as it has in past periods.
6 | Letter to Shareholders | April 30, 2008 | www.adventclaymore.com
AVK | Advent Claymore Convertible Securities and Income Fund |
QUESTIONS & ANSWERS continued
As mentioned before, the Fund currently implements its leverage strategy through
the issuance of AMPS. The broad auction-rate preferred securities market has
experienced considerable disruption in the past few months, and your Fund was
not immune to this disruption. The result has been failed auctions on nearly all
auction-rate preferred shares, including the AMPS issued by the Fund. We believe
that this increase in failed auctions is simply a liquidity issue. Investors
need to be aware that a failed auction is not a default, nor does it require the
redemption of a fund's auction-rate preferred shares. Provisions in the offering
documents of the Fund's AMPS provide a mechanism to set a maximum rate in the
event of a failed auction, and, thus, investors will continue to be entitled to
receive payment for holding these AMPS. This maximum rate is determined based
upon a multiple of or a spread to LIBOR, whichever is greater.
The Fund has six series of AMPS, three that auction each week and three that
auction every 28 days. The most recent auctions for these series have failed, as
have auctions of most AMPS. The established maximum rates (during the week of
May 26) ranged from 3.54% to 3.68%. These maximum rates are not significantly
different from, although in many cases are lower than, past successful auctions.
We will continue to evaluate the benefits and impacts of leverage on the Fund,
as well as exploring other methods of utilizing leverage.
There is no guarantee that the Fund's leverage strategy will be successful, and
the Fund's use of leverage may cause the Fund's NAV and market price of common
shares to be more volatile. Leverage adds value only when the return on
securities purchased exceeds the cost of leverage.
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WHICH ISSUERS CONTRIBUTED MOST TO THE FUND'S PERFORMANCE?
One of the Fund's largest holdings is Freeport-McMoRan Copper & Gold Inc. (2.5%
of long-term investments), the world's largest publicly traded copper company,
which also produces gold and molybdenum. The Fund owns two of this company's
convertible securities--the 5.5% and the 6.75% -- and they have performed well
as the underlying common stock has appreciated in response to numerous positive
factors, including rising commodity prices and political stability in Indonesia,
where the company has its primary mining assets.
Also positive among the Fund's largest holdings was a 4.75% bond of Peabody
Energy Corporation (1.7% of long-term investments), the world's largest
private-sector coal company with majority interests in 40 coalmines in the U.S.
and Australia. This growing company with substantial reserves has recently
benefited from market recognition of rising demand for coal. We initially bought
the convertible bond at par and then accumulated additional bonds when the price
dropped, achieving a double-digit return on our investment.
Some of our other large holdings have not yet made the contributions we seek but
appear to have great promise for the future. One example is International Game
Technology (2.6% of long-term investments), which is leading the industry in
replacing old-fashioned electromechanical slot machines with electronic machines
that can easily be reprogrammed with new and different games. We believe this
company could experience significant future growth.
Letter to Shareholders | April 30, 2008 | www.adventclaymore.com | 7
AVK | Advent Claymore Convertible Securities and Income Fund |
QUESTIONS & ANSWERS continued
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WHICH DECISIONS HURT PERFORMANCE?
The Fund has typically obtained relatively high yields and favorable total
returns from convertible securities of large financial companies. The financial
sector represented 16.8% of long-term investments as of April 30, 2008, and this
exposure detracted from performance as securities of financial institutions
suffered in an environment of dislocation in credit markets. Even though the
financial companies represented in the portfolio tend to be high quality
companies that we believe will perform well over the long term, they performed
poorly over the last six months, largely because of concerns related to the
subprime mortgage market. As of April 30, there was only one financial
institution among the Fund's top 10 holdings; this is New York Community Capital
Trust V (2.4% of long-term investments), a bank with offices mainly in the New
York City area and no involvement in subprime loans. While most financials
experienced negative returns in the six months through April 30, the New York
Community Capital Trust V 6% convertible provided a return of precisely zero
during the six months, since the income nearly offsets the market decline in the
price of the issue.
We are confident that our holdings in the financial sector will recover, and we
are actively seeking investment opportunities among new convertible issues of
large financial companies. Large financial institutions such as Citigroup Inc.,
Bank of America Corporation and Wachovia Corporation are issuing high-yielding
convertibles as they seek to strengthen their balance sheets. With the stock
prices of such financial companies well off from previous highs, there is ample
appreciation potential from the new convertible securities, which may also
provide attractive yields.
During 2007 we reduced our investment in the 7% convertible of XL Capital Ltd.
(1.2% of long-term investments), a property & casualty insurance company
headquartered in Bermuda. We regard XL as a promising company and we have held
its convertibles since the inception of the Fund. We often favor insurance
companies based in Bermuda because tax laws in Bermuda allow companies
headquartered there to compound their investment accounts tax-free. However,
amid the recent turmoil in financial markets, investors have become particularly
concerned about XL's exposure to a publicly traded subsidiary that is a monoline
insurer. Despite a significant rebound in April, the XL convertible held in the
portfolio remains well below its level six months ago.
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WHAT IS YOUR CURRENT OUTLOOK FOR THE MARKETS AND THE FUND?
We have great enthusiasm for the convertible market, which is seeing
considerable new issuance now, especially from major financial institutions that
are enhancing capital following setbacks in their loan portfolios. Many of these
convertibles have high yields and low conversion premiums, and we are taking
advantage of the opportunity to invest in what we believe to be good companies
whose share prices are currently depressed. The plethora of new issuance is also
likely to create opportunities in the aftermarket in the months ahead.
We also continue to opportunistically rebuild the Fund's position in high yield
bonds. While some problems remain in the high yield market, we are finding many
attractive opportunities to invest at double-digit yields. The aggressive effort
of the Fed to reduce short-term rates and reliquify capital markets has made it
easier for companies to refinance debt, which significantly reduces default
risk.
Equity valuations appear reasonable relative to past experience, which probably
reflects investor concerns about the direction of the U.S. economy and its
impact on equities. When such concerns abate, there should be significant upside
potential in equities. While we await a stronger stock market, convertible
securities combine rewarding yields with significant potential to participate in
the appreciation of the underlying stocks when the stock market advances.
We feel confident that over time our diligence in security selection will
continue to help the Fund's performance both by providing favorable returns in
rising markets and by providing the protection of yield against down markets.
Our two asset classes--convertibles and high-yield securities--historically have
had much lower volatility and downside risk than common
8 | Letter to Shareholders | April 30, 2008 | www.adventclaymore.com
AVK | Advent Claymore Convertible Securities and Income Fund |
QUESTIONS & ANSWERS continued
stocks. Our proprietary credit analysis is intended to enable us to invest in
companies with what we believe are stable-to-improving fundamentals and to avoid
deteriorating situations that could be especially dangerous during weak economic
environments. Over time, convertible securities have historically provided
equity-like returns at lower risk by capturing much of the appreciation of
common stocks, while yielding more than equities and experiencing less price
deterioration during market corrections.
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The conversion premium reflects the market price of a convertible relative to
the market value of the common shares into which the convertible security can be
converted.
For example, a bond trading at a par value of $1,000 that is convertible into 20
shares trading at $40 would have a conversion premium of 25% over its conversion
value of $800. The lower the conversion premium, the more upside there is for
convertible investors. If the stock performs poorly, the convertible normally
provides downside protection based on its yield and its fixed-income value.
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AVK RISKS AND OTHER CONSIDERATIONS
The views expressed in this report reflect those of the Portfolio Managers and
Claymore only through the report period as stated on the cover. These views are
subject to change at any time, based on market and other conditions and should
not be construed as a recommendation of any kind. The material may also contain
forward-looking statements that involve risk and uncertainty, and there is no
guarantee they will come to pass. There can be no assurance that the Fund will
achieve its investment objectives. The value of the Fund will fluctuate with the
value of the underlying securities. Historically, closed-end funds often trade
at a discount to their net asset value. The Fund is subject to investment risk,
including the possible loss of the entire amount that you invest. Past
performance does not guarantee future results.
CONVERTIBLE SECURITIES. The Fund is not limited in the percentage of its assets
that may be invested in convertible securities. Convertible securities generally
offer lower interest or dividend yields than non-convertible securities of
similar quality. The market values of convertible securities tend to decline as
interest rates increase and, conversely, to increase as interest rates decline.
However, the convertible security's market value tends to reflect the market
price of the common stock of the issuing company when that stock price is
greater than the convertible's ``conversion price, '' which is the predetermined
price at which the convertible security could be exchanged for the associated
stock.
SYNTHETIC CONVERTIBLE SECURITIES. The value of a synthetic convertible security
will respond differently to market fluctuations than a convertible security
because a synthetic convertible security is composed of two or more separate
securities, each with its own market value. In addition, if the value of the
underlying common stock or the level of the index involved in the convertible
component falls below the exercise price of the warrant or option, the warrant
or option may lose all value.
LOWER GRADE SECURITIES. Investing in lower grade securities (commonly known as
"junk bonds") involves additional risks, including credit risk. Credit risk is
the risk that one or more securities in the Fund's portfolio will decline in
price, or fail to pay interest or principal when due, because the issuer of the
security experiences a decline in its financial status.
LEVERAGE RISK. Certain risks are associated with the leveraging of common stock.
Both the net asset value and the market value of shares of common stock may be
subject to higher volatility and a decline in value.
INTEREST RATE RISK. In addition to the risks discussed above, convertible
securities and non-convertible income securities are subject to certain risks,
including: o if interest rates go up, the value of convertible securities and
non-convertible income securities in the Fund's portfolio generally will
decline; o during periods of declining interest rates, the issuer of a security
may exercise its option to prepay principal earlier than scheduled, forcing the
Fund to reinvest in lower yielding securities. This is known as call or
prepayment risk. Lower grade securities have call features that allow the issuer
to repurchase the security prior to its stated maturity. An issuer may redeem a
lower grade security if the issuer can refinance the security at a lower cost
due to declining interest rates or an improvement in the credit standing of the
issuer; and o during periods of rising interest rates, the average life of
certain types of securities may be extended because of slower than expected
principal payments. This may lock in a below market interest rate, increase the
security's duration (the estimated period until the security is paid in full)
and reduce the value of the security. This is known as extension risk.
ILLIQUID INVESTMENTS. The Fund may invest without limit in illiquid securities.
The Fund may also invest without limit in Rule 144A Securities. Although many of
the Rule 144A Securities in which the Fund invests may be, in the view of the
Investment Manager, liquid, if qualified institutional buyers are unwilling to
purchase these Rule 144A Securities, they may become illiquid. Illiquid
securities may be difficult to dispose of at a fair price at the times when the
Fund believes it is desirable to do so. The market price of illiquid securities
generally is more volatile than that of more liquid securities, which may
adversely affect the price that the Fund pays for or recovers upon the sale of
illiquid securities.
FOREIGN SECURITIES AND EMERGING MARKETS RISK. Investing in non-U.S. issuers may
involve unique risks, such as currency, political, economic and market risk. In
addition, investing in emerging markets entails additional risk including, but
not limited to (1) news and events unique to a country or region (2) smaller
market size, resulting in lack of liquidity and price volatility (3) certain
national policies which may restrict the Fund's investment opportunities.
STRATEGIC TRANSACTIONS. The Fund may use various other investment management
techniques that also involve certain risks and special considerations, including
engaging in hedging and risk management transactions, including interest rate
and foreign currency transactions, options, futures, swaps, caps, floors, and
collars and other derivatives transactions.
AUCTION MARKET PREFERRED SHARES (AMPS) RISK. The AMPS are redeemable, in whole
or in part, at the option of the Fund on any dividend payment date for the AMPS,
and are subject to mandatory redemption in certain circumstances. The AMPS are
not listed on an exchange. You may buy or sell AMPS only through an order placed
at an auction with or through a broker-dealer that has entered into an agreement
with the auction agent and the Fund or in a secondary market maintained by
certain broker dealers. These broker-dealers are not required to maintain this
market, and it may not provide you with liquidity.
In addition to the risks described above, the Fund is also subject to:
Management Risk, Market Disruption Risk, and Anti-Takeover Provisions. Please
see www.adventclaymore.com for a more detailed discussion about Fund risks and
considerations.
Letter to Shareholders | April 30, 2008 | www.adventclaymore.com | 9
AVK | Advent Claymore Convertible Securities and Income Fund
Fund SUMMARYlAS OF APRIL 30, (2008) (unaudited)
FUND STATISTICS
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Share Price $23.44
Common Share Net Asset Value $24.78
Premium/Discount to NAV -5.41%
Net Assets Applicable to Common Shares ($000) $583,216
-------------------------------------------------------
TOTAL RETURNS
-------------------------------------------------------
(INCEPTION 4/30/03) MARKET NAV
-------------------------------------------------------
Six Month -2.03% -8.12%
One Year -8.03% -3.47%
Three Year 10.75% 9.76%
Five Year 8.51% 10.29%
Since Inception -average annual 8.51% 10.29%
-------------------------------------------------------
% OF LONG-TERM
TOP TEN INDUSTRIES INVESTMENTS
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Pharmaceuticals 10.8%
Health Care Products and Services 8.9%
Telecommunications 7.3%
Insurance 6.1%
Electronic Equipment and Components 5.9%
Financial Services 5.8%
Utilities - Gas and Electric 5.6%
Banking and Finance 4.9%
Computers - Software and Peripherals 4.7%
Oil and Gas 3.9%
-------------------------------------------------------
% OF LONG-TERM
TOP TEN ISSUERS INVESTMENTS
-------------------------------------------------------
Watson Pharmaceuticals, Inc. 2.6%
International Game Technology 2.6%
Eastman Kodak Co. 2.5%
Intel Corp. 2.5%
Freeport-McMoRan Copper & Gold, Inc. 2.5%
New York Community Capital Trust V 2.4%
NII Holdings, Inc. 2.1%
Allergan, Inc. 2.1%
Entergy Corp. 2.1%
Mylan, Inc. 2.1%
-------------------------------------------------------
Past performance does not guarantee future results. All portfolio data is
subject to change daily. For more current information, please visit
www.claymore.com. The above summaries are provided for informational purposes
only and should not be viewed as recommendations.
Line Chart:
SHARE PRICE & NAV PERFORMANCE
SHARE PRICE NAV
27.86 27.89
27.94 28.13
28.03 28.27
27.88 28.31
27.9 28.42
28 28.37
28.05 28.4
28.03 28.22
27.8 28.2
27.65 28.16
27.5 28.17
27.68 28.13
27.58 28.17
27.6 28.32
27.5 28.37
27.58 28.37
27.74 28.41
27.38 28.16
27.47 28.22
27.58 28.24
27.49 28.42
27.57 28.54
27.7 28.62
27.71 28.64
27.85 28.62
27.81 28.47
27.21 28.08
27.24 28.22
27.25 28.31
27.08 28.15
27.08 28.13
27.5 28.31
27.67 28.41
27.79 28.44
27.89 28.43
27.98 28.35
27.53 28.33
27.35 28.19
27.34 28.06
27.07 28.07
27.24 28.2
27.54 28.22
27.63 28.23
27.79 28.43
28.21 28.53
27.85 28.48
28.04 28.62
27.83 28.62
27.58 28.38
27.5 28.21
27.55 28.46
27.52 28.55
27.1 28.47
26.95 28.28
26.13 28.19
26.25 28.36
26.25 28.12
26.29 28.13
25.84 27.61
25.45 27.52
24.95 27.02
24.7 26.77
24.61 26.89
24.92 26.79
24.02 26.57
23 26.65
23.41 26.17
23.61 26.26
23.84 26.54
24.05 26.81
23.97 26.52
23.45 26.38
23.37 26.32
23.08 25.98
22.5 25.65
21.75 25.41
23.6 25.86
23.85 25.92
24 26
24.5 26.29
24.81 26.33
24.9 26.53
24.72 26.4
24.35 25.96
24.6 26.28
24.44 26.23
24.8 26.42
25.1 26.71
24.9 26.59
24.89 26.66
24.65 26.49
24.57 26.41
24.57 26.6
24.3 26.51
24.25 26.68
24.5 26.75
24.7 26.64
24.87 27.17
25.35 27.46
25.07 27.38
25.2 27.45
25.17 27.41
25.17 27.31
25.35 27.49
25.68 27.64
25.56 27.57
25.76 27.87
25.58 27.93
25.27 27.79
25.29 27.79
25.62 28.04
25.46 27.95
25.49 28.17
25.45 28.23
25.28 27.95
25.36 28.23
25.41 28.04
25.37 27.88
25.18 28.02
25.21 28.1
25.01 27.63
24.65 27.57
24.81 27.62
24.68 27.6
24.87 27.72
25.15 27.93
25.18 28.13
25.21 27.94
25.15 28.23
25.03 27.84
24.92 27.89
24.71 27.89
24.62 28.11
24.25 27.64
24.25 27.66
23.82 27.5
23.67 27.19
23.51 27.31
23.48 27.3
23.49 27.02
23.4 26.9
23.25 26.42
23.05 26.26
22.65 26.04
22.79 26.23
22.58 26
22.4 26.07
23 26.56
22.9 26.71
23.5 26.97
23.62 26.84
23.79 26.67
23.9 26.84
24.08 27.09
23.91 27.21
23.99 27.26
23.84 26.75
23.5 26.62
23.4 26.49
23.21 26.23
22.71 25.93
22.5 25.96
22.46 26
22.5 25.99
22.45 26.19
23.25 26.34
23.25 26.34
22.92 26.14
22.69 26.19
23.25 26.16
23.17 26.08
23.63 26.04
23.6 25.62
23.18 25.56
22.76 25.38
22.9 25.37
23.34 25.58
23.08 25.48
23.15 25.55
23.25 25.22
22.95 25.02
22.59 24.51
22.13 24.27
21.95 24.04
22.02 24.18
22.33 24.51
22.51 24.39
22.89 24.62
23.04 24.83
23.31 24.86
23.39 25.13
23.74 25.46
23.94 25.35
23.35 24.77
23.21 24.68
23 24.74
22.85 24.67
23.04 24.79
23.25 24.88
23.1 24.91
22.27 24.74
22.13 24.76
22.23 24.87
22.38 24.94
22.62 24.77
22.5 24.81
22.78 25.05
22.91 25.25
23.07 25.22
23 25.1
22.6 24.68
22.8 24.61
22.44 24.48
22.49 24.59
22.3 24.1
22.3 23.91
21.85 23.46
21.95 23.81
21.49 23.55
21.4 23.6
21.03 23.41
20.24 22.88
20.76 23.44
20.48 23.06
20.61 23.28
20.83 23.61
20.99 23.78
21.23 23.76
21.32 23.72
21.43 23.55
21.25 23.51
21.69 23.98
21.8 24.06
21.96 24.16
22.09 24.31
22.33 24.44
22.32 24.43
22.2 24.34
22.29 24.33
22.12 24.01
22.01 23.93
22.26 23.97
22.23 24.38
22.08 24.39
22.1 24.57
22.45 24.64
22.41 24.48
22.86 24.51
22.92 24.57
23.11 24.73
23.3 24.78
23.44 24.72
23.44 24.78
Bar Chart:
May 07 0.1718
Jun 0.1718
Jul 0.1718
Aug 0.1718
Sep 0.1718
Oct 0.1718
Nov 0.1718
Dec* 0.2993
Jan 08 0.1718
Feb 0.1718
Mar 0.1718
Apr 0.1718
* Includes long-term capital gains distribution of $0.1275.
Pie Chart:
PORTFOLIO COMPOSITION (% of Total Investments)
Asset Class
---------------------- ----
Convertible Securities 80.4%
High Yield Securities 14.9%
Short-Term Investment 3.1%
Common Stock 1.1%
Term Loans 0.5%
10 | Letter to Shareholders | April 30, 2008 | www.adventclaymore.com
AVK | Advent Claymore Convertible Securities and Income Fund
ADVENT CAPITAL MANAGEMENT, LLC
Advent Capital Management, LLC ("Advent") is a registered investment adviser,
based in New York, which specializes in convertible and high-yield securities
for institutional and individual investors. The firm was established by Tracy V.
Maitland, a former Director in the Convertible Securities sales and trading
division of Merrill Lynch. Advent's investment discipline emphasizes capital
structure research, encompassing equity fundamentals as well as credit research,
with a focus on cash flow and asset values while seeking to maximize total
return.
INVESTMENT PHILOSOPHY
Advent believes that superior returns can be achieved while reducing risk by
investing in a diversified portfolio of global equity, convertible and
high-yield securities. The Fund Manager seeks securities with attractive
risk/reward characteristics. Advent employs a bottom-up security selection
process across all of the strategies it manages. Securities are chosen from
those that the Fund Manager believes have stable-to-improving fundamentals and
attractive valuations.
INVESTMENT PROCESS
Advent manages securities by using a strict four-step process:
1 Screen the convertible and high-yield markets for securities with
attractive risk/reward characteristics and favorable cash flows;
2 Analyze the quality of issues to help manage downside risk;
3 Analyze fundamentals to identify catalysts for favorable performance; and
4 Continually monitor the portfolio for improving or deteriorating trends in
the financials of each investment.
Letter to Shareholders | April 30, 2008 | www.adventclaymore.com | 11
ADVENT CAPITAL MANAGEMENT, LLC
1065 Avenue of the Americas
New York, New York 10018
THIS REPORT IS SENT TO SHAREHOLDERS OF ADVENT CLAYMORE CONVERTIBLE SECURITIES
AND INCOME FUND FOR THEIR INFORMATION. IT IS NOT A PROSPECTUS, CIRCULAR OR
REPRESENTATION INTENDED FOR USE IN THE PURCHASE OR SALE OF SHARES OF THE FUND OR
OF ANY SECURITIES MENTIONED IN THIS REPORT.
AVK
LISTED
NYSE(R)
AVK-SL-0408
SEMIANNUAL
REPORT
April 30, 2008
(Unaudited)
|
Advent Claymore Convertible | AVK
Securities and Income Fund |
|
Logo: ADVENT CAPITAL MANAGEMENT
Logo: Claymore (R)
AVK | Advent Claymore Convertible Securities and Income Fund
Fund SUMMARY | AS OF APRIL 30, 2008 (unaudited)
FUND STATISTICS
--------------------------------------------------------
Share Price $23.44
Common Share Net Asset Value $24.78
Premium/Discount to NAV -5.41%
Net Assets Applicable to Common Shares ($000) $583,216
--------------------------------------------------------
TOTAL RETURNS
--------------------------------------------------------
(INCEPTION 4/30/03) MARKET NAV
--------------------------------------------------------
Six Month -2.03% -8.12%
One Year -8.03% -3.47%
Three Year 10.75% 9.76%
Five Year 8.51% 10.29%
Since Inception -average annual 8.51% 10.29%
--------------------------------------------------------
% OF LONG-TERM
TOP TEN INDUSTRIES INVESTMENTS
--------------------------------------------------------
Pharmaceuticals 10.8%
Health Care Products and Services 8.9%
Telecommunications 7.3%
Insurance 6.1%
Electronic Equipment and Components 5.9%
Financial Services 5.8%
Utilities - Gas and Electric 5.6%
Banking and Finance 4.9%
Computers - Software and Peripherals 4.7%
Oil and Gas 3.9%
--------------------------------------------------------
% OF LONG-TERM
TOP TEN ISSUERS INVESTMENTS
--------------------------------------------------------
Watson Pharmaceuticals, Inc. 2.6%
International Game Technology 2.6%
Eastman Kodak Co. 2.5%
Intel Corp. 2.5%
Freeport-McMoRan Copper & Gold, Inc. 2.5%
New York Community Capital Trust V 2.4%
NII Holdings, Inc. 2.1%
Allergan, Inc. 2.1%
Entergy Corp. 2.1%
Mylan, Inc. 2.1%
--------------------------------------------------------
Past performance does not guarantee future results. All portfolio data is
subject to change daily. For more current information, please visit
www.claymore.com. The above summaries are provided for informational purposes
only and should not be viewed as recommendations.
Line Chart:
SHARE PRICE & NAV PERFORMANCE
SHARE PRICE NAV
27.86 27.89
27.94 28.13
28.03 28.27
27.88 28.31
27.9 28.42
28 28.37
28.05 28.4
28.03 28.22
27.8 28.2
27.65 28.16
27.5 28.17
27.68 28.13
27.58 28.17
27.6 28.32
27.5 28.37
27.58 28.37
27.74 28.41
27.38 28.16
27.47 28.22
27.58 28.24
27.49 28.42
27.57 28.54
27.7 28.62
27.71 28.64
27.85 28.62
27.81 28.47
27.21 28.08
27.24 28.22
27.25 28.31
27.08 28.15
27.08 28.13
27.5 28.31
27.67 28.41
27.79 28.44
27.89 28.43
27.98 28.35
27.53 28.33
27.35 28.19
27.34 28.06
27.07 28.07
27.24 28.2
27.54 28.22
27.63 28.23
27.79 28.43
28.21 28.53
27.85 28.48
28.04 28.62
27.83 28.62
27.58 28.38
27.5 28.21
27.55 28.46
27.52 28.55
27.1 28.47
26.95 28.28
26.13 28.19
26.25 28.36
26.25 28.12
26.29 28.13
25.84 27.61
25.45 27.52
24.95 27.02
24.7 26.77
24.61 26.89
24.92 26.79
24.02 26.57
23 26.65
23.41 26.17
23.61 26.26
23.84 26.54
24.05 26.81
23.97 26.52
23.45 26.38
23.37 26.32
23.08 25.98
22.5 25.65
21.75 25.41
23.6 25.86
23.85 25.92
24 26
24.5 26.29
24.81 26.33
24.9 26.53
24.72 26.4
24.35 25.96
24.6 26.28
24.44 26.23
24.8 26.42
25.1 26.71
24.9 26.59
24.89 26.66
24.65 26.49
24.57 26.41
24.57 26.6
24.3 26.51
24.25 26.68
24.5 26.75
24.7 26.64
24.87 27.17
25.35 27.46
25.07 27.38
25.2 27.45
25.17 27.41
25.17 27.31
25.35 27.49
25.68 27.64
25.56 27.57
25.76 27.87
25.58 27.93
25.27 27.79
25.29 27.79
25.62 28.04
25.46 27.95
25.49 28.17
25.45 28.23
25.28 27.95
25.36 28.23
25.41 28.04
25.37 27.88
25.18 28.02
25.21 28.1
25.01 27.63
24.65 27.57
24.81 27.62
24.68 27.6
24.87 27.72
25.15 27.93
25.18 28.13
25.21 27.94
25.15 28.23
25.03 27.84
24.92 27.89
24.71 27.89
24.62 28.11
24.25 27.64
24.25 27.66
23.82 27.5
23.67 27.19
23.51 27.31
23.48 27.3
23.49 27.02
23.4 26.9
23.25 26.42
23.05 26.26
22.65 26.04
22.79 26.23
22.58 26
22.4 26.07
23 26.56
22.9 26.71
23.5 26.97
23.62 26.84
23.79 26.67
23.9 26.84
24.08 27.09
23.91 27.21
23.99 27.26
23.84 26.75
23.5 26.62
23.4 26.49
23.21 26.23
22.71 25.93
22.5 25.96
22.46 26
22.5 25.99
22.45 26.19
23.25 26.34
23.25 26.34
22.92 26.14
22.69 26.19
23.25 26.16
23.17 26.08
23.63 26.04
23.6 25.62
23.18 25.56
22.76 25.38
22.9 25.37
23.34 25.58
23.08 25.48
23.15 25.55
23.25 25.22
22.95 25.02
22.59 24.51
22.13 24.27
21.95 24.04
22.02 24.18
22.33 24.51
22.51 24.39
22.89 24.62
23.04 24.83
23.31 24.86
23.39 25.13
23.74 25.46
23.94 25.35
23.35 24.77
23.21 24.68
23 24.74
22.85 24.67
23.04 24.79
23.25 24.88
23.1 24.91
22.27 24.74
22.13 24.76
22.23 24.87
22.38 24.94
22.62 24.77
22.5 24.81
22.78 25.05
22.91 25.25
23.07 25.22
23 25.1
22.6 24.68
22.8 24.61
22.44 24.48
22.49 24.59
22.3 24.1
22.3 23.91
21.85 23.46
21.95 23.81
21.49 23.55
21.4 23.6
21.03 23.41
20.24 22.88
20.76 23.44
20.48 23.06
20.61 23.28
20.83 23.61
20.99 23.78
21.23 23.76
21.32 23.72
21.43 23.55
21.25 23.51
21.69 23.98
21.8 24.06
21.96 24.16
22.09 24.31
22.33 24.44
22.32 24.43
22.2 24.34
22.29 24.33
22.12 24.01
22.01 23.93
22.26 23.97
22.23 24.38
22.08 24.39
22.1 24.57
22.45 24.64
22.41 24.48
22.86 24.51
22.92 24.57
23.11 24.73
23.3 24.78
23.44 24.72
23.44 24.78
Bar Chart:
MONTHLY DIVIDENDS PER SHARE
May 07 0.1718
Jun 0.1718
Jul 0.1718
Aug 0.1718
Sep 0.1718
Oct 0.1718
Nov 0.1718
Dec* 0.2993
Jan 08 0.1718
Feb 0.1718
Mar 0.1718
Apr 0.1718
*Includes long-term capital gains distribution of $0.1275.
Pie Chart:
PORTFOLIO COMPOSITION (% of Total Investments)
Asset Class
-----------
Convertible Securities 80.4%
High Yield Securities 14.9%
Short-Term Investment 3.1%
Common Stock 1.1%
Term Loans 0.5%
2 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund
Portfolio of INVESTMENTS | APRIL 30, 2008 (unaudited)
NUMBER
OF SHARES VALUE
-----------------------------------------------------------------------------------
LONG-TERM INVESTMENTS - 138.9%
CONVERTIBLE PREFERRED STOCKS - 54.1%
ADVERTISING - 0.7%
335,800 Interpublic Group Cos., Elf Special Financing Ltd.,
3.15%, 2009 (Cayman Islands) (a)(b) $ 3,986,800
-----------------------------------------------------------------------------------
AIRLINES - 1.6%
374,800 Continental Airlines Finance Trust II, 6.00%, 2030 9,206,025
-----------------------------------------------------------------------------------
ALUMINUM, STEEL AND OTHER METALS - 3.4%
3,500 Freeport-McMoRan Copper & Gold, Inc., Ser. B, 5.50% 8,619,625
70,000 Freeport-McMoRan Copper & Gold, Inc., 6.75%, 2010 11,405,800
-----------------------------------------------------------------------------------
20,025,425
-----------------------------------------------------------------------------------
AUTOMOTIVE - 1.5%
230,876 Ford Motor Co. Capital Trust II, 6.50%, 2032 8,507,781
-----------------------------------------------------------------------------------
BANKING AND FINANCE - 4.6%
6,750 Bank of America Corp., Ser. L, 7.25%, 2049 7,411,500
402,200 New York Community Capital Trust V, 6.00%, 2051 19,607,250
-----------------------------------------------------------------------------------
27,018,750
-----------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 3.4%
19,900 Lucent Technologies Capital Trust I, 7.75%, 2017 15,124,000
437,767 Merrill Lynch & Co., Inc., Ser. Motorola, 18.70%,
2008 (a)(c) 4,806,682
-----------------------------------------------------------------------------------
19,930,682
-----------------------------------------------------------------------------------
COMPUTERS - SOFTWARE AND PERIPHERALS - 0.9%
260,010 Merrill Lynch & Co., Inc., Ser. Dell, Inc., 14.85%,
2008 (a)(c) 5,007,792
-----------------------------------------------------------------------------------
DIVERSIFIED METALS AND MINING - 2.5%
200,000 Vale Capital Ltd., Ser RIO, 5.50%, 2010 (Brazil) (c) 14,650,000
-----------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT AND COMPONENTS- 1.7%
445,820 Wachovia Bank NA, Ser. Intel Corp., 8.00%, 2008 (a)(c) 10,157,028
-----------------------------------------------------------------------------------
FINANCIAL SERVICES - 7.0%
60,000 AMG Capital Trust II, 5.15%, 2037 (a) 2,400,000
65,000 Affiliated Managers Group, Inc., 5.10%, 2036 2,831,563
250,000 Affiliated Managers Group, Inc., 5.10%, 2036 (a) 10,890,625
61,000 Citigroup, Inc., Ser. T, 6.50%, 2015 3,181,150
199 Fannie Mae, 5.375%, 2008 (d) 14,129,050
100,000 Lazard Ltd., 6.625%, 2008 (Bermuda) 3,243,000
4,500 SLM Corp., Ser. C, 7.25%, 2010 4,316,625
-----------------------------------------------------------------------------------
40,992,013
-----------------------------------------------------------------------------------
HEALTH CARE PRODUCTS AND SERVICES - 1.6%
7,000 HealthSouth Corp, 6.50% (a) 5,794,250
108,865 Lehman Brothers Holdings, Inc., Ser. Unitedhealth Group,
Inc., 3.00%, 2008 (c) 3,575,126
-----------------------------------------------------------------------------------
9,369,376
-----------------------------------------------------------------------------------
INSURANCE - 7.6%
12,000 Alleghany Corp., 5.75%, 2009 3,872,774
70,000 Aspen Insurance Holdings, Ltd., Ser. AHL, 5.625% (Bermuda) 3,433,500
136,000 Citigroup Funding, Inc., Ser. Genworth Financial, Inc.,
5.807%, 2008 (b)(c) 3,259,920
537,003 MetLife, Inc., Ser. B, 6.375%, 2008 (e) 15,863,069
100,000 Platinum Underwriters Holdings, Ltd., 6.00%, 2009 (Bermuda) 3,174,000
70,000 Reinsurance Group of America, Equity Security Unit,
5.75%, 2051 4,834,375
700,000 XL Capital Ltd., 7.00%, 2009 (Cayman Islands) (e) 9,849,000
-----------------------------------------------------------------------------------
44,286,638
-----------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
-----------------------------------------------------------------------------------
MISCELLANEOUS CONSUMER DISCRETIONARY - 1.1%
136,379 Avery Dennison Corp., 7.875%, 2010 $ 6,514,825
-----------------------------------------------------------------------------------
OIL AND GAS - 0.5%
24,375 Chesapeake Energy Corp., 4.50%, 2049 3,138,281
-----------------------------------------------------------------------------------
PHARMACEUTICALS - 5.3%
18,000 Mylan, Inc., 6.50%, 2010 16,778,520
78,291 Schering-Plough Corp., 6.00%, 2010 14,133,874
-----------------------------------------------------------------------------------
30,912,394
-----------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 1.4%
450,000 HRPT Properties Trust, Ser. D, 6.50%, 2049 7,942,500
-----------------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.3%
128,095 Crown Castle International Corp., 6.25%, 2012 7,429,510
-----------------------------------------------------------------------------------
TRANSPORTATION - 2.5%
160,000 Bristow Group, Inc. 5.50%, 2009 10,521,600
2,500 Kansas City Southern, 5.125%, 2049 4,073,750
-----------------------------------------------------------------------------------
14,595,350
-----------------------------------------------------------------------------------
UTILITIES - GAS AND ELECTRIC - 5.5%
83,082 AES Trust VII, 6.00%, 2008 4,154,100
250,660 Entergy Corp., 7.625%, 2009 16,849,365
29,000 NRG Energy, Inc., 5.75%, 2009 10,927,563
-----------------------------------------------------------------------------------
31,931,028
-----------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS - 54.1%
(Cost $323,387,091) 315,602,198
-----------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------------------
CONVERTIBLE BONDS - 61.2%
AIRLINES - 1.9%
$4,000,000 AMR Corp., B-, 4.50%, 2/15/24 $ 3,755,000
9,500,000 JetBlue Airways Corp., CCC, 3.75%, 3/15/35 7,006,250
-----------------------------------------------------------------------------------
10,761,250
-----------------------------------------------------------------------------------
AUTOMOTIVE - 2.3%
18,750,000 General Motors Corp., Ser. B, B-, 5.25%, 3/06/32 13,222,500
-----------------------------------------------------------------------------------
BANKING AND FINANCE - 2.2%
2,900,000 Boston Private Financial Holdings, Inc., NR, 3.00%, 7/15/27 2,599,125
4,250,000 National City Corp., A, 4.00%, 2/01/11 3,607,188
7,000,000 PrivateBancorp, Inc., NR, 3.625%, 3/15/27 6,571,250
-----------------------------------------------------------------------------------
12,777,563
-----------------------------------------------------------------------------------
BIOTECHNOLOGY - 1.5%
8,000,000 Genzyme Corp., BBB+, 1.25%, 12/01/23 8,910,000
-----------------------------------------------------------------------------------
COMMERCIAL SERVICES - 2.1%
9,000,000 Quanta Services, Inc., BB, 3.75%, 4/30/26 12,273,750
-----------------------------------------------------------------------------------
COMPUTER SERVICES - 1.5%
9,000,000 Electronic Data Systems Corp., BBB-, 3.875%, 7/15/23 8,876,250
-----------------------------------------------------------------------------------
COMPUTERS - SOFTWARE AND PERIPHERALS - 4.5%
12,000,000 Novell, Inc., NR, 0.50%, 7/15/24 11,445,000
15,000,000 Red Hat, Inc., BB-, 0.50%, 1/15/24 15,018,750
-----------------------------------------------------------------------------------
26,463,750
-----------------------------------------------------------------------------------
DIVERSIFIED METALS AND MINING - 2.4%
11,250,000 Peabody Energy Corp., B, 4.75%, 12/15/41 13,950,000
-----------------------------------------------------------------------------------
See notes to financial statements.
Semiannual Report | April 30, 2008 | 3
AVK | Advent Claymore Convertible Securities and Income Fund |
PORTFOLIO OF INVESTMENTS (unaudited) continued
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT AND COMPONENTS - 4.8%
$8,000,000 Fairchild Semiconductor International, Inc., B+,
5.00%, 11/01/08 $ 7,980,000
10,000,000 Intel Corp., A-, 2.95%, 12/15/35 9,975,000
10,000,000 Vishay Intertechnology, Inc., B+, 3.625%, 8/01/23 10,000,000
-----------------------------------------------------------------------------------
27,955,000
-----------------------------------------------------------------------------------
FINANCIAL SERVICES - 0.7%
4,743,000 CompuCredit Corp., NR, 3.625%, 5/30/25 1,873,485
2,500,000 Countrywide Financial Corp., BB+, 0.00%, 4/15/37 (b) 2,325,000
-----------------------------------------------------------------------------------
4,198,485
-----------------------------------------------------------------------------------
HEALTH CARE PRODUCTS AND SERVICES - 8.7%
6,000,000 Advanced Medical Optics, Inc., B-, 1.375%, 7/01/25 5,025,000
15,500,000 Allergan, Inc., A, 1.50%, 4/01/26 17,146,875
9,000,000 Gilead Sciences, Inc., NR, 0.50%, 5/01/11 12,847,500
Medtronic, Inc., AA-
3,000,000 1.50%, 4/15/11 3,108,750
12,000,000 1.625%, 4/15/13 12,480,000
-----------------------------------------------------------------------------------
50,608,125
-----------------------------------------------------------------------------------
INSURANCE - 0.8%
5,000,000 Prudential Financial, Inc., A+, 0.50125%, 12/12/36 (b) 4,876,500
-----------------------------------------------------------------------------------
INTERNET - 0.9%
5,000,000 Amazon.com, Inc., B+, 4.75%, 2/01/09 5,481,250
-----------------------------------------------------------------------------------
LEISURE AND ENTERTAINMENT - 4.1%
3,000,000 Carnival Corp., A-, 2.00%, 4/15/21 (Panama) 3,292,500
21,000,000 International Game Technology, BBB, 2.60%, 12/15/36 20,658,750
-----------------------------------------------------------------------------------
23,951,250
-----------------------------------------------------------------------------------
OIL AND GAS- 2.0%
8,000,000 Chesapeake Energy Corp., BB, 2.75%, 11/15/35 11,750,000
-----------------------------------------------------------------------------------
PHARMACEUTICALS - 9.6%
7,000,000 Cubist Pharmaceuticals, Inc., NR, 2.25%, 6/15/13 (e) 6,527,500
4,000,000 Invitrogen Corp., NR, 3.25%, 6/15/25 4,615,000
12,500,000 Omnicare, Inc., B+, 3.25%, 12/15/35 8,703,125
13,000,000 Teva Pharmaceutical Finance Co. BV, Ser. D, BBB+,
1.75%, 2/01/26 (Israel) 14,852,500
22,000,000 Watson Pharmaceuticals, Inc., BB+, 1.75%, 3/15/23 21,450,000
-----------------------------------------------------------------------------------
56,148,125
-----------------------------------------------------------------------------------
PHOTO EQUIPMENT & SUPPLIES - 3.5%
21,000,000 Eastman Kodak Co., B, 3.375%, 10/15/33 20,370,000
-----------------------------------------------------------------------------------
TELECOMMUNICATIONS - 4.8%
5,000,000 Amdocs Ltd., BBB, 0.50%, 3/15/24 (Guernsey) 4,981,250
Level 3 Communications, Inc., CCC
4,000,000 6.00%, 9/15/09 3,760,000
2,000,000 6.00%, 3/15/10 1,710,000
NII Holdings, Inc., NR
10,000,000 3.125%, 6/15/12 (a) 8,400,000
10,500,000 3.125%, 6/15/12 8,820,000
-----------------------------------------------------------------------------------
27,671,250
-----------------------------------------------------------------------------------
TRANSPORTATION - 0.9%
2,000,000 Excel Maritime Carriers Ltd., NR, 1.875%, 10/15/27
(Liberia) (a) 1,675,000
3,789,000 YRC Worldwide, Inc., B+, 5.00%, 8/08/23 3,348,528
-----------------------------------------------------------------------------------
5,023,528
-----------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------------------
UTILITIES--GAS AND ELECTRIC - 0.9%
$5,000,000 Nabors Industries, Inc., BBB+, 0.94%, 5/15/11 $ 5,293,750
-----------------------------------------------------------------------------------
WASTE MANAGEMENT - 1.1%
6,900,000 Allied Waste Industries, Inc., B+, 4.25%, 4/15/34 6,399,750
-----------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS - 61.2%
(Cost $349,959,376) 356,962,076
-----------------------------------------------------------------------------------
CORPORATE BONDS - 21.3%
ADVERTISING - 0.3%
1,500,000 Interpublic Group of Cos., Inc., B+, 7.25%, 8/15/11 1,477,500
-----------------------------------------------------------------------------------
AUTO PARTS AND EQUIPMENT - 0.8%
4,500,000 Tenneco, Inc., B+, 8.125%, 11/15/15 (a) 4,635,000
-----------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.6%
4,175,000 U.S. Concrete, Inc., B, 8.375%, 4/01/14 3,402,625
-----------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.9%
5,166,000 Superior Essex Communications LLC/Essex Group, Inc., BB-,
9.00%, 4/15/12 5,127,255
-----------------------------------------------------------------------------------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT - 2.2%
2,000,000 Cablevision Systems Corp., B+, 8.00%, 4/15/12 2,000,000
2,900,000 EchoStar DBS Corp., BB-, 6.625%, 10/01/14 2,842,000
5,000,000 Mediacom LLC, B-, 9.50%, 1/15/13 4,887,500
3,000,000 Rainbow National Services LLC, BB, 8.75%, 9/01/12 (a) 3,101,250
-----------------------------------------------------------------------------------
12,830,750
-----------------------------------------------------------------------------------
COMPUTERS - SOFTWARE AND PERIPHERALS - 1.1%
6,000,000 SunGard Data Systems, Inc., B-, 10.25%, 8/15/15 6,405,000
-----------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS - 1.1%
6,000,000 Leucadia National Corp., BB+, 8.125%, 9/15/15 6,150,000
-----------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT AND COMPONENTS - 1.6%
7,684,000 Freescale Semiconductor, Inc., B-, 8.875%, 12/15/14 6,800,340
4,000,000 Spansion, LLC, B, 11.25%, 1/15/16 (a) 2,580,000
-----------------------------------------------------------------------------------
9,380,340
-----------------------------------------------------------------------------------
FINANCIAL SERVICES - 0.3%
2,000,000 JPMorgan Chase & Co., A, 7.90%, 04/29/49 2,043,986
-----------------------------------------------------------------------------------
FOOD, BEVERAGE AND TOBACCO - 0.3%
2,000,000 Vector Group Ltd., NR, 11.00%, 8/15/15 (a) 2,030,000
-----------------------------------------------------------------------------------
HEALTH CARE PRODUCTS AND SERVICES - 1.5%
2,500,000 Axcan Intermediate Holdings, Inc., B-, 12.75%, 3/01/16 (a) 2,458,500
6,100,000 Hanger Orthopedic Group, Inc., CCC+, 10.25%, 6/01/14 6,283,000
-----------------------------------------------------------------------------------
8,741,500
-----------------------------------------------------------------------------------
OFFICE EQUIPMENT - 0.6%
3,500,000 Xerox Capital Trust I, BB+, 8.00%, 2/01/27 3,500,662
-----------------------------------------------------------------------------------
OIL AND GAS - 1.3%
4,500,000 CCS, Inc., B- 11.00%, 11/15/15 (Canada) (a) 4,044,600
3,000,000 Williams Cos., Inc., BB+, 8.125%, 3/15/12 3,300,000
-----------------------------------------------------------------------------------
7,344,600
-----------------------------------------------------------------------------------
PACKAGING AND CONTAINERS - 0.9%
2,000,000 Jefferson Smurfit Corp., B-, 8.25%, 10/01/12 1,830,000
3,500,000 Smurfit-Stone Container Enterprises, Inc., B-,
8.375%, 7/01/12 3,220,000
-----------------------------------------------------------------------------------
5,050,000
-----------------------------------------------------------------------------------
See notes to financial statements.
4 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund |
PORTFOLIO OF INVESTMENTS (unaudited) continued
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------------------
PUBLISHING - 0.6%
Dex Media West, BB-
$1,000,000 8.50%, 8/15/10 $ 987,500
2,940,000 9.875%, 8/15/13 2,778,300
-----------------------------------------------------------------------------------
3,765,800
-----------------------------------------------------------------------------------
RETAIL - SPECIALTY STORES - 0.4%
2,500,000 Simmons Bedding Co., B, 7.875%, 1/15/14 2,218,625
-----------------------------------------------------------------------------------
TELECOMMUNICATIONS - 4.2%
5,000,000 Alamosa Delaware, Inc., BB, 8.50%, 1/31/12 4,638,265
4,500,000 Broadview Networks Holdings, Inc., CCC+, 11.375%, 9/01/12 4,320,000
7,673,000 Centennial Cellular Co., B, 10.125%, 6/15/13 8,037,467
5,000,000 Level 3 Financing, Inc., CCC+, 12.25%, 3/15/13 5,062,500
2,240,000 PanAmSat Corp., BB-, 9.00%, 8/15/14 2,270,800
-----------------------------------------------------------------------------------
24,329,032
-----------------------------------------------------------------------------------
TRANSPORTATION - 0.5%
3,500,000 USF Corp., B+, 8.50%, 4/15/10 3,220,000
-----------------------------------------------------------------------------------
TRAVEL SERVICES - 0.7%
4,500,000 Travelport LLC, B, 9.875%, 9/01/14 4,370,625
-----------------------------------------------------------------------------------
UTILITIES- GAS AND ELECTRIC- 1.4%
8,000,000 Texas Competitive Electric Holdings Co., LLC, CCC,
10.25%, 11/01/15 (a) 8,380,000
-----------------------------------------------------------------------------------
TOTAL CORPORATE BONDS - 21.3%
(Cost $125,854,719) 124,403,300
-----------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
-----------------------------------------------------------------------------------
COMMON STOCKS - 1.6%
OIL AND GAS - 1.6%
121,300 Enerplus Resources Fund - Income Trust (Canada) $ 5,435,676
141,468 Harvest Energy Trust - Income Trust (Canada) 3,138,114
20,000 Vermillion Energy Trust - Income Trust (Canada) 787,807
-----------------------------------------------------------------------------------
(Cost $9,425,461) 9,361,597
-----------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------------------
TERM LOANS (FUNDED) - 0.7%
$3,950,000 HCA, Inc., Term Loan B, 7.08%, 11/16/13, NR (b)
(Cost $3,994,716) $ 3,757,627
-----------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS - 138.9%
(Cost $812,621,363) 810,086,798
-----------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
-----------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.4%
MONEY MARKET FUND - 4.4%
25,926,681 Goldman Sachs Financial Prime Obligations
(Cost $25,926,681) $ 25,926,681
-----------------------------------------------------------------------------------
TOTAL INVESTMENTS - 143.3%
(Cost $838,548,044) 836,013,479
Other assets in excess of liabilities - 3.8% 22,202,421
Preferred Stock, at redemption value - (-47.1% of Net Assets
Applicable to Common Shareholders or
-32.9% of Total Investments) (275,000,000)
-----------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS - 100.0% $ 583,215,900
===================================================================================
LLC - Limited Liability Corp.
(a) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30,
2008, these securities amounted to 13.8% of net assets.
(b) Floating rate security. The rate shown is as of April 30, 2008.
(c) Synthetic Convertible - A synthetic convertible security is either a bond
or preferred security structured by an investment bank that provides
exposure to a specific company's common stock.
(d) Pursuant to a securities lending agreement, the Fund loaned all or a
portion of these securities having an aggregate fair value of approximately
$14.1 million and received as collateral readily marketable securities with
an aggregate fair value of approximately $14.4 million.
(e) All or portion of these securities have been physically segregated in
connection with swap agreements.
Ratings shown are per Standard & Poor's and are unaudited. Securities classified
as NR are not rated by Standard & Poor's.
All percentages shown in the Portfolio of Investments are based on Net Assets
Applicable to Common Shareholders unless otherwise noted.
See notes to financial statements.
Semiannual Report | April 30, 2008 | 5
AVK | Advent Claymore Convertible Securities and Income Fund
Statement of ASSETS AND LIABILITIES | APRIL 30, 2008 (unaudited)
ASSETS
Investments in securities, at value (cost $838,548,044) $836,013,479
Cash 5,333,795
Restricted cash 604,119
Foreign currency, at value (cost $40,387) 40,602
Receivable for securities sold 18,343,115
Interest receivable 5,542,622
Dividends receivable 2,721,504
Unrealized appreciation on forward currency exchange contracts 10,285
Other assets 10,948
--------------------------------------------------------------------------------------------------------------
Total assets 868,620,469
--------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for securities purchased 8,251,835
Net unrealized depreciation on swaps 1,162,766
Advisory fee payable 295,307
Dividends payable - preferred shares 256,446
Servicing fee payable 86,855
Accrued expenses and other liabilities 351,360
--------------------------------------------------------------------------------------------------------------
Total liabilities 10,404,569
--------------------------------------------------------------------------------------------------------------
PREFERRED STOCK, AT REDEMPTION VALUE
Auction Market Preferred Shares
$0.001 par value per share; 11,000 authorized, issued and outstanding at $25,000 per share
liquidation preference 275,000,000
--------------------------------------------------------------------------------------------------------------
$583,215,900
==============================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
COMPOSITION OF NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Common Stock, $0.001 par value per share; unlimited number of shares authorized,
23,531,322 shares issued and outstanding $ 23,531
Additional paid-in capital 557,964,956
Net unrealized depreciation on investments, swaps and foreign currency translation (3,640,426)
Accumulated net realized gain on investments, swaps and foreign currency transactions 34,040,486
Undistributed net investment income (5,172,647)
--------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shareholders $583,215,900
==============================================================================================================
NET ASSET VALUE APPLICABLE TO COMMON SHAREHOLDERS
(based on 23,531,322 common shares outstanding) $ 24.78
==============================================================================================================
See notes to financial statements.
6 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund
Statement of OPERATIONS | FOR THE SIX MONTHS ENDED APRIL 30, 2008 (unaudited)
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $87,341) $ 12,476,437
Interest 8,510,636
Securities lending income (net of foreign withholding tax credits of $8,817) 346,317
---------------------------------------------------------------------------------------------------------------
Total income $ 21,333,390
---------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory fee 2,336,443
Servicing agent fee 908,617
Preferred share maintenance 363,913
Professional fees 91,052
Printing 86,984
Trustees' fees and expenses 80,174
Fund accounting 79,241
Administration fee 70,617
Custodian 55,075
Insurance 39,925
ICI dues 15,383
NYSE listing fee 10,738
Transfer agent 9,744
Rating agency fee 5,662
Miscellaneous 7,656
---------------------------------------------------------------------------------------------------------------
Total expenses 4,161,224
Advisory and Servicing agent fees waived (865,349)
---------------------------------------------------------------------------------------------------------------
Net expenses 3,295,875
---------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 18,037,515
---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAPS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments 35,332,779
Swaps (54,239)
Foreign currency transactions 418,401
Net change in unrealized appreciation (depreciation) on:
Investments (100,053,992)
Swaps (813,149)
Foreign currency translation (66,976)
---------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS, SWAPS AND FOREIGN CURRENCY TRANSACTIONS (65,237,176)
---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM NET INVESTMENT INCOME AND REALIZED GAINS (6,633,866)
---------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS $ (53,833,527)
===============================================================================================================
See notes to financial statements.
Semiannual Report | April 30, 2008 | 7
AVK | Advent Claymore Convertible Securities and Income Fund
Statement of CHANGES IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
FOR THE SIX MONTHS FOR THE
ENDED APRIL 30, 2008 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2007
----------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS:
Net investment income $ 18,037,515 $ 45,710,140
Net realized gain on investments, swaps and foreign currency transactions 35,696,941 22,996,632
Net change in unrealized appreciation (depreciation) on investments,
swaps and foreign currency translation (100,934,117) 39,775,644
----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
From and in excess of net investment income (4,895,544) (12,201,859)
From net realized gains (1,738,322) (2,568,713)
----------------------------------------------------------------------------------------------------------------
(6,633,866) (14,770,572)
----------------------------------------------------------------------------------------------------------------
Net increase/decrease in net assets applicable to Common Shareholders
resulting from operations (53,833,527) 93,711,844
----------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From and in excess of net investment income (19,507,854) (48,853,828)
From net realized gains (7,748,476) (11,762,566)
----------------------------------------------------------------------------------------------------------------
Total dividends and distributions to common shareholders (27,256,330) (60,616,394)
----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Reinvestment of dividends -- 3,827,474
----------------------------------------------------------------------------------------------------------------
Total increase/decrease in net assets (81,089,857) 36,922,924
----------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Beginning of period 664,305,757 627,382,833
----------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment income/(loss)
of ($5,172,647) and $1,193,236 respectively) $583,215,900 $664,305,757
================================================================================================================
See notes to financial statements.
8 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund
Financial HIGHLIGHTS |
FOR THE PERIOD
FOR THE SIX APRIL 30,
MONTHS ENDED FOR THE FOR THE FOR THE FOR THE 2003(a)
PER SHARE OPERATING PERFORMANCE APRIL 30, YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
FOR A SHARE OF COMMON STOCK OUTSTANDING 2008 OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
THROUGHOUT THE PERIOD (UNAUDITED) 2007 2006 2005 2004 2003
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 28.23 $ 26.82 $ 25.69 $ 26.10 $ 26.14(b) $ 23.88(b)
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) 0.77 1.94 1.99 2.33 2.41 0.93
Net realized and unrealized gain/loss on investments,
swaps and foreign currency transactions (2.78) 2.68 2.28 0.10 0.08 2.28
DIVIDENDS TO PREFERRED SHAREHOLDERS:
From and in excess of net investment income
(common share equivalent basis) (0.21) (0.52) (0.56) (0.35) (0.15) (0.03)
From net realized gains (common share
equivalent basis) (0.07) (0.11) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total preferred distributions (common share
equivalent basis) (0.28) (0.63) (0.56) (0.35) (0.15) (0.03)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (2.29) 3.99 3.71 2.08 2.34 3.18
------------------------------------------------------------------------------------------------------------------------------------
COMMON AND PREFERRED SHARES' OFFERING EXPENSES CHARGED
TO PAID-IN-CAPITAL IN EXCESS OF PAR VALUE -- -- --* -- (0.05) (0.06)
------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From and in excess of net investment income (0.83) (2.08) (2.58) (2.49) (2.15) (0.86)
Net realized gain (0.33) (0.50) -- -- (0.18) --
------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
Common Shareholders (1.16) (2.58) (2.58) (2.49) (2.33) (0.86)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 24.78 $ 28.23 $ 26.82 $ 25.69 $ 26.10 $ 26.14
====================================================================================================================================
MARKET VALUE, END OF PERIOD $ 23.44 $ 25.15 $ 27.03 $ 23.62 $ 25.41 $ 24.95
====================================================================================================================================
TOTAL INVESTMENT RETURN (D)
Net asset value -8.12% 15.63% 15.15% 8.14% 8.93% 13.29%
Market value -2.03% 2.48% 26.86% 2.52% 11.44% 3.40%
RATIOS AND SUPPLEMENTAL DATA
Net assets, applicable to Common Shareholders,
end of period (thousands) $583,216 $664,306 $627,383 $599,998 $609,455 $610,415
Preferred shares, at redemption value ($25,000 per share
liquidation preference) (thousands) $275,000 $275,000 $275,000 $275,000 $275,000 $215,000
Preferred shares asset coverage per share $ 78,020 $ 85,391 $ 82,035 $ 79,545 $ 80,405 $ 95,978
RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES:
Net Expenses, after fee waiver 1.12%(e) 1.08% 1.12% 1.12% 1.05% 0.88%(e)
Net Expenses, before fee waiver 1.41%(e) 1.37% 1.41% 1.41% 1.33% 1.12%(e)
Net Investment Income, after fee waiver,
prior to effect of dividends to preferred shares 6.09%(e) 7.09% 7.62% 8.90% 9.07% 7.51%(e)
Net Investment Income, before fee waiver,
prior to effect of dividends to preferred shares 5.80%(e) 6.80% 7.33% 8.61% 8.79% 7.27%(e)
Net Investment Income, after fee waiver,
after effect of dividends to preferred shares 3.85%(e) 4.80% 5.49% 7.56% 8.49% 7.28%(e)
Net Investment Income, before fee waiver,
after effect of dividends to preferred shares 3.56%(e) 4.51% 5.20% 7.27% 8.21% 7.04%(e)
RATIOS TO AVERAGE MANAGED ASSETS: (F)
Net Expenses, after fee waiver 0.76%(e) 0.76% 0.77% 0.77% 0.75% 0.73%(e)
Net Expenses, before fee waiver 0.96%(e) 0.96% 0.97% 0.97% 0.95% 0.93%(e)
Net Investment Income, after fee waiver,
prior to effect of dividends to preferred shares 4.17%(e) 4.97% 5.26% 6.14% 6.44% 6.27%(e)
Net Investment Income, before fee waiver, prior
to effect of dividends to preferred shares 3.97%(e) 4.77% 5.06% 5.94% 6.24% 6.07%(e)
Portfolio turnover rate 33% 76% 81% 64% 112% 34%
* Represents less than $0.01.
(a) Commencement of operations.
(b) Before reimbursement of offering expenses charged to capital during the
period.
(c) Based on average shares outstanding during the period.
(d) Total investment return is calculated assuming a purchase of a common share
at the beginning of the period and a sale on the last day of the period
reported either at net asset value ("NAV") or market price per share.
Dividends and distributions are assumed to be reinvested at NAV for NAV
returns or the prices obtained under the Fund's Dividend Reinvestment Plan
for market value returns. Total investment return does not reflect
brokerage commissions. A return calculated for a period of less than one
year is not annualized.
(e) Annualized.
(f) Managed assets are equal to net assets applicable to Common Shareholders
plus outstanding leverage such as the liquidation value of preferred
shares.
See notes to financial statements.
Semiannual Report | April 30, 2008 | 9
AVK | Advent Claymore Convertible Securities and Income Fund
Notes to FINANCIAL STATEMENTS | (unaudited)
Note 1 - ORGANIZATION:
Advent Claymore Convertible Securities and Income Fund (the "Fund") was
organized as a Delaware statutory trust on February 19, 2003. The Fund is
registered as a diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended.
Note 2 - ACCOUNTING POLICIES:
The preparation of the financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from these estimates.
The following is a summary of significant accounting policies followed by the
Fund.
(A) VALUATION OF INVESTMENTS
Equity securities listed on an exchange are valued at the last reported sale
price on the primary exchange on which they are traded. Equity securities traded
on an exchange for which there are no transactions on a given day are valued at
the mean of the closing bid and asked prices. Securities traded on NASDAQ are
valued at the NASDAQ Official Closing Price. Equity securities not listed on a
securities exchange or NASDAQ are valued at the mean of the closing bid and
asked prices. Debt securities are valued by independent pricing services or
dealers using the mean of the closing bid and asked prices for such securities
or, if such prices are not available, at prices for securities of comparable
maturity, quality and type. For those securities where quotations or prices are
not available, valuations are determined in accordance with procedures
established in good faith by the Board of Trustees. Futures contracts are valued
using the settlement price established each day on the exchange on which they
are traded. Short-term securities with remaining maturities of 60 days or less
are valued at amortized cost, which approximates market value.
(B) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the trade date. Realized gains and
losses on investments are determined on the identified cost basis. Dividend
income is recorded on the ex-dividend date and interest income is recorded on an
accrual basis. Discounts or premiums on debt securities purchased are accreted
or amortized to interest income over the lives of the respective securities
using the effective interest method.
(C) CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies are translated into
U.S. dollars at the mean of the bid and asked price of respective exchange rates
on the last day of the period. Purchases and sales of investments denominated in
foreign currencies are translated at the exchange rate on the date of the
transaction.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Foreign exchange realized gain or loss resulting from the holding of a foreign
currency, expiration of a currency exchange contract, difference in exchange
rates between the trade date and settlement date of an investment purchased or
sold, and the difference between dividends or interest actually received
compared to the amount shown in a Fund's accounting records on the date of
receipt is shown as net realized gains or losses on foreign currency
transactions in the Fund's Statement of Operations.
Foreign exchange unrealized gain or loss on assets and liabilities, other than
investments, is shown as unrealized appreciation (depreciation) on foreign
currency translation in the Fund's Statement of Operations.
(D) SWAPS
A swap is an agreement to exchange the return generated by one instrument for
the return generated by another instrument. The Fund may enter into swap
agreements to manage its exposure to interest rates and/or credit risk or to
generate income. Interest rate swap agreements involve the exchange by the Fund
with another party of their respective commitments to pay or receive interest.
Total return swap agreements involve commitments to receive (and pay) interest
over a floating rate (LIBOR) based on a notional amount. To the extent the total
return of the security (price changes, interest paid/received, rebate earned on
collateral posted by the Fund) is positive, the Fund will receive a payment from
the counterparty (or if negative, make a payment to the counterparty). The swaps
are valued daily at current market value and any unrealized gain or loss is
included in the Statement of Assets and Liabilities. Gain or loss is realized on
the termination date of the swap and is equal to the difference between the
Fund's basis in the swap and the proceeds of the closing transaction, including
any fees. During the period that
l0 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund |
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
the swap agreement is open, the Fund may be subject to risk from the potential
inability of the counterparty to meet the terms of the agreement. The swaps
involve elements of both market and credit risk in excess of the amounts
reflected on the Statement of Assets and Liabilities.
Realized gain (loss) upon termination of swap contracts is recorded on the
Statement of Operations. Fluctuations in the value of swap contracts are
recorded as a component of net change in unrealized appreciation (depreciation)
of swap contracts. Net periodic payments received by the Fund are included as
part of realized gains (losses) and, in the case of accruals for periodic
payments, are included as part of unrealized appreciation (depreciation) on the
Statement of Operations.
(E) SECURITIES LENDING
The Fund may lend its securities to broker-dealers and financial institutions.
The loans are collateralized by cash or securities at least equal at all times
to the market value of the securities loaned. The Fund may bear the risk of
delay in recovery of, or loss of rights in, the securities loaned should the
borrower of the securities experience financial difficulty. The Fund receives
compensation for lending its securities in the form of fees or it retains a
portion of interest on the investment of any cash received as collateral. The
Fund also continues to receive interest and dividends on the securities loaned,
and any gain or loss in the market price of the securities loaned that may occur
during the term of the loan will be for the account of the Fund. During the six
months ended April 30, 2008, the Fund maintained a securities lending agreement
with Lehman Brothers acting as the counterparty. Pursuant to the lending
agreement, the Fund has the right to sell the security or terminate the loan at
any time upon proper notice to Lehman Brothers. The Fund does not have the right
to sell or repledge the collateral received from Lehman Brothers, except in the
case of default. As of April 30, 2008, the Fund loaned securities with a fair
value of approximately $14.1 million and received as collateral securities with
a fair value of approximately $14.4 million. The collateral received was in the
form of U.S. Treasury Bonds with maturities ranging from August 2020 to August
2028.
(F) CONCENTRATION OF RISK
It is the Fund's policy to invest a significant portion of its assets in
convertible securities. Although convertible securities do derive part of their
value from that of the securities into which they are convertible, they are not
considered derivative financial instruments. However, certain of the Fund's
investments include features which render them more sensitive to price changes
in their underlying securities. Consequently, this exposes the Fund to greater
downside risk than traditional convertible securities, but still less than that
of the underlying common stock.
(G) DISTRIBUTIONS TO SHAREHOLDERS
The Fund declares and pays monthly dividends to common shareholders. These
dividends consist of investment company taxable income, which generally includes
qualified dividend income, ordinary income and short-term capital gains. Any net
realized long-term gains are distributed annually to common shareholders.
Distributions to shareholders are recorded on the ex-dividend date. The amount
and timing of distributions are determined in accordance with federal income tax
regulations, which may differ from U.S. generally accepted accounting
principles.
Note 3 - INVESTMENT MANAGEMENT AGREEMENT, SERVICING AGREEMENT AND OTHER
AGREEMENTS:
Pursuant to the Investment Management Agreement (the "Agreement") between the
Fund and Advent Capital Management, LLC, the Fund's investment adviser (the
"Advisor"), the Advisor is responsible for the daily management for the Fund's
portfolio of investments, which includes buying and selling securities for the
Fund, as well as investment research. The Advisor will receive an annual fee
from the Fund based on the average value of the Fund's Managed Assets, which
includes the amount from the issuance of the Preferred Shares. In addition,
subject to the approval of the Fund's Board of Trustees, a pro rata portion of
the salaries, bonuses, health insurance, retirement benefits and similar
employment costs for the time spent on Fund operations (other than the provision
of services required under the Agreement) of all personnel employed by the
Advisor who devote substantial time to Fund operations may be reimbursed by the
Fund to the Advisor. For the six months ended April 30, 2008, the Advisor was
not reimbursed by the Fund for these items. The annual fee will be determined as
follows:
(a) If the average value of the Fund's Managed Assets (calculated monthly) is
greater than $250 million, the fee will be a maximum amount equal to 0.54%
of the average value of the Fund's Managed Assets. In addition, the Advisor
has agreed to waive receipt of a portion of the management fee or other
expenses of the Fund in the amount of 0.115% of the average value of the
Managed Assets for the first five years of the Fund's operations. Effective
May 1, 2008, the Advisor agreed to waive receipt of a portion of the
management fee or other expenses of the Fund in the amount of 0.065% of the
average value of the Managed Assets for an additional two years.
Semiannual Report | April 30, 2008 | l1
AVK | Advent Claymore Convertible Securities and Income Fund |
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
Pursuant to a Servicing Agreement between the Fund and Claymore Securities,
Inc., the Fund's servicing agent (the "Servicing Agent"), the Servicing Agent
will act as servicing agent to the Fund. The Servicing Agent will receive an
annual fee from the Fund, which will be based on the average value of the Fund's
Managed Assets. The fee will be determined as follows:
(a) If the average value of the Fund's Managed Assets (calculated monthly) is
greater than $250 million, the fee will be a maximum amount equal to 0.21%
of the average value of the Fund's Managed Assets. In addition, the
Servicing Agent has agreed to waive receipt of a portion of the servicing
fee of the Fund in the amount of 0.085% of the average value of the Managed
Assets for the first five years of the Fund's operations. Effective May 1,
2008, the Servicing Agent agreed to waive receipt of a portion of the
servicing fee of the Fund in the amount of 0.065% of the average value of
the Managed Assets for an additional two years.
The fee waivers of the Advisor and the Servicing Agent are contractual
commitments of more than one year and are not subject to recoupment.
The Bank of New York Mellon ("BNY") acts as the Fund's custodian, accounting
agent, administrator and transfer agent. As custodian, BNY is responsible for
the custody of the Fund's assets. As accounting agent and administrator, BNY is
responsible for maintaining the books and records of the Fund's securities and
cash. As transfer agent, BNY is responsible for performing transfer agency
services for the Fund.
Certain officers and trustees of the Fund are also officers and directors of the
Advisor or Servicing Agent. The Fund does not compensate its officers or
trustees who are officers of the aforementioned firms.
Note 4 - FEDERAL INCOME TAXES:
The Fund intends to comply with the requirements of Subchapter M of the Internal
Revenue Code of 1986, as amended, applicable to regulated investment companies.
Accordingly, no provision for U.S. federal income taxes is required. In
addition, by distributing substantially all of its ordinary income and long-term
capital gains, if any, during each calendar year, the Fund intends not to be
subject to U.S. federal excise tax.
At April 30, 2008, the cost and related gross unrealized appreciation and
depreciation on investments for tax purposes, excluding swap agreements are as
follows:
COST OF NET TAX NET TAX UNREALIZED
INVESTMENTS GROSS TAX GROSS TAX UNREALIZED DEPRECIATION
FOR TAX UNREALIZED UNREALIZED DEPRECIATION ON DERIVATIVES AND
PURPOSES APPRECIATION DEPRECIATION ON INVESTMENTS FOREIGN CURRENCY
------------------------------------------------------------------------------
$840,195,768 $49,866,056 $(54,048,345) $(4,182,289) $(1,146,027)
The differences between book basis and tax basis unrealized
appreciation/(depreciation) are attributable to the tax deferral of losses on
wash sales and income adjustments for tax purposes on certain convertible
securities and swaps.
For the year ended October 31, 2007, the tax character of distributions paid of
$53,996,821 was ordinary income, and $21,390,145 was long-term capital gain.
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Fund's tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the current year. Management
has evaluated the implication of FIN 48 and has determined it does not have any
impact on the financial statements as of April 30, 2008.
Tax years for 2004, 2005, 2006 and 2007 are still subject to examination by
major jurisdictions.
Note 5 - INVESTMENTS IN SECURITIES AND SWAPS:
For the six months ended April 30, 2008, purchases and sales of investments,
other than short-term securities, were $277,108,542 and $320,864,273,
respectively.
12 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund |
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
The Fund entered into total return and credit default swap agreements during the
six months ended April 30, 2008 to generate additional income. As of April 30,
2008, the Fund had swaps with a total notional value of $41,404,435 outstanding.
Details of the swap agreements outstanding as of April 30, 2008 were as follows:
TOTAL RETURN SWAP AGREEMENTS
NOTIONAL PAYING UNREALIZED
TERMINATION AMOUNT FLOATING APPRECIATION/
COUNTERPARTY UNDERLYING TERM LOANS DATE (000) RATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase & Co. Bausch & Lomb, US LIBOR+3.25%, due 04/26/15 07/01/2008 $3,377 3.43% $ (96,250)
JPMorgan Chase & Co. CCS International 07/01/2008 5,220 (a) -- --
JPMorgan Chase & Co. CVC Holdings, Inc., US LIBOR+1.75%, due 11/11/14 07/01/2008 2,358 3.43% (62,125)
JPMorgan Chase & Co. Celanese Holdings LLC, US LIBOR+1.75%, due 04/06/11 07/01/2008 1,911 3.43% (45,664)
JPMorgan Chase & Co. Community Health Systems, Inc., US LIBOR+2.25%, due 07/25/14 07/01/2008 2,198 3.43% (78,902)
JPMorgan Chase & Co. Energy Future Holdings, US LIBOR+3.50%, due 10/10/14 07/01/2008 5,226 3.43% (162,785)
JPMorgan Chase & Co. General Motors Corp., US LIBOR+2.75%, due 11/29/13 07/01/2008 1,846 3.43% (81,476)
JPMorgan Chase & Co. Hertz Corp., US LIBOR+1.75%, due 12/21/12 07/01/2008 2,375 3.43% (94,847)
JPMorgan Chase & Co. Idearc, Inc., US LIBOR+2.00%, due 11/17/14 07/01/2008 1,003 3.43% (180,688)
JPMorgan Chase & Co. Mac Gen LLC, US LIBOR+2.25%, due 02/22/12 07/01/2008 6,449 3.43% 20,750
JPMorgan Chase & Co. Mac Gen LLC, US LIBOR+7.50%, due 02/15/15 07/01/2008 3,095 3.43% 31,008
JPMorgan Chase & Co. Virgin Media Inc., GP LIBOR+1.75%, due 01/17/25 07/01/2008 4,630 5.88% 121,771
------------------------------------------------------------------------------------------------------------------------------------
$(629,208)
------------------------------------------------------------------------------------------------------------------------------------
CREDIT DEFAULT SWAP AGREEMENT
NOTIONAL PAYING UNREALIZED
BUY/SELL TERMINATION AMOUNT FLOATING APPRECIATION/
COUNTERPARTY UNDERLYING TERM LOANS PROTECTION DATE (000) RATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase & Co. AMR Corp. Sell 03/20/2013 1,716 8.80% $ (533,558)
------------------------------------------------------------------------------------------------------------------------
$(1,162,766)
------------------------------------------------------------------------------------------------------------------------
(a) Not settled as of April 30, 2008.
For each swap noted, the Fund pays a floating rate and receives the total return
of the underlying asset. The market value of the swaps outstanding reflects the
current receivable and payable for the floating rate and fixed rate, which may
have different payment dates.
Note 6 - DERIVATIVES:
At April 30, 2008, the following forward exchange currency contracts were
outstanding:
SHORT CONTRACTS LOCAL CURRENCY VALUE UNREALIZED APPRECIATION (US$)
-------------------------------------------------------------------------------------------------
Canadian Dollar, 526,087 expiring 5/02/08 $ 522,387 $ 10,285
-------------------------------------------------------------------------------------------------
Note 7 - CAPITAL:
COMMON SHARES
The Fund has an unlimited amount of common shares, $0.001 par value, authorized
and 23,531,322 issued and outstanding. In connection with the Fund's dividend
reinvestment plan, the Fund issued 0 shares during the six months ended April
30, 2008, and 141,118 shares during the year ended October 31, 2007. At April
30, 2008, Advent Capital Management LLC, the Fund's investment adviser, owned
6,583 shares of the Fund.
PREFERRED SHARES
On June 19, 2003, the Fund's Board of Trustees authorized the issuance of
Auction Market Preferred Shares ("AMPS"), as part of the Fund's leverage
strategy. AMPS issued by the Fund have seniority over the common shares.
On July 24, 2003, the Fund issued 2,150 shares of Series M7, 2,150 shares of
Series T28, 2,150 shares of Series W7 and 2,150 shares of Series TH28, each with
a liquidation value of $25,000 per share plus accrued dividends. In addition, on
March 16, 2004, the Fund issued 1,200 shares of Series F7 and 1,200 shares of
Series W28 each with a liquidation value of $25,000 per share plus accrued
dividends.
Semiannual Report | April 30, 2008 | l3
AVK | Advent Claymore Convertible Securities and Income Fund |
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
Dividends are accumulated daily at a rate set through an auction process.
Beginning February 13, 2008, the auction process resulted in a failed auction.
Provisions in the offering documents of the Fund's AMPS provide a mechanism to
set a maximum rate in the event of a failed auction, and thus, investors in the
Fund's AMPS will continue to be entitled to receive payment for holding these
AMPS. This maximum rate is determined based upon a multiple of or a spread to
LIBOR, whichever is greater. Distributions of net realized capital gains, if
any, are made annually.
For the six months ended April 30, 2008, the annualized dividend rates ranged
from:
HIGH LOW AT APRIL 30, 2008
-------------------------------------------------------------------------------
Series M7 5.75% 3.85% 4.01%
Series T28 6.19% 3.97% 3.97%
Series W7 5.60% 3.94% 4.08%
Series W28 5.65% 3.93% 4.15%
Series TH28 5.75% 3.95% 4.14%
Series F7 5.60% 4.00% 4.04%
The Fund is subject to certain limitations and restrictions while Preferred
Shares are outstanding. Failure to comply with these limitations and
restrictions could preclude the Fund from declaring any dividends or
distributions to common shareholders or repurchasing common shares and/or could
trigger the mandatory redemption of Preferred Shares at their liquidation value.
Preferred Shares, which are entitled to one vote per share, generally vote with
the common stock but vote separately as a class to elect two Trustees and on any
matters affecting the rights of the Preferred Shares.
Note 8 - INDEMNIFICATIONS:
In the normal course of business, the Fund enters into contracts that contain a
variety of representations, which provide general indemnifications. The Fund's
maximum exposure under these arrangements is unknown, as this would involve
future claims that may be made against the Fund that have not yet occurred.
However, the Fund expects the risk of loss to be remote.
Note 9 - SUBSEQUENT EVENT:
Subsequent to April 30, 2008, the Fund declared on May 1, 2008 and June 2, 2008,
monthly dividends to common shareholders of $0.1718 per common share. These
dividends are payable on May 30, 2008 and June 30, 2008 to shareholders of
record on May 15, 2008 and June 13, 2008 respectively.
On March 11, 2008, the Board of Trustees approved Claymore Advisors, LLC to
replace BNY as the Fund Administration Agent effective May 1, 2008.
Note 10 - ACCOUNTING PRONOUNCEMENTS:
In September 2006, the FASB released Statement of Financial Accounting Standards
No. 157, "Fair Value Measurements" ("FAS 157"). This standard clarifies the
definition of fair value for financial reporting, establishes a framework for
measuring fair value and requires additional disclosures about the use of fair
value measurements. FAS 157 is effective for financial statements issued for
fiscal years beginning after November 15, 2007 and interim periods within those
fiscal years. As of April 30, 2008, the Fund does not believe the adoption of
FAS 157 will impact the amounts reported in the financial statements, however,
additional disclosure will be required about the inputs used to develop
measurements of fair value and the effect of certain of the measurements
reported in the statement of operations for a fiscal period.
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivatives instruments and related hedge fund
items are accounted for, and c) how derivative instruments and related hedge
items affect a fund's financial position, results of operations and cash flows.
SFAS No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of April 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
l4 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund
Supplemental INFORMATION | (unaudited)
FEDERAL INCOME TAX INFORMATION
In January 2009, you will be advised on IRS Form 1099 DIV or substitute 1099 DIV
as to the federal tax status of the distributions received by you in the
calendar year 2008.
TRUSTEES
The Trustees of the Advent Claymore Convertible Securities and Income Fund and
their principal occupations during the past five years:
NUMBER OF FUNDS
IN FUND
NAME, ADDRESS, YEAR TERM OF OFFICE* PRINCIPAL OCCUPATIONS DURING COMPLEX** OTHER
OF BIRTH AND POSITION(S) AND LENGTH OF THE PAST FIVE YEARS AND OVERSEEN BY DIRECTORSHIPS
HELD WITH REGISTRANT TIME SERVED OTHER AFFILIATIONS TRUSTEE HELD BY TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
------------------------------------------------------------------------------------------------------------------------------------
Daniel Black+ Since 2005 Partner, the Wicks Group of Cos., LLC (2003-present). 3 Director of
Year of birth: 1960 Formerly, Managing Director and Co-head of the Merchant Penn Foster
Trustee Banking Group at BNY Capital Markets, a division of The Education
Bank of New York Co., Inc. (1998-2003). Group, Inc.
------------------------------------------------------------------------------------------------------------------------------------
Randall C. Barnes++ Since 2005 Investor (2001-present). Formerly, Senior Vice 41 None.
Year of birth: 1951 President, Treasurer (1993-1997), President, Pizza Hut
Trustee International (1991-1993) and Senior Vice President,
Strategic Planning and New Business Development
(1987-1990) of PepsiCo, Inc. (1987-1997).
------------------------------------------------------------------------------------------------------------------------------------
Derek Medina+ Since 2003 Senior Vice President, Business Affairs at ABC News 3 Director of
Year of birth: 1966 (2008-present). Vice President, Business Affairs and Young Scholar's
Trustee News Planning at ABC News (2003-2008). Formerly, Institute.
Executive Director, Office of the President at ABC News
(2000-2003). Former Associate at Cleary Gottlieb
Steen & Hamilton (law firm) (1995-1998). Former
associate in Corporate Finance at J.P. Morgan/Morgan
Guaranty (1988-1990).
------------------------------------------------------------------------------------------------------------------------------------
Ronald A. Nyberg++ Since 2003 Partner of Nyberg & Cassioppi, LLC., a law firm 44 None.
Year of birth: 1953 specializing in corporate law, estate planning and
Trustee business transactions (2000-present). Formerly,
Executive Vice President, General Counsel and Corporate
Secretary of Van Kampen Investments (1982-1999).
------------------------------------------------------------------------------------------------------------------------------------
Gerald L. Seizert, CFP+ Since 2003 Chief Executive Officer of Seizert Capital Partners, 3 Former
Year of birth: 1952 LLC, where he directs the equity disciplines of the Director
Trustee firm and serves as a co-manager of the firmhedge fund, of Loomis,
Proper Associates, LLC (2000-present). Formerly, Sayles and
Co-Chief Executive (1998-1999) and a Managing Partner Co., L.P.
and Chief Investment Officer-Equities of Munder Capital
Management, LLC (1995-1999). Former Vice President and
Portfolio Manager of Loomis, Sayles & Co., L.P.
(asset manager) (1984-1995). Former Vice President and
Portfolio Manager at First of America Bank (1978-1984).
------------------------------------------------------------------------------------------------------------------------------------
Michael A. Smart+ Since 2003 Managing Partner, Cordova, Smart & Williams, LLC, 3 Director,
Year of birth: 1960 Advisor First Atlantic Capital Ltd., (2001-present). Country Pure
Trustee Formerly, a Managing Director in Investment Banking-The Foods.
Private Equity Group (1995-2001) and a Vice President Chairman,
in Investment Banking-Corporate Finance (1992-1995) at Board of
Merrill Lynch & Co. Founding Partner of The Carpediem Directors,
Group, (1991-1992). Associate at Dillon, Read and Co. Berkshire
(investment bank) (1988-1990). Blanket, Inc.
President and
Chairman, Board
of Directors,
Sqwincher
Holdings.
Director,
Sprint
Industrial
Holdings.
Co-chairman,
Board of
Directors,
H2O Plus.
------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES:
------------------------------------------------------------------------------------------------------------------------------------
Tracy V. Maitland+0 Since 2003 President of Advent Capital Management, LLC, which he 3 None.
Year of birth: 1960 founded in 1995. Prior to June, 2001, President of
Trustee, President and Advent Capital Management, a division of Utendahl
Chief Executive Officer Capital.
------------------------------------------------------------------------------------------------------------------------------------
Nicholas Dalmaso++00 Since 2003 Formerly, Senior Managing Director and Chief 44 None.
Year of Birth: 1965 Administrative Officer (2007-2008) and General
Trustee Counsel (2001-2007) of Claymore Advisors, LLC and
Claymore Securities, Inc. Formerly, Assistant General
Counsel, John Nuveen and Company Inc. (1999-2000).
Former Vice President and Associate General Counsel of
Van Kampen Investments, Inc. (1992-1999).
------------------------------------------------------------------------------------------------------------------------------------
+ Address for all Trustees noted: 1065 Avenue of the Americas, 31st Floor,
New York, NY 10018.
++ Address for all Trustees noted: 2455 Corporate West Drive, Lisle, IL 60532.
* After a Trustee's initial term, each Trustee is expected to serve a
three-year term concurrent with the class of Trustees for which he serves:
- Messrs. Seizert, Medina and Barnes, as Class I Trustees, are expected
to stand for re-election at the Fund's 2010 annual meeting of
shareholders.
- Messrs. Smart, Nyberg and Black, as Class II Trustees, are expected to
stand for re-election at the Fund's 2008 annual meeting of
shareholders.
- Messrs. Maitland and Dalmaso, as a Class III Trustees, are expected to
stand for re-election at the Fund's 2009 annual meeting of
shareholders.
** The Claymore Fund Complex consists of U.S. registered investment companies
advised or serviced by Claymore Advisors, LLC or Claymore Securities, Inc.
The Claymore Fund Complex is overseen by multiple Boards of Trustees.
0 Mr. Maitland is an "interested person" (as defined in section 2(a)(19) of
the 1940 Act) of the Fund because of his position as an officer of Advent
Capital Management, LLC, the Fund's Advisor.
00 Mr. Dalmaso is an "interested person" (as defined in section 2(a)(19) of
the 1940 Act) of the Fund as a result of his position as an officer
(through May 13, 2008) of and his equity ownership in the Fund's Servicing
Agent and certain of its affiliates.
Semiannual Report | April 30, 2008 | 15
AVK | Advent Claymore Convertible Securities and Income Fund |
SUPPLEMENTAL INFORMATION (unaudited) continued
OFFICERS
The Officers of the Advent Claymore Convertible Securities and Income Fund and
their principal occupations during the past five years:
NAME, ADDRESS*, YEAR OF BIRTH AND TERM OF OFFICE** AND PRINCIPAL OCCUPATION DURING THE PAST FIVE YEARS
POSITION(S) HELD WITH REGISTRANT LENGTH OF TIME SERVED AND OTHER AFFILIATIONS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS:
------------------------------------------------------------------------------------------------------------------------------------
F. Barry Nelson Since 2003 Co-Portfolio Manager at Advent Capital Management, LLC (June 2001-
at Year of birth: 1943 present). Prior to June 2001, Mr. Nelson held the same position Advent
Vice President and Capital Management, a division of Utendahl Capital.
Assistant Secretary
------------------------------------------------------------------------------------------------------------------------------------
Robert White Since 2005 Chief Financial Officer, Advent Capital Management, LLC (July 2005-
Year of birth: 1965 present). Previously, Vice President, Client Service Manager, Goldman
Treasurer and Sachs Prime Brokerage (1997-2005).
Chief Financial Officer
------------------------------------------------------------------------------------------------------------------------------------
Rodd Baxter Since 2003 General Counsel, Advent Capital Management, LLC (2002-present).
Year of birth: 1950 Formerly, Director and Senior Counsel, SG Cowen Securities Corp.
Secretary and (1998-2002).
Chief Compliance Officer
------------------------------------------------------------------------------------------------------------------------------------
* Address for all Officers: 1065 Avenue of the Americas, 31st Floor, New
York, NY 10018
** Officers serve at the pleasure of the Board of Trustees and until his or
her successor is appointed and qualified or until his or her earlier
resignation or removal.
l6 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund
Dividend Reinvestment PLAN | (unaudited)
Unless the registered owner of common shares elects to receive cash by
contacting the Plan Administrator, all dividends declared on common shares of
the Fund will be automatically reinvested by The Bank of New York Mellon (the
"Plan Administrator"), Administrator for shareholders in the Fund's Dividend
Reinvestment Plan (the "Plan"), in additional common shares of the Fund.
Participation in the Plan is completely voluntary and may be terminated or
resumed at any time without penalty by notice if received and processed by the
Plan Administrator prior to the dividend record date; otherwise such termination
or resumption will be effective with respect to any subsequently declared
dividend or other distribution. Some brokers may automatically elect to receive
cash on your behalf and may re-invest that cash in additional common shares of
the Fund for you. If you wish for all dividends declared on your common shares
of the Fund to be automatically reinvested pursuant to the Plan, please contact
your broker.
The Plan Administrator will open an account for each common shareholder under
the Plan in the same name in which such common shareholder's common shares are
registered. Whenever the Fund declares a dividend or other distribution
(together, a "Dividend") payable in cash, non-participants in the Plan will
receive cash and participants in the Plan will receive the equivalent in common
shares. The common shares will be acquired by the Plan Administrator for the
participants' accounts, depending upon the circumstances described below, either
(i) through receipt of additional unissued but authorized common shares from the
Fund ("Newly Issued Common Shares") or (ii) by purchase of outstanding common
shares on the open market ("Open-Market Purchases") on the New York Stock
Exchange or elsewhere. If, on the payment date for any Dividend, the closing
market price plus estimated brokerage commission per common share is equal to or
greater than the net asset value per common share, the Plan Administrator will
invest the Dividend amount in Newly Issued Common Shares on behalf of the
participants. The number of Newly Issued Common Shares to be credited to each
participant's account will be determined by dividing the dollar amount of the
Dividend by the net asset value per common share on the payment date; provided
that, if the net asset value is less than or equal to 95% of the closing market
value on the payment date, the dollar amount of the Dividend will be divided by
95% of the closing market price per common share on the payment date. If, on the
payment date for any Dividend, the net asset value per common share is greater
than the closing market value plus estimated brokerage commission, the Plan
Administrator will invest the Dividend amount in common shares acquired on
behalf of the participants in Open-Market Purchases.
If, before the Plan Administrator has completed its Open-Market Purchases, the
market price per common share exceeds the net asset value per common share, the
average per common share purchase price paid by the Plan Administrator may
exceed the net asset value of the common shares, resulting in the acquisition of
fewer common shares than if the Dividend had been paid in Newly Issued Common
Shares on the Dividend payment date. Because of the foregoing difficulty with
respect to Open-Market Purchases, the Plan provides that if the Plan
Administrator is unable to invest the full Dividend amount in Open-Market
Purchases during the purchase period or if the market discount shifts to a
market premium during the purchase period, the Plan Administrator may cease
making Open-Market Purchases and may invest the uninvested portion of the
Dividend amount in Newly Issued Common Shares at net asset value per common
share at the close of business on the Last Purchase Date provided that, if the
net asset value is less than or equal to 95% of the then current market price
per common share; the dollar amount of the Dividend will be divided by 95% of
the market price on the payment date.
The Plan Administrator maintains all shareholders' accounts in the Plan and
furnishes written confirmation of all transactions in the accounts, including
information needed by shareholders for tax records. Common shares in the account
of each Plan participant will be held by the Plan Administrator on behalf of the
Plan participant, and each shareholder proxy will include those shares purchased
or received pursuant to the Plan. The Plan Administrator will forward all proxy
solicitation materials to participants and vote proxies for shares held under
the Plan in accordance with the instruction of the participants.
There will be no brokerage charges with respect to common shares issued directly
by the Fund. However, each participant will pay a pro rata share of brokerage
commission incurred in connection with Open-Market Purchases. The automatic
reinvestment of Dividends will not relieve participants of any Federal, state or
local income tax that may be payable (or required to be withheld) on such
Dividends.
The Fund reserves the right to amend or terminate the Plan. There is no direct
service charge to participants with regard to purchases in the Plan; however,
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants.
All correspondence or questions concerning the Plan should be directed to the
Plan Administrator, The Bank of New York Mellon, Attention: Stock Transfer
Department, 101 Barclay 11E, New York, NY 10286, Phone Number: (866) 488-3559.
Semiannual Report | April 30, 2008 | 17
AVK | Advent Claymore Convertible Securities and Income Fund
Investment Management
AGREEMENT CONTRACT RE-APPROVAL | (unaudited)
Section 15(c) of the Investment Company Act of 1940, as amended (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Advent Claymore
Convertible Securities and Income Fund (the "Fund"), including a majority of the
Trustees who have no direct or indirect interest in the investment management
agreement and are not "interested persons" of the Fund, as defined in the 1940
Act (the "Independent Trustees"), are required to annually review and re-approve
the terms of the Fund's existing investment advisory agreement and approve any
newly proposed terms therein. In this regard, the Board reviewed and
re-approved, during the most recent six month period covered by this report, the
investment management agreement (the "Management Agreement") with Advent Capital
Management, LLC ("Advent") for the Fund.
More specifically, at a meeting held on March 11, 2008, the Board, including the
Independent Trustees advised by their independent legal counsel, considered the
factors and reached the conclusions described below relating to the selection of
Advent and the re-approval of the Advisory Agreement.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board received and considered various data and information regarding the
nature, extent and quality of services provided to the Fund by Advent under the
Investment Management Agreement. The Board reviewed and analyzed the responses
of Advent to a detailed series of requests submitted by the Independent
Trustees' independent legal counsel on behalf of such Trustees which included,
among other things, information about the background and experience of the
senior management and the expertise of, and amount of attention devoted to the
Funds by, personnel of Advent. In this regard, the Board specifically reviewed
the qualifications, background and responsibilities of the officers primarily
responsible for day-to-day portfolio management services for the Fund.
The Board evaluated the ability of Advent, including its resources, reputation
and other attributes, to attract and retain highly qualified investment
professionals, including research, advisory and supervisory personnel. In this
connection, the Board considered information regarding the compensation
structures for the personnel of Advent involved in the management of the Fund.
Based on the above factors, together with those referenced below, the Board
concluded that it was satisfied with the nature, extent and quality of the
investment management services provided to the Fund by Advent.
FUND PERFORMANCE AND EXPENSES
The Board considered the most recent one year, three-month and year-to-date
performance results for the Fund. They also considered these results in
comparison to the performance results of a group of other closed-end funds that
were determined to be the most similar to the Fund (a "Peer Group").
The Board received and considered statistical information regarding the Fund's
total expense ratio (based on net assets applicable to common shares) and its
various components. It also considered comparisons of these expenses to the
expense information for the Fund's Peer Group.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance and expense results supported the
re-approval of the Investment Management Agreement.
INVESTMENT MANAGEMENT FEE RATES
The Board reviewed and considered the contractual investment management fee rate
for the Fund ("Management Agreement Rate") payable by the Fund to Advent for
investment management services. In addition, the Board reviewed and considered
all fee waiver arrangements applicable to the Management Agreement Rate and
considered the Management Agreement Rate after taking all applicable waivers
into account (the "Net Management Rate").
Additionally, the Board received and considered information comparing the
Management Agreement Rate (on a stand-alone basis exclusive of service
fee/administrative fee rates) with those of the other funds in the Peer Group.
The Board concluded that the fees were fair and equitable based on relevant
factors, including the Fund's performance results and total expenses ranking
relative to its Peer Group.
PROFITABILITY
The Board received and considered an estimated profitability analysis of Advent
based on the Net Management Rate. The Board concluded that, in light of the
costs of providing investment management services to the Fund, the profits and
other ancillary benefits that Advent received with regard to providing these
services to the Fund were not unreasonable.
ECONOMIES OF SCALE
The Board received and considered information regarding whether there have been
economies of scale with respect to the management of the Fund, whether the Fund
has appropriately benefited from any economies of scale, and whether there is
potential for realization of any further economies of scale. The Board concluded
that the opportunity to benefit from economies of scale was diminished in the
context of closed-end funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
The Board also received and considered information about the nature, extent and
quality of services and fee rates offered by Advent to its other clients.
After considering the above-described factors and based on the deliberations and
its evaluation of the information provided to them, the Board concluded that
re-approval of the Investment Management Agreement was in the best interest of
the Fund and its shareholders. Accordingly, the Board unanimously re-approved
the Management Agreement.
18 | Semiannual Report | April 30, 2008
AVK | Advent Claymore Convertible Securities and Income Fund
Fund INFORMATION |
BOARD OF TRUSTEES
Randall C. Barnes
Daniel Black
Nicholas Dalmaso*
Tracy V. Maitland**
Chairman
Derek Medina
Ronald A. Nyberg
Gerald L. Seizert
Michael A. Smart
* Trustee is an "interested person" of the Fund as defined in the Investment
Company Act of 1940, as amended, as a result of his position as an officer
(through May 13, 2008) of and his equity ownership in the Servicing Agent
and certain of its affiliates.
** Trustee is an "interested person" of the Fund as defined in the Investment
Company Act of 1940, as amended.
OFFICERS
Tracy V. Maitland
President and Chief Executive Officer
F. Barry Nelson
Vice President and Assistant Secretary
Robert White
Treasurer and Chief Financial Officer
Rodd Baxter
Secretary and Chief Compliance Officer
INVESTMENT MANAGER
Advent Capital Management, LLC
New York, New York
SERVICING AGENT
Claymore Securities, Inc.
Lisle, Illinois
ADMINISTRATOR (THROUGH
APRIL 30, 2008), CUSTODIAN
AND TRANSFER AGENT
The Bank of New York Mellon
New York, New York
ADMINISTRATOR (EFFECTIVE MAY 1, 2008)
Claymore Advisors, LLC
Lisle, Illinois
PREFERRED STOCK-
DIVIDEND PAYING AGENT
The Bank of New York Mellon
New York, New York
LEGAL COUNSEL
Skadden, Arps, Slate,
Meagher & Flom LLP
New York, New York
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
New York, New York
PRIVACY PRINCIPLES OF THE FUND
The Fund is committed to maintaining the privacy of its shareholders and to
safeguarding their non-public personal information. The following information is
provided to help you understand what personal information the Fund collects, how
the Fund protects that information and why, in certain cases, the Fund may share
information with select other parties.
Generally, the Fund does not receive any non-public personal information
relating to its shareholders, although certain non-public personal information
of its shareholders may become available to the Fund. The Fund does not disclose
any non-public personal information about its shareholders or former
shareholders to anyone, except as permitted by law or as is necessary in order
to service shareholder accounts (for example, to a transfer agent or third party
administrator).
The Fund restricts access to non-public personal information about its
shareholders to employees of the Fund's investment advisor and its affiliates
with a legitimate business need for the information. The Fund maintains
physical, electronic and procedural safeguards designed to protect the
non-public personal information of its shareholders.
QUESTIONS CONCERNING YOUR SHARES OF ADVENT CLAYMORE CONVERTIBLE SECURITIES AND
INCOME FUND?
o If your shares are held in a Brokerage Account, contact your Broker.
o If you have physical possession of your shares in certificate form,
contact the Fund's Custodian and Transfer Agent: The Bank of New York
Mellon, 101 Barclay 11E, New York, NY 10286; (866) 488-3559.
This report is sent to shareholders of Advent Claymore Convertible Securities
and Income Fund for their information. It is not a Prospectus, circular or
representation intended for use in the purchase or sale of shares of the Fund or
of any securities mentioned in this report.
A description of the Fund's proxy voting policies and procedures related to
portfolio securities is available without charge, upon request, by calling the
Fund at (866) 274-2227.
Information regarding how the Fund voted proxies for portfolio securities, if
applicable, during the most recent 12-month period ended June 30, is also
available, without charge and upon request by calling the Fund at (866) 274-2227
or by accessing the Fund's Form N-PX on the U.S. Securities & Exchange
Commission's ("SEC") website at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Form N-Q is
available on the SEC website at http://www.sec.gov. The Fund's Form N-Q may also
be viewed and copied at the SEC's Public Reference Room in Washington, DC;
information on the operation of the Public Reference Room may be obtained by
calling (800) SEC-0330 or at http://www.sec.gov.
In October 2007, the Fund submitted a CEO annual certification to the New York
Stock Exchange ("NYSE") in which the Fund's principal executive officer
certified that he was not aware, as of the date of the certification, of any
violation by the Fund of the NYSE's Corporate Governance listing standards. In
addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and
related SEC rules, the Fund's principal executive and principal financial
officers have made quarterly certifications, included in filings with the SEC on
Forms N-CSR and N-Q, relating to, among other things, the Fund's disclosure
controls and procedures and internal control over financial reporting.
Semiannual Report | April 30, 2008 | 19
ADVENT CAPITAL MANAGEMENT, LLC
1065 Avenue of the Americas
New York, New York 10018
AVK
LISTED
NYSE(R)
AVK-SAR-408
ITEM 2. CODE OF ETHICS.
Not applicable for a semi-annual reporting period.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for a semi-annual reporting period.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for a semi-annual reporting period.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for a semi-annual reporting period.
ITEM 6. SCHEDULE OF INVESTMENTS.
The Schedule of Investments is included as part of Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable for a semi-annual reporting period.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) Not applicable for a semi-annual reporting period.
(b) There has been no change, as of the date of this filing, in the Portfolio
Manager identified in response to paragraph (a)(1) of this Item in the
registrant's most recent annual report on Form N-CSR.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
None.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has not made any material changes to the procedures by which
shareholders may recommend nominees to the registrant's Board of Trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial
officer have evaluated the registrant's disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as
of a date within 90 days of this filing and have concluded based on such
evaluation, that the registrant's disclosure controls and procedures were
effective, as of that date, in ensuring that information required to be
disclosed by the registrant in this Form N-CSR was recorded, processed,
summarized, and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certification of principal executive officer and principal financial
officer pursuant to Rule 30a-2(a) of the Investment Company Act of 1940.
(a)(3) Not Applicable.
(b) Certification of principal executive officer and principal financial
officer pursuant to Rule 30a-2(b) of the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Advent Claymore Convertible Securities and Income Fund
By: /s/ Tracy V. Maitland
-------------------------------------------------------------------------
Name: Tracy V. Maitland
Title: President and Chief Executive Officer
Date: August 6, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Tracy V. Maitland
-------------------------------------------------------------------------
Name: Tracy V. Maitland
Title: President and Chief Executive Officer
Date: August 6, 2008
By: /s/ Robert White
-------------------------------------------------------------------------
Name: Robert White
Title: Treasurer and Chief Financial Officer
Date: August 6, 2008