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 811-22022
---------
Advent/Claymore Global Convertible Securities & Income Fund
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1065 Avenue of the Americas, New York, NY 10018
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert White, Treasurer
1065 Avenue of the Americas, New York, NY 10018
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 479-0675
--------------
Date of fiscal year end: October 31
----------
Date of reporting period: April 30, 2008
--------------
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:
SEMI-ANNUAL
REPORT
April 30, 2008
(Unaudited)
Advent/Claymore
Global Convertible | AGC
Securities & Income Fund
Logo: ADVENT CAPITAL MANAGEMENT
Logo: Claymore(R)
AGC | Advent/Claymore Global Convertible Securities & Income Fund
Fund SUMMARY | AS OF APRIL 30, 2008 (unaudited)
FUND STATISTICS
-------------------------------------------------------
Share Price $14.40
Common Share Net Asset Value $15.92
Premium/Discount to NAV -9.55%
Net Assets ($000) $507,192
-------------------------------------------------------
TOTAL RETURNS
-------------------------------------------------------
(INCEPTION 5/29/07) MARKET NAV
-------------------------------------------------------
Six-Month - non-annualized -8.82% -13.25%
Since Inception - non-annualized -21.68% -9.93%
-------------------------------------------------------
% OF LONG-TERM
TOP TEN INDUSTRIES INVESTMENTS
-------------------------------------------------------
Financial Services 7.8%
Oil and Gas 6.9%
Automotive 6.7%
Diversified Metals and Mining 6.4%
Pharmaceuticals 6.2%
Health Care Products and Services 4.8%
Utilities - Gas and Electric 4.3%
Retail - Specialty Stores 4.0%
Chemicals 3.7%
Telecommunications 3.1%
-------------------------------------------------------
% OF LONG-TERM
TOP TEN ISSUERS INVESTMENTS
-------------------------------------------------------
Eksportfinans A/S, Ser. ABB Ltd., 8.000%, 2008
(Switzerland) 3.0%
Bayer Hypo, Ser. Lafarge, A 2.7%
Suzuki Motor Corp. (Japan) 2.6%
Shanghai Industrial Holdings Ltd. (Hong Kong) 2.6%
Morgan Stanley, Ser. Komatsu, 8.000%, 2008 (Japan) 2.4%
Hengan International Group Co., Ltd.
(Cayman Islands) 2.4%
Mylan, Inc., 6.500%, 2010 2.2%
Nabtesco Corp. (Japan) 2.2%
Allegro Investment Corp. SA, Ser. SABMiller,
8.000%, 2008 (United Kingdom) 2.1%
Bayer Capital Corp. BV, BBB 2.1%
-------------------------------------------------------
% OF LONG-TERM
PORTFOLIO BREAKDOWN BY COUNTRY INVESTMENTS
-------------------------------------------------------
United States 42.5%
Japan 11.3%
Canada 6.4%
United Kingdom 6.3%
Germany 6.2%
France 5.5%
Switzerland 5.0%
China 4.7%
Netherlands 4.4%
Czech Republic 2.0%
Cayman Islands 1.7%
Brazil 1.2%
Jersey 1.1%
Bermuda 0.9%
Luxembourg 0.7%
Guernsey 0.1%
-------------------------------------------------------
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
SHAREPRICE NAV
16.72 19.13
16.63 19.11
16.55 18.99
16.42 19.1
16.09 18.96
15.99 18.87
15.73 18.58
15.7 18.31
15.66 18.16
15.64 18.3
15.49 18.09
15.45 17.95
15.11 17.49
14.8 17.56
14.68 17.26
14.98 17.42
14.51 17.39
14.51 17.25
14.89 17.5
14.8 17.66
15.45 17.84
15.37 17.73
15.44 17.61
15.58 17.69
15.64 17.81
15.71 17.88
15.74 17.97
15.65 17.8
15.43 17.69
15.39 17.47
15.15 17.39
14.75 17.06
14.58 16.99
14.56 16.99
14.58 16.93
14.62 17.22
14.79 17.31
14.9 17.4
14.8 17.44
15.1 17.54
15.3 17.51
15.44 17.53
15.96 17.45
15.82 17.1
15.64 16.94
15.13 16.85
15.33 16.74
15.6 16.69
15.28 16.53
15.35 16.69
15.36 16.36
15.38 15.9
14.9 15.68
14.58 15.53
14.2 14.99
14.3 14.99
14.34 15.28
14.26 15.34
14.64 15.23
14.81 15.4
14.69 15.41
14.73 15.53
14.8 15.98
14.9 16.01
14.91 15.54
14.9 15.37
15.06 15.15
14.87 15.09
14.57 15.01
14.67 15.08
14.12 14.94
13.52 15
13.48 15.03
13.5 15.19
13.58 15.08
13.52 15.27
13.63 15.3
13.94 15.54
14 15.74
14.24 15.87
14.39 15.84
14.23 15.6
14.39 15.38
14.08 15.23
13.96 15.36
13.79 15.22
13.51 15.02
13.47 14.74
14.05 14.93
13.72 14.85
13.57 14.74
13.24 14.63
12.87 14.15
13 14.44
12.68 14.23
12.7 14.16
12.68 14.32
12.89 14.62
13.06 14.72
13.11 14.8
13.21 14.82
13.48 14.74
13.56 14.92
13.55 15.09
13.73 15.16
13.65 15.18
13.73 15.39
13.77 15.3
13.72 15.23
13.66 15.2
13.3 15.06
13.27 14.99
13.39 15.02
13.63 15.33
13.65 15.35
13.89 15.48
13.79 15.61
13.9 15.55
13.95 15.62
14.21 15.68
14.26 15.84
14.38 15.92
14.32 15.88
14.4 15.92
Bar Chart:
MONTHLY DIVIDENDS PER SHARE
Nov 07 0.1458
Dec 0.1458
Jan 08 0.1458
Feb 0.1458
Mar 0.1458
Apr 0.1458
Pie Chart:
PORTFOLIO COMPOSITION (% of Total Investments)
ASSET CLASS
-----------
Convertible Bonds 32.5%
Convertible Preferred Stocks 31.7%
Common Stocks 14.5%
Short Term Investments 11.8%
Corporate Bonds 9.0%
Exchange Traded Funds 0.5%
2 | SemiAnnual Report | April 30, 2008
AGC | Advent/Claymore Global Convertible Securities & Income Fund
Portfolio of INVESTMENTSlAPRIL 30, (2008) (unaudited)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
LONG-TERM INVESTMENTS - 119.5%
CONVERTIBLE BONDS - 44.0%
AIRLINES - 1.1%
$ 2,000,000 AMR Corp., B-
4.50%, 2/15/24 $ 1,877,500
$ 5,300,000 JetBlue Airways Corp., CCC
3.75%, 3/15/35 3,908,750
--------------------------------------------------------------------------------
5,786,250
--------------------------------------------------------------------------------
AUTOMOTIVE - 3.9%
(euro)
7,400,000 Deutsche Bank AG, Ser. Daimler, NR
8.00%, 6/20/08 (Germany) (a)(b) 8,456,458
$ 16,250,000 General Motors Corp., Ser. B, B-
5.25%, 3/06/32 11,459,500
--------------------------------------------------------------------------------
19,915,958
--------------------------------------------------------------------------------
AUTO PARTS AND EQUIPMENT - 1.5%
(euro)
7,000,000 Calyon Financial Products, Ser. Continental AG, NR
8.00%, 6/18/08 (Germany) (b) 7,860,944
--------------------------------------------------------------------------------
BANKING AND FINANCE - 0.8%
$ 2,000,000 Boston Private Financial Holdings, Inc., NR
3.00%, 7/15/27 1,792,500
$ 3,000,000 National City Corp., A
4.00%, 2/01/11 2,546,250
--------------------------------------------------------------------------------
4,338,750
--------------------------------------------------------------------------------
BIOTECHNOLOGY - 1.1%
$ 5,000,000 Genzyme Corp., BBB+
1.25%, 12/1/23 5,568,750
--------------------------------------------------------------------------------
CHEMICALS - 2.5%
(euro)
5,500,000 Bayer Capital Corp. BV, BBB
6.625%, 6/01/09 (Netherlands) 12,763,077
--------------------------------------------------------------------------------
COMMERCIAL SERVICES - 2.7%
$ 10,000,000 Deutsche Bank AG, Ser. Sinofert Holdings, NR
8.00%, 12/23/08 (Germany) (a)(b) 9,362,000
(euro)
7,000,000 JP Morgan International Derivatives Ltd.,
Ser. USG People, NR
8.00%, 6/18/08 (Netherlands) (b) 4,512,986
--------------------------------------------------------------------------------
13,874,986
--------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6%
$ 15,000,000 BNP Paribas SA, Ser. Shanghai Industrial, AA
9.00%, 10/03/08 (China) (a)(b) 13,117,500
--------------------------------------------------------------------------------
DIVERSIFIED METALS AND MINING - 6.3%
(pound)
5,000,000 Calyon Financial Products, Ser. Xstrata, NR
8.00%, 6/12/08, (United Kingdom) (b) 11,638,708
(euro)
7,500,000 Figaro Finance Ltd., Ser. Vallourec, NR
3.875%, 9/18/09 (France) (b) 12,510,003
$ 6,000,000 Peabody Energy Corp., B
4.75%, 12/15/41 7,440,000
--------------------------------------------------------------------------------
31,588,711
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.7%
$ 3,668,000 CompuCredit Corp., NR
5.875%, 11/30/35 $ 1,325,065
$ 1,750,000 Countrywide Financial Corp., BB+
0.00%, 4/15/37 (c) 1,627,500
(euro)
3,500,000 Fortfinlux S.A., Ser. REGS, A-
5.722%, 11/07/72 (Luxembourg) (c) 4,563,663
$ 1,750,000 Nasdaq OMX Group (The), BB+
2.50%, 8/15/13 (a) 1,745,625
Swiss
5,000,000 Swiss Reinsurance Treasury Luxembourg SA, Ser. RUKN, AA-
Franc 6.00%, 12/15/08 (Switzerland) 4,259,887
--------------------------------------------------------------------------------
13,521,740
--------------------------------------------------------------------------------
HEALTH CARE PRODUCTS AND SERVICES - 2.8%
$ 2,000,000 Advanced Medical Optics, Inc., B-
1.375%, 7/01/25 1,675,000
HK
$ 94,000,000 Dexia Banque Internationale & Luxembourg SA,
Ser. Hengan, NR
8.00%, 7/24/08 (China) (b) 12,498,602
--------------------------------------------------------------------------------
14,173,602
--------------------------------------------------------------------------------
INDUSTRIAL - 3.2%
(euro)
10,600,000 Bayer Hypo, Ser. Lafarge, A
8.00%, 10/03/08 (France) (b) 16,319,955
--------------------------------------------------------------------------------
INTERNET - 0.7%
$ 3,500,000 Equinix, Inc., CCC+
2.50%, 4/15/12 3,692,500
--------------------------------------------------------------------------------
MACHINERY - DIVERSIFIED - 2.2%
$ 12,500,000 Allegro Investment Corp., Ser. Nabtesco, NR
8.00%, 7/16/08 (Japan) (a)(b) 11,000,822
--------------------------------------------------------------------------------
OIL AND GAS - 0.6%
CAD 3,000,000 Harvest Energy Trust, NR
7.25%, 9/30/13 (Canada) 2,725,648
--------------------------------------------------------------------------------
PHARMACEUTICALS - 1.6%
$ 5,000,000 Omnicare, Inc., B+
3.25%, 12/15/35 3,481,250
$ 4,000,000 Teva Pharmaceutical Finance Co. BV, Ser. D, BBB+
1.75%, 2/01/26 (Netherlands) 4,570,000
--------------------------------------------------------------------------------
8,051,250
--------------------------------------------------------------------------------
RETAIL - SPECIALTY STORES - 3.4%
$ 12,000,000 BNP Paribas SA, Ser. Don Quijote, AA
8.00%, 6/30/08 (Japan) (a)(b) 10,718,400
(pound)
3,500,000 Punch Taverns Redwood Jersey Co. Ltd., NR
5.00%, 12/14/10 (Jersey) 6,501,317
--------------------------------------------------------------------------------
17,219,717
--------------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.4%
$ 7,500,000 Level 3 Communications, Inc., CCC
6.00%, 9/15/09 7,050,000
--------------------------------------------------------------------------------
TRANSPORTATION - 0.5%
$ 2,947,000 YRC Worldwide, Inc., B+
5.00%, 8/08/23 2,604,411
--------------------------------------------------------------------------------
See notes to financial statements.
SemiAnnual Report | April 30, 2008 | 3
AGC | Advent/Claymore Global Convertible Securities & Income Fund |
PORTFOLIO OF INVESTMENTS (unaudited) continued
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
UTILITIES - GAS AND ELECTRIC - 2.4%
(euro)
7,200,000 Deutsche Bank AG., Ser. CEZ, NR
8.00%, 6/20/08 (Czech Republic) (b) $ 11,996,600
--------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS - 44.0%
(Cost $237,656,483) 223,171,171
--------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS - 42.9%
ADVERTISING - 1.0%
419,750 Elf Special Financing Ltd., 3.15%, 2009
(Cayman Islands) (a) (c) $ 4,983,500
--------------------------------------------------------------------------------
AIRLINES - 1.2%
250,000 Continental Airlines Financial Trust II, 6.00%, 2030 6,140,625
--------------------------------------------------------------------------------
ALUMINUM, STEEL AND OTHER METALS - 1.3%
40,000 Freeport-McMoRan Copper & Gold, Inc., 6.75%, 2010 6,517,600
--------------------------------------------------------------------------------
AUTOMOTIVE - 2.8%
100,000 Ford Motor Co. Capital Trust II, 6.50%, 2032 3,685,000
417,919 Merrill Lynch International Co., Ser. Suzuki,
8.00%, 2008 (Japan) (a)(b) 10,673,651
--------------------------------------------------------------------------------
14,358,651
--------------------------------------------------------------------------------
BANKING AND FINANCE - 1.1%
5,100 Bank of America Corp., Ser. L, 7.25%, 2049 5,599,800
--------------------------------------------------------------------------------
BEVERAGES - 2.6%
529,287 Allegro Investment Corp. SA, Ser. SABMiller,
8.00%, 2008 (United Kingdom) (b) 12,988,188
--------------------------------------------------------------------------------
CHEMICALS - 1.0%
5,400 Givaudan Nederland Finance, 5.375%, 2010
(Netherlands) 4,855,593
--------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 3.1%
15,000 Lucent Technologies Capital Trust I, 7.75%, 2017 (d) 11,400,000
394,055 Merrill Lynch & Co., Inc., Ser. Motorola, Inc.,
18.70%, 2008 (a)(b) 4,326,724
--------------------------------------------------------------------------------
15,726,724
--------------------------------------------------------------------------------
COMPUTERS - SOFTWARE AND PERIPHERALS - 0.9%
234,010 Merrill Lynch & Co., Inc., Ser. Dell, Inc.,
14.85%, 2008 (a)(b) 4,507,033
--------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS - 2.2%
100,000 KBC Financial Products, Ser. Siemens AG,
8.00%, 2008 (Germany) (b) 11,092,913
--------------------------------------------------------------------------------
DIVERSIFIED METALS AND MINING - 1.4%
100,000 Vale Capital Ltd., Ser. RIO, 5.50%, 2010 (Brazil) (b) 7,325,000
--------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT AND COMPONENTS - 2.0%
445,820 Wachovia Bank NA, Ser. Intel, 8.00%, 2008 (a)(b) 10,157,028
--------------------------------------------------------------------------------
ENGINEERING - 3.5%
628,060 Eksportfinans A/S, Ser. ABB Ltd., 8.00%,
2008 (Switzerland) (a)(b) 17,888,690
--------------------------------------------------------------------------------
ENTERTAINMENT - 1.5%
222,750 Lehman Brothers Holdings, Inc., Ser.
International Game Tech., 8.00%, 2008 (b) 7,753,927
--------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.8%
70,000 Affiliated Managers Group, Inc., 5.10%, 2036 3,049,375
115 Fannie Mae, 5.375%, 2049 8,165,029
3,250 SLM Corp., Ser. C, 7.25%, 2010 (e) 3,117,562
--------------------------------------------------------------------------------
14,331,966
--------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
INSURANCE - 1.1%
40,000 Aspen Insurance Holdings Ltd., Ser. AHL,
5.625%, 2049 (Bermuda) $ 1,962,000
250,000 XL Capital Ltd., 7.00%, 2009 (Cayman Islands) 3,517,500
--------------------------------------------------------------------------------
5,479,500
--------------------------------------------------------------------------------
MACHINE TOOLS - 1.5%
63,000 Merrill Lynch International & Co. CV, Ser.
SMC Corp., 8.00%, 2008 (Japan) (a)(b) 7,379,505
--------------------------------------------------------------------------------
MACHINERY AND EQUIPMENT - 2.9%
475,500 Morgan Stanley, Ser. Komatsu, 8.00%,
2008 (Japan) (a)(b) 14,655,146
--------------------------------------------------------------------------------
MISC. CONSUMER DISCRETIONARY - 0.9%
100,000 Avery Dennison Corp., 7.875%, 2010 (e) 4,777,000
--------------------------------------------------------------------------------
OIL AND GAS - 0.6%
25,000 Chesapeake Energy Corp., 4.50%, 2049 3,218,750
--------------------------------------------------------------------------------
PHARMACEUTICALS - 4.7%
14,000 Mylan, Inc., 6.50%, 2010 13,049,960
60,000 Schering-Plough Corp., 6.00%, 2010 10,831,800
--------------------------------------------------------------------------------
23,881,760
--------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 0.5%
150,000 HRPT Properties Trust, Ser. D, 6.50%, 2049 2,647,500
--------------------------------------------------------------------------------
UTILITIES - GAS AND ELECTRIC - 2.3%
85,000 Entergy Corp., 7.625%, 2009 5,713,700
15,000 NRG Energy, Inc., 5.75%, 2009 5,652,187
--------------------------------------------------------------------------------
11,365,887
--------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS - 42.9%
(Cost $239,760,202) 217,632,286
--------------------------------------------------------------------------------
COMMON STOCKS - 19.7%
ALUMINUM, STEEL AND OTHER METALS - 1.2%
12,000 Freeport-McMoRan Copper & Gold, Inc., Class B 1,365,000
16,700 Vallourec SA (France) 4,556,540
--------------------------------------------------------------------------------
5,921,540
--------------------------------------------------------------------------------
AUTOMOTIVE - 1.2%
10,850 Daimler AG (Germany) 843,436
207,000 Suzuki Motor Corp. (Japan) 5,209,167
--------------------------------------------------------------------------------
6,052,603
--------------------------------------------------------------------------------
AUTO PARTS AND EQUIPMENT - 0.0%
800 Continental AG (Germany) 94,074
--------------------------------------------------------------------------------
BUILDING PRODUCTS AND SERVICES - 0.6%
28,600 Holcim Ltd. (Switzerland) 2,798,080
--------------------------------------------------------------------------------
CHEMICALS - 1.0%
461,000 Tokai Carbon Co., Ltd. (Japan) 4,786,001
--------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS - 0.5%
629,000 Shanghai Industrial Holdings Ltd. (China) 2,606,510
--------------------------------------------------------------------------------
FINANCIAL SERVICES - 1.6%
700,000 Man Group PLC (United Kingdom) (e) 8,061,833
--------------------------------------------------------------------------------
HEALTH CARE PRODUCTS AND SERVICES - 0.4%
570,000 Hengan International Group Co., Ltd. (Cayman Islands) 2,036,602
--------------------------------------------------------------------------------
See notes to financial statements.
4 | SemiAnnual Report | April 30, 2008
AGC | Advent/Claymore Global Convertible Securities & Income Fund |
PORTFOLIO OF INVESTMENTS (unaudited) continued
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
LEISURE AND ENTERTAINMENT - 0.6%
90,000 International Game Technology $ 3,126,600
--------------------------------------------------------------------------------
MACHINERY AND EQUIPMENT - 0.7%
138,000 Nabtesco Corp. (Japan) 2,026,887
15,000 SMC Corp. (Japan) 1,733,805
--------------------------------------------------------------------------------
3,760,692
--------------------------------------------------------------------------------
OIL AND GAS - 6.5%
170,200 Baytex Energy Income Trust (Canada) 4,263,872
387,500 Bonavista Energy Income Trust (Canada) 11,897,031
251,000 Enerplus Resources Income Trust Fund (Canada) 11,247,771
155,700 Harvest Energy Income Trust (Canada) 3,453,816
60,000 Vermilion Energy Income Trust (Canada) 2,363,420
--------------------------------------------------------------------------------
33,225,910
--------------------------------------------------------------------------------
PHARMACEUTICALS - 1.1%
34,000 Roche Holding AG (Switzerland) 5,640,824
--------------------------------------------------------------------------------
REAL ESTATE - 0.6%
478,000 Kerry Properties Ltd. (Bermuda) 3,234,868
--------------------------------------------------------------------------------
RETAIL - SPECIALTY STORES - 1.4%
30,000 GameStop Corp., Class A (e)(f) 1,651,200
222,069 Whitbread PLC (United Kingdom) 5,343,801
--------------------------------------------------------------------------------
6,995,001
--------------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.3%
30,000 Amdocs Ltd. (Guernsey) (f) 941,400
125,000 NII Holdings, Inc. (e)(f) 5,717,500
--------------------------------------------------------------------------------
6,658,900
--------------------------------------------------------------------------------
WASTE MANAGEMENT - 1.0%
400,000 Allied Waste Industries, Inc. (f) 4,944,000
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS - 19.7%
(Cost $109,134,325) 99,944,038
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
CORPORATE BONDS - 12.2%
ADVERTISING - 0.2%
$ 1,000,000 Interpublic Group of Companies, Inc., B+
7.25%, 8/15/11 $ 985,000
--------------------------------------------------------------------------------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT - 0.9%
2,000,000 Cablevision Systems Corp., Ser. B, B+
8.00%, 4/15/12 2,000,000
2,500,000 Nielsen Finance LLC, B-
10.00%, 8/01/14 2,612,500
--------------------------------------------------------------------------------
4,612,500
--------------------------------------------------------------------------------
COMPUTERS - SOFTWARE AND PERIPHERALS - 0.5%
2,500,000 SunGard Data Systems, Inc., B-
10.25%, 8/15/15 2,668,750
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS - 1.0%
$ 5,000,000 Leucadia National Corp., BB+
8.125%, 9/15/15 $ 5,125,000
--------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT AND COMPONENTS - 0.4%
2,500,000 Freescale Semiconductor, Inc., B-
6.675%, 12/15/14 (c) 2,006,250
--------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.2%
10,000,000 CDX North America High Yield, Ser. 8-T1, NR
7.625%, 6/29/12 (a) 9,712,500
1,400,000 JPMorgan Chase & Co., Ser. 1, A
7.90%, 4/29/49 (c) 1,430,790
--------------------------------------------------------------------------------
11,143,290
--------------------------------------------------------------------------------
FOOD, BEVERAGE AND TOBACCO - 0.4%
2,000,000 Vector Group Ltd., NR
11.00%, 8/15/15 (a) 2,030,000
--------------------------------------------------------------------------------
FOREST PRODUCTS AND PAPER - 0.5%
Verso Paper Holdings LLC, Ser. B, B+
1,000,000 9.125%, 8/01/14 1,037,500
1,500,000 6.989%, 8/01/14 (c) 1,410,000
--------------------------------------------------------------------------------
2,447,500
--------------------------------------------------------------------------------
HEALTH CARE PRODUCTS AND SERVICES - 1.9%
1,750,000 Axcan Intermediate Holdings, Inc., B-
12.75%, 3/01/16 (a) 1,720,950
HCA, Inc., B-
2,000,000 6.50%, 2/15/16 1,800,000
3,000,000 8.36%, 4/15/24 2,663,001
1,000,000 HCA, Inc., BB-
9.25%, 11/15/16 1,077,500
2,500,000 Tenet Healthcare Corp., B
9.25%, 2/01/15 2,493,750
--------------------------------------------------------------------------------
9,755,201
--------------------------------------------------------------------------------
LEISURE AND ENTERTAINMENT - 0.6%
2,000,000 Caesars Entertainment, Inc., B-
8.125%, 5/15/11 1,702,500
2,000,000 Harrah's Operating Co., Inc., B-
6.50%, 6/01/16 1,170,000
--------------------------------------------------------------------------------
2,872,500
--------------------------------------------------------------------------------
OIL AND GAS - 0.5%
3,000,000 CCS, Inc., B-
11.00%, 11/15/15 (Canada) (a) 2,696,400
--------------------------------------------------------------------------------
PACKAGING AND CONTAINERS - 1.0%
1,000,000 Graphic Packaging International Corp., B-
9.50%, 8/15/13 1,000,000
3,500,000 Jefferson Smurfit Corp., B-
8.25%, 10/01/12 3,202,500
1,000,000 Smurfit-Stone Container Enterprises, Inc., B-
8.375%, 7/01/12 920,000
--------------------------------------------------------------------------------
5,122,500
--------------------------------------------------------------------------------
See notes to financial statements.
SemiAnnual Report | April 30, 2008 | 5
AGC | Advent/Claymore Global Convertible Securities & Income Fund |
PORTFOLIO OF INVESTMENTS (unaudited) continued
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.1%
$ 1,500,000 Broadview Networks Holdings, Inc., CCC+
11.375%, 9/01/12 $ 1,440,000
1,000,000 Cricket Communications, Inc., B-
9.375%, 11/01/14 986,250
3,000,000 Sprint Capital Corp., BB
8.375%, 3/15/12 2,857,500
--------------------------------------------------------------------------------
5,283,750
--------------------------------------------------------------------------------
TRANSPORTATION - 0.5%
2,500,000 USF Corp., B+
8.50%, 4/15/10 2,300,000
--------------------------------------------------------------------------------
UTILITIES - GAS AND ELECTRIC - 0.5%
2,500,000 Texas Competitive Electric Holdings Co., LLC, CCC
10.25%, 11/01/15 (a) 2,618,750
--------------------------------------------------------------------------------
TOTAL CORPORATE BONDS - 12.2%
(Cost $62,262,389) 61,667,391
--------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
EXCHANGE-TRADED FUNDS - 0.7%
40,000 UltraShort QQQ ProShares (e) $ 1,690,400
30,000 UltraShort S&P500 ProShares (e) 1,741,200
--------------------------------------------------------------------------------
(Cost $3,769,900) 3,431,600
--------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS - 119.5%
(Cost $652,583,299) 605,846,486
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 16.0%
U.S. GOVERNMENT SECURITIES - 14.6%
$ 74,120,000 United States Treasury Bill yielding
2.027%, 7/03/08 (d)
(Cost $73,859,283) $ 73,957,825
--------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
MONEY MARKET FUNDS - 1.4%
7,337,053 Goldman Sachs Financial Prime Obligations
(Cost $7,337,053) $ 7,337,053
--------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS - 16.0%
(Cost $81,196,336) 81,294,878
--------------------------------------------------------------------------------
CONTRACTS
(100 SHARES EXPIRATION EXERCISE
PER CONTRACT) PUT OPTIONS PURCHASED (f) DATE PRICE VALUE
-----------------------------------------------------------------------------------------------
PUT OPTIONS PURCHASED - 0.0%
400 UltraShort QQQ ProShares May 2008 $41.00 $ 38,000
400 UltraShort S&P500 ProShares May 2008 55.00 19,000
-----------------------------------------------------------------------------------------------
TOTAL PUT OPTIONS PURCHASED 57,000
(Cost $100,880)
-----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 135.5%
(Cost $733,880,515) 687,198,364
Total Options Written - (0.1%) (391,160)
Liabilities in excess of other assets - (1.9%) (9,614,876)
Preferred Stock, at redemption value - (-33.5% of Net Assets
Applicable to Common Shareholders or - 24.7% of Total Investments) (170,000,000)
-----------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS - 100.0% $ 507,192,328
===============================================================================================
AG - Stock Corporation
Ltd. - Limited
LLC - Limited Liability Corp.
SA - Corporation
(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 29.1% of net assets.
(c) Floating rate security. The rate shown is as of April 30, 2008.
(b) 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) All or a portion of these securities have been physically segregated in
connection with swap agreements.
(e) All or a portion of this security position represents cover (directly or
through conversion rights) for outstanding options written.
(f) Non-income producing security.
Ratings shown are per Standard & Poor's. 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.
CONTRACTS
(100 SHARES EXPIRATION EXERCISE MARKET
PER CONTRACT) CALL OPTIONS WRITTEN(f) DATE PRICE VALUE
------------------------------------------------------------------------------------------
100 Avery Dennison Corp., 7.875%, 2010 May 2008 $ 50.00 $ 6,000
100 GameStop Corp., Class A May 2008 55.00 20,000
100 GameStop Corp., Class A May 2008 60.00 3,500
100 GameStop Corp., Class A June 2008 65.00 8,000
300 Man Group PLC (United Kingdom) June 2008 595.00 176,680
200 Man Group PLC (United Kingdom) June 2008 635.00 59,417
100 NII Holdings, Inc. May 2008 40.00 60,000
50 SLM Corp., Ser. C, 7.125%, 2010 July 2008 20.00 7,250
225 UltraShort QQQ ProShares June 2008 49.00 25,313
250 UltraShort S&P500 ProShares June 2008 66.00 25,000
------------------------------------------------------------------------------------------
TOTAL CALL OPTIONS WRITTEN
(Premiums received $415,928) $391,160
==========================================================================================
(f) Non-income producing security. See notes to financial statements.
6 | SemiAnnual Report | April 30, 2008
AGC | Advent/Claymore Global Convertible Securities & Income Fund
Statement of ASSETS AND LIABILITIES | APRIL 30, 2008 (unaudited)
ASSETS
Investments in securities, at value (cost $733,880,515) $687,198,364
Foreign currency, at value (cost $750,404) 752,952
Restricted Cash 3,347,188
Cash 2,082,353
Receivable for securities sold 7,286,032
Dividends and interest receivable 5,247,846
Net unrealized appreciation on forward foreign currency contracts 1,452,984
Other assets 44,402
--------------------------------------------------------------------------------------------------------------
Total assets 707,412,121
--------------------------------------------------------------------------------------------------------------
LIABILITIES
Net unrealized depreciation on swaps 15,985,301
Payable for securities purchased 12,244,888
Net unrealized depreciation on forward foreign currency contracts 702,835
Options written, at value (premiums received of $415,928) 391,160
Investment management fee payable 324,089
Investment advisory fee payable 216,060
Offering costs payable 86,553
Dividends payable - preferred shares 66,310
Accrued expenses and other liabilities 202,597
--------------------------------------------------------------------------------------------------------------
Total liabilities 30,219,793
--------------------------------------------------------------------------------------------------------------
PREFERRED STOCK, AT REDEMPTION VALUE
Auction Market Preferred Shares
$0.001 par value per share; 6,800 authorized, issued and outstanding at $25,000
per share liquidation preference 170,000,000
--------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS $507,192,328
==============================================================================================================
COMPOSITION OF NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Common Stock, $0.001 par value per share; unlimited number of shares authorized,
31,867,616 shares issued and outstanding $ 31,868
Additional paid-in capital 605,186,036
Net unrealized depreciation on investments, options, swaps and foreign
currency translation (60,793,546)
Accumulated net realized loss on investments, options, swaps and
foreign currency transactions (21,669,674)
Distributions in excess of net investment income (15,562,356)
--------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS $507,192,328
==============================================================================================================
NET ASSET VALUE APPLICABLE TO COMMON SHAREHOLDERS
(based on 31,867,616 common shares outstanding) $ 15.92
==============================================================================================================
See notes to financial statements.
SemiAnnual Report | April 30, 2008 | 7
AGC | Advent/Claymore Global Convertible Securities & Income Fund
Statement of OPERATIONS | FOR THE SIX MONTHS ENDED APRIL 30, 2008 (unaudited)
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $417,616) $ 11,356,156
Interest 11,250,227
--------------------------------------------------------------------------------------------------------------
Total income $ 22,606,383
--------------------------------------------------------------------------------------------------------------
EXPENSES
Investment management fee 2,051,860
Investment advisory fee 1,367,907
Auction agent fee - preferred shares 221,047
Fund accounting 100,009
Professional fees 96,815
Printing 82,494
Administration fee 78,646
Trustees' fees and expenses 75,262
Custodian 47,720
Insurance 23,149
Transfer agent 11,469
NYSE listing fee 10,259
Rating agency fee 7,462
Miscellaneous 5,153
--------------------------------------------------------------------------------------------------------------
Total expenses 4,179,252
--------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 18,427,131
--------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS, SWAPS AND FOREIGN
CURRENCY TRANSACTIONS Net realized gain (loss) on:
Investments (21,809,334)
Options 740,755
Swaps (181,846)
Foreign currency transactions (2,398,959)
Net change in unrealized appreciation (depreciation) on:
Investments (64,305,684)
Options (33,635)
Swaps (9,286,263)
Foreign currency translation 879,312
--------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS, OPTIONS SWAPS AND
FOREIGN CURRENCY TRANSACTIONS (96,395,654)
--------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM NET INVESTMENT INCOME (4,087,418)
--------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS $(82,055,941)
==============================================================================================================
See notes to financial statements.
8 | SemiAnnual Report | April 30, 2008
AGC | Advent/Claymore Global Convertible Securities & Income Fund
Statement of CHANGES IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS |
FOR THE FOR THE PERIOD
SIX MONTHS ENDED MAY 29, 2007*
APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007
---------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS:
Net investment income $ 18,427,131 $13,040,647
Net realized gain/(loss) on investments, options, swaps and foreign currency transactions (23,649,384) 2,130,479
Net change in unrealized appreciation (depreciation) on investments, options, swaps
and foreign currency translation (72,746,270) 11,952,724
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (4,087,418) (1,285,034)
---------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets applicable to Common Shareholders resulting
from operations (82,055,941) 25,838,816
---------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From and in excess of net investment income (27,877,790) (13,930,661)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from the issuance of common shares -- 607,492,690
Reinvestment in dividends -- 997,366
Common share offering costs charged to paid-in capital -- (3,372,236)
---------------------------------------------------------------------------------------------------------------------------------
Net increase from capital share transactions -- 605,117,820
---------------------------------------------------------------------------------------------------------------------------------
Total increase/(decrease) in net assets (109,933,731) 617,025,975
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Beginning of period 617,126,059 100,084
---------------------------------------------------------------------------------------------------------------------------------
End of period (including distributions in excess of net investment income
$15,562,356 and $2,024,279, respectively) $507,192,328 $617,126,059
=================================================================================================================================
* Commencement of investment operations.
See notes to financial statements.
SemiAnnual Report | April 30, 2008 | 9
AGC | Advent/Claymore Global Convertible Securities & Income Fund
Financial HIGHLIGHTS |
FOR THE FOR THE PERIOD
SIX MONTHS ENDED MAY 29, 2007(a)
PER SHARE OPERATING PERFORMANCE APRIL 30, 2008 THROUGH
FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED) OCTOBER 31, 2007
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 19.37 $ 19.10(b)
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) 0.58 0.42
Net realized and unrealized gain on investments, options, swaps and
foreign currency transactions (3.02) 0.44
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM NET INVESTMENT INCOME
(COMMON SHARE EQUIVALENT BASIS) (0.13) (0.04)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (2.57) 0.82
------------------------------------------------------------------------------------------------------------------------------------
COMMON AND PREFERRED SHARES' OFFERING EXPENSES CHARGED TO PAID-IN-CAPITAL -- (0.11)
------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
from and in excess of net investment income (0.88) (0.44)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 15.92 $ 19.37
====================================================================================================================================
MARKET VALUE, END OF PERIOD $ 14.40 $ 16.75
====================================================================================================================================
TOTAL INVESTMENT RETURN (d)
Net asset value -13.25% 3.82%
Market value -8.82% -14.11%
RATIOS AND SUPPLEMENTAL DATA
Net assets, applicable to Common Shareholders, end of period (thousands) $ 507,192 $ 617,126
Preferred shares, at redemption value ($25,000 per share liquidation preference) (thousands) $ 170,000 $ 170,000
Preferred shares asset coverage per share $ 99,587 $ 115,700
RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES:
Net Expenses, after balance credits 1.62%(e) 1.33%(e)
Net Expenses, before balance credits 1.62%(e) 1.35%(e)
Net Investment Income, after balance credits, prior to effect of dividends to preferred shares 7.16%(e) 5.22%(e)
Net Investment Income, before balance credits, prior to effect of dividends to preferred shares 7.16%(e) 5.20%(e)
Net Investment Income, after balance credits, after effect of dividends to preferred shares 5.57%(e) 4.70%(e)
Net Investment Income, before balance credits, after effect of dividends to preferred shares 5.57%(e) 4.68%(e)
RATIOS TO AVERAGE MANAGED ASSETS: (f)
Net Expenses, after balance credits 1.22%(e) 1.22%(e)
Net Expenses, before balance credits 1.22%(e) 1.24%(e)
Net Investment Income, after balance credits, prior to effect of dividends to preferred shares 5.39%(e) 4.79%(e)
Net Investment Income, before balance credits, prior to effect of dividends to preferred shares 5.39%(e) 4.77%(e)
Portfolio turnover rate 35% 35%
(a) Commencement of investment 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 is equal to net assets applicable to common shareholders
plus outstanding leverage such as the liquidation value of preferred
shares.
See notes to financial statements.
l0 | SemiAnnual Report | April 30, 2008
AGC | Advent/Claymore Global Convertible Securities & Income Fund
Notes to FINANCIAL STATEMENTS | APRIL 30, 2008 (unaudited)
Note 1 - ORGANIZATION:
Advent/Claymore Global Convertible Securities & Income Fund (the "Fund") was
organized as a Delaware statutory trust on February 26, 2007. The Fund is
registered as a diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended.
The Fund's primary investment objective is to provide total return, through a
combination of capital appreciation and current income. The Fund will pursue its
investment objective by investing 80% of its assets in a diversified portfolio
of convertible securities and non-convertible income-producing securities, each
of U.S. and non-U.S. issuers.
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. Futures contracts are valued using the settlement
price established each day on the exchange on which they are traded.
Exchange-traded options are valued at the closing price, if traded that day. If
not traded, they are valued at the mean of the bid and asked prices on the
primary exchange on which they are traded. 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. Short-term
securities with remaining maturities of 60 days or less are valued at amortized
cost, which approximates market value.
The Fund values synthetic convertible securities based on quotations obtained
from unaffiliated brokers who are the principal market-makers in such
securities. Such valuations are derived by the brokers from proprietary models
which are generally based on readily available market information including
valuations of the common stock underlying the synthetic security, and the
volatility observed in the market on such common stocks. Because of the inherent
uncertainty in the valuation process, it is reasonably possible that the
estimated values may differ from the values that would have been used had a more
active market for the investments existed, and such differences could be
material. As of April 30, 2008, approximately $238,740,783, representing 34.7%
of total fund investments, are invested in these synthetic convertible
securities.
(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 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 the 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) COVERED CALL OPTIONS
The Fund will pursue its primary objective by employing an option strategy of
writing (selling) covered call options on up to 25% of the securities held in
the portfolio of the Fund. The Fund seeks to generate current gains from option
premiums as a means to enhance distributions payable to shareholders.
An option on a security is a contract that gives the holder of the option, in
return for a premium, the right to buy from (in the case of a call) or sell to
(in the case of a put) the writer of the option the security underlying the
option at a specified exercise or "strike" price. The writer of an option on a
security has the obligation upon
SemiAnnual Report | April 30, 2008 | 11
AGC | Advent/Claymore Global Convertible Securities & Income Fund |
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
exercise of the option to deliver the underlying security upon payment of the
exercise price (in the case of a call) or to pay the exercise price upon
delivery of the underlying security (in the case of a put).
There are several risks associated with transactions in options on securities.
As the writer of a covered call option, the Fund forgoes, during the option's
life, the opportunity to profit from increases in the market value of the
security covering the call option above the sum of the premium and the strike
price of the call, but has retained the risk of loss should the price of the
underlying security decline. The writer of an option has no control over the
time when it may be required to fulfill its obligation as writer of the option.
Once an option writer has received an exercise notice, it cannot effect a
closing purchase transaction in order to terminate its obligation under the
option and must deliver the underlying security at the exercise price.
When an option is written, the premium received is recorded as an asset with an
equal liability and is subsequently marked to market to reflect the current
market value of the option written. These liabilities are reflected as options
written in the Statement of Assets and Liabilities. Premiums received from
writing options which expire unexercised are recorded on the expiration date as
a realized gain. The difference between the premium received and the amount paid
on effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium is less than the amount paid
for the closing purchase transactions, as a realized loss. If a call option is
exercised; the premium is added to the proceeds from the sale of the underlying
security in determining whether there has been a realized gain or loss.
(E) FORWARD EXCHANGE CURRENCY CONTRACTS
The Fund may enter into forward exchange currency contracts in order to hedge
its exposure to change in foreign currency exchange rates on its foreign
portfolio holdings, to hedge certain firm purchases and sales commitments
denominated in foreign currencies and for investment purposes. A forward
exchange currency contract is a commitment to purchase or sell a foreign
currency on a future date at a negotiated forward rate. The gain or loss arising
from the difference between the original contracts and the closing of such
contracts would be included in net realized gain or loss on foreign currency
transactions.
Fluctuations in the value of open forward exchange currency contracts are
recorded for financial reporting purposes as unrealized appreciation and
depreciation by the Fund.
Risk may arise from the potential inability of a counterparty to meet the terms
of a contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. The face or contract amount, in U.S.
dollars, reflects the total exposure the Fund has in that particular currency
contract. Forward exchange currency contracts involve elements of both market
and credit risk in excess of the amounts reflected on the Statement of Assets
and Liabilities.
(F) 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 as well
as to attempt to enhance return. Total return swap agreements are contracts in
which one party agrees to make payments of the total return from the underlying
asset during a specified period in return for receiving payments equal to a
fixed or floating rate of interest or the total return from another designated
underlying asset. 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 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.
(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.
l2 | SemiAnnual Report | April 30, 2008
AGC | Advent/Claymore Global Convertible Securities & Income Fund |
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
Note 3 - INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS AND OTHER AGREEMENTS:
Pursuant to an Investment Advisory Agreement (the "Agreement") between Claymore
Advisors, LLC (the "Adviser") and the Fund, the Adviser furnishes offices,
necessary facilities and equipment, provides administrative services to the
Fund, oversees the activities of Advent Capital Management, LLC (the "Investment
Manager"), provides personnel and pays the compensation of all Trustees and
Officers of the Fund who are its affiliates. As compensation for these services,
the Fund pays the Adviser an annual fee, payable monthly in arrears, at an
annual rate equal to 0.40% of the average Managed Assets during such month.
Managed Assets means the total of assets of the Fund (including any assets
attributable to any preferred shares or otherwise attributable to the use of
financial leverage, if any) less the sum of accrued liabilities.
Pursuant to an Investment Management Agreement between the Investment Manager
and the Fund, the Fund has agreed to pay the Investment Manager an annual fee,
payable monthly in arrears, at an annual rate equal to 0.60% of the average
Managed Assets during such month for the services and facilities provided by the
Investment Manager to the Fund. These services include the day-to-day management
of the Fund's portfolio of securities, which includes buying and selling
securities for the Fund and investment research. The Investment Manager also
provides personnel to the Fund and pays the compensation of all Trustees and
Officers of the Fund who are its affiliates.
The Bank of New York Mellon ("BNY") acts as the Fund's custodian, administrator
and transfer agent. As custodian, BNY is responsible for the custody of the
Fund's assets. As 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
Adviser or Investment Manager. 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 written options and
foreign currency translations are as follows:
NET TAX UNREALIZED NET TAX UNREALIZED
COST OF GROSS TAX GROSS TAX APPRECIATION DEPRECIATION ON
INVESTMENTS UNREALIZED UNREALIZED (DEPRECIATION) DERIVATIVES AND
FOR TAX PURPOSES APPRECIATION DEPRECIATION ON INVESTMENTS FOREIGN CURRENCY
---------------------------------------------------------------------------------------------------
$733,514,481 $20,357,105 $(66,673,222) $(46,316,117) $(15,148,891)
The differences between book basis and tax basis unrealized
appreciation/(depreciation) is attributable to the tax deferral of losses on
wash sales, straddles and additional income accrued for tax purposes on certain
convertible securities.
For the period ended October 31, 2007 the tax character of distributions paid,
as reflected in the Statement of Changes in Net Assets of $15,215,695 was
ordinary income. The final determination of the source of the 2008 distributions
for tax purposes will be made after the end of the Fund's fiscal year and will
be reported to shareholders in January 2009 on Form 1099-DIV.
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.
SemiAnnual Report | April 30, 2008 | 13
AGC | Advent/Claymore Global Convertible Securities & Income Fund |
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
Note 5 - INVESTMENTS IN SECURITIES:
For the period ended April 30, 2008, purchases and sales of investments, other
than short-term securities, were $237,532,901 and $259,663,687 respectively.
The Fund entered into total return swap agreements during the period ended April
30, 2008 to potentially enhance return. Details of the swap agreements
outstanding as of April 30, 2008 are as follows:
TOTAL RETURN SWAPS
NOTIONAL PAYING UNREALIZED
TERMINATION AMOUNT FLOATING APPRECIATION
COUNTERPARTY UNDERLYING TERM LOANS DATE (000) RATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Citigroup Georgia-Pacific Corp., US LIBOR + 1.75%, due 12/22/12 08/01/2008 $ 6,888(a) - $ (210,882)
Citigroup Graphic Packaging International, Inc., US LIBOR + 2.00%,
due 05/16/14 06/23/2008 14,528(a) - (526,540)
Citigroup Health Management Associates, Inc., US LIBOR + 1.75%,
due 02/28/14 07/30/2008 4,835(a) - (328,811)
Citigroup Lifepoint Hospitals, Inc., US LIBOR + 1.625%, due 08/23/12 07/10/2008 15,120(a) - (720,456)
Citigroup Yell Group PLC, US LIBOR + 2.00%, due 02/10/13 07/30/2008 5,006(a) - (631,250)
JPMorgan Chase & Co. Bausch & Lomb, US LIBOR + 3.25%, due 04/26/15 07/01/2008 3,378 3.43% (96,250)
JPMorgan Chase & Co. CCS International 07/01/2008 12,180(a) - -
JPMorgan Chase & Co. Celanese Holdings LLC, US LIBOR + 1.75%, due 03/30/14 07/01/2008 9,554 3.43% (186,694)
JPMorgan Chase & Co. Community Health Systems, Inc., US LIBOR + 2.25%,
due 07/25/14 07/01/2008 17,925 3.43% (802,754)
JPMorgan Chase & Co. Davita, Inc., US LIBOR + 1.50%, due 10/05/12 07/01/2008 11,040 3.43% (308,632)
JPMorgan Chase & Co. Delta Air Lines, Inc., US LIBOR + 2.00%, due 04/30/12 07/01/2008 12,771 3.43% (1,831,574)
JPMorgan Chase & Co. Energy Future Holdings, US LIBOR + 3.50%, due 10/10/14 07/01/2008 3,801 3.43% (137,785)
JPMorgan Chase & Co. Energy Future Holdings, US LIBOR + 3.50%, due 10/10/14 07/01/2008 4,751 3.43% (117,270)
JPMorgan Chase & Co. Ford Motor Co., US LIBOR + 3.00%, due 12/15/13 07/01/2008 17,831 3.43% (1,423,851)
JPMorgan Chase & Co. Georgia-Pacific Corp., US LIBOR + 1.75%, due 12/22/12 08/01/2008 2,377 3.43% (54,280)
JPMorgan Chase & Co. HCA, Inc., US LIBOR + 2.75%, due 11/16/13 07/01/2008 18,722 3.43% (706,531)
JPMorgan Chase & Co. Hertz Corp., US LIBOR + 2.50%, due 12/12/12 07/01/2008 5,689 3.43% (201,377)
JPMorgan Chase & Co. Idearc, Inc., US LIBOR + 2.00%, due 11/17/14 07/01/2008 10,736 3.43% (2,078,224)
JPMorgan Chase & Co. Isle of Capri Casinos, US LIBOR + 1.75%, due 07/26/14 07/01/2008 4,346 3.43% (529,786)
JPMorgan Chase & Co. Las Vegas Sands LLC, US LIBOR + 1.75%, due 05/23/14 07/01/2008 13,661 3.43% (1,046,047)
JPMorgan Chase & Co. Level 3 Communications, Inc., US LIBOR + 2.25%,
due 03/13/14 07/01/2008 11,440 3.43% (1,326,474)
JPMorgan Chase & Co. Mac Gen LLC, US LIBOR + 2.25%, due 02/22/12 07/01/2008 5,627 3.43% 18,116
JPMorgan Chase & Co. Mac Gen LLC, US LIBOR + 7.50%, due 02/15/15 07/01/2008 2,708 3.43% 27,132
JPMorgan Chase & Co. Mirant North America LLC, US LIBOR + 1.75%, due 01/03/13 07/01/2008 10,896 3.43% (221,578)
JPMorgan Chase & Co. NRG Energy, Inc., US LIBOR + 1.75%, due 02/01/13 07/01/2008 12,347 3.43% (472,609)
JPMorgan Chase & Co. NRG Holdings, Inc., US LIBOR + 2.50%, due 06/08/14 07/01/2008 3,750 3.43% (180,412)
JPMorgan Chase & Co. R.H. Donnelley Inc., US LIBOR + 1.50%, due 06/30/11 07/01/2008 13,547 3.43% (677,822)
JPMorgan Chase & Co. Tenneco Automotive, Inc., US LIBOR + 1.75%, due 03/16/14 07/01/2008 1,468 3.43% (130,553)
JPMorgan Chase & Co. Time Warner Telecommunications Holdings, US LIBOR + 2.25%,
due 01/07/13 07/01/2008 3,291 3.43% (123,844)
JPMorgan Chase & Co. Virgin Media Investment Holding, EURIBOR + 2.00%,
due 10/04/13 07/01/2008 6,071 5.01% (433,288)
JPMorgan Chase & Co. Virgin Media Investment Holding, GB LIBOR + 2.125%,
due 10/04/13 07/01/2008 6,253 5.88% (547,004)
JPMorgan Chase & Co. Yell Group PLC, US LIBOR + 2.00%, due 10/27/12 07/01/2008 1,770 3.46% (228,226)
------------------------------------------------------------------------------------------------------------------------------------
$(16,235,556)
====================================================================================================================================
CREDIT DEFAULT SWAP AGREEMENTS
NOTIONAL PAYING UNREALIZED
BUY/SELL TERMINATION AMOUNT FLOATING APPRECIATION/
COUNTERPARTY CREDIT DEFAULT SWAP AGREEMENT PROTECTION DATE (000) RATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase & Co. AMR Corp. Sell 03/20/2013 $ 1,250 8.80% $ (296,421)
JPMorgan Chase & Co. CDX NA HY S9 100 S Sell 12/20/2012 10,000 3.75% 546,676
------------------------------------------------------------------------------------------------------------------------
$ 250,255
========================================================================================================================
$(15,985,301)
========================================================================================================================
(a) Not settled as of April 30, 2008.
14 | SemiAnnual Report | April 30, 2008
AGC | Advent/Claymore Global Convertible Securities & Income Fund |
NOTES TO FINANCIAL STATEMENTS (unaudited) continued
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 receivables and payables, which may have different payment dates.
The Fund entered into written option contracts during the period ended April 30,
2008. Details of the transactions were as follows:
NUMBER OF CONTRACTS PREMIUMS RECEIVED
--------------------------------------------------------------------------------
Options outstanding, beginning of period 5,350 $ 1,004,631
Options written during the period 17,647 3,048,617
Options expired during the period (5,047) (834,592)
Options closed during the period (9,575) (1,657,167)
Options assigned during the period (6,850) (1,145,561)
--------------------------------------------------------------------------------
Options outstanding, end of period 1,525 $ 415,928
================================================================================
Note 6 - DERIVATIVES:
At April 30, 2008, the following forward exchange currency contracts were
outstanding:
LOCAL UNREALIZED
CURRENCY APPRECIATION/
SHORT CONTRACTS VALUE (DEPRECIATION)
--------------------------------------------------------------------------------
Canadian Dollar, 22,050,000 expiring 06/18/08 21,885,024 $ 98,166
EURO, 36,600,000 expiring 06/18/08 56,857,693 (602,363)
Japanese Yen, 1,475,500,000 expiring 06/18/08 14,161,607 259,583
Pound Sterling, 16,400,000 expiring 06/18/08 32,370,105 742,854
Swiss Franc, 22,100,000 expiring 06/18/08 21,231,314 251,909
--------------------------------------------------------------------------------
$ 750,149
================================================================================
Note 7 - CAPITAL:
COMMON SHARES
In connection with its organization process, the Fund sold 5,240 shares of
beneficial interest to Claymore Securities, Inc., an affiliate of the Adviser,
for consideration of $100,084 at a price of $19.10 per share. The Fund has an
unlimited amount of common shares, $0.001 par value, authorized and 31,867,616
issued and outstanding. Of this amount, the Fund issued 28,750,000 shares of
common stock in its initial public offering. On June 11, 2007, June 18, 2007 and
July 11, 2007, the Fund issued an additional 1,750,000 shares, 750,000 shares
and 555,900 shares, respectively, pursuant to an over allotment option. These
shares were issued at $19.10 per share after deducting the sales load but before
underwriters' expense reimbursement.
Offering costs, estimated at $1,272,236 or $0.04 per share, in connection with
the issuance of common shares have been borne by the Fund and were charged to
paid-in capital. The Adviser and Investment Manager have agreed to pay offering
expenses (other than sales load, but including reimbursement of expenses to the
underwriters) in excess of $0.04 per common share.
PREFERRED SHARES
On June 12, 2007, 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 September 14, 2007, the Fund issued 3,400 shares of AMPS Series T7 and 3,400
shares of AMPS Series W7, each with a liquidation value of $25,000 per share
plus accrued dividends.
Offering costs, including the 1% sales charge associated with the issuance of
AMPS, estimated at $2,100,000 were borne by the common shareholders as a direct
reduction to paid-in-capital.
SemiAnnual Report | April 30, 2008 | 15
AGC | Advent/Claymore Global Convertible Securities & 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 period ended April 30, 2008, the annualized dividend rates ranged from:
HIGH LOW AT APRIL 30, 2008
-----------------------------------------------------------------------
Series T7 6.00% 3.88% 3.96%
Series W7 6.00% 3.94% 4.08%
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 on 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 $0.1458 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.
l6 | SemiAnnual Report | April 30, 2008
This Page Intentionally Left Blank.
AGC | Advent/Claymore Global Convertible Securities & 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 Global Convertible Securities & Income Fund
and their principal occupations during the past five years:
NUMBER OF
FUNDS IN
THE FUND OTHER
NAME, ADDRESS, YEAR TERM OF OFFICE* PRINCIPAL OCCUPATIONS DURING COMPLEX** DIRECTORSHIPS
OF BIRTH AND POSITION(S) AND LENGTH OF THE PAST FIVE YEARS AND OVERSEEN HELD BY
HELD WITH REGISTRANT TIME SERVED OTHER AFFILIATIONS BY TRUSTEE TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
------------------------------------------------------------------------------------------------------------------------------------
Daniel Black+ Since 2007 Partner, the Wicks Group of Cos., LLC 3 Director of Penn Foster
Year of birth: 1960 (2003-present). Formerly, Managing Director Education Group, Inc.
Trustee and Co-head of the Merchant Banking Group at
BNY Capital Markets, a division of The Bank
of New York Co., Inc. (1998-2003).
Randall C. Barnes++ Since 2007 Investor (2001-present). Formerly, Senior 41 None.
Year of birth: 1951 Vice President, Treasurer (1993-1997),
Trustee President, Pizza Hut International
(1991-1993) and Senior Vice President,
Strategic Planning and New Business
Development (1987-1990) of PepsiCo, Inc.
(1987-1997).
Derek Medina+ Since 2007 Senior Vice President, Business Affairs and 3 Director of Young Scholar's
Year of birth: 1966 News Planning at ABC News (2008-present). Institute.
Trustee Vice President, Business Affairs and News
Planning at ABC News (2003-2008). Formerly,
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 2007 Partner of Nyberg & Cassioppi, LLC., a law 44 None.
Year of birth: 1953 firm specializing in corporate law, estate
Trustee planning and business transactions
(2000-present). Formerly, Executive Vice
President, General Counsel and Corporate
Secretary of Van Kampen Investments
(1982-1999).
Gerald L. Seizert, CFP+ Since 2007 Chief Executive Officer of Seizert Capital 3 Former Director of Loomis,
Year of birth: 1952 Partners, LLC, where he directs the equity Sayles and Co., L.P
Trustee disciplines of the firm and serves as a
co-manager of the firm's hedge fund, Proper
Associates, LLC (2000-present). Formerly,
Co-Chief Executive (1998-1999) and a
Managing Partner 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 2007 Managing Partner, Cordova, Smart & Williams, 3 Director, Country
Year of birth: 1960 LLC, Advisor First Atlantic Capital Ltd., Pure Foods.
Trustee (2001-present). Formerly, a Managing Chairman, Board of
Director in Investment Banking-The Private Directors, Berkshire
Equity Group (1995-2001) and a Vice Blanket, Inc.
President in Investment Banking-Corporate President and
Finance (1992-1995) at Merrill Lynch & Co. Chairman, Board of
Founding Partner of The Carpediem Group, Directors, Sqwincher
(1991-1992). Associate at Dillon, Read and Holdings. Board of
Co. (investment bank) (1988-1990). Directors, Sprint
Industrial Holdings,
Co-chair of the
Board of H2O plus.
l8 | SemiAnnual Report | April 30, 2008
AGC | Advent/Claymore Global Convertible Securities & Income Fund |
SUPPLEMENTAL INFORMATION (unaudited) continued
NUMBER OF
FUNDS IN
THE FUND OTHER
NAME, ADDRESS, YEAR TERM OF OFFICE* PRINCIPAL OCCUPATIONS DURING COMPLEX** DIRECTORSHIPS
OF BIRTH AND POSITION(S) AND LENGTH OF THE PAST FIVE YEARS AND OVERSEEN HELD BY
HELD WITH REGISTRANT TIME SERVED OTHER AFFILIATIONS BY TRUSTEE TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES:
------------------------------------------------------------------------------------------------------------------------------------
Tracy V. Maitland+0 Since 2007 President of Advent Capital 3 None.
Year of birth: 1960 Management, LLC, which he
Trustee, President founded in 1995. Prior to June,
and Chief 2001, President of Advent
Executive Officer Capital Management, a division
of Utendahl Capital.
Nicholas Dalmaso++00 Since 2007 Formerly, Senior Managing 44 None.
Year of birth: 1965 Director and Chief
Trustee Administrative Officer
(2007-2008) and General Counsel
(2001-2007) of Claymore
Advisors, LLC and Claymore
Securities, Inc. Formerly,
Assistant General Counsel, John
Nuveen and Co., 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 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 Investment Manager.
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 Adviser and
certain of its affiliates.
OFFICERS
The officers of the Advent/Claymore Global Convertible Securities & Income Fund
and their principal occupations during the past five years:
NAME, ADDRESS*, YEAR OF BIRTH AND TERM OF OFFICE** AND PRINCIPAL OCCUPATIONS DURING THE PAST FIVE YEARS
POSITION(S) HELD WITH REGISTRANT LENGTH OF TIME SERVED AND OTHER AFFILIATIONS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS:
------------------------------------------------------------------------------------------------------------------------------------
F. Barry Nelson Since 2007 Co-Portfolio Manager at Advent Capital Management, LLC
Year of birth: 1943 (2001- present). Prior to June 2001, Mr. Nelson held the
Vice President and same position at Advent Capital Management, a division of
Assistant Secretary Utendahl Capital.
Robert White Since 2007 Chief Financial Officer, Advent Capital Management, LLC
Year of birth: 1965 (2005-present). Previously, Vice President, Client Service
Treasurer and Chief Manager, Goldman Sachs Prime Brokerage (1997-2005).
Financial Officer
Rodd Baxter Since 2007 General Counsel, Advent Capital Management, LLC
Year of birth: 1950 (2002-present). Formerly, Director and Senior Counsel, SG
Secretary and Chief Cowen Securities Corp. (1998-2002).
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.
SemiAnnual Report | April 30, 2008 | 19
AGC | Advent/Claymore Global Convertible Securities & 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.
20 | SemiAnnual Report | April 30, 2008
This Page Intentionally Left Blank.
AGC | Advent/Claymore Global Convertible Securities & 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 Adviser 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
INVESTMENT ADVISER AND ADMINISTRATOR (EFFECTIVE MAY 1, 2008)
Claymore Advisors, LLC
Lisle, Illinois
ADMINISTRATOR (THROUGH APRIL 30, 2008),
CUSTODIAN AND TRANSFER AGENT
The Bank of New York Mellon
New York, New York
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 adviser 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 GLOBAL CONVERTIBLE
SECURITIES & 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 Global Convertible
Securities & 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.
22 | SemiAnnual Report | April 30, 2008
ADVENT CAPITAL MANAGEMENT, LLC
1065 Avenue of the Americas
New York, New York 10018
AGC
LISTED
NYSE(R)
AGC-SAR-0408
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 Global Convertible Securities & Income Fund
By: /s/ Tracy V. Maitland
-----------------------------------------------------------------------
Name: Tracy V. Maitland
Title: President and Chief Executive Officer
Date: July 3, 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: July 3, 2008
By: /s/ Robert White
-----------------------------------------------------------------------
Name: Robert White
Title: Treasurer and Chief Financial Officer
Date: July 3, 2008