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 811-21863
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Claymore/Raymond James SB-1 Equity Fund
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(Exact name of registrant as specified in charter)
2455 Corporate West Drive, Lisle, IL 60532
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(Address of principal executive offices) (Zip code)
Nicholas Dalmaso
2455 Corporate West Drive, Lisle, IL 60532
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(Name and address of agent for service)
Registrant's telephone number, including area code: (630) 505-3700
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Date of fiscal year end: August 31
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Date of reporting period: February 29, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 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, as amended, is as follows:
SEMIANNUAL
REPORT
February 29, 2008
(unaudited)
|
Claymore/Raymond James |RYJ
SB-1 Equity Fund |
|
RAYMOND JAMES
Logo: Claymore(R)
www.claymore.com
... YOUR ROAD TO THE LATEST,
MOST UP-TO-DATE INFORMATION ABOUT THE
CLAYMORE/RAYMOND JAMES SB-1 EQUITY FUND
The shareholder report you are reading right now is just the beginning of the
story. Online at WWW.CLAYMORE.COM/RYJ, you will find:
o Daily, weekly and monthly data on share prices, distributions and more
o Portfolio overviews and performance analyses
o Announcements, press releases, special notices and tax characteristics
Raymond James and Claymore are continually updating and expanding
shareholder information services on the Fund's website, in an ongoing effort to
provide you with the most current information about how your Fund's assets are
managed, and the results of our efforts. It is just one more way we are working
to keep you better informed about your investment in the Fund.
2 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund
Dear SHAREHOLDER |
We are pleased to submit the semi-annual shareholder report for the
Claymore/Raymond James SB-1 Equity Fund (the "Fund"). This report covers
performance for the Fund's semi-annual period ended February 29, 2008. As you
may know, the Fund's investment objective is to provide capital appreciation to
shareholders. Claymore Advisors, LLC is the Investment Adviser to the Fund; the
Fund's Sub-Adviser is Raymond James & Associates, Inc. ("Raymond James"). The
Fund seeks to achieve that objective by investing substantially all of its net
assets in the equity securities that are rated, at the time of purchase, "Strong
Buy 1" by Raymond James analysts.
Raymond James & Associates, Inc. is a wholly-owned subsidiary of Raymond James
Financial, Inc., a Florida-based holding company whose subsidiaries are engaged
in various financial services businesses including brokerage, trading,
investment banking, asset management and financial planning services. The firm's
research department supports the company's institutional and retail sales
efforts and publishes research on more than 600 companies.
This Fund provides investors with direct access to Raymond James' professional
equity research through a retail product. While there are no guarantees of
success, we have confidence in the stock research methodologies employed by
Raymond James analysts and are optimistic about the Fund's long-term prospects.
All Fund returns cited - whether based on net asset value ("NAV") or market
price - assume the reinvestment of all distributions. For the six-month period
ended February 29, 2008, the Fund's return was negative, but in line with market
trends. The Fund's total return based on market value was -9.28%, which
represents a closing market price of $15.82 on February 29, 2008, versus $19.27
on August 31, 2007. On an NAV basis, the Fund generated a total return of
-11.45%. This represents an NAV of $17.53 on February 29, 2008, versus $21.67 on
August 31, 2007. The Fund's market price on February 29, 2008, represented a
market price discount to NAV of 9.75%; as of August 31, 2007, the discount was
11.08%. We believe that the Fund's market price discount to NAV represents an
opportunity, as common shares of the Fund continue to be available in the market
at prices below the value of the securities in the underlying portfolio.
When shares trade at a discount to NAV, the Dividend Reinvestment Plan ("DRIP")
takes advantage of the discount by reinvesting distributions in common shares of
the Fund purchased in the market at a price less than NAV. Conversely, when the
market price of the Fund's common shares is at a premium to NAV, the DRIP
reinvests participants' dividends in newly-issued common shares at NAV, subject
to an IRS limitation that the purchase price cannot be more than 5% below the
market price per share. The DRIP provides a cost effective means to accumulate
additional shares and enjoy the benefits of compounding returns over time.
Shareholders have the opportunity to reinvest their dividends from the Fund
through the DRIP, which is described in detail on page 20 of this report.
SemiAnnual Report | February 29, 2008 3
RYJ | Claymore/Raymond James SB-1 Equity Fund | DEAR SHAREHOLDER continued
The Fund paid an annual dividend of $1.84 per common share on December 31, 2007.
For tax purposes, approximately $1.51 of this distribution was classified as
ordinary income with the remaining $0.33 representing realized long-term capital
gains. A substantial portion of this ordinary income relates to realized
short-term capital gains. The Fund re-balances frequently as new securities are
added as the SB-1 or others are removed. As a result, a significant portion of
any realized gain/loss would likely relate to securities held for one-year or
less. Any short-term capital gain distributed by the Fund would be taxed as
ordinary income.
To learn more about the Fund's performance and investment strategy, we encourage
you to read the Questions & Answers section of the report, which begins on page
5. You will find information about what impacted the performance of the Fund
during the first half of the 2008 fiscal year and the Investment Adviser's views
on the market environment.
We appreciate your investment and look forward to serving your investment needs
in the future. For the most up-to-date information on your investment, please
visit the Fund's website at www.claymore.com/ryj.
Sincerely,
/s/ Nicholas Dalmaso
Nicholas Dalmaso
Claymore/Raymond James SB-1 Equity Fund
4 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund
QUESTIONS & ANSWERS |
CHUCK R. CRAIG, CFA, PORTFOLIO MANAGER
Chuck Craig joined Claymore Securities, Inc., an affiliate of Claymore Advisors,
LLC (either entity separately, or both entities together, "Claymore") in May
2003, and is a Managing Director, Portfolio Management and Supervision. Mr.
Craig is also a Portfolio Manager for Claymore's line of exchange-traded funds.
Additionally, he is involved in the screening, selection and development of the
firm's unit investment trusts and new products. Prior to joining Claymore, Mr.
Craig spent four years with First Trust Portfolios L.P. (formerly Nike
Securities) as an equity research analyst and portfolio manager within the
Equity Strategy Research Group. He has more than 10 years of investment industry
experience and is a CFA charterholder. He received an M.S. degree in Financial
Markets at the Illinois Institute of Technology and a B.S. in Finance from
Northern Illinois University. Mr. Craig served for eight years in the U.S. Air
Force, including six years at the White House Communications Agency serving
three U.S. presidents and their staffs.
Claymore Advisors, LLC is the Investment Adviser of the Claymore/Raymond James
SB-1 Equity Fund (the "Fund"). As Investment Adviser, Claymore manages the
investment and reinvestment of the Fund's assets and day-to-day activities of
the Fund as delegated by the Fund's Trustees. Below, Mr. Craig discusses the
Fund's performance for the six-month period ended February 29, 2008.
BEFORE WE DISCUSS PERFORMANCE, WILL YOU REMIND US OF THE FUND'S INVESTMENT
OBJECTIVE AND HOW THE FUND WAS DESIGNED TO SEEK THAT OBJECTIVE?
Claymore/Raymond James SB-1 Equity Fund is the only retail product that provides
investors with direct access to Raymond James & Associates, Inc.'s ("Raymond
James", the Fund's Sub-Adviser), professional equity selection of Strong Buy 1
("SB-1") securities. The Fund's investment objective is to provide capital
appreciation to investors. The Fund seeks to achieve that objective by investing
substantially all of its net assets in the equity securities that are rated, at
the time of purchase, a "Strong Buy 1" by Raymond James analysts. There are
currently four ratings categories used by Raymond James (Strong Buy, Outperform,
Market Perform or Underperform), with SB-1 being the highest rating. A rating of
SB-1 indicates generally that the Raymond James analyst assigning the rating
expects the stock to achieve certain total return targets over the next six
months and to outperform the S&P 500 Index over that period. For certain
higher-yielding equities, such as real estate investment trusts ("REITs") and
certain master limited partnerships ("MLPs"), the analyst anticipates the stock
to achieve certain total return targets over the next 12 months. Of course there
is no guarantee that the stocks rated SB-1 will produce positive returns. The
SB-1 ratings assigned by Raymond James analysts are not intended as guarantees
of investment performance of those rated securities or of the Fund, nor are the
SB-1 ratings an expectation or prediction of the performance of the Fund.
PLEASE TELL US ABOUT THE ECONOMIC AND MARKET ENVIRONMENT DURING THE SIX MONTHS
ENDED FEBRUARY 29, 2008.
The six-month period from August 31, 2007, through February 29, 2008, was a
period of considerable economic uncertainty and significant turmoil throughout
the capital markets. In the last few months of 2007, what began as a correction
in the U.S. housing market accelerated into a crisis in the sub-prime mortgage
market with profound implications for the entire economy. By early 2008, there
had been pronounced changes in attitudes toward risk in financial markets, as
demonstrated by wider credit spreads, severe dislocation in short-term credit
markets, overall tightening of financial conditions and an increasingly volatile
equity market. The Federal Reserve Board reduced interest rates five times
between September 2007 and January 2008, striving to strike a balance between
providing liquidity to financial markets and keeping inflation at a moderate
level. Even with this stimulus, recent trends in employment, consumer spending
and other indicators have led many economists to forecast that the U.S. will
experience a recession during 2008.
In this challenging economic environment, most U.S. equity indices posted
negative returns. Large-cap stocks performed better than small-cap stocks, as
investors demonstrated a preference for investments considered to be less risky.
Seven of the 10 sectors within the S&P 500 Index had negative returns; only the
energy, materials and consumer staples sectors posted positive returns. The
weakest sector was financials, followed by the telecommunication services and
consumer discretionary sectors.
HOW DID THE FUND PERFORM IN THIS ENVIRONMENT?
All Fund returns cited - whether based on net asset value ("NAV") or market
price - assume the reinvestment of all distributions. For the six months ended
February 29, 2008, the Fund's returns were negative, in line with market trends.
For this six-month period, the Fund's total return based on market price was
-9.28%; return on an NAV basis was -11.45%. For NAV performance comparison
purposes, the S&P 500 Index ("S&P 500" or the "Index") returned -8.79% for the
same time period. The S&P 500 is generally considered representative of the U.S.
large-cap stock market.Additionally, the S&P 400 MidCap Index returned
SemiAnnual Report | February 29, 2008 5
RYJ | Claymore/Raymond James SB-1 Equity Fund | QUESTIONS & ANSWERS continued
-8.05%. The S&P 400 MidCap Index is a market-capitalization weighted index
designed to represent U.S. companies of $1.5 billion to $5 billion
capitalization range and is a widely used measure of mid-size company U.S. stock
market performance.
On February 29, 2008, the Fund's closing market price was $15.82, and the NAV's
closing price was $17.53, reflecting a market price discount to NAV of 9.75%. On
August 31, 2007, the Fund's market price closed at $19.27 and its NAV was
$21.67, reflecting a market price discount to NAV of 11.08%.
The market value of the Fund's shares fluctuates from time to time, and it may
be higher or lower than the Fund's NAV. The current market price discount to NAV
may provide an opportunity for suitable investors to purchase shares of the Fund
below the market value of the securities in the underlying portfolio.
We believe that, over the long term, the progress of the NAV will be reflected
in the market price return to shareholders.
WILL YOU TELL US MORE ABOUT RAYMOND JAMES' RESEARCH AND RANKING SYSTEM?
Raymond James' research department supports the company's institutional and
retail sales efforts and publishes research on more than 600 companies. The
firm's Equity Research Team is composed of more than 40 fundamental equity
analysts. The analysts examine each company's balance sheets, operations, sales,
earnings history, growth potential and management among other firm-specific
data. The analysts cover eight primary market sectors including communications,
consumer, energy, financial services, health care, industrial services, real
estate and technology. The work of the fundamental analysts is complemented by
technical and economic analysts, and is supported by nearly 60 research
associates and support staff.
The ratings assigned by Raymond James analysts represent such analysts'
judgments given available facts and public information and are not intended to
be guarantees of investment performance of rated securities or of the Fund. The
Raymond James Stock-Rating Guide serves as a guideline for the firm's equity
research analysts and is in no way indicative of the future performance of any
individual stock, industry sector or the Claymore/Raymond James SB-1 Equity
Fund.
HOW IS THE PORTFOLIO CONSTRUCTED AND HOW IS IT MAINTAINED TO REPRESENT THE
SUB-ADVISER'S STRONG BUY 1 PICKS?
The Fund employs a modified equal-weighting methodology, meaning the Fund seeks
to invest an equal percentage of the Fund's total assets in each SB-1 security,
within the constraints of the underlying securities. Occasionally, some of the
securities may exhibit relatively low liquidity. In those cases, the Fund may
take an initial position that is less than an equal weight in order to mitigate
the risk of adversely affecting the price of the less liquid security. At
rebalancing, the Fund seeks to bring portfolio securities to an equal weight.
While SB-1 ratings can potentially change every business day, we rebalance and
reconstitute the portfolio approximately every two weeks or twice monthly. We do
so in an effort to reduce turnover and transaction costs for the Fund. At the
time of reconstitution and rebalancing, we sell securities that are no longer
ranked SB-1, add securities not currently in the portfolio that have been
upgraded to an SB-1 ranking and adjust the portfolio in accordance with our
modified equal-weighting methodology.
WHAT ARE THE PORTFOLIO'S CURRENT AREAS OF EMPHASIS?
On February 29, 2008, the Fund's largest sector positions were in energy (18.8%
of total investments), health care (14.5% of total investments) and consumer
discretionary (12.1% of total investments). The portfolio held mainly common
stocks (91.8% of total investments) and MLPs (8.1% of total investments).
At the end of the period, small-capitalization companies represented
approximately 61% of total investments; mid-cap companies represented 18%; and
large-cap companies represented 20% of total investments. Cash and other
investments represented the remaining 1%. It is important to remember that the
Fund is rebalanced twice each month and these sector allocations and security
types can and do change.
WHAT ARE SOME FACTORS THAT INFLUENCED PERFORMANCE DURING THE PERIOD?
Although portfolio securities are selected based on Raymond James' rankings and
not by virtue of their market capitalization, industry or sector, some of these
factors did influence the Fund's performance.
6 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund | QUESTIONS & ANSWERS continued
The Fund's performance was helped by its underweight relative to the S&P 500 in
the financials sector, which was the worst performing sector in the Index. Stock
selection in the financials sector also contributed to performance, as the
portfolio did not hold some of the stocks that experienced very sharp declines.
Also positive was an overweight position relative to the Index in the energy
sector, which performed well. The Fund's overweight position in the information
technology sector, as well as stock selection in this sector, detracted from
performance. An underweight in the consumer staples sector detracted from
performance relative to the Index, although stock selection in this sector
contributed to performance.
WHAT WERE SOME OF THE SECURITIES THAT HELPED AND HURT THE FUND'S PERFORMANCE?
One of the top performing holdings was CONSOL Energy, Inc. (not held in the
portfolio at period end), which produces energy from coal and gas, serving the
electric power generation industry in the United States; this company's earnings
benefited from robust global demand for coal. Also positive was a position in
Walter Industries, Inc. (not held in the portfolio at period end), a diversified
industrial company with positions in natural resources and home construction.
Walter reported earnings well above analysts' estimates for the fourth quarter
of 2007. Another contributor was ICON plc (not held in the portfolio at period
end), a contract research organization based in Ireland that provides outsourced
development services on a global basis to the pharmaceutical, biotechnology and
medical device industries. ICON continued to expand, both organically and
through strategic acquisitions.
A position in Avanex Corporation (0.8% of total investments), which manufactures
and markets fiber optic-based products known as photonic processors, detracted
from performance. Avanex recently issued revenue and earnings forecasts for 2008
that were below analysts' prior estimates. Also negative was a position in PGT,
Inc. (0.1% of total investments), a manufacturer and supplier of residential
impact-resistant windows and doors; PGT's revenue and earnings have been hurt by
the weakness in residential construction, necessitating significant layoffs.
Another position that detracted from performance was NII Holdings, Inc. (0.8% of
total investments), which provides digital wireless communication services to
business customers in Latin American markets. This stock weakened despite strong
earnings reports and management's positive outlook for 2008.
PLEASE TELL US ABOUT THE FUND'S DISTRIBUTIONS?
The Fund's investment objective is to provide capital appreciation. The Fund
intends to pay substantially all of its net investment income to common
shareholders through annual distributions. In addition, the Fund intends to
distribute any net long-term capital gains to common shareholders as long-term
capital gain dividends at least annually. To the extent that the Fund realizes
net investment income, including short-term capital gains, on a more frequent
basis, the Fund may make more frequent distributions to its common shareholders.
On December 31, 2007, the Fund made a distribution of $1.84 per share. For tax
purposes, approximately $1.51 of this distribution was classified as ordinary
income with the remaining $0.33 representing realized long-term capital gains. A
substantial portion of this ordinary income relates to realized short-term
capital gains. The Fund re-balances frequently as new securities are added as
the SB-1 or others are removed. As a result, a significant portion of any
realized gain/loss would likely relate to securities held for one-year or less.
Any short-term capital gain distributed by the Fund would be taxed as ordinary
income.
DO YOU HAVE ANY OTHER COMMENTS FOR SHAREHOLDERS?
While the Fund's NAV return was negative over the past six months, NAV return
has been positive for the period since the Fund's inception date of May 19,
2006. There are of course no guarantees of success, but we have confidence in
the stock research methodologies employed by Raymond James analysts. The last
few months have been a challenging time for all equity investors, including
investors in closed-end funds, many of which currently sell at discounts to NAV.
The closed-end fund marketplace has experienced such sell-offs in the past, as
investors react based on market momentum rather than considering relative
strength or weakness in the underlying securities in the closed-end fund itself.
When considering performance, we encourage investors to take a long-term view.
Investment performance changes on a daily basis and the true test of a Fund's
success is whether it can stand the test of time. The market price of a Fund is,
of course, independent of its NAV. With that said, we hope that both the Fund's
NAV and its market price will improve in the future. Bear in mind, the Fund has
an automatic open-end conversion feature that seeks to address market price
discounts to the net asset value that are sometimes associated with closed-end
funds.
SemiAnnual Report | February 29, 2008 7
RYJ | Claymore/Raymond James SB-1 Equity Fund | QUESTIONS & ANSWERS continued
The Fund's Agreement and Declaration of Trust provides that (beginning after 18
months of operations from the inception date of May 19, 2006) if the Fund's
Common Shares close on the New York Stock Exchange ("NYSE") for 75 consecutive
trading days at a price that is a 10 % or greater discount from the NAV of the
Fund's common shares, the Fund will commence the process necessary to convert
the Fund into an open-end investment company. Although the Fund is required to
convene a special shareholder meeting at which the Fund's shareholders can vote
to maintain the Fund's status as a closed-end fund, there can be no assurance
that such a vote would be obtained. If such a vote is not obtained, the Fund
would convert automatically to an open-end fund and would no longer be listed on
the NYSE. The Fund's shares would be purchased and redeemed by the Fund at NAV
and the Fund could be required to commence a continuous offering of its shares
upon the conversion to an open-end fund.
RYJ RISKS AND OTHER CONSIDERATIONS
The Fund is a diversified, closed-end management investment company with a
limited history of operations and a limited history of public trading. An
investment in the Fund is subject to investment risk, including the possible
loss of the entire principal amount invested. An investment in the common shares
of the Fund represents an indirect investment in the securities and other
instruments owned by the Fund. The value of those securities and other
instruments may fluctuate, sometimes rapidly and unpredictably, and will affect
the value of the common shares.
The Fund's common shares may trade at a discount or a premium in relation to net
asset value. At any point in time, the common shares may be worth less than the
original investment, including the reinvestment of Fund dividends and/or
distributions. An investment in the common shares of the Fund is intended for
long-term investors and should not be considered a complete investment program.
Each common shareholder should take into account the Fund's investment objective
as well as the common shareholder's other investments when considering an
investment in the Fund. There can be no assurance that the Fund will achieve its
investment objective.
A principal risk of investing in the Fund is equity risk, which is the risk that
the value of the securities held by the Fund will fall due to general market and
economic conditions, perceptions regarding the industries in which the issuers
of securities held by the Fund participate or factors relating to specific
companies in which the Fund invests. An adverse event, such as an unfavorable
earnings report, a research downgrade, including one issued by the Sub-Adviser,
may depress the value of common stock of an issuer held by the Fund.
The Fund may invest in securities of issuers that have comparatively smaller
capitalizations relative to issuers whose securities are included in major
benchmark indices, which present unique investment risks. Equity securities of
smaller capitalization companies generally are less liquid than those of larger
companies.
Investments in securities of non-U.S. issuers involve special risks not
presented by investments in securities of U.S. issuers, including: (i) there may
be less publicly available information about non-U.S. issuers or markets due to
less rigorous disclosure or accounting standards or regulatory practices; (ii)
many non-U.S. markets are smaller, less liquid and more volatile than the U.S.
market; and (iii) potential adverse effects of fluctuations in currency exchange
rates or controls on the value of the Fund's investments.
Investing in REITs makes the Fund more susceptible to risks associated with the
ownership of real estate and with the real estate industry in general. These
risks can include fluctuations in the value of underlying properties; defaults
by borrowers or tenants; market saturation; changes in general and local
economic conditions; decreases in market rates for rents, increases in
competition, property taxes, capital expenditures, or operating expenses; and
other economic, political or regulatory occurrences affecting the real estate
industry.
An investment in MLP units involves risk that differs from a similar investment
in equity securities, such as common stock, of a corporation. Holders of MLP
units have rights typically afforded to limited partners in a limited
partnership. As compared to common shareholders of a corporation, holders of MLP
units have more limited control and limited rights to vote on matters affecting
the partnership. There are certain tax risks associated with an investment in
MLP units. Additionally, conflicts of interest may exist between common unit
holders and the general partner of an MLP; for example a conflict may arise as a
result of incentive distribution payments. The Fund will not invest more than
25% of its assets in MLPs.
The Fund is subject to management risk because it is an actively-managed
investment portfolio. The Investment Adviser will apply investment techniques
and risk analysis in making investment decisions for the Fund, but there can be
no guarantee that these will produce the desired results. There can be no
assurance that the Sub-Adviser will be successful in its analysis of stocks
upgraded to or downgraded from "SB-1"status. There are no assurances that
Raymond James will continue to provide equity research to the degree currently
provided by it, or that it will continue to provide research services at all.
Raymond James may decrease (i) the number of equity analysts that it employs,
(ii) the number of industries, or (iii) the number of issuers within an
industry, that such analysts cover.
An investment in the Fund is subject to certain risks and other considerations,
including, but not limited to: Industry and Sector Risk; Other Investment
Company Risk; Risks Relating to Raymond James Equity Securities Ratings; Risks
Associated with Other Business Activities of Raymond James; Investment Strategy
Risk; Market Discount Risk; Portfolio Turnover Risk; Strategic Transactions
Risk; and Current Developments Risk.
Investors should carefully consider the investment objective and policies, risk
considerations, charges and ongoing expenses of the Fund before investing.
8 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund
Fund SUMMARY | AS OF FEBRUARY 29, 2008 (unaudited)
FUND STATISTICS
--------------------------------------------------------------------------------
Share Price $15.82
Common Share Net Asset Value $17.53
Premium/Discount to NAV -9.75%
Net Assets ($000) $194,969
--------------------------------------------------------------------------------
TOTAL RETURNS
--------------------------------------------------------------------------------
(Inception 5/19/06) Market NAV
--------------------------------------------------------------------------------
Six Month -9.28% -11.45%
One Year -3.68% -5.47%
Since Inception -
average annual -6.97% 0.57%
--------------------------------------------------------------------------------
Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. For the most recent month-end performance figures, please visit
www.claymore.com. The investment return and principal value of an investment
will fluctuate with changes in market conditions and other factors so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
% OF TOTAL
PORTFOLIO BREAKDOWN* INVESTMENTS
--------------------------------------------------------------------------------
Energy 18.8%
Health Care 14.5%
Consumer Discretionary 12.1%
Industrials 11.2%
Financials 9.5%
Semiconductors 8.0%
Communications Equipment 6.8%
Telecommunications 6.6%
Software & Services 4.9%
Electronic Equipment & Instruments 4.8%
Consumer Staples 0.8%
Utilities 0.8%
Materials 0.8%
Computers & Peripherals 0.3%
Exchange Traded Funds 0.1%
--------------------------------------------------------------------------------
* Represents broad sectors and not specific industries.
% OF TOTAL
TOP TEN HOLDINGS INVESTMENTS
--------------------------------------------------------------------------------
Leap Wireless International, Inc. 1.0%
NTELOS Holdings Corp. 0.9%
Kendle International Inc. 0.9%
Continental Resources, Inc. 0.9%
Cogent, Inc. 0.9%
EMS Technologies, Inc. 0.9%
Stanley Furniture Co., Inc. 0.9%
MetroPCS Communications, Inc. 0.9%
Akamai Technologies, Inc. 0.9%
Whiting Petroleum Corp. 0.9%
--------------------------------------------------------------------------------
Sectors and holdings are 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. Past
performance does not guarantee future results.
Line Chart:
Share Price & NAV Performance
2/28/2007 15.68 17.52
15.57 17.4
15.9 17.76
16.07 17.91
15.9 17.73
16.19 18.06
16.57 18.45
16.45 18.29
15.96 17.74
15.8 17.5
15.97 17.73
15.94 17.69
16.15 17.84
16.16 17.93
16.46 18.27
16.12 17.9
16.13 17.79
16.15 17.81
16.26 17.98
15.97 17.62
15.97 17.64
16.25 17.97
16.42 18.19
16.42 18.19
16.34 17.96
2/29/2008 15.82 17.53
Pie Chart:
Holdings by Capitalization*
Asset Class
Small-cap 61%
Large-cap 20%
Mid-cap 18%
Cash and Other
Investments 1%
* As a percentage of total investments.
% OF TOTAL
ASSET ALLOCATION NET ASSETS
--------------------------------------------------------------------------------
Common Stocks 91.8%
Master Limited Partnerships 8.1%
Exchange Traded Funds 0.1%
Other Assets in excess of Liabilities 0.0%
--------------------------------------------------------------------------------
100.0%
--------------------------------------------------------------------------------
SemiAnnual Report | February 29, 2008 9
RYJ | Claymore/Raymond James SB-1 Equity Fund
Portfolio of INVESTMENTS | FEBRUARY 29, 2008 (unaudited)
NUMBER
OF SHARES DESCRIPTION VALUE
----------------------------------------------------------------
TOTAL INVESTMENTS - 100.0%
Common Stocks - 91.8%
Communications Equipment - 6.8%
115,500 ADC Telecommunications, Inc. (a) $1,578,885
1,976,900 Avanex Corp. (a) 1,603,266
60,100 EMS Technologies, Inc. (a) 1,730,279
29,500 Harris Corp. 1,440,485
122,200 JDS Uniphase Corp. (a) 1,606,930
81,900 KVH Industries, Inc. (a) 710,892
138,800 Motorola, Inc. 1,383,836
42,900 Nokia Corp. - ADR (Finland) 1,544,829
281,091 Orbcomm, Inc. (a) 1,602,219
----------------------------------------------------------------
13,201,621
----------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.3%
720,900 Concurrent Computer Corp. (a) 576,720
----------------------------------------------------------------
CONSUMER DISCRETIONARY - 12.1%
13,700 Autozone, Inc. (a) 1,576,596
35,700 Best Buy Co., Inc. 1,535,457
37,500 Carnival Corp. (Panama) 1,475,625
53,700 Culp, Inc. (a) 392,010
62,100 Dollar Tree, Inc. (a) 1,666,143
57,100 Ethan Allen Interiors, Inc. 1,555,404
56,300 Home Depot, Inc. 1,494,765
66,700 Lowe's Cos., Inc. 1,598,799
60,500 Marvel Entertainment, Inc. (a) 1,521,575
56,700 O'Reilly Automotive, Inc. (a) 1,528,632
308,000 Pier 1 Imports, Inc. (a) 1,613,920
37,600 Polaris Industries, Inc. 1,435,568
41,500 Royal Caribbean Cruises Ltd. (Liberia) 1,452,915
128,900 Stanley Furniture Co., Inc. 1,696,324
53,200 Urban Outfitters, Inc. (a) 1,531,096
17,800 WhirlPool Corp. 1,501,786
----------------------------------------------------------------
23,576,615
----------------------------------------------------------------
CONSUMER STAPLES - 0.8%
38,500 CVS Caremark Corp. 1,554,630
----------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 4.8%
46,200 Avnet, Inc. (a) 1,557,402
175,700 Cogent, Inc. (a) 1,757,000
96,200 Ingram Micro, Inc. - Class A (a) 1,468,974
86,100 Insight Enterprises, Inc. (a) 1,509,333
125,400 L-1 Identity Solutions, Inc. (a) 1,499,784
47,700 Tech Data Corp. (a) 1,590,795
----------------------------------------------------------------
9,383,288
----------------------------------------------------------------
NUMBER
OF SHARES DESCRIPTION VALUE
----------------------------------------------------------------
ENERGY - 11.5%
14,200 Apache Corp. $1,628,882
36,500 Cameron International Corp. (a) 1,550,520
63,100 Continental Resources, Inc. (a) 1,771,848
67,300 Delta Petroleum Corp. (a) 1,612,508
13,300 Diamond Offshore Drilling, Inc. 1,607,039
125,500 Harvest Natural Resources, Inc. (a) 1,538,630
68,700 InterOil Corp. (Canada) (a) 1,499,034
27,700 Lufkin Industries, Inc. 1,583,332
24,400 National Oilwell Varco, Inc. (a) 1,520,120
32,300 Noble Corp. (Cayman Islands) 1,587,545
21,500 Occidental Petroleum Corp. 1,663,455
18,600 Schlumberger Ltd. (Netherland Antilles) 1,607,970
11,415 Transocean, Inc. (Cayman Islands) 1,603,922
27,600 Whiting Petroleum Corp. (a) 1,689,672
----------------------------------------------------------------
22,464,477
----------------------------------------------------------------
FINANCIALS - 9.5%
33,700 Allstate Corp. (The) 1,608,501
30,861 American Physicians Service Group, Inc. 583,273
42,000 Argo Group International Holdings Ltd.
(Bermuda) (a) 1,571,640
134,239 Cardinal Financial Corp. 1,067,200
30,400 Chubb Corp. 1,547,360
117,800 CoBiz Financial, Inc. 1,447,762
169,148 First Bancorp (Puerto Rico) 1,529,098
120,100 First State Bancorporation 1,426,788
66,100 HCC Insurance Holdings, Inc. 1,590,366
89,500 New York Community Bancorp, Inc. 1,461,535
17,200 Nexity Financial Corp. (a) 130,376
68,100 Pinnacle Financial Partners, Inc. (a) 1,562,214
139,000 Popular, Inc. (Puerto Rico) 1,534,560
28,000 Reinsurance Group of America, Inc. 1,531,880
----------------------------------------------------------------
18,592,553
----------------------------------------------------------------
HEALTH CARE - 14.5%
34,400 Amedisys, Inc. (a) 1,471,632
26,100 Cardinal Health, Inc. 1,543,554
34,300 Cerner Corp. (a) 1,490,335
78,000 Eclipsys Corp. (a) 1,665,300
38,500 Forest Laboratories, Inc. (a) 1,531,145
137,900 HLTH Corp. (a) 1,632,736
67,071 IMS Health, Inc. 1,509,768
24,900 Johnson & Johnson 1,542,804
39,910 Kendle International Inc. (a) 1,788,367
273,800 NovaMed, Inc. (a) 1,097,938
122,300 Noven Pharmaceuticals, Inc. (a) 1,658,388
70,100 Pfizer, Inc. 1,561,828
35,200 Pharmaceutical Product Development, Inc. 1,586,464
100,808 Phase Forward, Inc. (a) 1,605,871
See notes to financial statements.
10 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund | PORTFOLIO OF INVESTMENTS
(unauditd) continued
NUMBER
OF SHARES DESCRIPTION VALUE
----------------------------------------------------------------
HEALTH CARE (CONTINUED)
54,400 Psychiatric Solutions, Inc. (a) $1,538,976
74,100 Schering-Plough Corp. 1,607,970
31,500 Universal Health Services, Inc. - Class B 1,682,730
37,900 Wyeth 1,653,198
----------------------------------------------------------------
28,169,004
----------------------------------------------------------------
INDUSTRIALS - 11.2%
100,400 Argon ST, Inc. (a) 1,631,500
158,500 Casella Waste Systems, Inc. - Class A (a) 1,567,565
33,300 Con-Way, Inc. 1,508,823
27,200 Harsco Corp. 1,536,528
110,900 Heartland Express, Inc. 1,550,382
51,400 Herman Miller, Inc. 1,533,262
91,800 Interface, Inc. - Class A 1,538,568
95,022 JA Solar Holdings Co. Ltd. - ADR
(Cayman Islands) (a) 1,357,864
118,400 Knoll, Inc. 1,667,072
33,500 Landstar System, Inc. 1,553,730
39,510 PGT, Inc. (a) 134,334
50,850 Republic Services, Inc. 1,552,451
52,700 Ryanair Holdings PLC - ADR (Ireland) (a) 1,506,166
22,800 Sunpower Corp. - Class A (a) 1,498,416
52,900 Waste Connections, Inc. (a) 1,606,044
----------------------------------------------------------------
21,742,705
----------------------------------------------------------------
MATERIALS - 0.8%
42,700 Scotts Miracle-Gro Co. (The) - Class A 1,519,693
----------------------------------------------------------------
SEMICONDUCTORS - 8.0%
90,200 Altera Corp. 1,543,322
66,800 Diodes, Inc. (a) 1,507,676
79,600 Intel Corp. 1,588,020
209,200 Micron Technology, Inc. (a) 1,573,184
70,650 Nvidia Corp. (a) 1,511,204
483,700 RF Micro Devices, Inc. (a) 1,523,655
188,300 Skyworks Solutions, Inc. (a) 1,555,358
52,000 Texas Instruments, Inc. 1,557,920
52,400 Trina Solar Ltd. - ADR
(Cayman Islands) (a) 1,664,748
72,500 Xilinx, Inc. 1,621,100
----------------------------------------------------------------
15,646,187
----------------------------------------------------------------
SOFTWARE & SERVICES - 4.9%
48,100 Akamai Technologies, Inc. (a) 1,691,196
416,500 Art Technology Group, Inc. (a) 1,407,770
38,800 Automatic Data Processing, Inc. 1,550,060
109,000 Interactive Intelligence, Inc. (a) 1,554,340
30,800 NCI, Inc. - Class A (a) 545,776
92,500 Nuance Communications, Inc. (a) 1,521,625
129,600 Switch & Data Facilities Co., Inc. (a) 1,354,320
----------------------------------------------------------------
9,625,087
----------------------------------------------------------------
NUMBER
OF SHARES DESCRIPTION VALUE
----------------------------------------------------------------
TELECOMMUNICATIONS - 6.6%
288,300 Centennial Communications Corp. (a) $1,519,341
36,400 Embarq Corp. 1,526,616
43,500 Leap Wireless International, Inc. (a) 1,860,060
106,300 MetroPCS Communications, Inc. (a) 1,695,485
37,900 NII Holdings, Inc. (a) 1,505,767
83,925 NTELOS Holdings Corp. 1,790,120
189,360 PAETEC Holding Corp. (a) 1,461,859
49,100 SBA Communications Corp. - Class A (a) 1,524,555
----------------------------------------------------------------
12,883,803
----------------------------------------------------------------
TOTAL COMMON STOCKS - 91.8%
(Cost $188,063,138) 178,936,383
----------------------------------------------------------------
MASTER LIMITED PARTNERSHIPS - 8.1%
ENERGY - 7.3%
48,300 Energy Transfer Equity L.P. 1,606,458
32,500 Energy Transfer Partners L.P. 1,557,400
51,300 Enterprise Products Partners L.P. 1,588,761
54,400 Inergy L.P. 1,589,024
61,000 Magellan Midstream Holdings L.P. 1,568,920
65,900 Targa Resources Partners L.P. 1,597,416
50,900 Teekay LNG Partners L.P.
(Marshall Islands) 1,529,545
62,079 Teekay Offshore Partners L.P.
(Marshall Islands) 1,572,461
43,800 Williams Partners L.P. 1,626,294
----------------------------------------------------------------
14,236,279
----------------------------------------------------------------
UTILITIES - 0.8%
37,500 Suburban Propane Partners L.P. 1,539,750
----------------------------------------------------------------
TOTAL MASTER LIMITED PARTNERSHIPS - 8.1%
(Cost $13,727,826) 15,776,029
----------------------------------------------------------------
EXCHANGE TRADED FUNDS - 0.1%
1,300 Midcap SPDR Trust Series 1
(Cost $186,630) 187,525
----------------------------------------------------------------
TOTAL INVESTMENTS - 100.0%
(Cost $201,977,594) 194,899,937
Other Assets in excess
of Liabilities - 0.0% 69,361
----------------------------------------------------------------
NET ASSETS - 100.0% $194,969,298
================================================================
ADR - American Depositary Receipts
L.P. - Limited Partnership
(a) Non-income producing security.
Securities are classified by sectors that represent broad groupings of related
industries.
See notes to financial statements.
SemiAnnual Report | February 29, 2008 11
RYJ | Claymore/Raymond James SB-1 Equity Fund
Statement of ASSETS AND LIABILITIES | FEBRUARY 29, 2008 (unaudited)
ASSETS
Investments in securities, at value (cost $201,977,594) $194,899,937
Cash 181,036
Receivable for securities sold 803,163
Dividends receivable 143,067
Other assets 1,753
---------------------------------------------------------------------------------------------------------------
Total assets 196,028,956
---------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for securities purchased 801,292
Advisory fee payable 134,081
Administration fee payable 4,334
Accrued expenses and other liabilities 119,951
---------------------------------------------------------------------------------------------------------------
Total liabilities 1,059,658
---------------------------------------------------------------------------------------------------------------
NET ASSETS $194,969,298
===============================================================================================================
COMPOSITION OF NET ASSETS
Common stock, $.01 par value per share; unlimited number of shares authorized,
11,122,822 shares issued and outstanding $ 111,228
Additional paid-in capital 211,744,333
Accumulated net unrealized depreciation on investments (7,077,657)
Accumulated net realized loss on investments (9,663,287)
Accumulated net investment loss (145,319)
---------------------------------------------------------------------------------------------------------------
Net Assets $194,969,298
===============================================================================================================
NET ASSET VALUE (based on 11,122,822 common shares outstanding) $ 17.53
===============================================================================================================
See notes to financial statements.
12 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund
Statement of OPERATIONS | FOR THE SIX MONTHS ENDED FEBRUARY 29, 2008 (unaudited)
INVESTMENT INCOME
Dividends (net of return of capital distributions received of $470,715) $ 922,528
Interest 8,031
---------------------------------------------------------------------------------------------------------------
Total income $ 930,559
---------------------------------------------------------------------------------------------------------------
EXPENSES
Advisory fee 955,840
Professional fees 67,389
Printing expenses 36,371
Fund accounting 33,436
Trustees' fees and expenses 30,491
Administration fee 29,915
Custodian fee 24,413
NYSE listing 10,556
Insurance 10,003
Transfer agent fee 9,328
Miscellaneous 4,361
---------------------------------------------------------------------------------------------------------------
Total expenses 1,212,103
---------------------------------------------------------------------------------------------------------------
Net investment loss (281,544)
---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on investments (1,131,186)
Net change in unrealized depreciation on investments (24,149,529)
---------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS (25,280,715)
---------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(25,562,259)
===============================================================================================================
See notes to financial statements.
SemiAnnual Report | February 29, 2008 13
RYJ | Claymore/Raymond James SB-1 Equity Fund
Statement of CHANGES IN NET ASSETS |
FOR THE
SIX MONTHS ENDED FOR THE
FEBRUARY 29, 2008 YEAR ENDED
(UNAUDITED) AUGUST 31, 2007
----------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
Net investment loss $ (281,544) $ (567,519)
Net realized gain (loss) on investments (1,131,186) 14,886,062
Net change in unrealized appreciation (depreciation) on investments (24,149,529) 14,920,272
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (25,562,259) 29,238,815
----------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From and in excess of net realized gain (20,465,993) (1,223,510)
----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (46,028,252) 28,015,305
NET ASSETS
Beginning of period 240,997,550 212,982,245
----------------------------------------------------------------------------------------------------------------
End of period (including accumulated undistributed net investment
income (loss) of ($145,319) and $136,225, respectively) $194,969,298 $240,997,550
================================================================================================================
See notes to financial statements.
14 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund
Statement of FINANCIAL HIGHLIGHTS |
FOR THE FOR THE PERIOD
SIX MONTHS ENDED FOR THE MAY 19, 2006*
PER SHARE OPERATING PERFORMANCE FEBRUARY 29, 2008 YEAR ENDED THROUGH
FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD (UNAUDITED) AUGUST 31, 2007 AUGUST 31, 2006
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 21.67 $ 19.15 $ 19.10(b)
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss(a) (0.03) (0.05) (0.00)(c)
Net realized and unrealized gain (loss) on investments (2.27) 2.68 0.09
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (2.30) 2.63 0.09
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM AND IN EXCESS OF NET REALIZED GAIN (1.84) (0.11) -
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.53 $ 21.67 $ 19.15
------------------------------------------------------------------------------------------------------------------------------------
MARKET VALUE, END OF PERIOD $ 15.82 $ 19.27 $ 17.50
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN(d)
Net asset value (11.45)% 13.78% 0.26%
Market value (9.28)% 10.77% (12.50)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (thousands) $194,969 $240,998 $212,982
Ratio of net expenses to average net assets 1.08%(e) 1.09% 1.12%(e)
Ratio of net investment loss to average net assets (0.25)%(e) (0.06)% (0.06)%(e)
Portfolio turnover rate 68% 166% 41%
* Commencement of investment operations.
(a) Based on average shares outstanding during the period.
(b) Before deduction of offering expenses charged to capital.
(c) Amount is less than $0.01.
(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.
See notes to financial statements.
SemiAnnual Report | February 29, 2008 15
RYJ | Claymore/Raymond James SB-1 Equity Fund
Notes to FINANCIAL STATEMENTS | FEBRUARY 29, 2008 (unaudited)
Note 1 - ORGANIZATION:
Claymore/Raymond James SB-1 Equity Fund (the "Fund") was organized as a Delaware
statutory trust on March 7, 2006. The Fund is registered as a diversified,
closed-end management investment company under the Investment Company Act of
1940, as amended (the "Act").
The Fund's investment objective is to provide capital appreciation. There can be
no assurance that the Fund will achieve its investment objective. Under normal
market conditions, the Fund will invest substantially all of its net assets in
equity securities that are rated, at the time of purchase, Strong Buy 1 ("SB-1")
by analysts employed by Raymond James & Associates, Inc. ("Raymond James"). For
purposes of the Fund's investment policies, in the event a security is
downgraded by Raymond James and is no longer rated SB-1 subsequent to the
purchase of such security by the Fund, such security will be considered by the
Fund to be rated SB-1 until the next semi-monthly rebalancing and reconstitution
date following such downgrade. For as long as the word "SB-1" is in the name of
the Fund, the Fund will invest at least 80% of its net assets, plus the amount
of any borrowings for investment purposes, in equity securities rated SB-1. The
Fund's investment objective is considered fundamental and may not be changed
without the approval of a majority of the outstanding voting securities (as
defined in the 1940 Act) of the Fund.
The Fund's Declaration of Trust provides that (beginning after 18 months from
the date of the Prospectus) if the Fund's Common Shares close on the New York
Stock Exchange ("NYSE") for 75 consecutive trading days at a price that is a 10%
or greater discount from the net asset value of the Fund's Common Shares, the
Fund will commence promptly the process necessary to convert the Fund into an
open-end investment company. The Fund's Declaration of Trust provides that in
such event a special meeting of shareholders of the Fund would be convened and
that the Fund would automatically be converted to an open-end fund unless a
majority of the outstanding voting securities of the Fund affirmatively vote to
maintain the Fund's status as a closed-end fund.
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 the significant accounting policies followed by
the Fund.
(a) Valuation of Investments
The Fund values equity securities at the last reported sale price on the
principal exchange or in the principal OTC market in which such securities are
traded, as of the close of regular trading on the NYSE on the day the securities
are being valued or, if there are no sales, at the mean between the last
available bid and asked prices on that day. Securities traded on NASDAQ are
valued at the NASDAQ Official Closing Price. Debt securities are valued at the
last available bid price for such securities or, if such prices are not
available, at prices for securities of comparable maturity, quality and type.
For those securities where quotations or prices are not available, valuations
are determined in accordance with procedures established in goodfaith by the
Board of Trustees. Short-term securities with maturities of 60 days or less at
time of purchase are valued at amortized cost, which approximates market value.
(b) Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Realized gains and
losses on investments are determined on the identified cost basis. Dividend
income is recorded net of applicable withholding taxes 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.
The Fund records the character of dividends received from MLPs based on
estimates made at the time such distributions are received. These estimates are
based upon a historical review of information available from each MLP and other
industry sources. The Fund's characterization of the estimates may subsequently
be revised based on information received from MLPs after their tax reporting
periods conclude.
(c) Distributions
The Fund intends to pay substantially all of its net investment income to Common
Shareholders at least annually. In addition, the Fund intends to distribute any
capital gains to Common Shareholders at least annually. To the extent that the
Fund realizes net investment income, including short-term capital gains, on a
more frequent basis, the Fund may make more frequent distributions to its Common
Shareholders.
Note 3 - INVESTMENT ADVISORY AGREEMENT, SUB-ADVISORY AGREEMENT AND
OTHER AGREEMENTS:
Pursuant to an Investment Advisory Agreement (the "Agreement") between the Fund
and Claymore Advisors, LLC (the "Adviser"), the Adviser provides a continuous
investment program for the Fund's portfolio; executes recommendations for the
purchase and sale of securities; furnishes offices, necessary facilities and
equipment; provides administrative services to the Fund; oversees the activities
of Raymond James (the Fund's "Sub-Adviser"); provides personnel, including
certain officers required for its administrative management; and pays the
compensation of all officers and Trustees of the Fund who are its affiliates.
As compensation for its services, the Fund pays the Adviser a fee, payable
monthly, in an annual amount equal to 0.85% of the Fund's average daily Managed
Assets. "Managed Assets" of the Fund means the total assets of the Fund,
including the assets attributable to the proceeds from any borrowings or other
forms of financial leverage, minus liabilities, other than liabilities related
to any financial leverage.
Pursuant to a Sub-Advisory Agreement between the Fund, the Adviser, and the
Sub-Adviser, the Sub-Adviser, under the supervision of the Adviser and Fund's
Board of Trustees, provides investment research, including the determination and
dissemination of the securities rated SB-1 by Raymond James; may provide certain
facilities and personnel, including certain officers required for its
administrative management; and pays the compensation of all officers and
Trustees of the Fund who are its affiliates. As compensation for its services,
the Adviser pays the Sub-Adviser a fee, payable monthly, in an annual amount
equal to 0.35% of the Fund's average daily Managed Assets.
Under a separate Fund Administration agreement, the Adviser provides fund
administration services to the Fund. As compensation for services performed
under the Administration Agreement, the Adviser receives an administration fee
payable monthly at the annual rate set forth below as a percentage of the
average daily net assets of the fund. For the six months ended February 29,
2008, the Fund recognized expenses of approximately $29,900 for these services.
l6 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund | NOTES TO FINANCIAL STATEMENTS
(unaudited) continued
NET ASSETS RATE
----------------------------------------------------------------
First $200,000,000 0.0275%
Next $300,000,000 0.0200%
Next $500,000,000 0.0150%
Over $1,000,000,000 0.0100%
----------------------------------------------------------------
The Bank of New York Mellon ("BNY") acts as the Fund's accounting agent,
custodian and transfer agent. As accounting agent, BNY is responsible for
maintaining the books and records of the Fund's securities and cash. As
custodian, BNY is responsible for the custody of the Fund's assets. 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. The Fund does not compensate its officers or trustees who are officers
or directors of the Adviser.
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.
Information on the components of investments as of February 29, 2008 is as
follows:
NET TAX
COST OF UNREALIZED
INVESTMENTS GROSS TAX GROSS TAX DEPRECIATION
FOR UNREALIZED UNREALIZED ON
TAX PURPOSES APPRECIATION DEPRECIATION INVESTMENTS
-------------------------------------------------------------------
$206,009,431 $11,476,354 ($22,585,848) ($11,109,494)
The differences between book basis and tax basis unrealized appreciation/
(depreciation) is attributable to the tax deferral of losses on wash sales and
tax adjustments related to master limited partnerships and real estate
investment trusts.
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 implications of FIN 48 and has determined it does not have any
impact on the financial statements as of February 29, 2008.
The 2006 and 2007 tax years are still subject to examination by major
jurisdictions.
The tax character of distributions paid during the period ended August 31, 2007
was $1,223,510 of ordinary income.
Note 5 - INVESTMENTS IN SECURITIES:
For the six months ended February 29, 2008, the cost of purchases and proceeds
from sales of investments, other than short-term securities, were $152,962,960
and $172,445,999, respectively.
Note 6 - CAPITAL:
COMMON SHARES
The Fund has an unlimited amount of common shares, $0.01 par value, authorized
and 11,122,822 issued and outstanding. In connection with the Fund's dividend
reinvestment plan, the Fund did not issue any shares during the years ended
August 31, 2007 and 2006.
Note 7 - 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 require
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 8 - ACCOUNTING PRONOUNCEMENTS:
In September, 2006, the FASB issued Statement of Financial Accounting Standards
No. 157, "Fair Valuation 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 February 29, 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.
SemiAnnual Report | February 29, 2008 17
Supplemental INFORMATION | (unaudited)
TRUSTEES
The Trustees of the Claymore/Raymond James SB-1 Equity Fund and their principal
occupations during the past five years:
NAME, ADDRESS*, YEAR TERM OF OFFICE** PRINCIPAL OCCUPATION DURING NUMBER OF PORTFOLIOS
OF BIRTH AND POSITION(S) AND LENGTH OF THE PAST FIVE YEARS AND IN FUND COMPLEX*** OTHER DIRECTORSHIPS
HELD WITH REGISTRANT TIME SERVED OTHER AFFILIATIONS OVERSEEN BY TRUSTEE HELD BY TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
------------------------------------------------------------------------------------------------------------------------------------
Randall C. Barnes Since 2006 Investor (2001-present). Formerly, Senior 40 None.
Year of Birth: 1951 Vice President and 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).
------------------------------------------------------------------------------------------------------------------------------------
Ronald A. Nyberg Since 2006 Partner of Nyberg & Cassioppi, LLC, a law 43 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).
------------------------------------------------------------------------------------------------------------------------------------
Ronald E. Toupin, Jr. Since 2006 Formerly, Vice President, Manager and 40 None.
Year of birth: 1958 Portfolio Manager of Nuveen Asset Management
Trustee (1998-1999), Vice President of Nuveen
Investment Advisory Corp. (1992-1999), Vice
President and Manager of Nuveen Unit
Investment Trusts (1991-1999), and Assistant
Vice President and Portfolio Manager of
Nuveen Unit Investment Trusts (1988-1999),
each of John Nuveen & Co., Inc. (1982-1999).
INTERESTED TRUSTEES:
------------------------------------------------------------------------------------------------------------------------------------
Nicholas Dalmaso+ Since 2006 Senior Managing Director and Chief 43 None.
Year of birth: 1965 Administrative Officer of Claymore Advisors,
Trustee and Chief Legal LLC and Claymore Securities, Inc.
and Executive Officer (2007-present). Formerly, Senior Managing
Director and General Counsel of Claymore
Group Inc., Claymore Advisors, LLC and
Claymore Securities, Inc. (2001-2007).
Assistant General Counsel, John Nuveen and
Co., Inc. (1999-2001). Former Vice President
and Associate General Counsel of Van Kampen
Investments, Inc. (1992-1999).
------------------------------------------------------------------------------------------------------------------------------------
* Address for all Trustees unless otherwise noted: 2455 Corporate West Drive,
Lisle, IL 60532
** After a Trustee's initial term, each Trustee is expected to serve a
two-year term concurrent with the class of Trustees for which he serves:
-Messrs. Nyberg and Toupin, as Class II Trustees, are expected to stand for
re-election at the Fund's 2008 annual meeting of shareholders.
-Messrs. Barnes and Dalmaso, as Class I 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.
+ Mr. Dalmaso 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 Claymore
Advisors, LLC, the Fund's Investment Adviser.
18 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund | SUPPLEMENTAL INFORMATION
(unaudited) continued
OFFICERS
The officers of the Claymore/Raymond James SB-1 Equity Fund and their principal
occupations during the past five years:
NAME, ADDRESS*, YEAR OF BIRTH AND TERM OF OFFICE** AND PRINCIPAL OCCUPATION DURING THE PAST FIVE YEARS
POSITION(S) HELD WITH REGISTRANT LENGTH OF TIME SERVED AND OTHER AFFILIATIONS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS:
------------------------------------------------------------------------------------------------------------------------------------
Steven M. Hill Since 2006 Senior Managing Director of Claymore Advisors, LLC and Claymore
Year of birth: 1964 Securities, Inc. (2005-present); Formerly, Chief Financial Officer of
Chief Financial Officer, Claymore Group, Inc. (2005-2006); Managing Director of Claymore
Chief Accounting Officer Advisors, LLC and Claymore Securities, Inc. (2003-2005); Treasurer of
and Treasurer Henderson Global Funds and Operations Manager for Henderson Global
Investors (NA) Inc., (2002-2003); Managing Director, FrontPoint
Partners LLC (2001-2002.
------------------------------------------------------------------------------------------------------------------------------------
Melissa J. Nguyen Since 2006 Vice President and Assistant General Counsel of Claymore Group, Inc.
Year of birth: 1978 (2005-present). Secretary of certain funds in the Fund Complex;
Secretary Formerly, Associate, Vedder, Price, Kaufman & Kammholz, P.C.
(2003-2005).
------------------------------------------------------------------------------------------------------------------------------------
Bruce Saxon Since 2006 Vice President, Fund Compliance Officer of Claymore Group, Inc.
Year of birth: 1957 (2006-present). Formerly, Chief Compliance Officer/Assistant Secretary
Chief Compliance of Harris Investment Management, Inc. (2003-2006). Director-Compliance
Officer of Harrisdirect LLC (1999-2003).
------------------------------------------------------------------------------------------------------------------------------------
James Howley Since 2006 Vice President, Fund Administration of Claymore Advisors, LLC
Year of birth: 1972 (2004-present). Formerly, Manager, Mutual Fund Administration of Van
Assistant Treasurer Kampen Investments, Inc. (1996-2004).
------------------------------------------------------------------------------------------------------------------------------------
* Address for all Officers: 2455 Corporate West Drive, Lisle, IL 60532
** 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 | February 29, 2008 19
RYJ | Claymore/Raymond James SB-1 Equity 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, P.O. Box 463, East Syracuse,
New York 13057-0463; Attention: Shareholder Services Department, Phone Number:
(866) 488-3559.
20 SemiAnnual Report | February 29, 2008
RYJ | Claymore/Raymond James SB-1 Equity Fund
Fund Information |
BOARD OF TRUSTEES
Randall C. Barnes
Nicholas Dalmaso*
Ronald A. Nyberg
Ronald E. Toupin, Jr.
* Trustee is an "interested person" of the Fund as defined in the Investment
Company Act of 1940, as amended.
OFFICERS
Steven M. Hill
Chief Financial Officer,
Chief Accounting Officer and Treasurer
Melissa J. Nguyen
Secretary
Bruce Saxon
Chief Compliance Officer
James Howley
Assistant Treasurer
INVESTMENT ADVISER
AND ADMINISTRATOR
Claymore Advisors, LLC
Lisle, Illinois
INVESTMENT SUB-ADVISER
Raymond James & Associates, Inc.
St. Petersburg, Florida
ACCOUNTING AGENT,
CUSTODIAN AND TRANSFER AGENT
The Bank of New York Mellon
New York, New York
LEGAL COUNSEL
Skadden, Arps, Slate,
Meagher & Flom LLP
Chicago, Illinois
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, Illinois
PRIVACY PRINCIPLES OF CLAYMORE/RAYMOND JAMES SB-1 EQUITY FUND FOR SHAREHOLDERS
The Fund is committed to maintaining the privacy of its shareholders and to
safeguarding its non-public personal information. The following information is
provided to help you understand what personal information the Fund collects, how
we protect that information and why, in certain cases, we 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 the
shareholders to Claymore Advisors, LLC employees 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 CLAYMORE/RAYMOND JAMES SB-1 EQUITY 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 Custodian and Transfer Agent:
The Bank of New York Mellon, 111 Sanders Creek Parkway, East Syracuse,
New York 13057 (800) 701-8178
This report is sent to shareholders of Claymore/Raymond James SB-1 Equity 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) 889-3830 or on the Securities and Exchange Commission's website at
http://www.sec.gov.
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) 889-3830
or by accessing the Fund's Form N-PX on the Commission's website at
http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission 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
Commission'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 by visiting the SEC website at http://www.sec.gov.
In August 2007, the Fund submitted a CEO annual certification to the NYSE in
which the Fund's principal executive officer certified that he was not aware, as
of the date of the certification, of any violation by the Fund of the NYSE's
Corporate Governance listing standards. In addition, as required by Section 302
of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Fund's principal
executive and principal financial officers have made quarterly certifications,
included in filings with the SEC on Forms N-CSR and N-Q, relating to, among
other things, the Fund's disclosure controls and procedures and internal control
over financial reporting.
SemiAnnual Report | February 29, 2008 21
RYJ | Claymore/Raymond James SB-1 Equity Fund
ABOUT THE FUND'S SUB-ADVISER AND PORTFOLIO MANAGER
Claymore/Raymond James SB-1 Equity Fund is sub-advised by Raymond James &
Associates, Inc. ("Raymond James") and managed by Claymore Advisors, LLC
("Claymore"). The Fund invests substantially all of its net assets in the equity
securities that are rated, at the time of purchase, "Strong Buy 1" by Raymond
James analysts.
RAYMOND JAMES & ASSOCIATES, INC.
Raymond James & Associates, Inc. is a wholly-owned subsidiary of Raymond James
Financial, Inc., a Florida-based holding company whose subsidiaries are engaged
in various financial services businesses including brokerage, trading,
investment banking, asset management and financial planning services. The firm
provides investment research, including the determination and dissemination of
securities rated SB-1 by Raymond James analysts. The firm's research department
supports the company's institutional and retail sales efforts and publishes
research on approximately 600 companies.
OVERVIEW OF RAYMOND JAMES EQUITY RESEARCH
A variety of factors go into the research process used by Raymond James analysts
including an assessment of industry dynamics, interviews of company executives,
analysis of competition and information as available from suppliers,
distributors, major customers and other independent sources. Each stock in the
Raymond James coverage universe is assigned a rating of Strong Buy, Outperform,
Market Perform or Underperform.
Raymond James prizes analyst independence, objectivity, thorough analysis and
integrity, believing that value-added analysis and independent judgment are
critical elements in the quest for superior investment performance. Raymond
James equity analysts strive to anticipate both positive and negative
information and to respond accordingly with timely changes in ratings, earnings
estimates and price targets.
CLAYMORE ADVISORS, LLC
The Fund is managed by Chuck Craig, who serves as Portfolio Manager of the Fund.
Claymore provides a continuous investment program for the Fund's portfolio and
executes the purchase and sale of securities on behalf of the Fund. Chuck Craig,
CFA, joined Claymore in May 2003. In addition to his role as Portfolio Manager
of the Fund and other funds managed by Claymore, Mr. Craig is involved in the
research, selection and development of new products for Claymore.
22 SemiAnnual Report | February 29, 2008
This Page Intentionally Left Blank
CLAYMORE SECURITIES, INC.
2455 Corporate West Drive
Lisle, IL 60532
Member FINRA/SIPC
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE
RYJ
LISTED
NYSE
RYJ-SAR-0208
ITEM 2. CODE OF ETHICS.
Not applicable for the semi-annual reporting period.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for the semi-annual reporting period.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable for the semi-annual reporting period.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANT.
Not applicable for the 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 the semi-annual reporting period.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) Not applicable for the 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) 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)(2) Certifications of principal executive officer and principal financial
officer pursuant to Rule 30a-2 of the Investment Company Act of 1940.
(b) Certifications of principal executive officer and principal financial
officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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) Claymore/Raymond James SB-1 Equity Fund
By: /s/ Nicholas Dalmaso
--------------------------------------------------------
Nicholas Dalmaso,
Chief Executive Officer and Chief Legal Officer
Date: April 30, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Nicholas Dalmaso
--------------------------------------------------------
Nicholas Dalmaso,
Chief Executive Officer and Chief Legal Officer
Date: April 30, 2008
By: /s/ Steven M. Hill
--------------------------------------------------------
Steven M. Hill
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date: April 30, 2008