•
|
Daily, weekly and monthly data on share prices, net asset values, dividends and more
|
•
|
Portfolio overviews and performance analyses
|
•
|
Announcements, press releases and special notices
|
•
|
Fund and adviser contact information
|
(Unaudited)
|
October 31, 2019
|
DEAR SHAREHOLDER (Unaudited) continued
|
October 31, 2019
|
QUESTIONS & ANSWERS (Unaudited)
|
October 31, 2019
|
QUESTIONS & ANSWERS (Unaudited) continued
|
October 31, 2019
|
QUESTIONS & ANSWERS (Unaudited) continued
|
October 31, 2019
|
Index
|
Total Return
|
Bloomberg Barclays U.S. Aggregate Bond Index
|
11.51%
|
ICE Bank of America (“BofA”) Merrill Lynch U.S. Convertible Index
|
12.45%
|
ICE BofA Merrill Lynch U.S. High Yield Index
|
8.32%
|
Standard & Poor’s 500® (“S&P 500”) Index
|
14.32%
|
Thomson Reuters Convertible Global Focus USD Hedged Index
|
6.89%
|
MSCI World Index
|
12.69%
|
MSCI World 100% Hedged to USD Index
|
13.48%
|
QUESTIONS & ANSWERS (Unaudited) continued
|
October 31, 2019
|
Payable Date
|
Amount
|
November 30, 2018
|
$0.1172
|
December 31, 2018
|
$0.1172
|
January 31, 2019
|
$0.1172
|
February 28, 2019
|
$0.1172
|
March 29, 2019
|
$0.1172
|
April 30, 2019
|
$0.1172
|
May 31, 2019
|
$0.1172
|
June 28, 2019
|
$0.1172
|
July 31, 2019
|
$0.1172
|
August 30, 2019
|
$0.1172
|
September 30, 2019
|
$0.1172
|
October 31, 2019
|
$0.1172
|
Total
|
$1.4064
|
QUESTIONS & ANSWERS (Unaudited) continued
|
October 31, 2019
|
QUESTIONS & ANSWERS (Unaudited) continued
|
October 31, 2019
|
QUESTIONS & ANSWERS (Unaudited) continued
|
October 31, 2019
|
QUESTIONS & ANSWERS (Unaudited) continued
|
October 31, 2019
|
QUESTIONS & ANSWERS (Unaudited) continued
|
October 31, 2019
|
FUND SUMMARY (Unaudited)
|
|
|
October 31, 2019
|
|
|
||||
Fund Statistics
|
|
|
|
|
Share Price
|
|
|
|
$14.79
|
Net Asset Value
|
|
|
|
$16.34
|
Discount to NAV
|
|
|
|
-9.49%
|
Net Assets ($000)
|
|
|
|
$564,148
|
|
AVERAGE ANNUAL TOTAL RETURNS
|
|
|
|
|
FOR THE PERIOD ENDED October 31, 2019
|
|
|
|
|
|
One
|
Three
|
Five
|
Ten
|
|
Year
|
Year
|
Year
|
Year
|
Advent Convertible and
|
|
|
|
|
Income Fund
|
|
|
|
|
NAV
|
9.94%
|
8.48%
|
4.50%
|
7.40%
|
Market
|
17.01%
|
11.26%
|
5.31%
|
8.57%
|
Portfolio Breakdown
|
|
|
% of Net Assets
|
|
Corporate Bonds
|
|
|
|
72.0%
|
Convertible Bonds
|
|
|
|
65.6%
|
Convertible Preferred Stocks
|
|
|
|
14.5%
|
Common Stocks
|
|
|
|
8.8%
|
Money Market Fund
|
|
|
|
5.8%
|
Senior Floating Rate Interests
|
|
|
|
1.7%
|
Options Written
|
|
|
|
-0.1%
|
Total Investments
|
|
|
|
168.3%
|
Other Assets & Liabilities, net
|
|
|
|
-68.3%
|
Net Assets
|
|
|
|
100.0%
|
FUND SUMMARY (Unaudited) continued
|
October 31, 2019
|
Country Diversification
|
|
|
|
Country
|
% of Long-Term Investments
|
United States
|
77.2%
|
Cayman Islands
|
4.3%
|
Canada
|
3.6%
|
Netherlands
|
3.1%
|
France
|
1.8%
|
Japan
|
1.6%
|
Bermuda
|
1.4%
|
Luxembourg
|
0.9%
|
China
|
0.8%
|
United Kingdom
|
0.7%
|
Panama
|
0.7%
|
Australia
|
0.5%
|
Germany
|
0.5%
|
Jersey
|
0.4%
|
Greece
|
0.3%
|
Finland
|
0.3%
|
Spain
|
0.3%
|
Switzerland
|
0.3%
|
Monaco
|
0.2%
|
Virgin Islands (UK)
|
0.2%
|
Austria
|
0.2%
|
Hong Kong
|
0.2%
|
Malaysia
|
0.2%
|
Taiwan, Province of China
|
0.1%
|
Belgium
|
0.1%
|
Denmark
|
0.1%
|
Total Long-Term Investments
|
100.0%
|
|
|
|
|
|
AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT l 15
|
PORTFOLIO OF INVESTMENTS
|
|
October 31, 2019
|
|
||
|
Shares
|
Value
|
|
||
COMMON STOCKS† – 8.8%
|
|
|
Consumer, Cyclical – 4.2%
|
|
|
Six Flags Entertainment Corp.1
|
163,000
|
$ 6,876,970
|
Carnival Corp.1
|
150,000
|
6,433,500
|
Delta Air Lines, Inc.1
|
100,000
|
5,508,000
|
Las Vegas Sands Corp.
|
75,000
|
4,638,000
|
Total Consumer, Cyclical
|
|
23,456,470
|
|
||
Industrial – 1.9%
|
|
|
Boeing Co.1
|
19,200
|
6,526,272
|
Eaton Corporation plc1
|
50,000
|
4,355,500
|
Total Industrial
|
|
10,881,772
|
|
||
Technology – 0.8%
|
|
|
Western Digital Corp.1
|
90,000
|
4,648,500
|
|
||
Financial – 0.7%
|
|
|
Citigroup, Inc.
|
50,000
|
3,593,000
|
|
||
Communications – 0.6%
|
|
|
Alibaba Group Holding Ltd. ADR*
|
20,000
|
3,533,400
|
|
||
Energy – 0.6%
|
|
|
Chevron Corp.1
|
30,000
|
3,484,200
|
Total Common Stocks
|
|
|
(Cost $51,049,683)
|
|
49,597,342
|
|
||
CONVERTIBLE PREFERRED STOCKS† – 14.5%
|
|
|
Financial – 3.6%
|
|
|
Wells Fargo & Co.
|
|
|
7.50% 1,4
|
6,000
|
9,067,975
|
Bank of America Corp.
|
|
|
7.25%1,4
|
4,000
|
6,066,360
|
Crown Castle International Corp.
|
|
|
6.88% due 08/01/201
|
1,996
|
2,486,397
|
QTS Realty Trust, Inc.
|
|
|
6.50%1,4
|
15,083
|
1,892,012
|
Assurant, Inc.
|
|
|
6.50% due 03/15/21
|
5,387
|
673,213
|
Total Financial
|
|
20,185,957
|
|
||
Consumer, Non-cyclical – 2.7%
|
|
|
Danaher Corp.
|
|
|
4.75% due 04/15/221
|
6,535
|
7,255,941
|
Bunge Ltd.
|
|
|
4.88%1,4
|
36,391
|
3,694,327
|
See notes to financial statements.
|
|
|
16 l AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT |
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Shares
|
Value
|
|
||
CONVERTIBLE PREFERRED STOCKS† – 14.5% (continued)
|
|
|
Consumer, Non-cyclical – 2.7% (continued)
|
|
|
Becton Dickinson and Co.
|
|
|
6.13% due 05/01/201
|
52,354
|
$ 3,229,195
|
Avantor, Inc.
|
|
|
6.25% due 05/15/221
|
25,867
|
1,345,343
|
Total Consumer, Non-cyclical
|
|
15,524,806
|
|
||
Technology – 2.7%
|
|
|
Broadcom, Inc.
|
|
|
8.00% due 09/30/221
|
13,158
|
14,250,377
|
Change Healthcare, Inc.
|
|
|
6.00% due 06/30/221
|
15,756
|
796,151
|
Total Technology
|
|
15,046,528
|
|
||
Industrial – 2.3%
|
|
|
Energizer Holdings, Inc.
|
|
|
7.50% due 01/15/221
|
97,842
|
9,085,608
|
Fortive Corp.
|
|
|
5.00% due 07/01/211
|
1,836
|
1,663,428
|
Stanley Black & Decker, Inc.
|
|
|
5.38% due 05/15/201
|
11,555
|
1,177,917
|
Colfax Corp.
|
|
|
5.75% due 01/15/221
|
5,343
|
783,337
|
Total Industrial
|
|
12,710,290
|
|
||
Utilities – 1.8%
|
|
|
Dominion Energy, Inc.
|
|
|
7.25% due 06/01/221
|
18,505
|
1,982,811
|
DTE Energy Co.
|
|
|
6.25% due 11/01/22*
|
38,565
|
1,958,330
|
Southern Co.
|
|
|
6.75% due 08/01/221
|
34,367
|
1,821,451
|
CenterPoint Energy, Inc.
|
|
|
7.00% due 09/01/211
|
25,266
|
1,288,566
|
Sempra Energy
|
|
|
6.75% due 07/15/211
|
10,450
|
1,214,238
|
American Electric Power Company, Inc.
|
|
|
6.13% due 03/15/221
|
18,997
|
1,044,645
|
NextEra Energy, Inc.
|
|
|
4.87% due 09/01/221
|
17,700
|
900,222
|
Total Utilities
|
|
10,210,263
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Shares
|
Value
|
|
||
CONVERTIBLE PREFERRED STOCKS† – 14.5% (continued)
|
|
|
Basic Materials – 1.4%
|
|
|
International Flavors & Fragrances, Inc.
|
|
|
6.00% due 09/15/211
|
169,564
|
$ 7,930,508
|
Total Convertible Preferred Stocks
|
|
|
(Cost $75,653,061)
|
|
81,608,352
|
|
||
MONEY MARKET FUND† – 5.8%
|
|
|
Morgan Stanley Institutional Liquidity Government Portfolio –
|
|
|
Institutional Class 1.72%2
|
32,701,173
|
32,701,173
|
Total Money Market Fund
|
|
|
(Cost $32,701,173)
|
|
32,701,173
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CORPORATE BONDS†† – 72.0%
|
|
|
Consumer, Non-cyclical – 13.2%
|
|
|
Bausch Health Companies, Inc.
|
|
|
5.75% due 08/15/271,3
|
4,690,000
|
$ 5,104,772
|
7.00% due 03/15/241,3
|
2,587,000
|
2,712,922
|
HCA, Inc.
|
|
|
7.50% due 02/15/221
|
5,190,000
|
5,771,280
|
7.69% due 06/15/251
|
1,112,000
|
1,345,520
|
Tenet Healthcare Corp.
|
|
|
4.63% due 07/15/241
|
2,146,000
|
2,218,428
|
4.88% due 01/01/263
|
1,983,000
|
2,054,884
|
7.00% due 08/01/25
|
1,837,000
|
1,908,551
|
Encompass Health Corp.
|
|
|
5.75% due 09/15/251
|
3,782,000
|
3,966,372
|
5.75% due 11/01/241
|
1,834,000
|
1,858,071
|
Land O’Lakes Capital Trust I
|
|
|
7.45% due 03/15/281,3
|
3,750,000
|
4,237,500
|
United Rentals North America, Inc.
|
|
|
6.50% due 12/15/261
|
3,793,000
|
4,120,146
|
Molina Healthcare, Inc.
|
|
|
5.38% due 11/15/221
|
3,830,000
|
4,055,013
|
Capitol Investment Merger Sub 2 LLC
|
|
|
10.00% due 08/01/241,3
|
3,597,000
|
3,713,902
|
MEDNAX, Inc.
|
|
|
6.25% due 01/15/271,3
|
3,729,000
|
3,701,032
|
Nielsen Finance LLC / Nielsen Finance Co.
|
|
|
5.00% due 04/15/221,3
|
3,596,000
|
3,632,032
|
Magellan Health, Inc.
|
|
|
4.90% due 09/22/241
|
3,556,000
|
3,538,220
|
Centene Corp.
|
|
|
4.75% due 05/15/221
|
3,430,000
|
3,515,750
|
See notes to financial statements.
|
|
|
18 l AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT
|
|
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CORPORATE BONDS†† – 72.0% (continued)
|
|
|
Consumer, Non-cyclical – 13.2% (continued)
|
|
|
Ritchie Bros Auctioneers, Inc.
|
|
|
5.38% due 01/15/251,3
|
3,249,000
|
$ 3,403,328
|
Constellation Brands, Inc.
|
|
|
3.15% due 08/01/291
|
3,253,000
|
3,319,397
|
Cardtronics Incorporated / Cardtronics USA Inc
|
|
|
5.50% due 05/01/251,3
|
2,569,000
|
2,665,338
|
Ortho-Clinical Diagnostics Incorporated / Ortho-Clinical Diagnostics S.A.
|
|
|
6.63% due 05/15/221,3
|
2,233,000
|
2,160,428
|
Spectrum Brands, Inc.
|
|
|
5.75% due 07/15/251
|
1,758,000
|
1,841,505
|
Central Garden & Pet Co.
|
|
|
6.13% due 11/15/231
|
1,419,000
|
1,473,986
|
Envision Healthcare Corp.
|
|
|
8.75% due 10/15/263
|
1,857,000
|
1,077,060
|
Dean Foods Co.
|
|
|
6.50% due 03/15/233
|
2,132,000
|
1,012,700
|
Service Corporation International
|
|
|
8.00% due 11/15/21
|
159,000
|
175,695
|
Land O’ Lakes, Inc.
|
|
|
6.00% due 11/15/221,3
|
45,000
|
47,981
|
Total Consumer, Non-cyclical
|
|
74,631,813
|
|
||
Consumer, Cyclical – 12.8%
|
|
|
Scientific Games International, Inc.
|
|
|
10.00% due 12/01/221
|
3,336,000
|
3,440,250
|
8.25% due 03/15/261,3
|
1,868,000
|
1,980,080
|
Navistar International Corp.
|
|
|
6.63% due 11/01/253
|
4,500,000
|
4,612,500
|
Eagle Intermediate Global Holding BV/Ruyi US Finance LLC
|
|
|
7.50% due 05/01/251,3
|
5,230,000
|
4,582,788
|
Staples, Inc.
|
|
|
10.75% due 04/15/271,3
|
2,595,000
|
2,705,288
|
7.50% due 04/15/261,3
|
1,770,000
|
1,845,579
|
Dana Financing Luxembourg Sarl
|
|
|
6.50% due 06/01/261,3
|
3,636,000
|
3,835,980
|
Enterprise Development Authority
|
|
|
12.00% due 07/15/241,3
|
3,432,000
|
3,775,200
|
Downstream Development Authority of the Quapaw Tribe of Oklahoma
|
|
|
10.50% due 02/15/231,3
|
3,546,000
|
3,749,895
|
Churchill Downs, Inc.
|
|
|
4.75% due 01/15/281,3
|
3,011,000
|
3,131,440
|
5.50% due 04/01/271,3
|
428,000
|
454,750
|
Michaels Stores, Inc.
|
|
|
8.00% due 07/15/271,3
|
3,371,000
|
3,340,492
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CORPORATE BONDS†† – 72.0% (continued)
|
|
|
Consumer, Cyclical – 12.8% (continued)
|
|
|
Wolverine World Wide, Inc.
|
|
|
5.00% due 09/01/261,3
|
3,201,000
|
$ 3,249,015
|
Truck Hero, Inc.
|
|
|
8.50% due 04/21/241,3
|
3,174,000
|
3,162,097
|
Mattamy Group Corp.
|
|
|
6.88% due 12/15/231,3
|
3,037,000
|
3,154,684
|
Wynn Macau Ltd.
|
|
|
5.50% due 10/01/273
|
2,754,000
|
2,840,923
|
American Greetings Corp.
|
|
|
8.75% due 04/15/251,3
|
3,040,000
|
2,796,800
|
Carlson Travel, Inc.
|
|
|
9.50% due 12/15/243
|
2,600,000
|
2,632,500
|
TRI Pointe Group, Inc.
|
|
|
4.88% due 07/01/211
|
2,484,000
|
2,564,730
|
Delphi Technologies plc
|
|
|
5.00% due 10/01/251,3
|
2,745,000
|
2,388,150
|
Goodyear Tire & Rubber Co.
|
|
|
8.75% due 08/15/201
|
2,130,000
|
2,233,838
|
AAG FH Limited Partnership / AAG FH Finco, Inc.
|
|
|
9.75% due 07/15/241,3
|
2,254,000
|
2,090,585
|
Six Flags Entertainment Corp.
|
|
|
4.88% due 07/31/241,3
|
2,000,000
|
2,070,000
|
Tempur Sealy International, Inc.
|
|
|
5.63% due 10/15/231
|
2,000,000
|
2,065,000
|
Scotts Miracle-Gro Co.
|
|
|
5.25% due 12/15/261
|
1,716,000
|
1,812,525
|
GameStop Corp.
|
|
|
6.75% due 03/15/211,3
|
1,250,000
|
1,256,250
|
William Carter Co.
|
|
|
5.63% due 03/15/271,3
|
703,000
|
754,846
|
Total Consumer, Cyclical
|
|
72,526,185
|
|
||
Communications – 11.7%
|
|
|
Sprint Corp.
|
|
|
7.88% due 09/15/231
|
6,900,000
|
7,633,125
|
7.25% due 09/15/21
|
1,731,000
|
1,851,408
|
Sirius XM Radio, Inc.
|
|
|
5.38% due 04/15/251,3
|
5,000,000
|
5,218,750
|
3.88% due 08/01/221,3
|
2,689,000
|
2,759,586
|
5.00% due 08/01/271,3
|
297,000
|
313,335
|
CenturyLink, Inc.
|
|
|
6.45% due 06/15/211
|
3,312,000
|
3,494,160
|
6.88% due 01/15/281
|
1,284,000
|
1,367,460
|
CommScope, Inc.
|
|
|
8.25% due 03/01/271,3
|
4,674,000
|
4,444,881
|
|
See notes to financial statements.
|
|
|
20 l AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT
|
|
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CORPORATE BONDS†† – 72.0% (continued)
|
|
|
Communications – 11.7% (continued)
|
|
|
Altice Luxembourg S.A.
|
|
|
10.50% due 05/15/271,3
|
3,547,000
|
$ 4,021,411
|
Charter Communications Operating LLC / Charter Communications Operating Capital
|
|
|
3.58% due 07/23/201
|
3,900,000
|
3,933,793
|
Symantec Corp.
|
|
|
5.00% due 04/15/251,3
|
3,775,000
|
3,873,401
|
DISH DBS Corp.
|
|
|
6.75% due 06/01/211
|
2,015,000
|
2,120,788
|
5.13% due 05/01/201
|
1,716,000
|
1,737,450
|
Diamond Sports Group LLC / Diamond Sports Finance Co.
|
|
|
5.38% due 08/15/261,3
|
3,360,000
|
3,519,600
|
Cincinnati Bell, Inc.
|
|
|
8.00% due 10/15/251,3
|
3,534,000
|
3,171,765
|
MDC Partners, Inc.
|
|
|
6.50% due 05/01/241,3
|
3,293,000
|
3,165,396
|
Meredith Corp.
|
|
|
6.88% due 02/01/261
|
2,601,000
|
2,693,934
|
National CineMedia LLC
|
|
|
6.00% due 04/15/221
|
1,774,000
|
1,796,352
|
5.88% due 04/15/281,3
|
659,000
|
694,323
|
Photo Holdings Merger Sub, Inc.
|
|
|
8.50% due 10/01/261,3
|
2,808,000
|
2,478,425
|
Nokia Oyj
|
|
|
3.38% due 06/12/221
|
2,361,000
|
2,393,464
|
T-Mobile USA, Inc.
|
|
|
4.00% due 04/15/221
|
1,741,000
|
1,801,430
|
GrubHub Holdings, Inc.
|
|
|
5.50% due 07/01/271,3
|
1,741,000
|
1,636,540
|
Total Communications
|
|
66,120,777
|
|
||
Basic Materials – 8.6%
|
|
|
Alcoa Nederland Holding BV
|
|
|
6.75% due 09/30/241,3
|
4,000,000
|
4,225,000
|
6.13% due 05/15/281,3
|
3,495,000
|
3,757,125
|
Commercial Metals Co.
|
|
|
5.75% due 04/15/261
|
3,019,000
|
3,120,891
|
4.88% due 05/15/231
|
3,000,000
|
3,112,500
|
FMG Resources August 2006 Pty Ltd.
|
|
|
4.75% due 05/15/221,3
|
2,756,000
|
2,849,015
|
5.13% due 03/15/231,3
|
2,000,000
|
2,087,500
|
First Quantum Minerals Ltd.
|
|
|
6.88% due 03/01/263
|
3,924,000
|
3,860,235
|
7.50% due 04/01/253
|
800,000
|
805,000
|
New Gold, Inc.
|
|
|
6.38% due 05/15/251,3
|
3,850,000
|
3,677,135
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CORPORATE BONDS†† – 72.0% (continued)
|
|
|
Basic Materials – 8.6% (continued)
|
|
|
Valvoline, Inc.
|
|
|
5.50% due 07/15/241
|
2,406,000
|
$ 2,509,007
|
4.38% due 08/15/251
|
1,000,000
|
1,022,500
|
Compass Minerals International, Inc.
|
|
|
4.88% due 07/15/241,3
|
3,281,000
|
3,215,380
|
AK Steel Corp.
|
|
|
7.50% due 07/15/231
|
3,100,000
|
3,123,250
|
Steel Dynamics, Inc.
|
|
|
5.50% due 10/01/241
|
2,563,000
|
2,647,015
|
Freeport-McMoRan, Inc.
|
|
|
3.55% due 03/01/221
|
2,293,000
|
2,324,529
|
TPC Group, Inc.
|
|
|
10.50% due 08/01/241,3
|
2,016,000
|
2,147,040
|
Kaiser Aluminum Corp.
|
|
|
5.88% due 05/15/241
|
2,038,000
|
2,124,615
|
Tronox Finance plc
|
|
|
5.75% due 10/01/251,3
|
1,983,000
|
1,878,892
|
Total Basic Materials
|
|
48,486,629
|
|
||
Energy – 8.6%
|
|
|
PBF Holding Company LLC / PBF Finance Corp.
|
|
|
7.25% due 06/15/251
|
3,857,000
|
4,045,029
|
Parsley Energy LLC / Parsley Finance Corp.
|
|
|
5.63% due 10/15/271,3
|
2,158,000
|
2,238,925
|
5.38% due 01/15/251,3
|
1,703,000
|
1,761,719
|
Calumet Specialty Products Partners Limited Partnership / Calumet Finance Corp.
|
|
|
11.00% due 04/15/251,3
|
3,698,000
|
3,716,490
|
Parkland Fuel Corp.
|
|
|
5.88% due 07/15/271,3
|
3,178,000
|
3,371,286
|
PDC Energy, Inc.
|
|
|
5.75% due 05/15/261
|
3,433,000
|
3,218,438
|
Genesis Energy Limited Partnership / Genesis Energy Finance Corp.
|
|
|
6.25% due 05/15/261
|
3,431,000
|
3,190,830
|
Oasis Petroleum, Inc.
|
|
|
6.25% due 05/01/261,3
|
4,465,000
|
3,058,525
|
Ascent Resources Utica Holdings LLC / ARU Finance Corp.
|
|
|
7.00% due 11/01/261,3
|
2,100,000
|
1,617,000
|
10.00% due 04/01/221,3
|
1,438,000
|
1,367,969
|
Murphy Oil Corp.
|
|
|
6.88% due 08/15/241
|
2,688,000
|
2,848,850
|
Plains All American Pipeline, LP
|
|
|
6.13% 4,5
|
3,000,000
|
2,802,060
|
Continental Resources, Inc.
|
|
|
5.00% due 09/15/221
|
2,598,000
|
2,619,566
|
|
See notes to financial statements.
|
|
|
22 l AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT
|
|
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CORPORATE BONDS†† – 72.0% (continued)
|
|
|
Energy – 8.6% (continued)
|
|
|
Alliance Resource Operating Partners Limited Partnership / Alliance Resource Finance Corp.
|
|
|
7.50% due 05/01/251,3
|
2,859,000
|
$ 2,430,150
|
Summit Midstream Holdings LLC / Summit Midstream Finance Corp.
|
|
|
5.75% due 04/15/251
|
2,768,000
|
2,159,040
|
5.50% due 08/15/221
|
125,000
|
112,500
|
Gulfport Energy Corp.
|
|
|
6.00% due 10/15/24
|
3,430,000
|
2,220,925
|
SM Energy Co.
|
|
|
6.75% due 09/15/261
|
2,356,000
|
2,032,050
|
Indigo Natural Resources LLC
|
|
|
6.88% due 02/15/261,3
|
2,082,000
|
1,905,030
|
PBF Logistics Limited Partnership / PBF Logistics Finance Corp.
|
|
|
6.88% due 05/15/231
|
1,565,000
|
1,611,950
|
Total Energy
|
|
48,328,332
|
|
||
Financial – 5.9%
|
|
|
GMAC, Inc.
|
|
|
8.00% due 11/01/31
|
3,306,000
|
4,616,003
|
SBA Communications Corp.
|
|
|
4.00% due 10/01/221
|
3,697,000
|
3,789,980
|
Credit Acceptance Corp.
|
|
|
6.63% due 03/15/261,3
|
2,920,000
|
3,109,800
|
7.38% due 03/15/231
|
655,000
|
678,744
|
Springleaf Finance Corp.
|
|
|
7.75% due 10/01/211
|
3,347,000
|
3,660,848
|
Fidelity & Guaranty Life Holdings, Inc.
|
|
|
5.50% due 05/01/251,3
|
3,168,000
|
3,397,680
|
CIT Group, Inc.
|
|
|
5.00% due 08/15/221
|
2,920,000
|
3,111,464
|
Navient Corp.
|
|
|
8.00% due 03/25/201
|
3,008,000
|
3,079,440
|
Ardonagh Midco 3 plc
|
|
|
8.63% due 07/15/231,3
|
2,836,000
|
2,687,110
|
CoreCivic, Inc.
|
|
|
4.63% due 05/01/231
|
2,665,000
|
2,508,431
|
AG Merger Sub II, Inc.
|
|
|
10.75% due 08/01/271,3
|
2,510,000
|
2,497,450
|
Newmark Group, Inc.
|
|
|
6.13% due 11/15/231
|
90,000
|
98,219
|
Total Financial
|
|
33,235,169
|
|
||
Technology – 5.7%
|
|
|
Amkor Technology, Inc.
|
|
|
6.63% due 09/15/271,3
|
6,249,000
|
6,873,900
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CORPORATE BONDS†† – 72.0% (continued)
|
|
|
Technology – 5.7% (continued)
|
|
|
NCR Corp.
|
|
|
5.00% due 07/15/221
|
5,000,000
|
$ 5,050,000
|
Qorvo, Inc.
|
|
|
5.50% due 07/15/261
|
4,000,000
|
4,279,920
|
Seagate HDD Cayman
|
|
|
4.25% due 03/01/221
|
4,058,000
|
4,203,242
|
Infor US, Inc.
|
|
|
6.50% due 05/15/221
|
4,000,000
|
4,070,000
|
Western Digital Corp.
|
|
|
4.75% due 02/15/261
|
3,906,000
|
3,998,865
|
Dell, Inc.
|
|
|
4.63% due 04/01/21
|
3,675,000
|
3,789,384
|
Total Technology
|
|
32,265,311
|
|
||
Industrial – 5.1%
|
|
|
MasTec, Inc.
|
|
|
4.88% due 03/15/231
|
4,715,000
|
4,797,512
|
Louisiana-Pacific Corp.
|
|
|
4.88% due 09/15/241
|
3,779,000
|
3,901,818
|
WESCO Distribution, Inc.
|
|
|
5.38% due 06/15/241
|
3,433,000
|
3,561,737
|
Ball Corp.
|
|
|
4.38% due 12/15/201
|
3,432,000
|
3,502,785
|
Energizer Holdings, Inc.
|
|
|
6.38% due 07/15/261,3
|
3,000,000
|
3,206,400
|
Navios Maritime Acquisition Corporation / Navios Acquisition Finance US, Inc.
|
|
|
8.13% due 11/15/211,3
|
3,695,000
|
3,029,900
|
TransDigm, Inc.
|
|
|
6.00% due 07/15/221
|
2,558,000
|
2,604,684
|
Navios Maritime Holdings, Inc. / Navios Maritime Finance II US, Inc.
|
|
|
7.38% due 01/15/223
|
3,512,000
|
2,054,520
|
Mueller Water Products, Inc.
|
|
|
5.50% due 06/15/261,3
|
1,899,000
|
1,996,324
|
Total Industrial
|
|
28,655,680
|
|
||
Utilities – 0.4%
|
|
|
Talen Energy Supply LLC
|
|
|
10.50% due 01/15/261,3
|
1,700,000
|
1,466,250
|
6.63% due 01/15/281,3
|
776,000
|
752,720
|
Total Utilities
|
|
2,218,970
|
Total Corporate Bonds
|
|
|
(Cost $402,880,189)
|
|
406,468,866
|
PORTFOLIO OF INVESTMENTS continued
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CONVERTIBLE BONDS†† – 65.6%
|
|
|
Technology – 16.4%
|
|
|
Microchip Technology, Inc.
|
|
|
1.63% due 02/15/271
|
8,554,000
|
$ 11,219,287
|
Alteryx, Inc.
|
|
|
1.00% due 08/01/261,3
|
7,211,000
|
6,536,829
|
Splunk, Inc.
|
|
|
0.50% due 09/15/231
|
5,744,000
|
6,265,118
|
Nuance Communications, Inc.
|
|
|
1.00% due 12/15/351
|
5,000,000
|
4,885,630
|
1.25% due 04/01/251
|
1,171,000
|
1,236,869
|
Akamai Technologies, Inc.
|
|
|
0.13% due 05/01/251
|
3,676,000
|
4,135,500
|
0.38% due 09/01/271,3
|
1,321,000
|
1,320,716
|
Workiva, Inc.
|
|
|
1.13% due 08/15/263
|
4,721,000
|
4,259,883
|
STMicroelectronics N.V.
|
|
|
0.25% due 07/03/24
|
3,200,000
|
4,155,360
|
ON Semiconductor Corp.
|
|
|
1.63% due 10/15/231
|
3,315,000
|
4,136,961
|
Rapid7, Inc.
|
|
|
1.25% due 08/01/231
|
2,899,000
|
4,020,416
|
Synaptics, Inc.
|
|
|
0.50% due 06/15/221
|
4,000,000
|
3,785,000
|
Talend S.A.
|
|
|
1.75% due 09/01/243
|
EUR 3,180,000
|
3,443,358
|
Workday, Inc.
|
|
|
0.25% due 10/01/221
|
2,675,000
|
3,415,426
|
Pure Storage, Inc.
|
|
|
0.13% due 04/15/231
|
3,173,000
|
3,343,737
|
Insight Enterprises, Inc.
|
|
|
0.75% due 02/15/251,3
|
2,002,000
|
2,189,155
|
Coupa Software, Inc.
|
|
|
0.13% due 06/15/251,3
|
1,804,000
|
2,048,828
|
Five9, Inc.
|
|
|
0.13% due 05/01/231
|
1,365,000
|
2,025,319
|
New Relic, Inc.
|
|
|
0.50% due 05/01/231
|
2,080,000
|
2,004,288
|
Zynga, Inc.
|
|
|
0.25% due 06/01/241,3
|
1,789,000
|
1,833,475
|
Lumentum Holdings, Inc.
|
|
|
0.25% due 03/15/241
|
1,353,000
|
1,714,100
|
DocuSign, Inc.
|
|
|
0.50% due 09/15/231
|
1,250,000
|
1,474,153
|
Pluralsight, Inc.
|
|
|
0.38% due 03/01/241,3
|
1,668,000
|
1,467,723
|
See notes to financial statements.
|
|
|
AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT l 25
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CONVERTIBLE BONDS†† – 65.6% (continued)
|
|
|
Technology – 16.4% (continued)
|
|
|
Lenovo Group Ltd.
|
|
|
3.38% due 01/24/241
|
1,350,000
|
$ 1,464,356
|
Envestnet, Inc.
|
|
|
1.75% due 06/01/231
|
1,288,000
|
1,459,809
|
ServiceNow, Inc.
|
|
|
due 06/01/221,6
|
711,000
|
1,333,677
|
LivePerson, Inc.
|
|
|
0.75% due 03/01/241,3
|
1,007,000
|
1,276,372
|
CSG Systems International, Inc.
|
|
|
4.25% due 03/15/361
|
999,000
|
1,173,924
|
Tabula Rasa HealthCare, Inc.
|
|
|
1.75% due 02/15/261,3
|
967,000
|
1,006,284
|
Altair Engineering, Inc.
|
|
|
0.25% due 06/01/241
|
953,000
|
990,119
|
Teradyne, Inc.
|
|
|
1.25% due 12/15/231
|
475,000
|
945,319
|
Twilio, Inc.
|
|
|
0.25% due 06/01/231
|
550,000
|
837,223
|
Verint Systems, Inc.
|
|
|
1.50% due 06/01/211
|
682,000
|
698,197
|
Cypress Semiconductor Corp.
|
|
|
4.50% due 01/15/221
|
330,000
|
573,053
|
Total Technology
|
|
92,675,464
|
|
||
Consumer, Non-cyclical – 15.7%
|
|
|
Exact Sciences Corp.
|
|
|
0.38% due 03/15/271
|
6,424,000
|
6,916,588
|
Herbalife Nutrition Ltd.
|
|
|
2.63% due 03/15/241
|
6,743,000
|
6,809,298
|
Wright Medical Group, Inc.
|
|
|
1.63% due 06/15/231
|
6,566,000
|
6,288,183
|
Jazz Investments I Ltd.
|
|
|
1.50% due 08/15/241
|
6,046,000
|
5,810,911
|
Heska Corp.
|
|
|
3.75% due 09/15/263
|
3,979,000
|
4,783,612
|
Square, Inc.
|
|
|
0.50% due 05/15/231
|
3,933,000
|
4,352,781
|
Lannett Company, Inc.
|
|
|
4.50% due 10/01/263
|
4,000,000
|
4,142,000
|
DexCom, Inc.
|
|
|
0.75% due 12/01/231,3
|
3,064,000
|
3,669,265
|
Illumina, Inc.
|
|
|
0.50% due 06/15/211
|
2,042,000
|
2,664,905
|
due 08/15/231,6
|
803,000
|
872,020
|
See notes to financial statements.
|
|
|
26 l AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT
|
|
|
PORTFOLIO OF INVESTMENTS continued
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CONVERTIBLE BONDS†† – 65.6% (continued)
|
|
|
Consumer, Non-cyclical – 15.7% (continued)
|
|
|
BioMarin Pharmaceutical, Inc.
|
|
|
1.50% due 10/15/201
|
3,307,000
|
$ 3,479,162
|
Intercept Pharmaceuticals, Inc.
|
|
|
3.25% due 07/01/231
|
3,548,000
|
3,125,887
|
Ionis Pharmaceuticals, Inc.
|
|
|
1.00% due 11/15/211
|
2,522,000
|
2,782,982
|
Insulet Corp.
|
|
|
0.38% due 09/01/261,3
|
2,791,000
|
2,681,104
|
Euronet Worldwide, Inc.
|
|
|
0.75% due 03/15/491,3
|
2,270,000
|
2,587,204
|
Chegg, Inc.
|
|
|
0.13% due 03/15/251,3
|
2,547,000
|
2,389,850
|
Wright Medical Group N.V.
|
|
|
2.25% due 11/15/211
|
1,942,000
|
2,291,124
|
NuVasive, Inc.
|
|
|
2.25% due 03/15/211
|
1,735,000
|
2,183,393
|
Teladoc Health, Inc.
|
|
|
1.38% due 05/15/251
|
1,150,000
|
1,869,441
|
Orpea
|
|
|
0.38% due 05/17/271
|
9,164**
|
1,641,512
|
QIAGEN N.V.
|
|
|
0.50% due 09/13/231
|
1,600,000
|
1,548,152
|
Horizon Pharma Investment Ltd.
|
|
|
2.50% due 03/15/221
|
1,257,000
|
1,511,143
|
Neurocrine Biosciences, Inc.
|
|
|
2.25% due 05/15/241
|
962,000
|
1,406,371
|
Yaoko Company Ltd.
|
|
|
due 06/20/246
|
JPY 120,000,000
|
1,152,379
|
Sarepta Therapeutics, Inc.
|
|
|
1.50% due 11/15/241
|
775,000
|
1,094,796
|
CONMED Corp.
|
|
|
2.63% due 02/01/241,3
|
729,000
|
1,004,035
|
Anthem, Inc.
|
|
|
2.75% due 10/15/421
|
264,000
|
999,064
|
WuXi AppTec Company Ltd.
|
|
|
due 09/17/241,6
|
900,000
|
986,782
|
Flexion Therapeutics, Inc.
|
|
|
3.38% due 05/01/241
|
1,019,000
|
983,614
|
Biocartis N.V.
|
|
|
4.00% due 05/09/24
|
EUR 1,100,000
|
926,548
|
Nipro Corp.
|
|
|
due 01/29/211,6
|
JPY 90,000,000
|
864,329
|
GMO Payment Gateway, Inc.
|
|
|
due 06/19/236
|
JPY 70,000,000
|
824,773
|
|
See notes to financial statements.
|
|
|
AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT l 27
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CONVERTIBLE BONDS†† – 65.6% (continued)
|
|
|
Consumer, Non-cyclical – 15.7% (continued)
|
|
|
Insmed, Inc.
|
|
|
1.75% due 01/15/251
|
918,000
|
$ 788,290
|
GN Store Nord A/S
|
|
|
due 05/21/241,6
|
EUR 700,000
|
775,450
|
Carrefour S.A.
|
|
|
due 03/27/241,6
|
800,000
|
772,720
|
Top Glove Labuan Ltd.
|
|
|
2.00% due 03/01/24
|
675,000
|
666,632
|
J Sainsbury plc
|
|
|
2.88% due 12/29/495
|
GBP 500,000
|
653,088
|
PTC Therapeutics, Inc.
|
|
|
1.50% due 09/15/261,3
|
248,000
|
258,881
|
Total Consumer, Non-cyclical
|
|
88,558,269
|
|
||
Communications – 13.7%
|
|
|
Liberty Media Corp.
|
|
|
1.38% due 10/15/23
|
4,138,000
|
5,231,839
|
2.25% due 12/01/481,3
|
2,839,000
|
3,365,144
|
YY, Inc.
|
|
|
1.38% due 06/15/261,3
|
4,000,000
|
3,715,704
|
0.75% due 06/15/251,3
|
3,149,000
|
2,923,157
|
Palo Alto Networks, Inc.
|
|
|
0.75% due 07/01/231
|
5,815,000
|
6,425,359
|
DISH Network Corp.
|
|
|
3.38% due 08/15/261
|
4,946,000
|
4,637,178
|
Booking Holdings, Inc.
|
|
|
0.90% due 09/15/211
|
2,042,000
|
2,405,043
|
0.35% due 06/15/201
|
1,094,000
|
1,706,035
|
Twitter, Inc.
|
|
|
0.25% due 06/15/241
|
4,294,000
|
4,110,438
|
IAC Financeco 2, Inc.
|
|
|
0.88% due 06/15/261,3
|
3,802,000
|
4,108,924
|
Proofpoint, Inc.
|
|
|
0.25% due 08/15/241,3
|
3,738,000
|
3,878,175
|
Viavi Solutions, Inc.
|
|
|
1.00% due 03/01/241
|
2,625,000
|
3,527,344
|
Snap, Inc.
|
|
|
0.75% due 08/01/261,3
|
2,759,000
|
2,795,502
|
Ctrip.com International Ltd.
|
|
|
1.99% due 07/01/251
|
2,436,000
|
2,553,232
|
Zillow Group, Inc.
|
|
|
0.75% due 09/01/241,3
|
2,425,000
|
2,445,662
|
GCI Liberty, Inc.
|
|
|
1.75% due 09/30/461,3
|
1,810,000
|
2,442,685
|
See notes to financial statements.
|
|
|
28 l AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT
|
|
|
PORTFOLIO OF INVESTMENTS continued
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CONVERTIBLE BONDS†† – 65.6% (continued)
|
|
|
Communications – 13.7% (continued)
|
|
|
Vonage Holdings Corp.
|
|
|
1.75% due 06/01/241,3
|
2,507,000
|
$ 2,436,892
|
Q2 Holdings, Inc.
|
|
|
0.75% due 06/01/261,3
|
2,238,000
|
2,374,005
|
Okta, Inc.
|
|
|
0.13% due 09/01/251,3
|
2,347,000
|
2,232,711
|
Etsy, Inc.
|
|
|
0.13% due 10/01/261,3
|
2,454,000
|
2,228,639
|
Wayfair, Inc.
|
|
|
1.00% due 08/15/261,3
|
2,146,000
|
1,918,896
|
1.13% due 11/01/241,3
|
205,000
|
209,829
|
Liberty Latin America Ltd.
|
|
|
2.00% due 07/15/243
|
1,874,000
|
1,951,905
|
iQIYI, Inc.
|
|
|
2.00% due 04/01/251,3
|
2,050,000
|
1,856,609
|
Zendesk, Inc.
|
|
|
0.25% due 03/15/231
|
1,218,000
|
1,589,042
|
FireEye, Inc.
|
|
|
0.88% due 06/01/241
|
1,357,000
|
1,345,525
|
8x8, Inc.
|
|
|
0.50% due 02/01/241,3
|
1,229,000
|
1,257,517
|
InterDigital, Inc.
|
|
|
2.00% due 06/01/241,3
|
1,063,000
|
1,050,831
|
Pinduoduo, Inc.
|
|
|
due 10/01/241,3,6
|
395,000
|
460,478
|
Total Communications
|
|
77,184,300
|
|
||
Industrial – 5.4%
|
|
|
Airbus SE
|
|
|
due 07/01/221,6
|
EUR 1,600,000
|
2,350,292
|
due 06/14/211,6
|
EUR 1,700,000
|
2,072,478
|
KBR, Inc.
|
|
|
2.50% due 11/01/231,3
|
3,379,000
|
4,243,423
|
Fortive Corp.
|
|
|
0.88% due 02/15/221,3
|
2,452,000
|
2,425,217
|
Cellnex Telecom S.A.
|
|
|
1.50% due 01/16/261
|
EUR 1,600,000
|
2,382,780
|
Sika A.G.
|
|
|
0.15% due 06/05/25
|
CHF 1,980,000
|
2,284,098
|
China Railway Construction Corporation Ltd.
|
|
|
due 01/29/211,6
|
2,000,000
|
2,120,554
|
Asia Cement Corp.
|
|
|
due 09/21/236
|
1,627,000
|
1,868,740
|
OSI Systems, Inc.
|
|
|
1.25% due 09/01/221
|
1,430,000
|
1,581,938
|
|
See notes to financial statements.
|
|
|
|
||
AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT l 29
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CONVERTIBLE BONDS†† – 65.6% (continued)
|
|
|
Industrial – 5.4% (continued)
|
|
|
Vinci S.A.
|
|
|
0.38% due 02/16/221
|
1,200,000
|
$ 1,483,380
|
MINEBEA MITSUMI, Inc.
|
|
|
due 08/03/226
|
JPY 120,000,000
|
1,320,301
|
Taiwan Cement Corp.
|
|
|
due 12/10/236
|
1,100,000
|
1,290,219
|
Chart Industries, Inc.
|
|
|
1.00% due 11/15/241,3
|
947,000
|
1,142,193
|
Vishay Intertechnology, Inc.
|
|
|
2.25% due 06/15/251
|
1,119,000
|
1,105,422
|
CRRC Corporation Ltd.
|
|
|
due 02/05/211,6
|
1,000,000
|
963,311
|
Mesa Laboratories, Inc.
|
|
|
1.38% due 08/15/25
|
781,000
|
820,538
|
Air Transport Services Group, Inc.
|
|
|
1.13% due 10/15/241
|
818,000
|
751,926
|
Total Industrial
|
|
30,206,810
|
|
||
Consumer, Cyclical – 4.7%
|
|
|
Huazhu Group Ltd.
|
|
|
0.38% due 11/01/221
|
5,025,000
|
5,511,797
|
Tesla, Inc.
|
|
|
2.00% due 05/15/241
|
2,175,000
|
2,667,252
|
1.25% due 03/01/211
|
909,000
|
990,441
|
Marriott Vacations Worldwide Corp.
|
|
|
1.50% due 09/15/221
|
2,542,000
|
2,601,515
|
Zhongsheng Group Holdings Ltd.
|
|
|
due 05/23/236
|
HKD 17,000,000
|
2,386,185
|
Harvest International Co.
|
|
|
due 11/21/226
|
HKD 16,000,000
|
2,069,036
|
Guess?, Inc.
|
|
|
2.00% due 04/15/241,3
|
1,982,000
|
1,899,004
|
Sony Corp.
|
|
|
due 09/30/226
|
JPY 147,000,000
|
1,898,064
|
Cie Generale des Etablissements Michelin SCA
|
|
|
due 01/10/221,6
|
1,800,000
|
1,825,884
|
Adidas AG
|
|
|
0.05% due 09/12/231
|
EUR 800,000
|
1,086,760
|
Meritor, Inc.
|
|
|
3.25% due 10/15/371
|
1,032,000
|
1,062,529
|
Suzuki Motor Corp.
|
|
|
due 03/31/236
|
JPY 70,000,000
|
823,749
|
EZCORP, Inc.
|
|
|
2.38% due 05/01/25
|
858,000
|
644,161
|
|
||
|
See notes to financial statements.
|
|
|
30 l AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT
|
|
|
PORTFOLIO OF INVESTMENTS continued
|
October 31, 2019
|
|
|
|
||
|
Face
|
|
|
Amount~
|
Value
|
|
||
CONVERTIBLE BONDS†† – 65.6% (continued)
|
|
|
Consumer, Cyclical – 4.7% (continued)
|
|
|
Kering S.A.
|
|
|
due 09/30/221,6
|
EUR 400,000
|
$ 478,846
|
LVMH Moet Hennessy Louis Vuitton SE
|
|
|
due 02/16/216
|
1,031**
|
471,949
|
Total Consumer, Cyclical
|
|
26,417,172
|
|
||
Financial – 4.6%
|
|
|
AXA S.A.
|
|
|
7.25% due 05/15/211,3
|
4,371,000
|
4,540,376
|
SBI Holdings, Inc.
|
|
|
due 09/13/236
|
JPY 300,000,000
|
2,930,675
|
Poseidon Finance 1 Ltd.
|
|
|
due 02/01/251,6
|
2,424,000
|
2,431,719
|
Deutsche Wohnen SE
|
|
|
0.33% due 07/26/241
|
EUR 1,800,000
|
2,104,764
|
PRA Group, Inc.
|
|
|
3.50% due 06/01/231
|
1,960,000
|
1,991,588
|
Colony Capital, Inc.
|
|
|
3.88% due 01/15/211
|
1,909,000
|
1,880,371
|
IMMOFINANZ AG
|
|
|
1.50% due 01/24/241
|
EUR 1,300,000
|
1,840,271
|
BofA Finance LLC
|
|
|
0.25% due 05/01/231
|
1,523,000
|
1,536,333
|
Blackstone Mortgage Trust, Inc.
|
|
|
4.75% due 03/15/231
|
1,263,000
|
1,336,362
|
Aurelius SE
|
|
|
1.00% due 12/01/20
|
EUR 1,200,000
|
1,312,609
|
IH Merger Sub LLC
|
|
|
3.50% due 01/15/221
|
835,000
|
1,151,227
|
PHP Finance Jersey NO 2 Ltd.
|
|
|
2.88% due 07/15/25
|
GBP 785,000
|
1,092,644
|
Cindai Capital Ltd.
|
|
|
due 02/08/236
|
800,000
|
775,773
|
LEG Immobilien AG
|
|
|
0.88% due 09/01/251
|
EUR 600,000
|
770,555
|
Total Financial
|
|
25,695,267
|
|
||
Basic Materials – 2.1%
|
|
|
Toray Industries, Inc.
|
|
|
due 08/31/211,6
|
JPY 370,000,000
|
3,759,866
|
Brenntag Finance BV
|
|
|
1.88% due 12/02/221
|
3,500,000
|
3,457,300
|
Mitsubishi Chemical Holdings Corp.
|
|
|
due 03/29/241,6
|
JPY 130,000,000
|
1,246,078
|
|
||
See notes to financial statements.
|
|
|
AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT l 31
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
CONVERTIBLE BONDS†† – 65.6% (continued)
|
|
|
Basic Materials – 2.1% (continued)
|
|
|
Cleveland-Cliffs, Inc.
|
|
|
1.50% due 01/15/251
|
930,000
|
$ 1,022,620
|
Osisko Gold Royalties Ltd.
|
|
|
4.00% due 12/31/22
|
CAD 1,300,000
|
1,006,490
|
Pretium Resources, Inc.
|
|
|
2.25% due 03/15/22
|
837,000
|
892,995
|
Glencore Funding LLC6
|
|
|
due 03/27/25
|
800,000
|
678,072
|
Total Basic Materials
|
|
12,063,421
|
|
||
Energy – 1.8%
|
|
|
TOTAL S.A.
|
|
|
0.50% due 12/02/221
|
2,000,000
|
2,109,360
|
Transocean, Inc.
|
|
|
0.50% due 01/30/231
|
2,326,000
|
1,916,429
|
RAG-Stiftung
|
|
|
due 02/18/211,6
|
EUR 800,000
|
893,806
|
due 10/02/241,6
|
EUR 700,000
|
781,799
|
BP Capital Markets plc
|
|
|
1.00% due 04/28/231
|
GBP 1,000,000
|
1,564,898
|
Whiting Petroleum Corp.
|
|
|
1.25% due 04/01/201
|
1,380,000
|
1,363,321
|
Eni SpA
|
|
|
due 04/13/221,6
|
EUR 900,000
|
1,038,525
|
Helix Energy Solutions Group, Inc.
|
|
|
4.13% due 09/15/23
|
632,000
|
765,905
|
Total Energy
|
|
10,434,043
|
|
||
Utilities – 1.2%
|
|
|
NRG Energy, Inc.
|
|
|
2.75% due 06/01/481
|
2,318,000
|
2,635,633
|
CenterPoint Energy, Inc.
|
|
|
4.52% due 09/15/29
|
40,717**
|
2,369,322
|
China Yangtze Power International BVI 1 Ltd.
|
|
|
due 11/09/211,6
|
1,775,000
|
1,857,551
|
Total Utilities
|
|
6,862,506
|
Total Convertible Bonds
|
|
|
(Cost $352,213,811)
|
|
370,097,252
|
PORTFOLIO OF INVESTMENTS continued
|
|
October 31, 2019
|
|
Face
|
|
|
Amount~
|
Value
|
|
||
SENIOR FLOATING RATE INTERESTS††,7 – 1.7%
|
|
|
Consumer, Cyclical – 1.0%
|
|
|
PetSmart, Inc.
|
|
|
5.04% (3 Month USD LIBOR + 3.00%, Rate Floor: 1.00%) due 03/11/22
|
3,878,150
|
$ 3,790,099
|
Alterra Mountain Co.
|
|
|
4.80% (3 Month USD LIBOR + 3.00%, Rate Floor: 0.00%) due 07/31/24
|
1,864,785
|
1,869,447
|
Total Consumer, Cyclical
|
|
5,659,546
|
|
||
Communications – 0.5%
|
|
|
Sprint Communications, Inc.
|
|
|
4.56% (3 Month USD LIBOR + 2.50%, Rate Floor: 0.75%) due 02/03/24
|
2,925,000
|
2,896,978
|
|
||
Consumer, Non-cyclical – 0.2%
|
|
|
Refinitiv US Holdings, Inc.
|
|
|
5.79% (3 Month USD LIBOR + 3.75%, Rate Floor: 0.00%) due 10/01/25
|
992,500
|
998,644
|
Total Senior Floating Rate Interests
|
|
|
(Cost $9,669,440)
|
|
9,555,168
|
Total Investments – 168.4%
|
|
|
(Cost $924,167,357)
|
|
$ 950,028,153
|
|
||
|
Contracts
|
Value
|
|
||
LISTED OPTIONS WRITTEN† – (0.1)%
|
|
|
Call options on:
|
|
|
Citigroup, Inc.
|
|
|
Expiring November 2019 with strike price of $72.50 (Notional Value $3,625,000)
|
500
|
$ (50,000)
|
Alibaba Group Holdings, Ltd.
|
|
|
Expiring November 2019 with strike price of $180.00 (Notional Value $3,600,000)
|
200
|
(89,000)
|
Las Vegas Sands Corp.
|
|
|
Expiring November 2019 with strike price of $60.00 (Notional Value $4,500,000)
|
750
|
(201,000)
|
Total Call Options
|
|
(340,000)
|
Total Listed Options Written
|
|
|
(Premiums received $202,770)
|
|
(340,000)
|
Other Assets & Liabilities, net – (68.3)%
|
|
(385,539,893)
|
Total Net Assets – 100.0%
|
|
$ 564,148,260
|
PORTFOLIO OF INVESTMENTS continued
|
|
|
October 31, 2019
|
||||
|
|||||||
|
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS††
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
Settlement
|
Settlement
|
Value at
|
Appreciation
|
Counterparty
|
Contracts to Sell
|
Currency
|
Date
|
Value
|
October 31, 2019
|
(Depreciation)
|
|
Bank of New York Mellon
|
1,649,306,300
|
JPY
|
12/13/19
|
$15,410,265
|
$ 15,300,648
|
$ 109,617
|
|
Bank of New York Mellon
|
34,500,000
|
HKD
|
12/13/19
|
4,402,431
|
4,400,918
|
1,513
|
|
Bank of New York Mellon
|
1,361,891
|
CAD
|
12/13/19
|
1,037,284
|
1,036,377
|
907
|
|
Bank of New York Mellon
|
2,204,393
|
CHF
|
12/13/19
|
2,236,126
|
2,241,882
|
(5,756)
|
|
Bank of New York Mellon
|
2,578,424
|
GBP
|
12/13/19
|
3,198,452
|
3,341,465
|
(143,013)
|
|
Bank of New York Mellon
|
22,436,676
|
EUR
|
12/13/19
|
24,868,586
|
25,108,540
|
(239,954)
|
|
|
|
|
|
|
|
|
$(276,686)
|
|
|
|
|
Settlement
|
Settlement
|
Value at
|
Unrealized
|
Counterparty
|
Contracts to Buy
|
Currency
|
Date
|
Value
|
October 31, 2019
|
Appreciation
|
|
Bank of New York Mellon
|
927,000
|
EUR
|
12/13/19
|
$1,019,084
|
$ 1,037,391
|
$ 18,307
|
|
Bank of New York Mellon
|
50,700,000
|
JPY
|
12/13/19
|
466,748
|
470,345
|
3,597
|
|
|
|
|
|
|
|
|
$ 21,904
|
PORTFOLIO OF INVESTMENTS continued
|
October 31, 2019
|
|
|
ADR
|
American Depositary Receipt
|
|
CAD
|
Canadian Dollar
|
|
CHF
|
Swiss Franc
|
|
EUR
|
Euro
|
|
GBP
|
British Pound
|
|
HKD
|
Hong Kong Dollar
|
|
JPY
|
Japanese Yen
|
|
LIBOR
|
London Interbank Offered Rate
|
|
plc
|
Public Limited Company
|
|
|
Level 2
|
Level 3
|
||||||||||||||
|
Level 1
|
Significant
|
Significant
|
|||||||||||||
|
Quoted
|
Observable
|
Unobservable
|
|||||||||||||
Investments in Securities (Assets)
|
Prices
|
Inputs
|
Inputs
|
Total
|
||||||||||||
Common Stocks
|
$
|
49,597,342
|
$
|
—
|
$
|
—
|
$
|
49,597,342
|
||||||||
Convertible Preferred Stocks
|
81,608,352
|
—
|
—
|
81,608,352
|
||||||||||||
Money Market Fund
|
32,701,173
|
—
|
—
|
32,701,173
|
||||||||||||
Corporate Bonds
|
—
|
406,468,866
|
—
|
406,468,866
|
||||||||||||
Convertible Bonds
|
—
|
370,097,252
|
—
|
370,097,252
|
||||||||||||
Senior Floating Rate Interests
|
—
|
9,555,168
|
—
|
9,555,168
|
||||||||||||
Forward Foreign Currency
|
||||||||||||||||
Exchange Contracts*
|
—
|
133,941
|
—
|
133,941
|
||||||||||||
Total Assets
|
$
|
163,906,867
|
$
|
786,255,227
|
$
|
—
|
$
|
950,162,094
|
||||||||
|
Level 2
|
Level 3
|
||||||||||||||
|
Level 1
|
Significant
|
Significant
|
|||||||||||||
|
Quoted
|
Observable
|
Unobservable
|
|||||||||||||
Investments in Securities (Liabilities)
|
Prices
|
Inputs
|
Inputs
|
Total
|
||||||||||||
Options Written
|
$
|
340,000
|
$
|
—
|
$
|
—
|
$
|
340,000
|
||||||||
Forward Foreign Currency
|
||||||||||||||||
Exchange Contracts*
|
—
|
388,723
|
—
|
388,723
|
||||||||||||
Total Liabilities
|
$
|
340,000
|
$
|
388,723
|
$
|
—
|
$
|
728,723
|
||||||||
* This derivative is reported as unrealized appreciation/depreciation at period end.
|
STATEMENT OF ASSETS AND LIABILITIES
|
October 31, 2019
|
|||
ASSETS:
|
||||
Investments, at value (cost $924,167,357)
|
$
|
950,028,153
|
||
Cash
|
656,000
|
|||
Unrealized appreciation on forward foreign currency exchange contracts
|
133,941
|
|||
Receivables:
|
||||
Investments sold
|
9,943,112
|
|||
Interest
|
7,916,314
|
|||
Dividends
|
213,854
|
|||
Tax reclaims
|
63,780
|
|||
Other assets
|
186,043
|
|||
Total assets
|
969,141,197
|
|||
LIABILITIES:
|
||||
Margin Loan
|
210,000,000
|
|||
Reverse repurchase agreements (Note 7)
|
177,016,427
|
|||
Options Written, at value (proceeds $202,770)
|
340,000
|
|||
Unrealized depreciation on forward foreign currency exchange contracts
|
388,723
|
|||
Interest payable on the margin loan
|
23,731
|
|||
Payable for:
|
||||
Investments purchased
|
16,057,139
|
|||
Investment advisory fees
|
434,500
|
|||
Professional fees
|
266,239
|
|||
Servicing fees
|
169,053
|
|||
Other liabilities
|
297,125
|
|||
Total liabilities
|
404,992,937
|
|||
NET ASSETS
|
$
|
564,148,260
|
||
NET ASSETS CONSIST OF:
|
||||
Common stock, $0.001 par value per share; unlimited number of shares authorized,
|
||||
34,525,222 shares issued and outstanding
|
$
|
34,525
|
||
Additional paid-in capital
|
574,932,410
|
|||
Total distributable earnings (loss)
|
(10,818,675
|
)
|
||
NET ASSETS
|
$
|
564,148,260
|
||
Shares outstanding ($0.001 par value with unlimited amount authorized)
|
34,525,222
|
|||
Net asset value
|
$
|
16.34
|
STATEMENT OF OPERATIONS
|
October 31, 2019
|
For the Year Ended October 31, 2019
|
|
INVESTMENT INCOME:
|
||||
Interest (net of foreign taxes withholding $16,121)
|
$
|
33,363,974
|
||
Dividends (net of foreign taxes withholding $2,804)
|
5,974,976
|
|||
Total investment income
|
39,338,950
|
|||
EXPENSES:
|
||||
Interest expense
|
14,250,656
|
|||
Investment advisory fees
|
5,118,997
|
|||
Servicing fees
|
1,990,721
|
|||
Trustees’ fees and expenses*
|
463,609
|
|||
Professional fees
|
428,202
|
|||
Insurance
|
191,778
|
|||
Administration fees
|
182,194
|
|||
Fund accounting fees
|
172,587
|
|||
Printing fees
|
113,940
|
|||
Custodian fees
|
60,088
|
|||
Registration and filing fees
|
33,855
|
|||
Transfer agent fees
|
20,380
|
|||
Other expenses
|
30,341
|
|||
Total expenses
|
23,057,348
|
|||
Net investment income
|
16,281,602
|
|||
NET REALIZED AND UNREALIZED GAIN (LOSS):
|
||||
Net realized gain (loss) on:
|
||||
Investments
|
(6,130,747
|
)
|
||
Foreign currency transactions
|
(40,029
|
)
|
||
Forward foreign currency exchange contracts
|
2,083,374
|
|||
Options Written
|
66,968
|
|||
Net realized loss
|
(4,020,434
|
)
|
||
Net change in unrealized appreciation (depreciation) on:
|
||||
Investments
|
42,204,732
|
|||
Foreign currency translations
|
7,424
|
|||
Forward foreign currency exchange contracts
|
(1,151,928
|
)
|
||
Options Written
|
(56,885
|
)
|
||
Net change in unrealized appreciation (depreciation)
|
41,003,343
|
|||
Net realized and unrealized gain
|
36,982,909
|
|||
Net increase in net assets resulting from operations
|
$
|
53,264,511
|
STATEMENTS OF CHANGES IN NET ASSETS
|
October 31, 2019
|
|||||||
|
Year Ended
|
Year Ended
|
||||||
|
October 31, 2019
|
October 31, 2018
|
||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
|
||||||||
Net investment income
|
$
|
16,281,602
|
$
|
11,487,807
|
||||
Net realized gain (loss) on investments
|
(4,020,434
|
)
|
24,129,828
|
|||||
Net change in unrealized appreciation (depreciation)
|
||||||||
on investments
|
41,003,343
|
(51,825,603
|
)
|
|||||
Net increase (decrease) in net assets resulting from operations
|
53,264,511
|
(16,207,968
|
)
|
|||||
Distributions to shareholders
|
(19,250,159
|
)
|
(13,035,462
|
)
|
||||
Return of capital
|
(29,306,113
|
)
|
(18,468,343
|
)
|
||||
SHAREHOLDER TRANSACTIONS:
|
||||||||
Net proceeds from the issuance of shares due to merger
|
—
|
253,762,759
|
a
|
|||||
Net increase in net assets resulting from shareholder transactions
|
—
|
253,762,759
|
||||||
Net increase in net assets
|
4,708,239
|
206,050,986
|
||||||
NET ASSETS:
|
||||||||
Beginning of period
|
559,440,021
|
353,389,035
|
||||||
End of period
|
$
|
564,148,260
|
$
|
559,440,021
|
||||
a Fund merger – See note 11
|
STATEMENT OF CASH FLOWS
|
October 31, 2019
|
|||
For the Year Ended October 31, 2019
|
||||
Cash Flows from Operating Activities:
|
||||
Net increase in net assets resulting from operations
|
$
|
53,264,511
|
||
Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to
|
||||
Net Cash Provided by Operating and Investing Activities:
|
||||
Net change in unrealized (appreciation) depreciation on investments
|
(42,204,732
|
)
|
||
Net change in unrealized (appreciation) depreciation on forward foreign
|
||||
currency exchange contracts
|
1,151,928
|
|||
Net change in unrealized (appreciation) depreciation on options written
|
56,885
|
|||
Net realized loss on investments
|
6,130,747
|
|||
Net realized gain on options written
|
(66,968
|
)
|
||
Purchase of long-term investments
|
(1,132,278,062
|
)
|
||
Proceeds from sale of long-term investments
|
1,162,613,882
|
|||
Net purchases of short-term investments
|
(2,533,308
|
)
|
||
Return of capital distributions received from investments
|
103,050
|
|||
Net accretion of discount and amortization of premium
|
(1,165,039
|
)
|
||
Corporate actions and other payments
|
473,236
|
|||
Premiums received on options written
|
647,632
|
|||
Cost of closing options written
|
(785,689
|
)
|
||
Decrease investments sold receivable
|
9,972,044
|
|||
Decrease in dividend receivable
|
417,116
|
|||
Increase in interest receivable
|
(405,318
|
)
|
||
Decrease in tax reclaims receivable
|
219,675
|
|||
Decrease in other assets
|
71,458
|
|||
Decrease in investments purchased payable
|
(5,387,298
|
)
|
||
Decrease in interest payable on margin loan
|
(2,546
|
)
|
||
Decrease in professional fees payable
|
(105,748
|
)
|
||
Decrease in servicing fees payable
|
(2,913
|
)
|
||
Decrease in due to custodian
|
(858,165
|
)
|
||
Decrease in investment advisory fees payable
|
(7,490
|
)
|
||
Decrease in merger fees payable
|
(225,003
|
)
|
||
Increase in other liabilities
|
118,387
|
|||
Net Cash Provided by Operating and Investing Activities
|
$
|
49,212,272
|
||
Cash Flows From Financing Activities:
|
||||
Distributions to common shareholders
|
(48,556,272
|
)
|
||
Net Cash Used in Financing Activities
|
(48,556,272
|
)
|
||
Net increase in cash
|
656,000
|
|||
Cash at Beginning of Year
|
—
|
|||
Cash at End of Year
|
$
|
656,000
|
||
Supplemental Disclosure of Cash Flow Information:
|
||||
Cash paid during the year for interest
|
$
|
14,251,765
|
FINANCIAL HIGHLIGHTS
|
|
|
|
|
October 31, 2019
|
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
|||||||||||||||
|
October 31,
|
October 31,
|
October 31,
|
October 31,
|
October 31,
|
|||||||||||||||
|
2019
|
2018
|
2017
|
2016
|
2015
|
|||||||||||||||
Per Share Data:
|
||||||||||||||||||||
Net asset value, beginning of period
|
$
|
16.20
|
$
|
17.63
|
$
|
16.26
|
$
|
17.11
|
$
|
19.00
|
||||||||||
Income from investment operations:
|
||||||||||||||||||||
Net investment income(a)
|
0.47
|
0.51
|
0.69
|
0.75
|
0.65
|
|||||||||||||||
Net gain (loss) on investments (realized and unrealized)
|
1.08
|
(0.54
|
)
|
1.86
|
(0.47
|
)
|
(1.41
|
)
|
||||||||||||
Total from investment operations
|
1.55
|
(0.03
|
)
|
2.55
|
0.28
|
(0.76
|
)
|
|||||||||||||
Less distributions from:
|
||||||||||||||||||||
Net investment income
|
(0.56
|
)
|
(0.58
|
)
|
(0.75
|
)
|
(0.74
|
)
|
(0.76
|
)
|
||||||||||
Return of capital
|
(0.85
|
)
|
(0.82
|
)
|
(0.49
|
)
|
(0.39
|
)
|
(0.37
|
)
|
||||||||||
Total distributions to shareholders
|
(1.41
|
)
|
(1.40
|
)
|
(1.24
|
)
|
(1.13
|
)
|
(1.13
|
)
|
||||||||||
Increase resulting from tender offer and repurchase of Common Shares
|
—
|
—
|
0.06
|
—
|
—
|
|||||||||||||||
Net asset value, end of period
|
$
|
16.34
|
$
|
16.20
|
$
|
17.63
|
$
|
16.26
|
$
|
17.11
|
||||||||||
Market value, end of period
|
$
|
14.79
|
$
|
13.93
|
$
|
16.09
|
$
|
14.01
|
$
|
14.13
|
||||||||||
Total Return(b)
|
||||||||||||||||||||
Net asset value
|
9.94
|
%
|
(0.34
|
%)
|
16.55
|
%
|
1.94
|
%
|
(4.20
|
%)
|
||||||||||
Market value
|
17.01
|
%
|
(5.22
|
%)
|
24.20
|
%
|
7.57
|
%
|
(12.57
|
%)
|
||||||||||
Ratios/Supplemental Data:
|
||||||||||||||||||||
Net assets, end of period (in thousands)
|
$
|
564,148
|
$
|
559,440
|
$
|
353,389
|
$
|
383,513
|
$
|
403,555
|
FINANCIAL HIGHLIGHTS continued
|
|
|
|
|
|
|
|
October 31, 2019
|
||
|
||||||||||
|
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
|||||||||||||||
|
October 31,
|
October 31,
|
October 31,
|
October 31,
|
October 31,
|
|||||||||||||||
|
2019
|
2018
|
2017
|
2016
|
2015
|
|||||||||||||||
Ratio to average net assets of:
|
||||||||||||||||||||
Net investment income, including interest expense
|
2.90
|
%
|
2.93
|
%
|
4.04
|
%
|
4.66
|
%
|
3.56
|
%
|
||||||||||
Total expenses, including interest expense(c),(d)
|
4.11
|
%
|
3.87
|
%
|
2.72
|
%
|
2.92
|
%
|
2.48
|
%
|
||||||||||
Portfolio turnover rate
|
123
|
%
|
121
|
%
|
110
|
%
|
98
|
%
|
117
|
%
|
||||||||||
Senior Indebtedness:
|
||||||||||||||||||||
Margin loan outstanding (in thousands)(e)
|
$
|
210,000
|
$
|
235,000
|
$
|
227,000
|
$
|
262,000
|
$
|
262,000
|
||||||||||
Asset Coverage per $1,000 of indebtedness(f)
|
$
|
3,686
|
$
|
3,381
|
$
|
2,557
|
$
|
2,464
|
$
|
2,540
|
||||||||||
(a)
|
Based on average shares outstanding.
|
|
|
|
|
|
|
|
|
|
(b)
|
Total 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 the 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 return does not reflect brokerage commissions.
|
|
|
|
|
|
|
|||
(c)
|
Expense ratio does not reflect the fees and expenses incurred directly by the Fund as a result of its investment in shares of business development companies. If these fees were included
|
|||||||||
|
in the expense ratio, the increase to the expense ratio would be approximately 0.00%, 0.00%, 0.00%, 0.01% and 0.01% for the years ended October 31, 2019, 2018, 2017, 2016 and
2015.
|
|||||||||
(d)
|
Excluding interest expense, the operating expense ratios for the years ended October 31 would be:
|
|
|
|
|
|
|
2019
|
2018
|
2017
|
2016
|
2015
|
|
|
|
|
|
|
1.57%
|
1.62%
|
1.49%
|
1.52%
|
1.42%
|
|
|
|
|
|
(e)
|
Commencing on October 31, 2018, as a result of the Fund having earmarked or segregated cash to collateralize the reverse repurchase agreement transactions or otherwise having
|
|||||||||
|
covered the transactions, in accordance with releases and interpretive letters issued by the Securities and Exchange Commission (the “SEC”), the Fund does not treat its
obligations
|
|||||||||
|
under such transactions as senior securities representing indebtedness for purposes of the 1940 Act.
|
|
|
|
|
|||||
(f)
|
Calculated by subtracting the Fund’s total liabilities (not including the margin loan) from the Fund’s total assets and dividing by the margin loan.
|
|
|
NOTES TO FINANCIAL STATEMENTS
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
|
Average Notional
|
Use
|
Amount
|
Income
|
$ 1,963,750
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
|
Average Value
|
|
Use
|
Purchased
|
Sold
|
Hedge
|
$ 3,804,052
|
$ 47,648,489
|
Derivative Investment Type
|
Asset Derivatives
|
Liability Derivatives
|
Currency contracts
|
Unrealized
|
Unrealized
|
|
appreciation
|
depreciation
|
|
on forward
|
on forward
|
|
foreign currency
|
foreign currency
|
|
exchange contracts
|
exchange contracts
|
Equity contracts
|
|
Options written,
|
|
|
at value
|
Asset Derivative Investments Value
|
||
Forward Foreign
|
|
|
Currency Exchange
|
|
|
Risk
|
|
|
$ 133,941
|
|
|
Liability Derivative Investments Value
|
||
|
Forward Foreign
|
Total Value
|
Options Written
|
Currency Exchange
|
at October 31,
|
Equity Risk
|
Risk
|
2019
|
$ 340,000
|
$ 388,723
|
$ 728,723
|
|
Location of Gain (Loss)
|
Derivative Investment Type
|
on Derivatives
|
Currency contracts
|
Net realized gain (loss) on forward foreign currency exchange contracts
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts
|
Equity contracts
|
Net realized gain (loss) on options written
Net change in unrealized appreciation (depreciation) on options written
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations:
|
||
|
Forward
|
|
Options
|
Foreign
|
|
Written
|
Currency
|
|
Equity
|
Exchange
|
|
Risk
|
Risk
|
Total
|
$ 66,968
|
$ 2,083,374
|
$ 2,150,342
|
Change in Unrealized Appreciation (Depreciation) on Derivative Investments
|
||
Recognized on the Statement of Operations
|
||
|
Forward
|
|
Options
|
Foreign
|
|
Written
|
Currency
|
|
Equity
|
Exchange
|
|
Risk
|
Risk
|
Total
|
$ (56,885)
|
$ (1,151,928)
|
$ (1,208,813)
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
|
|
|
Gross
|
Net Amounts
|
|
Gross Amounts Not Offset
|
|
|
|
|
|
Amounts
|
of Assets
|
|
in the Statement of
|
|
|
|
|
Gross
|
Offset in the
|
Presented in
|
|
Assets and Liabilities
|
|
|
|
|
Amounts of
|
Statement
|
the Statement |
Derivatives
|
|
|
|
|
Investment
|
Recognized
|
of Assets &
|
of Assets &
|
Available
|
Financial
|
Collateral
|
Net
|
Counterparty
|
Type
|
Assets
|
Liabilities
|
Liabilities
|
for Offset
|
Instruments
|
Received
|
Amount
|
Bank of New York
|
Forward
|
$133,941
|
$ —
|
$133,941
|
$(133,941)
|
$ —
|
$ —
|
$ —
|
Mellon
|
Foreign
|
|
|
|
|
|
|
|
|
Currency
|
|
|
|
|
|
|
|
|
Exchange
|
|
|
|
|
|
|
|
|
Contracts
|
|
|
|
|
|
|
|
|
|
|
Gross
|
Net Amounts
|
|
Gross Amounts Not Offset
|
|
|
|
|
|
Amounts
|
of Liabilities
|
|
in the Statement of
|
|
|
|
|
Gross
|
Offset in the
|
Presented in
|
|
Assets and Liabilities
|
|
|
|
|
Amounts of
|
Statement
|
the Statement |
Derivatives
|
|
|
|
|
Investment
|
Recognized
|
of Assets &
|
of Assets &
|
Available
|
Financial
|
Collateral
|
Net
|
Counterparty
|
Type
|
Liabilities
|
Liabilities
|
Liabilities
|
for Offset
|
Instruments
|
Pledged
|
Amount
|
Société
|
Reverse
|
$177,016,427
|
$ —
|
$177,016,427
|
$ —
|
$177,016,427
|
$ —
|
$ —
|
Générale
|
Repurchase
|
|
|
|
|
|
|
|
|
Agreements
|
|
|
|
|
|
|
|
Bank of New York
|
Forward
|
388,723
|
—
|
388,723
|
(133,941)
|
—
|
—
|
254,782
|
Mellon
|
Foreign
|
|
|
|
|
|
|
|
|
Currency
|
|
|
|
|
|
|
|
|
Exchange
|
|
|
|
|
|
|
|
|
Contracts
|
|
|
|
|
|
|
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
Counterparty
|
Interest Rate(s)
|
Maturity Date(s)
|
Face Value
|
Société Générale
|
3.45%-3.83%
|
12/15/2020-12/15/2022
|
$ 123,012,298
|
Société Générale
|
2.75% (3 Month USD LIBOR+0.85%)*
|
11/21/2019
|
54,004,129
|
|
|
|
$ 177,016,427
|
* Variable rate security. Rate indicated is the rate effective at October 31, 2019.
|
|
||
|
|
AVK l ADVENT CONVERTIBLE AND INCOME FUND ANNUAL REPORT l 57
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
|
Overnight and
|
Up to
|
31 – 90
|
Greater than
|
|
|
Continuous
|
30 days
|
days
|
90 days
|
Total
|
Corporate Bonds
|
$ —
|
$ —
|
$ —
|
$ 177,016,427
|
$ 177,016,427
|
Total Reverse
|
|
|
|
|
|
Repurchase Agreements
|
$ —
|
$ —
|
$ —
|
$ 177,016,427
|
$ 177,016,427
|
Gross amount of
|
|
|
|
|
|
recognized liabilities
|
|
|
|
|
|
for reverse repurchase
|
|
|
|
|
|
agreements
|
$ —
|
$ —
|
$ —
|
$ 177,016,427
|
$ 177,016,427
|
3.43% fixed rate 3-year maturity
|
$ 65,000,000
|
3.83% fixed rate 5-year maturity
|
65,000,000
|
3 Month USD LIBOR+0.85% floating rate 175-day evergreen maturity
|
20,000,000
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
3.48% fixed rate 3-year maturity
|
$ 114,000,000
|
3.89% fixed rate 5-year maturity
|
114,000,000
|
3 Month USD LIBOR+0.85% floating rate
|
7,000,000
|
0.25% Undrawn Commitment Fee
|
30,000,000
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
|
Tax
|
Tax
|
|
Tax
|
Unrealized
|
Unrealized
|
Net Unrealized
|
Cost
|
Appreciation
|
Depreciation
|
Appreciation
|
$ 926,250,099
|
$ 44,735,027
|
$ (21,092,690)
|
$ 23,642,337
|
Undistributed
|
Undistributed
|
|
Ordinary
|
Long-Term
|
|
Income/
|
Capital Gain/
|
Net Unrealized
|
(Accumulated
|
(Accumulated
|
Appreciation/
|
Ordinary Loss)
|
Capital Loss)
|
(Depreciation)
|
$ —
|
$ (33,454,459)
|
$ 22,635,784
|
|
|
Total
|
Unlimited
|
Unlimited
|
Capital Loss
|
Short-Term
|
Long-Term
|
Carryforward
|
$ (27,512,559)
|
$ (5,941,900)
|
$ (33,454,459)*
|
* In accordance with Sections 382-384 of the Internal Revenue Code, a portion of certain Fund losses are subject to an annual limitation. This annual
limitation is generally applicable to all of the capital loss carryforwards shown.
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
Purchases
|
Sales
|
$ 1,132,278,062
|
$ 1,162,613,882
|
Note 11 – Mergers
|
|
On August 27, 2018 the mergers of AGC and LCM with and into AVK were completed.
|
|
Fund
|
NAV/Share ($)
|
Conversion Ratio
|
||||||
Advent Claymore Convertible Securities and Income Fund (AVK)
|
$
|
17.52
|
N/A
|
|||||
Advent Claymore Convertible Securities and Income Fund II (AGC)
|
$
|
6.36
|
0.36302760
|
|||||
Advent/Claymore Enhanced Growth & Income Fund (LCM)
|
$
|
8.68
|
0.49513765
|
|
AGC
|
LCM
|
||||||
Cost of investments
|
$
|
291,324,660
|
$
|
111,470,689
|
||||
Fair value of investments
|
$
|
297,048,631
|
$
|
114,147,866
|
||||
Net unrealized appreciation (depreciation) on investments
|
$
|
5,723,971
|
$
|
2,677,177
|
||||
Net unrealized appreciation (depreciation) on forward foreign
|
||||||||
currency exchange contracts
|
$
|
503,058
|
$
|
235,863
|
||||
Net unrealized appreciation (depreciation) on foreign
|
||||||||
currency translations
|
$
|
85
|
$
|
(419
|
)
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
Target Funds – Prior to Mergers
|
AGC
|
LCM
|
||||||
Common shares outstanding
|
27,367,344
|
9,182,041
|
||||||
Net assets applicable to common shares
|
$
|
174,095,431
|
$
|
79,667,328
|
||||
NAV per common share
|
$
|
6.36
|
$
|
8.68
|
||||
Acquiring Fund – Prior to Mergers
|
AVK
|
|||||||
Common shares outstanding
|
20,043,745
|
|||||||
Net assets applicable to common shares
|
$
|
351,231,894
|
||||||
NAV per common share
|
$
|
17.52
|
||||||
Acquiring Fund – Post Mergers
|
AVK
|
|||||||
Common shares outstanding
|
34,525,222
|
|||||||
Net assets applicable to common shares
|
$
|
604,994,653
|
||||||
NAV per common share
|
$
|
17.52
|
Acquiring Fund – Pro Forma Results from Operations (unaudited)
|
AVK
|
|||
Net investment income (loss)
|
$
|
17,253,226
|
||
Net realized and unrealized gains (losses)
|
$
|
(17,845,647
|
)
|
|
Change in net assets resulting from operations
|
$
|
(592,421
|
)
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
Transactions in common shares were as follows:
|
|
|
|
Year Ended
|
Year Ended
|
||||||
|
October 31, 2019
|
October 31, 2018
|
||||||
Beginning shares
|
34,525,222
|
20,043,745
|
||||||
Shares issued in fund merger
|
—
|
14,481,477
|
||||||
Ending shares
|
34,525,222
|
34,525,222
|
NOTES TO FINANCIAL STATEMENTS continued
|
October 31, 2019
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
October 31, 2019
|
OTHER INFORMATION (Unaudited)
|
October 31, 2019
|
% of Qualifying Interest Income
|
66.10%
|
|
# of Shares in Favor
|
# of Shares Against
|
# of Shares Abstain
|
Randall C. Barnes
|
24,403,646
|
6,260,164
|
328,911
|
Derek Medina
|
24,376,949
|
6,278,317
|
337,455
|
Gerald L. Seizert
|
24,392,993
|
6,251,924
|
347,804
|
OTHER INFORMATION (Unaudited) continued
|
October 31, 2019
|
Term of |
Number of
|
||||
|
Position(s)
|
Office and
|
|
Portfolios in
|
|
Name, Address
|
Held
|
Length
|
|
Fund |
|
and Year |
with
|
of Time
|
Principal Occupation(s)
|
Complex
|
Other Directorships
|
of Birth
|
Trust
|
Served*
|
During Past 5 Years
|
Overseen **
|
Held by Trustees
|
Independent Trustees:
|
|
|
|
|
|
|
|||||
Randall C.
|
Trustee and
|
Since 2005
|
Current: Private Investor (2001-present).
|
158
|
Current: Trustee, Purpose Investments
|
Barnes++
|
Chairman of
|
|
|
|
Funds (2013-present).
|
(1951)
|
the Audit
|
|
Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997);
|
|
|
|
Committee
|
|
President, Pizza Hut International (1991-1993); Senior Vice President,
|
|
Former: Managed Duration Investment
|
|
|
|
Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).
|
|
Grade Municipal Fund (2003-2016).
|
Daniel L. Black+
|
Trustee
|
Since 2005
|
Current: Managing Partner, the Wicks Group of Cos., LLC (2003-present).
|
1
|
Current: EZ Shield, Inc. (2016-present);
|
(1960)
|
|
|
|
|
Harlem Lacrosse & Leadership, Inc.
|
|
|
|
Former: Managing Director and Co-Head of the Merchant Banking Group at
|
|
(2014-present); Antenna International,
|
|
|
|
BNY Capital Markets, a division of BNY Mellon (1998-2003); and Co-Head of
|
|
Inc. (2010-present).
|
|
|
|
U.S. Corporate Banking at BNY Mellon (1995-1998).
|
|
|
|
|
|
|
|
Former: Little Sprouts, LLC (2015-2018);
|
|
|
|
|
|
Bendon Inc. (2012-2016); Bonded
|
|
|
|
|
|
Services, Ltd. (2011-2016).
|
Derek Medina+
|
Trustee and
|
Since 2003
|
Current: Senior Vice President, Business Affairs at ABC News (2008-present).
|
1
|
Current: Oliver Scholars (2011-present);
|
(1966 )
|
Chairman of
|
|
|
|
Young Scholar’s Institute (2005-present).
|
|
the Nominating
|
|
Former: Vice President, Business Affairs and News Planning at ABC News
|
|
|
|
and Governance
|
|
(2003-2008); Executive Director, Office of the President at ABC News (2000-2003);
|
|
|
|
Committee
|
|
Associate at Cleary Gottlieb Steen & Hamilton (law firm) (1995-1998); Associate in
|
|
|
|
|
|
Corporate Finance at J.P. Morgan/Morgan Guaranty (1988-1990).
|
|
|
OTHER INFORMATION (Unaudited) continued
|
|
October 31, 2019
|
Term of |
Number of
|
||||
|
Position(s)
|
Office and
|
|
Portfolios in
|
|
Name, Address
|
Held
|
Length
|
|
Fund
|
|
and Year
|
with
|
of Time
|
Principal Occupation(s)
|
Complex
|
Other Directorships
|
of Birth
|
Trust
|
Served*
|
During Past Five Years
|
Overseen **
|
Held by Trustees
|
Independent Trustees continued:
|
|||||
Ronald A.
|
Trustee
|
Since 2004
|
Current: Partner, Momkus LLC (2016-present).
|
158
|
Current: PPM Funds (9)(2018-present);
|
Nyberg++
|
|
|
|
|
Edward-Elmhurst Healthcare System
|
(1953)
|
|
|
Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President,
|
|
(2012-present); Western Asset Inflation-
|
|
|
|
General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).
|
Linked Opportunities & Income Fund
|
|
|
|
|
|
|
(2004-present); Western Asset Inflation-
|
|
|
|
|
|
Linked Income Fund (2003-present).
|
|
|||||
|
|
|
|
|
Former: Managed Duration Investment
|
|
|
|
|
|
Grade Municipal Fund (2003-2016).
|
Gerald L.
|
Trustee
|
Since 2003
|
Current: Chairman of Seizert Capital Partners, LLC.
|
1
|
Current: University of Toledo Foundation
|
Seizert, CFA, CIC+
|
|
|
|
|
(2013-present); Beaumont Hospital
|
(1952)
|
|
|
Former: Co-Chief Executive (1998-1999) and a Managing Partner and Chief
|
|
(2012-present).
|
Investment Officer – Equities of Munder Capital Management, LLC (1995-1999);
|
|||||
|
|
|
Vice President and Portfolio Manager of Loomis, Sayles & Co., L.P. (asset
|
|
|
|
|
|
manager) (1984-1995); Vice President and Portfolio Manager at First of
|
|
|
|
|
|
America Bank (1978-1984).
|
|
|
Michael A.
|
Trustee
|
Since 2003
|
Current: Managing Partner, CWS Private Equity (2014–present), Managing
|
1
|
Current: The Mead School (2014-
|
Smart+
|
|
|
Partner, Cordova, Smart & Williams, LLC (2003–present).
|
|
present); National Association of
|
(1960)
|
|
|
|
|
Investment Companies (“NAIC”) (2010-
|
|
|
|
Former: Principal , FirstAtlantic Capital Ltd. (2001-2003); Managing Director in
|
|
present); Sprint Industrial Holdings
|
|
|
|
Investment Banking – the Private Equity Group (1995-2001) and a Vice President
|
|
(2007-present).
|
|
|
|
in Investment Banking – Corporate Finance (1992-1995) at Merrill Lynch & Co;
|
|
|
|
|
|
Founding Partner of The Carpediem Group, a private placement firm (1991-1992);
|
Former: Berkshire Blanket, Holdings,
|
|
|
|
|
Associate at Dillon, Read and Co. (investment bank) (1988-1990).
|
|
Inc. (2006-2016); Sqwincher Holdings
|
|
|
|
|
|
(2006-2015).
|
OTHER INFORMATION (Unaudited) continued
|
|
October 31, 2019
|
|||
|
|||||
|
|||||
Term of
|
Number of
|
||||
|
Position(s)
|
Office
|
|
Portfolios in
|
|
Name, Address
|
Held
|
and Length
|
|
Fund
|
|
and Year
|
with
|
of Time
|
Principal Occupation(s)
|
Complex
|
Other Directorships
|
of Birth
|
Trust
|
Served*
|
During Past Five Years
|
Overseen **
|
Held by Trustees
|
Interested Trustee:
|
|
|
|
|
|
Tracy V.
|
Trustee,
|
Since 2003
|
Current: Founder, President and Chief Investment Officer of Advent Capital
|
1
|
None.
|
Maitland+ø
|
Chairman,
|
|
Management, LLC (2001-present).
|
|
|
(1960)
|
President and
|
|
|
|
|
|
Chief Executive
|
|
|
|
|
|
Officer
|
|
|
|
|
OTHER INFORMATION (Unaudited) continued
|
October 31, 2019
|
|||
|
||||
|
||||
Officers
|
|
|
|
|
The Officers of the Advent Convertible and Income Fund, who are not Trustees, and their principal occupations during the past five years:
|
|
|
Position(s)
|
|
|
|
Name, Address*
|
held
|
Term of Office
|
|
|
and Year |
with the
|
and Length of
|
|
|
of Birth
|
Trust
|
Time Served**
|
Principal Occupations During Past Five Years
|
|
|
||||
Officers:
|
|
|
|
|
Edward C. Delk
|
Secretary and
|
Since 2012
|
Current: General Counsel and Chief Compliance Officer, Advent Capital Management, LLC (2012-present).
|
|
(1968)
|
Chief
|
|
|
|
|
Compliance
|
|
Former: Assistant General Counsel and Chief Compliance Officer, Insight Venture Management, LLC (2009-2012); Associate General Counsel,
|
|
|
Officer
|
|
TIAA-CREF (2008-2009); Principal, Legal Department, The Vanguard Group, Inc. (2000-2008).
|
|
Tony Huang
|
Vice President
|
Since 2014
|
Current: Director and Associate Portfolio Manager, Advent Capital Management, LLC (2007-present).
|
|
(1976)
|
and Assistant
|
|
|
|
|
Secretary
|
|
Former: Senior Vice President, Portfolio Manager and Analyst, Essex Investment Management (2001-2006); Vice President, Analyst, Abacus
|
|
|
|
|
Investments (2001); Vice President, Portfolio Manager, M/C Venture Partners (2000-2001); Associate, Fidelity Investments (1996-2000).
|
|
Robert White
|
Treasurer and
|
Since 2005
|
Current: Chief Financial and Administrative Officer, Advent Capital Management, LLC (2005-present).
|
|
(1965)
|
Chief Financial
|
|
|
|
|
Officer
|
|
Former: Vice President, Client Service Manager, Goldman Sachs Prime Brokerage (1997-2005).
|
|
DIVIDEND REINVESTMENT PLAN (Unaudited)
|
October 31, 2019
|
DIVIDEND REINVESTMENT PLAN (Unaudited) continued
|
October 31, 2019
|
CONSIDERATIONS REGARDING ANNUAL REVIEW OF THE
|
|
INVESTMENT MANAGEMENT AGREEMENT (Unaudited)
|
October 31, 2019
|
CONSIDERATIONS REGARDING ANNUAL REVIEW OF THE
|
|
INVESTMENT MANAGEMENT AGREEMENT (Unaudited) continued
|
October 31, 2019
|
CONSIDERATIONS REGARDING ANNUAL REVIEW OF THE
|
|
INVESTMENT MANAGEMENT AGREEMENT (Unaudited) continued
|
October 31, 2019
|
FUND INFORMATION
|
October 31, 2019
|
Board of Trustees
|
Investment Adviser
|
Randall C. Barnes
|
Advent Capital Management, LLC
|
|
New York, NY
|
Daniel L. Black
|
|
Servicing Agent
|
|
Tracy V. Maitland,*
|
Guggenheim Funds Distributors, LLC
|
Chairman
|
Chicago, IL
|
|
|
Derek Medina
|
Accounting Agent and Custodian
|
The Bank of New York Mellon
|
|
Ronald A. Nyberg
|
New York, NY
|
|
|
Gerald L. Seizert
|
Administrator |
MUFG Investor Services (US), LLC
|
|
Michael A. Smart
|
Rockville, MD
|
|
|
* Trustee is an “interested person” of the Fund
|
Transfer Agent
|
as defined in the Investment Company Act of
|
Computershare Trust Company, N.A.
|
1940, as amended.
|
Jersey City, NJ
|
|
|
Officers | Legal Counsel |
Tracy V. Maitland
|
Skadden, Arps, Slate, Meagher
|
President and Chief Executive Officer
|
& Flom LLP
|
New York, NY
|
|
Robert White
|
|
Treasurer and Chief Financial Officer
|
Independent Registered Public
|
|
Accounting Firm
|
Edward C. Delk
|
PricewaterhouseCoopers LLP |
Secretary and Chief Compliance Officer
|
New York, NY
|
|
|
Tony Huang
|
|
Vice President and Assistant Secretary
|
|
FUND INFORMATION continued
|
October 31, 2019
|
•
|
If your shares are held in a Brokerage Account, contact your Broker.
|
•
|
If you have physical possession of your shares in certificate form, contact the Fund’s Transfer Agent: Computershare
Trust Company, N.A., P.O. Box 30170, College Station, TX 77842-3170; (866) 488-3559 or online at www.computershare.com/investor.
|
1
|
Screen the convertible and high-yield markets for securities with attractive risk/reward characteristics and favorable cash flows;
|
|
2
|
Analyze the quality of issues to help manage downside risk;
|
|
3
|
Analyze fundamentals to identify catalysts for favorable performance; and
|
|
4
|
Continually monitor the portfolio for improving or deteriorating trends in the financials of each investment.
|
Advent Capital Management, LLC
|
Guggenheim Funds Distributors, LLC
|
|
888 Seventh Avenue, 31st Floor
|
227 West Monroe Street
|
|
New York, NY 10019
|
Chicago, IL 60606
|
|
|
Member FINRA/SIPC
|
|
|
(12/19)
|
Name
|
Since
|
Professional Experience
|
Tracy Maitland
|
2003
(Inception)
|
Founder, President and Chief Investment Officer of Advent Capital Management, LLC.
|
Paul Latronica
|
2011
|
Managing Director of Advent Capital Management, LLC. He has been associated with Advent for more than 15 years.
|
Tony Huang
|
2019
|
Director of Advent Capital Management, LLC. He has been associated with Advent for more than 10 years.
|
Type of Account
|
Number of Accounts
|
Total Assets in the Accounts
|
Number of Accounts In Which the Advisory Fee is Based on Performance
|
Total Assets in the Accounts In Which the Advisory Fee is Based on Performance
|
Registered investment companies
|
2
|
$1,045,940,326.63
|
0
|
$0
|
Other pooled investment vehicles
|
5
|
$277,073,891.35
|
5
|
$277,073,891.35
|
Other accounts
|
545
|
7,808,826,710.71
|
0
|
$0
|
Type of Account
|
Number of Accounts
|
Total Assets in the Accounts
|
Number of Accounts In Which the Advisory Fee is Based on Performance
|
Total Assets in the Accounts In Which the Advisory Fee is Based on Performance
|
Registered investment companies
|
1
|
$ 951,120,718.11
|
0
|
$0.00
|
Other pooled investment vehicles
|
1
|
$68,581,325.47
|
0
|
$0.00
|
Other accounts
|
501
|
$3,543,190,498.23
|
0
|
$0.00
|
Type of Account
|
Number of Accounts
|
Total Assets in the Accounts
|
Number of Accounts In Which the Advisory Fee is Based on Performance
|
Total Assets in the Accounts In Which the Advisory Fee is Based on Performance
|
Registered investment companies
|
0
|
$ 0.00
|
0
|
$0.00
|
Other pooled investment vehicles
|
1
|
$68,581,325.47
|
0
|
$0.00
|
Other accounts
|
6
|
$ 1,852,340,297.72
|
0
|
$0.00
|
Name of Portfolio Manager
|
Dollar Range of Equity Securities in Fund
|
Tracy Maitland
|
More than $1,000,000
|
Tony Huang
|
$100,001 - $500,000.
|
Paul Latronica
|
$10,001- $50,000
|