Top Convertible Fixed Income Funds

Today we are featuring top-performing “Convertible” fixed income mutual funds, which primarily invest in convertible securities in search of growth and/or income.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Convertible Fixed Income Funds.

3 Solid Picks

Calamos Convertible Fund A (CCVIX) seeks current income, with growth as a secondary objective. It was founded in June 1985.

The fund generally invests in a diversified portfolio of convertible securities issued by both U.S. and foreign companies. Dividends are declared and paid quarterly. Capital gains, if any, are distributed annually.

John P. Calamos has been lead manager at the fund since June 1985. As a founder of Calamos Asset Management Inc, he has discovered many techniques to help manage risk for both institutional and individual investors over the last thirty years. The fund has an expense ratio of 1.09%.

Franklin Convertible Securities A (FISCX), founded in April 1987, seeks to maximize total return by optimizing capital appreciation and high current income.

The fund primarily invests 80% of its assets in convertible securities, which generally are bonds or preferred stocks that may be converted within a specified period of time into a set amount of common stock at a pre-stated price.

The fund offers dividends quarterly, and capital gains, if any, are distributed annually. As of April 2009, the portfolio turnover was 48.66%.

Alan Muschott has been lead manager at the fund since July 2002. Muschott is a Chartered Financial Analyst and has been with the firm since 1998.

PIMCO Convertible Bond Inst (PFCIX) seeks maximum total return. Its secondary objective is conservation of capital.

The fund normally invests at least 80% of its assets in convertible securities, which are issued by companies of all sizes and market capitalizations. These include corporate bonds, debentures, notes or preferred stocks and their hybrids, which can be converted into (exchanged for) common stock or other securities, such as warrants or options.

Unit holders have to make a minimum initial investment of $5,000,000 to enter this Zacks #1 Rank (”Strong Buy”) fund. It declares and distributes dividends, if any, annually.

William H Gross has been lead manager of the fund since May 2009. He has also been recognized as an influential authority on the US bond market in a survey by Pensions and Investments Magazine conducted in 1993.

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