Company: CHY
Filing Date: 2025-12-29
Form Type: N-CSR
Source: 0001104659-25-124662
Chunk: 60

Company: CALAMOS CONVERTIBLE & HIGH INCOME FUND
Filing Date: 2025-12-29
Form: N-CSR
Chunk 60
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 AI buildout evolves. Beyond AI, we remain focused on quality growth companies with sustainable advantages, reasonable valuations, and alignment with enduring technological and economic trends, while maintaining flexibility to adapt as conditions evolve. CALAMOS CLOSED-END FAMILY OF FUNDS ANNUAL REPORT
44 Calamos Strategic Total Return Fund (Unaudited) Common stocks comprise our largest allocation at approximately 64% of the portfolio. Convertible securities are our favored portion of the fixed-income market and represent 18% of the portfolio, as they provide exposure to some favorable but riskier parts of the equity market—small caps, mid caps, and momentum equities—in a risk-managed way. Corporate bonds constitute approximately 9% of our holdings. Given the current rate environment and policy uncertainty, we maintain our short-duration positioning and moderate below-investment-grade credit exposure in the portfolio's fixed-income allocation. At quarter-end, the weighted average duration of our bond holdings was 2.4 years. From a sector standpoint, the largest portfolio weights reside in information technology and financials on an absolute basis. Conversely, real estate and materials represent the smallest absolute sector weights with holdings. On a relative basis, systems software and technology hardware, storage & peripherals constitute significant industry overweights. Application software and cable & satellite comprise significant industry underweights. The information technology allocation increased during the period, and the weight to health care also rose modestly. Allocations to consumer staples and financials decreased modestly, driven by reduced weights in merchandise retail and transaction & payment processing services, respectively. As of October 31, 2025, our total percentage of assets leveraged was approximately 30%. What are your closing thoughts for Fund shareholders? We believe our steady course has proven its worth through multiple market environments this year. We do not chase momentum; rather, our consistent focus on innovation leaders and high-quality companies through our multi-asset approach has delivered solid results. The AI revolution remains in its early stages, and companies that successfully navigate this transformation should capture disproportionate value creation. The economy continues to demonstrate mid-cycle characteristics—solid employment, moderate GDP growth, and normalizing inflation—providing a stable backdrop for risk asset allocation. Corporate earnings visibility has improved as management teams adapt their operational strategies to the evolving policy environment, focusing on efficiency gains and protecting margins. The convertible market saw a significant upsurge in issuance. 2025 global issuance is tracking toward $165 billion, which would mark the strongest year on record since 1998. This robust issuance reflects companies strategically