gug51676-ncsr.htm
 
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               811-21309                                           
 
 Advent Claymore Convertible Securities and Income Fund 
(Exact name of registrant as specified in charter)
 

1271 Avenue of the Americas, 45th Floor, New York, NY 10020 
 

(Address of principal executive offices) (Zip code)
 
Robert White, Treasurer
1271 Avenue of the Americas, 45th Floor, New York, NY 10020 
 

(Name and address of agent for service)
 
Registrant's telephone number, including area code:          (212) 482-1600                                
 
Date of fiscal year end:  October 31
 
Date of reporting period:  April 30, 2011
 
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, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 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 (the “Investment Company Act”), is as follows: 
 
 
 
 
 
 
 

 
 
www.guggenheimfunds.com/avk
 
... your bridge to the LATEST,
 
most up-to-date INFORMATION about the
 
Advent Claymore Convertible Securities and Income Fund
 
 
 
 
 
The shareholder report you are reading right now is just the beginning of the story. Online at www.guggenheimfunds.com/avk, you will find:
 
·  
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
 
Advent Capital Management and Guggenheim Funds 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 small way we are working to keep you better informed about your investment in the Fund.
 
 
2 l Semiannual Report l April 30, 2011
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund
 
 
 
Tracy V. Maitland
President and Chief Executive Officer
 
 
Dear Shareholder l
 
 
We thank you for your investment in the Advent Claymore Convertible Securities and Income Fund (the “Fund”).This report covers the Fund’s performance for the semiannual fiscal period ended April 30, 2011.
 
Advent Capital Management, LLC serves as the Fund’s investment adviser. Based in NewYork, NewYork, with additional investment personnel in London, England,Advent is a credit-oriented firm specializing in the management of global convertible, high-yield and equity securities across three lines of business—long-only strategies, hedge funds and closed-end funds. As of April 30, 2011,Advent managed approximately $6 billion in assets.
 
Guggenheim Funds Distributors, Inc., (“GFDI”) serves as the servicing agent to the Fund. GFDI is a subsidiary of Guggenheim Partners, LLC, a global diversified financial services firm with more than $100 billion in assets under management and supervision.
 
The Fund’s investment objective is to provide total return through a combination of capital appreciation and current income. Under normal market conditions, the Fund will invest at least 80% of its managed assets in a diversified portfolio of convertible securities and non-convertible income securities. Under normal market conditions, the Fund will invest at least 60% of its managed assets in convertible securities and up to 40% in lower grade, non-convertible income securities.
 
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 April 30, 2011, the Fund generated a total return based on market price of 11.21% and a return of 12.57% based on NAV.As of April 30, 2011, the Fund’s market price of $19.17 represented a discount of 7.53% to NAV of $20.73.As of October 31, 2010, the Fund’s market price of $18.19 represented a discount of 6.14% to NAV of $19.38.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.
 
In each month from November 2010 through April 2011, the Fund paid a monthly distribution of $0.0939 per common share. In addition, the Fund paid a supplemental distribution of $0.454 per common share on December 31, 2010.The current monthly distribution represents an annualized distribution rate of 5.88% based upon the last closing market price of $19.17 as of April 30, 2011.There is no guarantee of any future distributions or that the current returns and distribution rate will be maintained.
 
We encourage shareholders to consider the opportunity to reinvest their distributions from the Fund through the Dividend Reinvestment Plan (“DRIP”), which is described in detail on page 34 of this report.When shares trade at a discount to NAV, the DRIP takes advantage of the discount by reinvesting the monthly dividend distribution 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 above NAV, the DRIP reinvests participants’ dividends in newly-issued common shares at NAV, subject to an Internal Revenue Service (“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. Since the Fund endeavors to maintain a steady monthly distribution rate, the DRIP effectively provides an income averaging technique, which causes shareholders to accumulate a larger number of Fund shares when the share price is lower than when the price is higher.
 
The Fund is managed by a team of experienced and seasoned professionals led by me in my capacity as Chief Investment Officer (as well as President and Founder) of Advent Capital
 
 
Semiannual Report l April 30, 2011 l 3
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Dear Shareholder continued
 
 
Management, LLC.We encourage you to read the following Questions & Answers section, which provides additional information regarding the factors that impacted the Fund’s performance.
 
We are honored that you have chosen the Advent Claymore Convertible Securities and Income Fund as part of your investment portfolio. For the most up-to-date information regarding your investment, please visit the Fund’s website at www.guggenheimfunds.com/avk.
 
Sincerely,
 
 
Tracy V. Maitland
President and Chief Executive Officer of the Advent Claymore Convertible Securities and Income Fund
May 31, 2011
 
 
4 l Semiannual Report l April 30, 2011
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Questions & Answers
 
 
Questions & Answers l
 
Advent Claymore Convertible Securities and Income Fund (the “Fund”) is managed by a team of seasoned professionals at Advent Capital Management, LLC, (“Advent” of the “Investment Adviser”), led by Tracy V. Maitland,Advent’s Founder, President and Chief Investment Officer. In the following interview, Mr. Maitland discusses the convertible securities and high yield markets and the performance of the Fund during the six-month period ended April 30, 2011.
 
 

Please describe the Fund’s objective and management strategies.
 
The Fund’s investment objective is to provide total return through a combination of capital appreciation and current income.An important goal of the Fund is to provide total returns comparable with equities by using higher yielding and typically less volatile convertible securities.
 
Under normal market conditions, the Fund will invest at least 80% of its managed assets in a diversified portfolio of convertible securities and non-convertible income securities. Under normal market conditions, the Fund will invest at least 60% of its managed assets in convertible securities and may invest up to 40% in lower grade, non-convertible income securities, although the percentage of the Fund’s assets invested in convertible securities and non-convertible income securities may vary from time to time, consistent with the Fund’s investment objective, due to changes in equity prices and changes in interest rates and other economic and market factors.The Fund expects to invest approximately 70% of its assets in lower-grade securities, including lower-grade convertible securities; however, from time to time, it is possible that all of the Fund’s assets may be invested in lower-grade securities. During periods of very high market volatility, the Fund may not be invested at these levels.
 
Investing in below investment grade securities may increase the level of risk in the portfolio, as these securities are issued by companies that are considered less financially strong than issuers of investment-grade securities.This risk is addressed through rigorous credit research. Each issuer’s financial statements are carefully scrutinized, and every effort is made to avoid securities of weaker companies that may be likely to default.
 
More than half of the convertible market and a large portion of the Fund’s convertible investments are in securities issued by growth companies, particularly companies within the health care and technology sectors. Growth companies generally issue convertible bonds or convertible preferred stocks as a means of raising capital to build their businesses. Convertibles represent something of a hybrid between equity and debt as a way to raise capital; convertibles generally offer lower interest rates than non-convertible bonds, but entail less dilution than issuing common stock. Convertible preferreds are often issued by financial companies in order to raise capital while keeping their credit ratings higher than if they offered bonds.This is because issuing bonds would increase the proportion of debt on an issuer’s balance sheet, possibly triggering a downgrade in credit rating, while preferred stock is classified as equity.
 
The Fund’s ability to allocate among convertibles and high yield bonds helps provide diversification at an asset, sector and security level.Among the attractions of convertible securities are that they generally offer a yield advantage over common stocks; they have tended to capture much of the upside when equity prices move up in stronger markets; and convertibles’ yield advantage and bond-like characteristics have historically provided inherent downside protection in weaker markets. However, there is no assurance that convertible securities will participate significantly in any upward movement of the underlying common stock or that they will provide protection from downward movements.
 
 

Please tell us about the economic and market environment over the last six months.
 
The period was generally characterized by improving economic activity, and there is increasing evidence that the recovery in the U.S. is becoming more self-sustaining, although the pace of growth remains below that of past rebounds from deep recessions. Real gross domestic product (GDP) — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 1.8% in the first quarter of 2011.This pace was considerably slower than in the fourth quarter of 2010, when real GDP increased 3.1%.
 
Recent employment figures have been encouraging, suggesting the strongest pace of net hiring so far in this recovery. Production data has been firm, and surveys of purchasing managers indicate further strength in industrial production. Despite sharp rises in prices of commodities, particularly oil, overall inflation remains low. Corporate earnings reports have generally been stronger than consensus expectations, and the equity market has responded positively.
 
For the six months ended April 30, 2011, the S&P 500 Index, which is generally regarded as a good indicator of the broad U.S. stock market, returned 16.36%. Benefitting from strength in the equity market as well as investors’ interest in current income, convertible securities performed well, as evidenced by the 11.55% return of the Merrill Lynch All U.S. Convertibles Index.The market for convertible securities was supported in part by the entry into the market of some equity investors who sought equity exposure plus some yield, particularly those who were becoming more cautious about the market environment
 
Interest rates remained low during the period. In the bond market, lower quality issues performed much better than the securities with the highest credit ratings, as spreads tightened, reflecting investors’ increasing willingness to embrace credit risk as they search for yield. Return of the Barclays Capital U.S.Aggregate Bond Index (the “Barclays Aggregate”), which measures return of
 
 
Semiannual Report l April 30, 2011 l 5
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Questions & Answers continued
 
 
the U.S. bond market as a whole, was 0.02%. Return of the Merrill Lynch HighYield Master II Index, which measures performance of the U.S. high-yield bond market, was 6.14% for the six months ended April 30, 2011.
 
 

How did the Fund perform in this environment?
 
The Fund performed well, benefiting from strength in both convertible securities and high yield bonds.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 April 30, 2011, the Fund generated a total return based on market price of 11.21% and a return of 12.57% based on NAV.As of April 30, 2011, the Fund’s market price of $19.17 represented a discount of 7.53% to NAV of $20.73.As of October 31, 2010, the Fund’s market price of $18.19 represented a discount of 6.14% to NAV of $19.38.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.
 
Market conditions during the first half of the Fund’s 2011 fiscal year were positive for the Fund, which seeks equity-like returns with a focus on income by investing at least 60% of the Fund’s assets in convertible securities, under normal conditions.The Fund performed better than most other closed-end convertible funds, in large part because it was heavily invested in convertible securities, while most competing funds had more emphasis on high yield bonds, which performed well, but not as well as convertibles.
 
The Fund’s use of leverage contributed further to higher income and a high total return during a period of very low short-term interest rates and strong markets. Past performance is not a guarantee of future results.The use of leverage, which contributed to performance during this period, can impede performance when the cost of leverage is higher than the returns generated by the Fund’s investments.
 
 

What were the major investment decisions that affected the Fund’s performance?
 
The Fund’s asset mix was not changed significantly.At the end of the prior fiscal year, October 31, 2010, convertible securities represented 67.4% of total investments, high yield bonds represented 19.8%, short-term investments represented 8.3%, and other investments represented 4.5%.As of April 30, 2011, convertible securities represented 73.6% of total investments, high yield bonds represented 21.5%, short-term investments represented 1.8%, and other investments represented 3.1%.
 
The investment in short-term investments was reduced, as the Investment Adviser took advantage of attractive opportunities in the convertibles market.Within the high yield portion of the portfolio, holdings were broadened to achieve enhanced liquidity and better diversification.
 
In the convertible portion of the portfolio, the representation in the financials sector was increased, as several financial services firms issued new high yielding preferred stocks. Investments in the industrials and consumer discretionary sectors were also increased.The automotive industry presented some especially attractive opportunities.When auto manufacturer General Motors Co. (1.4% of long-term investments at period end) emerged from bankruptcy and once again issued common stock to the public in November 2010, it also issued a high yielding convertible preferred.This and other issues in the automotive industry, some to restructure balance sheets and some for new investments, are considered by the Investment Adviser to have good long-term potential, as well as offering attractive current yield. Selective additions in the energy and health care sectors also contributed to performance.
 
One of the top contributors to performance was Omnicare, Inc. (2.1% of long-term investments at period end), a pharmaceutical services company. Omnicare experienced a board-directed management change and a strategic refocusing, which the Investment Adviser believes will improve financial discipline as well as create a more positive culture within the company.The stock responded positively to these changes.
 
Another positive in the health care sector was a position in Hologic, Inc. (0.7% of long-term investments at period end) which is focused on the health care needs of women.The Fund benefited from Hologic’s partial swap of an existing convertible security for a new security that is more equity sensitive.Also, the company’s fundamentals improved with the approval of a new product by the FDA.
 
Another top performer in health care was Amerigroup Corp. (0.9% of long-term investments at period end), a multi-state managed healthcare company that is one of the few providers of managed care programs to Medicaid participants.The Company benefited as more states are looking to outsource Medicaid administration to reduce costs.
 
Other contributors included Apache Corp. (1.9% of long-term investments at period end), an oil and natural gas exploration and development company, which benefited from strength in the energy sectors and a warrant position in JPMorgan Chase & Co. (1.0% of long-term investments at period end), a bank holding company that may soon be permitted by the government to raise its dividend.
 
Some of the poor performers in the portfolio were also in the health care sector.Allergan, Inc. (not held in the portfolio at period end) is a pharmaceutical company whose securities were trading above the call price; they lost value when they were called by the issuer.Teva Pharmaceutical Industries Limited (not held in the portfolio at period end), a producer of generic pharmaceuticals based in Israel, has callable securities that lost value on concerns that they will soon be called.
 
 
6 l Semiannual Report l April 30, 2011
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Questions & Answers continued
 
 
Another negative was CEMEX, S.A.B. de C.V. (1.0% of long-term investments at period end), a Mexican cement company that dropped on investor concerns about possible weakness in emerging markets.
 
 

How has the Fund’s leverage strategy affected performance?
 
The Fund utilizes leverage (borrowing) as part of its investment strategy, to finance the purchase of additional securities that provide increased income and potentially greater appreciation to common shareholders than could be achieved from a portfolio that is not leveraged.The Fund currently implements its leverage strategy through the issuance of Auction Market Preferred Shares (“AMPSSM”). During the six-month period ended April 30, 2011, the cost of leverage was much less than the return of the Fund’s investments; accordingly, leverage made a significant contribution to the Fund’s total return.The Fund’s leverage outstanding as of April 30, 2011, was $262 million, approximately 35% of the Fund’s total managed assets.
 
There is no guarantee that the Fund’s leverage strategy will be successful, and the Fund’s use of leverage may cause the Fund’s NAV and market price of common shares to be more volatile. Leverage adds value only when the return on securities purchased exceeds the cost of leverage. Since the portfolio’s total return was sufficiently positive during this period, the effect of leverage was positive.
 
 

Please discuss the Fund’s distributions over the last year.
 
In each month from November 2010 through April 2011, the Fund paid a monthly distribution of $0.0939 per common share. In addition, the Fund paid a supplemental distribution of $0.454 per common share on December 31, 2010.The current monthly distribution represents an annualized distribution rate of 5.88% based upon the last closing market price of $19.17 as of April 30, 2011.There is no guarantee of any future distributions or that the current returns and distribution rate will be maintained.
 
 

What is the current outlook for the markets and the Fund?
 
The Fund’s management team continues to see opportunities in both convertible securities and high yield bonds, which provide the opportunity to participate in improving situations with some downside protection from the income these securities provide.
 
A distinguishing feature of this Fund is its strong emphasis on convertible securities.While there are many funds that are designated as convertible funds, most competing funds place far more emphasis on high yield bonds.Advent believes that this Fund offers the dual advantages of yield from convertible securities and equity participation.When equity markets rise, as they have during the past six months, the equity sensitivity of a portfolio of convertible securities increases.When equity markets are weak, convertibles’ declining equity sensitivity, combined with a yield advantage, mitigates the downside.When the equity market rises and credit spreads narrow simultaneously, as they have during recent months, convertible securities benefit from both trends.
 
Advent believes that, over the long term, careful security selection and asset allocation will help the Fund’s performance by providing favorable returns in rising markets and a level of income that can help provide downside protection for overall return against down markets.
 
 

Index Definitions
 
Indices are unmanaged and it is not possible to invest directly in any index.
 
The Merrill Lynch All U.S. Convertibles Index is comprised of more than 500 issues of convertible bonds and convertible preferred shares of all qualities.
 
S&P 500 Index is a capitalization-weighted index of 500 stocks.The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
 
The Barclays Capital US Aggregate Bond Index covers the U.S. dollar-denominated, investment-grade, fixed rate, taxable bond market of SEC-registered securities. The Index includes bonds from the U.S. Treasury, government-related, corporate, mortgage-backed securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities and collateralized mortgage-backed securities sectors.
 
Merrill Lynch High Yield Master II Index is a commonly used benchmark index for high yield corporate bonds. It is a measure of the broad high yield market.
 
 

AVK Risks and Other Considerations
 
The views expressed in this report reflect those of the Portfolio Managers only through the report period as stated on the cover. These views are subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any kind.The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass. There can be no assurance that the Fund will achieve its investment objectives. The value of the Fund will fluctuate with the value of the underlying securities. Historically, closed-end funds often trade at a discount to their net asset value. The Fund is subject to investment risk, including the possible loss of the entire amount that you invest. Past performance does not guarantee future results.
 
Convertible Securities.The Fund is not limited in the percentage of its assets that may be invested in convertible securities. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality.The market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, the convertible security’s market value tends to reflect the market price of the common stock of the issuing company when that stock price is greater than the convertible’s‘‘conversion price,’’which is the predetermined price at which the convertible security could be exchanged for the associated stock.
 
Synthetic Convertible Securities. The value of a synthetic convertible security will respond differently to market fluctuations than a convertible security because a synthetic convertible security is composed of two or more separate securities, each with its own market value. In addition, if the value of the underlying common stock or the level of the index involved in the convertible component falls below the exercise price of the warrant or option, the warrant or option may lose all value.
 
 
Semiannual Report l April 30, 2011 l 7
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Questions & Answers continued
 
 
Lower Grade Securities. Investing in lower grade securities (commonly known as“junk bonds”) involves additional risks, including credit risk. Credit risk is the risk that one or more securities in the Fund’s portfolio will decline in price, or fail to pay interest or principal when due, because the issuer of the security experiences a decline in its financial status.
 
Leverage Risk. Certain risks are associated with the leveraging of common stock. Both the net asset value and the market value of shares of common stock may be subject to higher volatility and a decline in value.
 
Interest Rate Risk. In addition to the risks discussed above, convertible securities and nonconvertible income securities are subject to certain risks, including:
 
• if interest rates go up, the value of convertible securities and nonconvertible income securities in the Fund’s portfolio generally will decline;
 
• during periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest in lower yielding securities.This is known as call or prepayment risk. Lower grade securities have call features that allow the issuer to repurchase the security prior to its stated maturity. An issuer may redeem a lower grade security if the issuer can refinance the security at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer; and
 
• during periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected principal payments. This may lock in a below market interest rate, increase the security’s duration (the estimated period until the security is paid in full) and reduce the value of the security. This is known as extension risk.
 
Illiquid Investments.The Fund may invest without limit in illiquid securities.The Fund may also invest without limit in Rule 144A Securities. Although many of the Rule 144A Securities in which the Fund invests may be, in the view of the Investment Adviser, liquid, if qualified institutional buyers are unwilling to purchase these Rule 144A Securities, they may become illiquid. Illiquid securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so.The market price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of illiquid securities.
 
Foreign Securities and Emerging Markets Risk. Investing in non-U.S. issuers may involve unique risks, such as currency, political, economic and market risk. In addition, investing in emerging markets entails additional risk including, but not limited to (1) news and events unique to a country or region (2) smaller market size, resulting in lack of liquidity and price volatility (3) certain national policies which may restrict the Fund’s investment opportunities.
 
Strategic Transactions.The Fund may use various other investment management techniques that also involve certain risks and special considerations, including engaging in hedging and risk management transactions, including interest rate and foreign currency transactions, options, futures, swaps, caps, floors, and collars and other derivatives transactions.
 
Auction Market Preferred Shares (AMPS) Risk.There also risks associated with investing in Auction Market Preferred Shares or AMPS.The AMPS are redeemable, in whole or in part, at the option of the Fund on any dividend payment date for AMPS, and will be subject to mandatory redemption in certain circumstances. The AMPS will not be listed on an exchange. You may only buy or sell AMPS through an order placed at an auction with or through a broker/dealer that has entered into an agreement with the auction agent and the Fund or in a secondary market maintained by certain broker dealers.These broker-dealers are not required to maintain this market, and it may not provide you with liquidity. The AMPS market continues to remain illiquid as auctions for nearly all AMPS continue to fail. A failed auction is not a default, nor does it require the redemption of a fund’s auction-rate preferred shares. Provisions in the Fund’s offering documents provide a mechanism to set a maximum rate in the event of a failed auction, and, thus, investors will continue to be entitled to receive payment for holding these AMPS.
 
In addition to the risks described above, the Fund is also subject to: Management Risk, Market Disruption Risk, and Anti-Takeover Provisions. Please see www.guggenheimfunds.com/avk for a more detailed discussion about Fund risks and considerations.
 
 
8 l Semiannual Report l April 30, 2011
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund
 
 
Fund Summary l As of April 30, 2011 (unaudited)
 
     
Fund Statistics
   
Share Price 
 
$19.17 
Common Share Net Asset Value 
 
$20.73 
Premium/Discount to NAV 
 
-7.53% 
Net Assets Applicable to Common Shares ($000) 
 
$488,804 
     
Total Returns
   
(Inception 4/30/03)
Market
NAV
Six Month 
11.21% 
12.57% 
One Year 
18.55% 
16.33% 
Three Year - average annual 
2.73% 
2.67% 
Five Year - average annual 
4.42% 
3.75% 
Since Inception - average annual 
6.30% 
7.37% 
   
 
% of Long-Term
Top Ten Industries
 
Investments
Banks 
 
11.5% 
Insurance 
 
5.7% 
Real Estate Investment Trusts 
 
5.5% 
Telecommunications 
 
5.5% 
Health Care Services 
 
5.5% 
Oil & Gas 
 
5.3% 
Electric 
 
4.8% 
Diversified Financial Services 
 
4.8% 
Biotechnology 
 
4.4% 
Pharmaceuticals 
 
4.1% 
   
 
% of Long-Term
Top Ten Issuers
 
Investments
PPL Corp. 
 
2.8% 
Omnicare Capital Trust II 
 
2.1% 
Bank of America Corp. 
 
2.0% 
Apache Corp. 
 
1.9% 
New York Community Capital Trust V 
 
1.9% 
Gilead Sciences, Inc. 
 
1.8% 
Lucent Technologies Capital Trust I 
 
1.8% 
Wells Fargo & Co. 
 
1.8% 
Citigroup, Inc. 
 
1.7% 
Medtronic, Inc. 
 
1.7% 
 
Past performance does not guarantee future results. All portfolio data is subject to change daily. For more current information, please visit www.guggenheimfunds.com/avk. The above summaries are provided for informational purposes only and should not be viewed as recommendations.
 
 
 
Semiannual Report l April 30, 2011 l 9
 
 
 

 

             
AVK l Advent Claymore Convertible Securities and Income Fund
 
         
Portfolio of Investments l April 30, 2011 (unaudited)
         
 
Principal
   
Rating
   
Optional Call
 
Amount
 
Description
(S&P)*
Coupon
Maturity
Provisions**
Value
   
Long-Term Investments — 148.4%
         
   
Convertible Bonds — 53.7%
         
   
Aerospace & Defense — 0.4%
         
$ 2,000,000
 
AAR Corp.(a)
BB
1.63%
03/01/2014
N/A
$ 2,012,500
   
Airlines — 1.9%
         
9,281,000
 
United Continental Holdings, Inc.
CCC+
4.50%
06/30/2021
07/05/11 @ 100
9,350,608
   
Biotechnology — 6.0%
         
5,000,000
 
Amgen, Inc., Series B
A+
0.38%
02/01/2013
N/A
5,012,500
4,506,000
 
Amylin Pharmaceuticals, Inc.
NR
3.00%
06/15/2014
N/A
4,122,990
12,175,000
 
Gilead Sciences, Inc.(a)
A-
1.00%
05/01/2014
N/A
13,194,656
6,000,000
 
Life Technologies Corp.
BBB
1.50%
02/15/2024
02/15/12 @ 100
7,087,500
             
29,417,646
   
Building Materials — 1.5%
         
7,460,000
 
Cemex SAB de CV (Mexico)
NR
4.88%
03/15/2015
N/A
7,515,950
   
Coal — 2.7%
         
4,083,000
 
Massey Energy Co.
BB-
3.25%
08/01/2015
N/A
4,618,894
8,928,000
 
Patriot Coal Corp.
NR
3.25%
05/31/2013
N/A
8,749,440
             
13,368,334
   
Computers — 1.9%
         
136,000
 
EMC Corp., Series A
A-
1.75%
12/01/2011
N/A
240,550
500,000
 
EMC Corp., Series B
A-
1.75%
12/01/2013
N/A
903,750
3,000,000
 
RadiSys Corp.
NR
2.75%
02/15/2013
N/A
2,988,750
5,000,000
 
SanDisk Corp.
BB-
1.00%
05/15/2013
N/A
4,937,500
             
9,070,550
   
Diversified Financial Services — 2.1%
         
5,000,000
 
Affiliated Managers Group, Inc.
BBB-
3.95%
08/15/2038
08/15/13 @ 100
5,818,750
4,320,000
 
Jefferies Group, Inc.
BBB
3.88%
11/01/2029
11/01/17 @ 100
4,455,000
             
10,273,750
   
Electrical Components & Equipment — 1.0%
         
5,000,000
 
Suntech Power Holdings Co. Ltd. (Cayman Islands)
NR
3.00%
03/15/2013
N/A
4,687,500
   
Energy-Alternate Sources — 0.9%
         
3,500,000
 
Covanta Holding Corp.
B
3.25%
06/01/2014
N/A
4,125,625
   
Entertainment — 1.2%
         
5,000,000
 
International Game Technology
BBB
3.25%
05/01/2014
N/A
5,962,500
   
Health Care Products — 5.2%
         
3,948,000
 
Hologic, Inc., Series 2010(b)
BB+
2.00%
12/15/2037
12/15/16 @ 100
4,782,015
3,000,000
 
Integra LifeSciences Holdings Corp.(a)
NR
2.38%
06/01/2012
N/A
3,090,000
11,600,000
 
Medtronic, Inc., Series B
AA-
1.63%
04/15/2013
N/A
12,020,500
5,540,000
 
NuVasive, Inc.
NR
2.25%
03/15/2013
N/A
5,699,275
             
25,591,790
   
Health Care Services — 3.9%
         
4,000,000
 
AMERIGROUP Corp.
BB+
2.00%
05/15/2012
N/A
6,480,000
8,265,000
 
LifePoint Hospitals, Inc.
B
3.50%
05/15/2014
N/A
8,946,863
3,045,000
 
Lincare Holdings, Inc., Series A
NR
2.75%
11/01/2037
11/01/12 @ 100
3,615,937
             
19,042,800
   
Home Builders — 0.9%
         
4,000,000
 
Lennar Corp.(a)
B+
2.75%
12/15/2020
12/20/15 @ 100
4,440,000
 
See notes to financial statements.
 
         
10 l Semiannual Report l April 30, 2011
         
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments (unaudited) continued
 
               
Principal    
Rating
   
Optional Call
 
Amount  
Description
(S&P)*
Coupon
Maturity
Provisions**
Value
   
Insurance — 0.9%
         
$ 3,760,000
 
Old Republic International Corp.
BBB+
8.00%
05/15/2012
N/A
$ 4,450,900
   
Internet — 3.5%
         
5,600,000
 
Symantec Corp., Series B
BBB
1.00%
06/15/2013
N/A
6,937,000
3,250,000
 
WebMD Health Corp.(a)
NR
2.25%
03/31/2016
N/A
3,286,562
6,300,000
 
WebMD Health Corp.(a)
NR
2.50%
01/31/2018
N/A
6,725,250
             
16,948,812
   
Lodging — 2.3%
         
6,973,000
 
MGM Resorts International
CCC+
4.25%
04/15/2015
N/A
7,278,069
4,250,000
 
Morgans Hotel Group Co.
NR
2.38%
10/15/2014
N/A
3,787,812
             
11,065,881
   
Media — 0.8%
         
2,750,000
 
XM Satellite Radio, Inc.(a)
BB-
7.00%
12/01/2014
N/A
4,021,875
   
Miscellaneous Manufacturing — 1.5%
         
2,000,000
 
Eastman Kodak Co.
CC
7.00%
04/01/2017
10/01/16 @ 100
1,700,000
4,850,000
 
Trinity Industries, Inc.
BB-
3.88%
06/01/2036
06/01/18 @ 100
5,328,938
             
7,028,938
   
Oil & Gas — 0.9%
         
4,850,000
 
Chesapeake Energy Corp.
BB+
2.25%
12/15/2038
12/15/18 @ 100
4,559,000
   
Pharmaceuticals — 2.3%
         
1,500,000
 
Isis Pharmaceuticals, Inc.
NR
2.43%
02/15/2027
02/15/12 @ 101
1,466,250
4,000,000
 
Medicis Pharmaceutical Corp.
NR
2.50%
06/04/2032
05/24/11 @ 100
5,050,000
4,000,000
 
Shire PLC, Series SHP (Channel Islands)
NR
2.75%
05/09/2014
N/A
4,650,000
             
11,166,250
   
Real Estate — 1.2%
         
4,231,000
 
Forest City Enterprises, Inc.
NR
3.63%
10/15/2014
10/15/13 @ 100
5,955,133
   
Real Estate Investment Trusts — 4.9%
         
2,030,000
 
Annaly Capital Management, Inc.
NR
4.00%
02/15/2015
N/A
2,372,563
2,700,000
 
Home Properties, LP(a)
BBB
4.13%
11/01/2026
11/06/11 @ 100
2,764,125
7,005,000
 
Host Hotels & Resorts, LP(a)
BB+
2.63%
04/15/2027
04/20/12 @ 100
7,057,537
4,465,000
 
Macerich Co.(a)
NR
3.25%
03/15/2012
N/A
4,492,906
4,325,000
 
Northstar Realty Finance(a)
NR
7.50%
03/15/2031
03/15/16 @ 100
4,341,219
2,500,000
 
RAIT Financial Trust
NR
7.00%
04/01/2031
04/05/16 @ 100
2,762,500
             
23,790,850
   
Semiconductors — 3.1%
         
9,000,000
 
Intel Corp.(c)
A-
2.95%
12/15/2035
N/A
9,641,250
5,209,000
 
Micron Technology, Inc.
B+
1.88%
06/01/2014
N/A
5,638,742
             
15,279,992
   
Telecommunications — 2.7%
         
6,200,000
 
Anixter International, Inc.
B+
1.00%
02/15/2013
N/A
8,215,000
5,100,000
 
NII Holdings, Inc.
B-
3.13%
06/15/2012
N/A
5,125,500
             
13,340,500
   
Total Convertible Bonds — 53.7%
         
   
(Cost $225,211,611)
       
262,467,684
 
 
See notes to financial statements.
 
Semiannual Report l April 30, 2011 l 11
 
 
 

 

 
               
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments (unaudited) continued
         
 
 
Principal
     
Rating
   
Optional Call
 
Amount
   
Description
(S&P)*
Coupon
Maturity
Provisions**
Value
     
Corporate Bonds — 32.5%
         
     
Advertising — 0.2%
         
$ 1,000,000
 
Lamar Media Corp.
B+
7.88%
04/15/2018
04/15/14 @ 104
$ 1,080,000
     
Aerospace & Defense — 0.3%
         
 
1,500,000
 
TransDigm, Inc.(a)
B-
7.75%
12/15/2018
12/15/14 @ 104
1,623,750
     
Auto Parts & Equipment — 0.5%
         
 
500,000
 
Cooper Tire & Rubber Co.
BB-
8.00%
12/15/2019
N/A
536,875
 
750,000
 
Lear Corp.
BB+
7.88%
03/15/2018
03/15/14 @ 104
826,875
 
1,060,000
 
Pittsburgh Glass Works, LLC(a)
B+
8.50%
04/15/2016
04/15/13 @ 104
1,113,000
               
2,476,750
     
Banks — 1.4%
         
 
1,750,000
 
Ally Financial, Inc.
B
8.30%
02/12/2015
N/A
1,973,125
 
2,000,000
 
CIT Group, Inc.
B+
7.00%
05/01/2016
01/01/12 @ 100
2,020,000
GBP
1,400,000
 
Commerzbank Capital Funding Trust II, Series GBP
C
5.91%
03/29/2049
04/12/18 @ 100
2,031,564
$ 1,000,000
 
Synovus Financial Corp.
B+
5.13%
06/15/2017
N/A
940,098
               
6,964,787
     
Beverages — 0.5%
         
 
750,000
 
CEDC Finance Corp. International, Inc.(a)
B
9.13%
12/01/2016
12/01/13 @ 105
729,375
 
1,750,000
 
Constellation Brands, Inc.
BB
7.25%
09/01/2016
N/A
1,916,250
               
2,645,625
     
Biotechnology — 0.6%
         
 
1,000,000
 
STHI Holding Corp.(a)
B
8.00%
03/15/2018
03/15/14 @ 106
1,032,500
 
1,500,000
 
Talecris Biotherapeutics Holdings Corp.
BB
7.75%
11/15/2016
11/15/12 @ 104
1,657,500
               
2,690,000
     
Building Materials — 0.2%
         
 
250,000
 
Cemex Finance, LLC(a)
B
9.50%
12/14/2016
12/14/13 @ 105
267,500
 
250,000
 
Euramax International, Inc.(a)
B-
9.50%
04/01/2016
04/01/13 @ 107
261,250
 
250,000
 
Nortek, Inc.(a)
B
8.50%
04/15/2021
04/15/16 @ 104
250,625
 
375,000
 
Ply Gem Industries, Inc.(a)
B-
8.25%
02/15/2018
02/15/14 @ 106
387,188
               
1,166,563
     
Chemicals — 1.6%
         
 
2,000,000
 
Hexion US Finance Corp.(a)
CCC+
9.00%
11/15/2020
11/15/15 @ 105
2,165,000
 
1,625,000
 
Ineos Finance PLC (United Kingdom)(a)
B
9.00%
05/15/2015
05/15/13 @ 105
1,787,500
 
3,607,000
 
Lyondell Chemical Co.
BB-
11.00%
05/01/2018
05/01/13 @ 100
4,093,945
               
8,046,445
     
Commercial Services — 0.2%
         
 
1,000,000
 
Avis Budget Car Rental, LLC
B
8.25%
01/15/2019
10/15/14 @ 104
1,067,500
 
125,000
 
Stewart Enterprises, Inc.(a)
BB-
6.50%
04/15/2019
04/15/14 @ 105
126,563
               
1,194,063
     
Diversified Financial Services — 2.5%
         
 
5,400,000
 
Capital One Capital V
BB
10.25%
08/15/2039
N/A
5,865,750
 
1,500,000
 
Ford Motor Credit Co., LLC
BB-
12.00%
05/15/2015
N/A
1,915,869
 
5,000,000
 
Textron Financial Corp.(a) (d)
B
6.00%
02/15/2067
02/15/17 @ 100
4,375,000
               
12,156,619
     
Electric — 0.2%
         
 
750,000
 
Texas Competitive Electric Holdings Co., LLC(a)
CCC
11.50%
10/01/2020
04/01/16 @ 106
774,375
 
See notes to financial statements.
 
         
12 l Semiannual Report l April 30, 2011
         
 
 
 
 

 
 
               
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments (unaudited) continued
         
 
 
Principal
     
Rating
   
Optional Call
 
Amount
   
Description
(S&P)*
Coupon
Maturity
Provisions**
Value
     
Electronics — 0.2%
         
$ 750,000
 
Sanmina-SCI Corp.
B-
8.13%
03/01/2016
03/01/12 @ 103
$ 785,625
     
Entertainment — 0.5%
         
 
1,942,000
 
MU Finance PLC (United Kingdom)(a)
NR
8.38%
02/01/2017
02/01/13 @ 108
2,116,780
 
200,000
 
Production Resource Group, Inc.(a)
B-
8.88%
05/01/2019
05/01/14 @ 107
207,000
               
2,323,780
     
Food — 1.4%
         
 
2,000,000
 
Bumble Bee Acquisition Corp.(a)
B
9.00%
12/15/2017
12/15/14 @ 105
2,105,000
 
200,000
 
Dole Food Co., Inc.
B+
13.88%
03/15/2014
03/15/12 @ 114
244,500
 
668,000
 
Smithfield Foods, Inc.
BB
10.00%
07/15/2014
N/A
794,920
 
2,800,000
 
Smithfield Foods, Inc.
B+
7.75%
07/01/2017
N/A
3,031,000
 
500,000
 
Tyson Foods, Inc.
BBB-
10.50%
03/01/2014
N/A
606,250
               
6,781,670
     
Forest Products & Paper — 0.8%
         
 
1,500,000
 
AbitibiBowater, Inc.(a)
B+
10.25%
10/15/2018
10/15/14 @ 105
1,665,000
EUR
1,500,000
 
M-real OYJ (Finland)(e)
B-
8.75%
04/01/2013
N/A
2,392,305
               
4,057,305
     
Health Care Services — 1.8%
         
$ 2,500,000
 
Apria Healthcare Group, Inc.
BB+
11.25%
11/01/2014
11/01/11 @ 106
2,706,250
 
1,750,000
 
Capella Healthcare, Inc.(a)
B
9.25%
07/01/2017
07/01/13 @ 107
1,894,375
 
1,500,000
 
Commmunity Health Systems, Inc.
B
8.88%
07/15/2015
07/15/12 @ 102
1,537,500
 
500,000
 
Health NET, Inc.
BB
6.38%
06/01/2017
N/A
520,000
 
1,000,000
 
IASIS Healthcare, LLC(a)
CCC+
8.38%
05/15/2019
05/15/14 @ 106
1,017,500
 
1,000,000
 
Radiation Therapy Services, Inc.
CCC+
9.88%
04/15/2017
04/15/14 @ 105
1,025,000
               
8,700,625
     
Household Products & Housewares — 0.2%
         
 
1,000,000
 
Yankee Candle Co., Inc., Series B
CCC+
9.75%
02/15/2017
02/15/12 @ 105
1,072,500
     
Insurance — 3.2%
         
 
5,700,000
 
Liberty Mutual Group, Inc.(a) (d)
BB
10.75%
06/15/2058
06/15/38 @ 100
7,809,000
 
5,500,000
 
MetLife, Inc.
BBB
10.75%
08/01/2039
08/01/34 @ 100
7,775,388
               
15,584,388
     
Iron & Steel — 0.1%
         
 
75,000
 
Algoma Acquisition Corp. (Canada)(a)
CCC+
9.88%
06/15/2015
06/15/12 @ 102
70,219
 
1,000,000
 
Ryerson Holding Corp.(f)
CCC
0.00%
02/01/2015
08/01/11 @ 59
550,000
               
620,219
     
Lodging — 1.4%
         
 
575,000
 
Caesars Entertainment Operating Co., Inc.
CCC
10.00%
12/15/2018
12/15/13 @ 105
542,656
 
1,000,000
 
Marina District Finance Co., Inc.(a)
BB
9.50%
10/15/2015
10/15/13 @ 105
1,077,500
 
500,000
 
MGM Resorts International
CCC+
5.88%
02/27/2014
N/A
491,250
 
1,500,000
 
Starwood Hotels & Resorts Worldwide, Inc.
BB+
6.75%
05/15/2018
N/A
1,646,250
 
500,000
 
Wyndham Worldwide Corp.
BBB-
6.00%
12/01/2016
N/A
535,821
 
2,501,000
 
Wynn Las Vegas, LLC
BB+
7.75%
08/15/2020
08/15/15 @ 104
2,744,848
               
7,038,325
     
Machinery-Construction & Mining — 0.1%
         
 
250,000
 
Terex Corp.
BB-
10.88%
06/01/2016
06/01/13 @ 105
293,750
 
See notes to financial statements.
 
         
           
Semiannual Report l April 30, 2011 l 13
 
 
 

 
 
               
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments (unaudited) continued
         
 
Principal
     
Rating
   
Optional Call
 
Amount
   
Description
(S&P)*
Coupon
Maturity
Provisions**
Value
     
Machinery-Diversified — 0.8%
         
$ 1,500,000
 
Case New Holland, Inc.(a)
BB+
7.88%
12/01/2017
N/A
$ 1,683,750
EUR
1,350,000
 
Heidelberger Druckmaschinen AG (Germany)(a)
B-
9.25%
04/15/2018
04/15/14 @ 107
2,045,421
               
3,729,171
     
Media — 1.7%
         
$ 500,000
 
Charter Communications Operating, LLC(a)
BB+
10.88%
09/15/2014
03/15/12 @ 105
561,250
 
2,344,000
 
Clear Channel Worldwide Holdings, Inc., Series B
B
9.25%
12/15/2017
12/15/12 @ 107
2,619,420
 
250,000
 
CSC Holdings, LLC
BB
8.50%
06/15/2015
06/15/12 @ 104
274,062
 
1,750,000
 
DISH DBS Corp.
BB-
7.13%
02/01/2016
N/A
1,872,500
 
1,000,000
 
Gannett Co., Inc.
Baa3
10.00%
04/01/2016
N/A
1,165,000
 
750,000
 
Gray Television, Inc.
CCC
10.50%
06/29/2015
11/01/12 @ 108
811,875
 
1,000,000
 
Univision Communications, Inc.(a)
B+
7.88%
11/01/2020
11/01/15 @ 104
1,070,000
               
8,374,107
     
Mining — 0.5%
         
 
2,125,000
 
FMG Resources August 2006 Pty Ltd. (Australia)(a)
B
6.88%
02/01/2018
02/01/14 @ 105
2,252,500
     
Miscellaneous Manufacturing — 0.7%
         
 
2,000,000
 
Polypore International, Inc.(a)
B-
7.50%
11/15/2017
11/15/13 @ 106
2,128,750
 
1,000,000
 
Reddy ICE Corp.
B-
11.25%
03/15/2015
03/15/13 @ 106
1,042,500
               
3,171,250
     
Office & Business Equipment — 0.9%
         
 
1,000,000
 
CDW, LLC(a)
CCC+
8.50%
04/01/2019
04/01/15 @ 104
1,013,750
 
3,500,000
 
Xerox Capital Trust I
BB
8.00%
02/01/2027
02/01/12 @ 101
3,559,388
               
4,573,138
     
Oil & Gas — 2.5%
         
 
2,500,000
 
Alta Mesa Holdings/Alta Mesa Finance Service Corp.(a)
B
9.63%
10/15/2018
10/15/14 @ 105
2,575,000
 
1,000,000
 
Carrizo Oil & Gas, Inc.(a)
B-
8.63%
10/15/2018
10/15/14 @ 104
1,072,500
 
500,000
 
Chesapeake Energy Corp.
BB+
9.50%
02/15/2015
N/A
604,375
 
1,000,000
 
Clayton Williams Energy, Inc.(a)
B
7.75%
04/01/2019
04/01/15 @ 104
1,005,000
 
2,000,000
 
Energy XXI Gulf Coast, Inc.(a)
B
9.25%
12/15/2017
12/15/14 @ 105
2,185,000
 
1,500,000
 
Goodrich Petroleum Corp.(a)
CCC+
8.88%
03/15/2019
03/15/15 @ 104
1,522,500
 
1,000,000
 
Hercules Offshore, Inc.(a)
B-
10.50%
10/15/2017
10/15/13 @ 105
1,055,000
 
250,000
 
Laredo Petroleum, Inc.(a)
CCC
9.50%
02/15/2019
02/15/15 @ 105
266,250
 
1,000,000
 
Pioneer Natural Resources Co.
BB+
6.65%
03/15/2017
N/A
1,101,982
 
500,000
 
Range Resources Corp.
BB
8.00%
05/15/2019
05/15/14 @ 104
553,750
 
300,000
 
Western Refining, Inc.(a)
B
11.25%
06/15/2017
06/15/13 @ 106
342,750
               
12,284,107
     
Oil & Gas Services — 0.6%
         
 
1,500,000
 
SESI, LLC(a)
BB+
6.38%
05/01/2019
05/01/15 @ 103
1,518,750
 
1,160,000
 
Stallion Oilfield Holdings Ltd.
B-
10.50%
02/15/2015
02/15/13 @ 105
1,255,700
               
2,774,450
     
Packaging & Containers — 0.2%
         
 
1,000,000
 
Ball Corp.
BB+
7.13%
09/01/2016
09/01/13 @ 104
1,095,000
     
Pharmaceuticals — 0.6%
         
 
2,760,000
 
Axcan Intermediate Holdings, Inc.
B
12.75%
03/01/2016
03/01/12 @ 106
3,070,500
     
Pipelines — 0.2%
         
 
750,000
 
Crosstex Energy, LP
B+
8.88%
02/15/2018
02/15/14 @ 104
823,125
 
See notes to financial statements.
 
         
14 l Semiannual Report l April 30, 2011
         
 
 
 

 
 
               
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments (unaudited) continued
         
 
Principal
     
Rating
   
Optional Call
 
Amount
   
Description
(S&P)*
Coupon
Maturity
Provisions**
Value
     
Real Estate — 0.3%
         
$ 1,400,000
 
Realogy Corp.(a)
CC
11.50%
04/15/2017
04/15/13 @ 106
$ 1,466,500
     
Real Estate Investment Trusts — 0.3%
         
 
500,000
 
FelCor Escrow Holdings, LLC(a)
B-
6.75%
06/01/2019
06/01/15 @ 103
499,675
 
750,000
 
Rouse Co., LP
BB+
6.75%
11/09/2015
05/09/13 @ 103
781,875
               
1,281,550
     
Retail — 2.0%
         
 
1,000,000
 
Burger King Capital Holdings, LLC(a) (e)
CCC+
0.00%
04/15/2019
04/15/15 @ 95
595,000
 
750,000
 
Burlington Coat Factory Warehouse Corp.(a)
CCC
10.00%
02/15/2019
02/15/15 @ 105
770,625
 
1,000,000
 
Dave & Buster’s, Inc.
CCC+
11.00%
06/01/2018
06/01/14 @ 106
1,097,500
 
1,500,000
 
HOA Restaurant Group, LLC(a)
B
11.25%
04/01/2017
04/01/14 @ 106
1,556,250
 
1,000,000
 
Landry’s Restaurants, Inc.
B
11.63%
12/01/2015
12/01/12 @ 106
1,087,500
 
750,000
 
Needle Merger Sub Corp.(a)
CCC+
8.13%
03/15/2019
03/15/14 @ 104
772,500
 
1,250,000
 
Rite AID Corp.
CCC
9.38%
12/15/2015
06/15/12 @ 102
1,171,875
 
500,000
 
Rite AID Corp.
B+
9.75%
06/12/2016
06/12/13 @ 105
565,625
 
2,050,000
 
Toys“R”US Property Co. II, LLC
B+
8.50%
12/01/2017
12/01/13 @ 104
2,214,000
               
9,830,875
     
Software — 0.1%
         
 
500,000
 
First Data Corp.
CCC+
11.25%
03/31/2016
09/30/11 @ 106
507,500
     
Storage & Warehousing — 0.3%
         
 
1,500,000
 
Niska Gas Storage US, LLC
BB-
8.88%
03/15/2018
03/15/14 @ 104
1,633,125
     
Telecommunications — 2.7%
         
 
750,000
 
Clearwire Communications, LLC(a)
CCC+
12.00%
12/01/2015
12/01/12 @ 106
819,375
 
500,000
 
CommScope, Inc.(a)
B
8.25%
01/15/2019
01/15/15 @ 104
528,750
 
1,500,000
 
Crown Castle International Corp.
B-
9.00%
01/15/2015
01/15/13 @ 106
1,672,500
 
2,500,000
 
Intelsat Luxembourg SA (Luxembourg)
CCC+
11.25%
02/04/2017
02/15/13 @ 106
2,740,625
 
1,324,000
 
iPCS, Inc.(d)
BB-
2.43%
05/01/2013
06/03/11 @ 100
1,287,590
 
1,500,000
 
NII Capital Corp.
B+
7.63%
04/01/2021
04/01/16 @ 104
1,593,750
 
750,000
 
Virgin Media Finance PLC, Series 1 (United Kingdom)
BB-
9.50%
08/15/2016
08/15/13 @ 105
863,438
 
1,500,000
 
Virgin Media Finance PLC (United Kingdom)
BB-
8.38%
10/15/2019
10/15/14 @ 104
1,702,500
EUR
500,000
 
Wind Acquisition Finance SA (Luxembourg)(a)
BB-
11.75%
07/15/2017
07/15/13 @ 106
867,906
$ 500,000
 
Wind Acquisition Finance SA (Luxembourg)(a)
BB
7.25%
02/15/2018
11/15/13 @ 105
530,000
 
500,000
 
Windstream Corp.(a)
B+
7.75%
10/01/2021
10/01/16 @ 104
531,250
               
13,137,684
     
Transportation — 0.2%
         
 
500,000
 
ACL I Corp.(a)
CCC+
10.63%
02/15/2016
02/15/13 @ 105
511,250
 
400,000
 
Swift Services Holdings, Inc.(a)
B-
10.00%
11/15/2018
11/15/14 @ 105
441,000
               
952,250
     
Total Corporate Bonds — 32.5%
         
     
(Cost $148,990,097)
       
159,033,996
 
Number
   
Rating
       
 
of Shares
 
Description
(S&P)*
Coupon
Maturity
 
Value
     
Convertible Preferred Stocks — 57.5%
         
     
Advertising — 0.9%
         
 
4,200
 
Interpublic Group of Cos., Inc., Series B(g)
B
5.25%
   
4,515,000
     
Agriculture — 1.0%
         
 
109,100
 
Archer-Daniels-Midland Co.
A
6.25%
06/01/2011
 
5,108,062
 
See notes to financial statements.
 
         
           
Semiannual Report l April 30, 2011 l 15
 
 
 

 
 
           
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments (unaudited) continued
       
 
Number
   
Rating
     
of Shares
 
Description
(S&P)*
Coupon
Maturity
Value
   
Airlines — 1.7%
       
235,000
 
Continental Airlines Finance Trust II
Caa1
6.00%
11/15/2030
$ 8,430,625
   
Auto Manufacturers — 2.1%
       
210,047
 
General Motors Co., Series B
B-
4.75%
12/01/2013
10,462,441
   
Auto Parts & Equipment — 1.1%
       
86,000
 
Goodyear Tire & Rubber
NR
5.88%
04/01/2014
5,141,080
   
Banks — 13.0%
       
10,650
 
Bank of America Corp., Series L(g)
BB+
7.25%
 
11,118,600
85,479
 
Citigroup, Inc.
NR
7.50%
12/15/2012
11,115,689
72,176
 
KeyCorp, Series A(g)
BB
7.75%
 
8,169,602
349,388
 
Synovus Financial Corp., Series tMED
NR
8.25%
05/15/2013
8,277,002
205,001
 
UBS AG (Stillwater Mining Co.) (Switzerland)(h)
NR
9.38%
06/15/2012
5,822,028
6,000
 
Webster Financial Corp., Series A(g)
B+
8.50%
 
6,435,000
11,852
 
Wells Fargo & Co., Series L(g)
A-
7.50%
 
12,793,997
           
63,731,918
   
Computers — 0.9%
       
50,000
 
Unisys Corp., Series A
NR
6.25%
03/01/2014
4,384,500
   
Diversified Financial Services — 2.5%
       
268,711
 
Citigroup Capital XIII(d)
BB+
7.88%
10/30/2040
7,459,417
361,200
 
Swift 2010 Mandatory Common Exchange Security Trust(a)
NR
6.00%
12/31/2013
4,967,403
           
12,426,820
   
Electric — 7.0%
       
123,400
 
Great Plains Energy, Inc.
NR
12.00%
06/15/2012
8,138,230
117,062
 
NextEra Energy, Inc.
A-
8.38%
06/01/2012
6,045,082
227,099
 
PPL Corp.
NR
9.50%
07/01/2013
12,871,971
136,000
 
PPL Corp.
NR
8.75%
05/01/2014
7,303,200
           
34,358,483
   
Hand & Machine Tools — 1.6%
       
64,510
 
Stanley Black & Decker, Inc.
BBB+
4.75%
11/17/2015
7,608,955
   
Health Care Services — 1.7%
       
7,500
 
Healthsouth Corp., Series A(g)
CCC+
6.50%
 
8,233,125
   
Home Builders — 0.3%
       
83,100
 
Hovnanian Enterprises
NR
7.25%
02/15/2014
1,640,394
   
Housewares — 0.9%
       
95,290
 
Newell Financial Trust I
BB
5.25%
12/01/2027
4,407,162
   
Insurance — 4.3%
       
280,000
 
Hartford Financial Services Group, Inc., Series F
BB+
7.25%
04/01/2013
7,532,000
83,475
 
MetLife, Inc.
BBB-
5.00%
09/11/2013
7,307,401
190,667
 
XL Group PLC (Ireland)
BBB-
10.75%
08/15/2011
6,271,038
           
21,110,439
   
Media — 0.6%
       
45,000
 
Nielsen Holdings NV (Netherlands)
B
6.25%
02/01/2013
2,719,687
   
Mining — 0.8%
       
70,002
 
AngloGold Ashanti Holdings Finance PLC (South Africa)
NR
6.00%
09/15/2013
3,948,113
   
Oil & Gas — 4.5%
       
197,924
 
Apache Corp., Series D
BBB+
6.00%
08/01/2013
13,929,891
30,000
 
Chesapeake Energy Corp.(g)
B+
5.00%
 
3,105,000
99,750
 
Goodrich Petroleum Corp., Series B(g)
NR
5.38%
 
4,763,063
           
21,797,954
 
See notes to financial statements.
       
 
16 l Semiannual Report l April 30, 2011
 
 
 

 
           
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments (unaudited) continued
       
 
Number
   
Rating
     
of Shares
 
Description
(S&P)*
Coupon
Maturity
Value
   
Pharmaceuticals — 3.2%
       
321,000
 
Omnicare Capital Trust II, Series B
B
4.00%
06/15/2033
$ 15,472,200
   
Real Estate — 0.8%
       
65,000
 
Forest City Enterprises, Inc., Series A(g)
CCC+
7.00%
 
3,900,000
   
Real Estate Investment Trusts — 3.1%
       
428,307
 
Alexandria Real Estate Equities, Inc., Series D(g)
NR
7.00%
 
11,414,382
65,000
 
Health Care REIT, Inc., Series I(g)
BB
6.50%
 
3,487,900
           
14,902,282
   
Savings & Loans — 2.8%
       
272,788
 
New York Community Capital Trust V
BB-
6.00%
11/01/2051
13,503,006
   
Telecommunications — 2.7%
       
13,155
 
Lucent Technologies Capital Trust I (France)
CCC
7.75%
03/15/2017
13,023,450
   
Total Convertible Preferred Stocks — 57.5%
       
   
(Cost $239,062,492)
     
280,825,696
   
Common Stocks — 0.9%
       
   
Banks — 0.2%
       
25,000
 
JPMorgan Chase & Co.
     
1,140,750
   
Health Care Services — 0.7%
       
500,000
 
Tenet Healthcare Corp.(i)
     
3,465,000
   
Total Common Stocks — 0.9%
       
   
(Cost $4,438,592)
     
4,605,750
   
Preferred Stock — 1.4%
       
   
Lodging — 1.4%
       
61,200
 
Las Vegas Sands Corp., Series A
NR
10.00%
 
6,850,575
   
(Cost $6,772,800)
       
   
Warrants — 2.4%
       
   
Banks — 2.4%
       
1,493,661
 
Bank of America Corp.(i)
   
10/28/2018
3,256,181
1,250,000
 
Citigroup, Inc.(i)
   
01/04/2019
1,062,500
446,542
 
JPMorgan Chase & Co.(i)
   
10/28/2018
7,412,597
   
(Cost $10,568,236)
     
11,731,278
   
Total Long-Term Investments — 148.4%
       
   
(Cost $635,043,828)
     
725,514,979
   
Short-Term Investments — 2.7%
       
   
Money Markets — 2.7%
       
10,000,000
 
Dreyfus Treasury & Agency Cash Management — Investor Shares(c)
     
10,000,000
3,006,841
 
Goldman Sachs Financial Prime Obligations(c)
     
3,006,841
   
(Cost $13,006,841)
     
13,006,841
   
Total Investments — 151.1%
       
   
(Cost $648,050,669)
     
738,521,820
   
Other Assets in excess of Liabilities — 2.5%
     
12,281,910
   
Preferred Shares, at redemption value — (-53.6% of Net Assets Applicable to
       
   
Common Shareholders or -35.5% of Total Investments)
     
(262,000,000)
   
Net Assets Applicable to Common Shareholders — 100.0%
     
$ 488,803,730
 
See notes to financial statements.
 
Semiannual Report l April 30, 2011 l 17
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments (unaudited) continued
 
 
 
 
 
AG – Stock Corporation
LLC – Limited Liability Company
LP – Limited Partnership
N/A – Not Available
NV – Publicly Traded Company
OYJ – Public Traded Company
PLC – Public Limited Company
SA – Corporation
SAB de CV – Publicly Traded Company
*
Ratings shown are per Standard & Poor’s, Moody’s or Fitch. Securities classified as NR are not rated. (For securities not rated by Standard & Poor’s Rating Group, the rating by Moody’s Investor Services, Inc. is provided. Likewise, for secu- rities not rated by Standard & Poor’s Rating Group and Moody’s Investor Services, Inc., the rating by Fitch Ratings is provided.) All ratings are unaudited. The ratings apply to the credit worthiness of the issuers of the underlying securities and not to the Fund or its shares.
**
Date and price of the earliest optional call or put provision. There may be other call provisions at varying prices at later dates.
 
All percentages shown in the Portfolio of Investments are based on Net Assets Applicable to Common Shareholders, unless otherwise noted.
(a)
Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2011, these securities amounted to $125,438,285, which represents 25.7% of net assets applicable to common shares.
(b)
Security becomes an accreting bond after December 15, 2016 with a 2.0% principal accretion rate.
(c)
All or a portion of these securities have been physically segregated in connection with futures contracts. As of April 30, 2011, the total amount segregated was $16,220,591.
(d)
Floating or variable rate coupon. The rate shown is as of April 30, 2011.
(e)
Security is a“step coupon”bond where the coupon increases or decreases at a predetermined date. The rate shown reflects the rate in effect at the end of the reporting period.
(f)
Zero coupon bond.
(g)
Perpetual maturity.
(h)
Security is exchangeable into security of another entity that is different than the issuer. The entity is listed in a parenthetical.
(i)
Non-income producing security.
 
See notes to financial statements.
 
18 l Semiannual Report l April 30, 2011
 
 
 

 
 
 
AVK l Advent Claymore Convertible Securities and Income Fund
 
 
Statement of Assets and Liabilities l April 30, 2011 (unaudited)
 
Assets
   
Investments in securities, at value (cost $648,050,669) 
$ 738,521,820  
Cash 
  1,561,144  
Foreign currency, at value (cost $38,414) 
  39,397  
Receivable for securities sold 
  20,706,823  
Interest receivable 
  5,265,073  
Dividends receivable 
  1,103,037  
Other assets 
  79,385  
      Total assets 
  767,276,679  
Liabilities
     
Payable for securities purchased 
  15,685,141  
Advisory fee payable 
  324,237  
Servicing fee payable 
  122,354  
Dividends payable - preferred shares 
  91,588  
Administration fee payable 
  12,323  
Variation margin on futures 
  11,719  
Accrued expenses and other liabilities 
  225,587  
      Total liabilities 
  16,472,949  
Preferred Stock, at redemption value
     
Auction Market Preferred Shares 
     
$0.001 par value per share; 11,000 authorized, and 10,480 issued and outstanding at $25,000 per share liquidation preference 
  262,000,000  
Net Assets Applicable to Common Shareholders
$ 488,803,730  
Composition of Net Assets Applicable to Common Shareholders
     
Common Stock, $0.001 par value per share; unlimited number of shares authorized, 23,580,877 shares issued and outstanding 
$ 23,581  
Additional paid-in capital 
  557,792,246  
Net unrealized appreciation on investments, futures and currency translation 
  90,405,968  
Accumulated net realized gain (loss) on investments, swaps, options, futures and foreign currency transactions 
  (155,436,868
Distributions in excess of net investment income 
  (3,981,197
Net Assets Applicable to Common Shareholders
$ 488,803,730  
Net Asset Value Applicable to Common Shareholders
     
(based on 23,580,877 common shares outstanding) 
$ 20.73  
 
See notes to financial statements.
 
Semiannual Report l April 30, 2011 l 19
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund
 
 
Statement of Operations l For the six months ended April 30, 2011 (unaudited)
 
Investment Income
         
Interest 
$ 11,163,688        
Dividends 
  8,254,911        
   Total income 
        $ 19,418,599  
Expenses
             
Advisory fee 
  1,961,469          
Servicing agent fee 
  762,794          
Preferred share maintenance 
  251,567          
Professional fees 
  109,205          
Administration fee 
  74,321          
Trustees’fees and expenses 
  74,128          
Fund accounting 
  70,919          
Printing 
  50,429          
Custodian 
  47,873          
Insurance 
  45,266          
Rating agency fee 
  11,765          
NYSE listing fee 
  10,582          
Transfer agent 
  10,202          
ICI dues 
  8,800          
Miscellaneous 
  13,180          
   Total expenses 
          3,502,500  
Advisory and Servicing agent fees waived 
          (72,647
   Net expenses 
          3,429,853  
Net investment income
          15,988,746  
Realized and Unrealized Gain (Loss) on Investments,
             
Swaps and Foreign Currency Transactions:
             
Net realized gain (loss) on: 
             
   Investments 
          22,742,570  
   Swaps 
          (86,624
   Options 
          4,142  
   Foreign currency transactions 
          (4,977
Net change in unrealized appreciation (depreciation) on: 
             
   Investments 
          18,840,328  
   Swaps 
          67,670  
   Futures 
          (67,733
   Foreign currency translation 
          234,544  
Net realized and unrealized gain (loss) on investments, swaps, options, futures and
             
   foreign currency transactions
          41,729,920  
Distributions to Preferred Shareholders from net investment income
          (1,973,886
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations
        $ 55,744,780  
 
See notes to financial statements.
 
20 l Semiannual Report l April 30, 2011
 
 
 

 
 
 
AVK l Advent Claymore Convertible Securities and Income Fund
 
Statement of Changes in Net Assets Applicable to Common Shareholdersl
 
 
For the
       
 
Six Months Ended
   
For the
 
 
April 30, 2011
   
Year Ended
 
 
(unaudited)
   
October 31, 2010
 
Change in Net Assets Applicable to Common Shareholders Resulting from Operations:
         
Net investment income 
$ 15,988,746     $ 30,499,886  
Net realized gain (loss) on investments, swaps, options and foreign currency transactions 
  22,655,111       56,105,306  
Net change in unrealized appreciation on investments, 
             
   swaps futures and foreign currency translation 
  19,074,809       17,105,140  
Distributions to Preferred Shareholders:
             
From net investment income 
  (1,973,886     (4,013,853
Net increase in net assets applicable to Common Shareholders resulting from operations 
  55,744,780       99,696,479  
Distributions to Common Shareholders:
             
From and in excess of net investment income 
  (23,991,184     (26,570,932
   Total increase in net assets 
  31,753,596       73,125,547  
Net Assets Applicable to Common Shareholders
             
Beginning of period 
  457,050,134       383,924,587  
End of period (including distributions in excess of net investment income of $3,981,197 and undistributed 
             
   net investment income of $5,995,127, respectively) 
$ 488,803,730     $ 457,050,134  
 
 
See notes to financial statements.
 
Semiannual Report l April 30, 2011 l 21
 
 
 

 
 
             
AVK l Advent Claymore Convertible Securities and Income Fund
 
           
Financial Highlightsl
           
 
                                   
 
For the
                               
Per share operating performance
Six Months Ended
   
For the
   
For the
   
For the
   
For the
   
For the
 
for a share of common stock
April 30, 2011
   
Year Ended
   
Year Ended
  &