gug52983-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: November 1, 2010 - October 31, 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 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 Annual Report l October 31, 2011
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund (unaudited)
 
 
Tracy V. Maitland
President and Chief Executive Officer
 
 
Dear Shareholder |
 
 
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 fiscal year ended October 31, 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 September 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. In October 2011, the Fund’s Trustees approved a change to one of the Fund’s non-fundamental investment policies; the Fund will no longer be limited to only investing up to 25% of the Fund’s managed assets in securities of foreign issuers. It is anticipated that this change will go into effect on or about February 28, 2012.
 
All Fund returns cited—whether based on net asset value (“NAV”) or market price—assume the reinvestment of all distributions. For the 12-month period ended October 31, 2011, the Fund generated a total return based on market price of -4.82% and a return of -1.91% based on NAV.As of October 31, 2011, the Fund’s market price of $15.87 represented a discount of 9.42% to NAV of $17.52.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 October 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 7.10% based upon the last closing market price of $15.87 as of October 31, 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 40 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
 
 
Annual Report l October 31, 2011 l 3
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Dear Shareholder (unaudited) continued
 
 
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 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
November 30, 2011
 
 
4 l Annual Report l October 31, 2011
 
 
 

 
 
 
AVK l Advent Claymore Convertible Securities and Income Fund l (unaudited)
 
 
Questions & Answers |
 
 
Advent Claymore Convertible Securities and Income Fund (the “Fund”) is managed by a team of seasoned professionals at Advent Capital Management, LLC, (“Advent” or 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 12-month period ended October 31, 2011.
 
 

Please describe 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.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 in non-investment-grade securities, including non-investment-grade convertible securities. From time to time, it is possible that all of the Fund’s assets may be invested in non-investment-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.
 
In October 2011, the Fund’s Trustees approved a change to eliminate a previous guideline that the Fund may invest up to 25% of its Managed Assets in securities of foreign issuers.As a result, the Fund may but is not required to invest above 25% of its Managed Assets in foreign securities. It is anticipated that these changes will take effect on or about February 28, 2012.
 
 

Please tell us about the economic and market environment over the last year.
 
Most U.S. market indices, both equity and fixed-income, posted positive returns for the 12-month period ended October 31, 2011. However, more than 100% of this return came in the first half of the period, as returns for most indices were negative for the six-month period ended October 2011. International markets were generally weaker than the U.S. market, as there was considerable turmoil caused by concerns about sovereign debt in several European nations, which European authorities are attempting to address.
 
In the U.S., the fundamentals are generally healthier than recent trends in the equity market suggest. In late October, the Department of Commerce reported real growth in gross domestic product (GDP) at an annual rate of 2.5% for the third quarter of 2011, up from 1.3% in the second quarter of the year.The index of leading economic indicators published by the Conference Board suggests continued moderate expansion in economic activity in the months ahead, and that is consistent with the forecasts of most economists. Furthermore, a renewed recession seems unlikely because the excesses and imbalances that typically lead to recession – too much capital equipment, durable goods, labor, housing, inventories – are not present. Stocks of household durable goods and business equipment are low, suggesting that there may be pent-up demand.Although the real estate market remains weak, there has been progress in repairing some of the excesses of the boom.
 
For the 12-month period ended October 31, 2011, the S&P 500 Index, which is generally regarded as a good indicator of the return from large-capitalization U.S. stocks, returned 8.09%. In
 
 
Annual Report l October 31, 2011 l 5
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Questions & Answers (unaudited) continued
 
 
the first half of the 12-month period, the S&P returned 16.36%; for the six-month period ended October 31, 2011, the return of the S&P was -7.11%.
 
Most bond investments delivered positive returns during the 12 months through October 2011. In late summer, rates on U.S. Treasury bonds plunged to nearly unprecedented levels, as investors sought safety. Return of the Barclays U.S.Aggregate Bond Index (the “Barclays Aggregate”), which measures return of the U.S. investment-grade and government bond market as a whole, was 4.98% for the 12 months ended October 31, 2011. Return of the Merrill Lynch HighYield Master II Index, which measures performance of the U.S. high-yield bond market, was 4.81% for the same period.As expected, convertible securities provided returns that generally reflected a blend of equity and bond returns: return of the Merrill Lynch All U.S. Convertibles Index was 1.03%.
 

How did the Fund perform in this environment?
 
All Fund returns cited—whether based on net asset value (“NAV”) or market price—assume the reinvestment of all distributions. For the 12-month period ended October 31, 2011, the Fund generated a total return based on market price of -4.82% and a return of -1.91% based on NAV.As of October 31, 2011, the Fund’s market price of $15.87 represented a discount of 9.42% to NAV of $17.52.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.
 
The Fund seeks to provide 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’s approach is to have a portfolio with a high degree of safety and relatively low volatility, so that setbacks can be withstood without significant underperfor-mance. However, this was not the case in the last half of the Fund’s 2011 fiscal year. Convertibles, as measured by the Merrill Lynch All U.S. Convertibles Index (the “Convertibles Index”), suffered an abrupt decline in the third calendar quarter of 2011, experiencing the worst returns since the Convertibles Index was established in 1988, except for the disastrous last two quarters of 2008, when there was widespread fear of financial collapse.
 
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 Auction Market Preferred Shares (“AMPSSM”). The Fund’s leverage outstanding as of October 31, 2011, was $262 million, approximately 39% of the Fund’s total managed assets. Because the Fund’s return was negative, the use of leverage detracted further from performance.
 
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.
 
 

What were the major investment decisions that affected the Fund’s performance?
 
Responding to the high volatility in the market for convertible securities in the third calendar quarter of 2011, the portfolio was adjusted in an effort to position it better for potential market setbacks. Since the leverage inherent in the portfolio cannot be readily raised or lowered, changes were made in the nature of the assets of the portfolio.The major change was to increase the proportion of the Fund invested in high yield securities, with a commensurate reduction in the investment in convertible securities, particularly mandatory convertibles, which tend to be more volatile. (A mandatory convertible is a type of convertible preferred that has a required conversion feature. On the contractual conversion date—usually three years after issuance—the holder must convert the mandatory convertible into the underlying common stock.These securities typically provide investors with higher yields to compensate for the mandatory conversion structure.)
 
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 October 31, 2011, convertible securities represented 69.5% of total investments, high yield bonds represented 26.0%, short-term investments represented 0.6%, and other investments represented 3.9%.
 
The high yield portion of the portfolio contributed to the Fund’s performance.The large convertible position hurt performance, and mandatory convertibles were a particular problem because financial institutions, which are major issuers of mandatory convertibles, fell into disfavor late in the period.When common stocks lose value, mandatories generally drop almost as much as the common stock because, unlike convertible bonds, their only downside protection is the yield advantage.
 
One of the best performing holdings was a preferred issue of El Paso Corp. (not held in the portfolio at period end), an oil and gas exploration and production company.Also positive was a preferred issue of Unisys Corp. (1.0% of long-term investments at period end), an information technology company. Several positions in the healthcare sector were important contributors to performance.These included Hologic, Inc.,Amerigroup Corp. and Omnicare, Inc. (1.3%, 0.6% and 0.8% of long-term investments at period end). Hologic Inc., which is focused on the health care needs of women, demonstrated improving credit and improving fundamentals.Amerigroup Corp., a multi-state
 
 
6 l Annual Report l October 31, 2011
 
 
 

 
 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Questions & Answers (unaudited) continued
 
 
managed healthcare company, is one of the few providers of managed care programs to Medicaid participants.The Company benefited as more states sought to outsource Medicaid administration to reduce costs. Omnicare, a pharmaceutical services company, undertook a board-directed management change and a strategic refocusing, which the Investment Adviser believes will result in improved long-term performance.
 
The greatest detractor from performance was CEMEX, S.A.B. de C.V. (not held in the portfolio at period end), a Mexican cement company that does business in more than 50 countries world-wide.This company is poised to benefit from a recovering housing market, but has suffered from ongoing widespread weakness in construction. Other negatives included Suntech Power Holdings Co., Ltd., a Chinese solar energy company (not held in the portfolio at period end); auto manufacturer General Motors Co. (1.4% of long-term investments at period end); and Synovus Financial Corp., a regional bank in the Southeast (0.1% of long-term investments at period end). Synovus weakened because the market had expected this bank to make more progress with its nonperforming loans than it did. Besides its inherent attractiveness, this company was considered to be an acquisition candidate, but consolidation in the banking industry has slowed as legacy problems in housing and other sectors have persisted.
 
Another negative was a convertible preferred of Stillwater Mining Company, a miner of precious metals including palladium and platinum (not held in the portfolio at period end).This is a mandatory convertible in the shares of Stillwater Mining issued by UBS AG (not held in the portfolio at period end), a major Swiss bank that holds a large equity position in Stillwater. Stillwater has had reasonable performance in its core operations, but it made a large acquisition late in the period and investors began to question the company’s ability to finance its aggressive expansion plans.
 
 

Please discuss the Fund’s distributions over the last year.
 
In each month from November 2010 through October 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 7.10% based upon the last closing market price of $15.87 as of October 31, 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. Each of these markets weakened in the latter half of the Fund’s fiscal year, yet the fundamental trends of U.S. corporations appear favorable. There are numerous opportunities to participate in improving situations with some downside protection from the income these securities provide. In the current environment of volatile capital markets, the Fund is positioned somewhat more defensively than it has been in the recent past.
 
A distinguishing feature of this Fund is its 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.As equity markets rise, the equity sensitivity of a portfolio of convertible securities increases.When the equity markets are weak, convertibles’ declining sensitivity and interest income mitigate the downside risk.When the equity market rises and credit spreads narrow simultaneously, as they did in the first half of the October 2011 fiscal year, 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.
 
 
Annual Report l October 31, 2011 l 7
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Questions & Answers (unaudited) continued
 
 
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.
 
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.The Fund’s investments in convertible and noncon-vertible debt securities involve credit risk. However, in general, lower rated securities carry a greater degree of risk that the issuer will lose its ability to make interest and principal payments, which could have a negative impact on the Fund’s net asset value or dividends.
 
Equity Securities Risk. Equity risk is the risk that securities held by the Fund will fall due to general market or economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, and the particular circumstances and performance of particular companies whose securities the Fund holds.
 
Preferred Securities Risks.There are special risks associated with investing in preferred securities, including risks related to deferral, noncumulative dividends, subordination, liquidity, limited voting rights and special redemption rights.
 
Smaller Company Risk. The general risks associated with corporate income-producing and equity securities are particularly pronounced for securities issued by companies with smaller market capitalizations. These companies may have limited product lines, markets or financial resources, or they may depend on a few key employees. As a result, they may be subject to greater levels of credit, market and issuer risk. Securities of smaller companies may trade less frequently and in lesser volume than more widely held securities and their values may fluctuate more sharply than other securities. Companies with medium-sized market capitalizations may have risks similar to those of smaller companies.
 
Lower Grade Securities Risk. 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 (4) less uniformity in accounting and reporting requirements (5) unreliable securities valuation and (6) custody risk.
 
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, Derivatives Risk, Foreign Currency Risk and Anti-Takeover Provisions. Please see www.guggenheimfunds.com/avk for a more detailed discussion about Fund risks and considerations.
 
 
8 l Annual Report l October 31, 2011
 
 
 

 
 

 
AVK l Advent Claymore Convertible Securities and Income Fund 
 
Fund Summary | As of October 31, 2011 (unaudited) 
 
     
Fund Statistics 
   
Share Price 
 
$15.87 
Common Share Net Asset Value 
 
$17.52 
Premium/Discount to NAV 
 
-9.42% 
Net Assets Applicable to Common Shares ($000) 
 
$413,041 
     
Total Returns 
   
(Inception 4/30/03) 
Market 
NAV 
One Year 
-4.82% 
-1.91% 
Three Year - average annual 
16.13% 
20.98% 
Five Year - average annual 
-1.41% 
0.04% 
Since Inception - average annual 
4.00% 
5.20% 
   
 
% of Long-Term 
Top Ten Industries 
 
Investments 
Telecommunications 
 
8.7% 
Banks 
 
8.6% 
Lodging 
 
4.9% 
Insurance 
 
4.7% 
Health Care Services 
 
4.6% 
Oil & Gas 
 
4.5% 
Real Estate Investment Trusts 
 
4.5% 
Pharmaceuticals 
 
4.0% 
Biotechnology 
 
3.7% 
Computers 
 
3.5% 
   
 
% of Long-Term 
Top Ten Issuers 
 
Investments 
MetLife, Inc. 
 
2.5% 
Gilead Sciences, Inc. 
 
1.7% 
Forest City Enterprises, Inc. 
 
1.7% 
MGM Resorts International 
 
1.5% 
Lucent Technologies Capital Trust 1 
 
1.5% 
Owens-Brockway Glass Container, Inc. 
 
1.4% 
General Motors Co. 
 
1.4% 
Hologic, Inc. 
 
1.3% 
Fifth Third Bancorp 
 
1.3% 
Citigroup, Inc. 
 
1.3% 
 
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.
 
 
 
 
Annual Report l October 31, 2011 l 9
 
 
 

 

               
AVK l Advent Claymore Convertible Securities and Income Fund 
         
           
Portfolio of Investments | October 31, 2011 
         
           
Principal 
         
Optional Call 
 
Amount^ 
 
Description 
Rating* 
Coupon 
Maturity 
Provisions** 
Value 
   
Long-Term Investments — 159.8% 
         
   
Convertible Bonds — 72.0% 
         
   
Aerospace & Defense — 1.2% 
         
$ 2,000,000 
 
AAR Corp.(a) 
BB- 
1.63% 
03/01/2014 
N/A 
$ 1,885,000 
3,000,000 
 
L-3 Communications Holdings, Inc. 
BB+ 
3.00% 
08/01/2035 
N/A 
2,906,250 
             
4,791,250 
   
Apparel — 0.9% 
         
3,750,000 
 
Iconix Brand Group, Inc.(a) 
NR 
2.50% 
06/01/2016 
N/A 
3,600,000 
   
Auto Manufacturers — 1.5% 
         
2,000,000 
 
Ford Motor Co. 
BB+ 
4.25% 
11/15/2016 
N/A 
2,985,000 
3,000,000 
 
Navistar International Corp. 
B 
3.00% 
10/15/2014 
N/A 
3,375,000 
             
6,360,000 
   
Auto Parts & Equipment — 0.5% 
         
2,500,000 
 
Meritor, Inc.(b) 
CCC+ 
4.63% 
03/01/2026 
03/01/16 @ 100 
2,181,250 
   
Biotechnology — 5.7% 
         
2,650,000 
 
Charles River Laboratories International, Inc. 
BB+ 
2.25% 
06/15/2013 
N/A 
2,623,500 
4,500,000 
 
Dendreon Corp. 
NR 
2.88% 
01/15/2016 
N/A 
3,307,500 
10,000,000 
 
Gilead Sciences, Inc. 
A- 
1.00% 
05/01/2014 
N/A 
11,100,000 
4,000,000 
 
Illumina, Inc.(a) 
NR 
0.25% 
03/15/2016 
N/A 
3,110,000 
3,000,000 
 
Vertex Pharmaceuticals, Inc. 
NR 
3.35% 
10/01/2015 
10/01/13 @ 101 
3,228,750 
             
23,369,750 
   
Coal — 1.6% 
         
7,083,000 
 
Alpha Appalachia Holdings, Inc. 
BB- 
3.25% 
08/01/2015 
N/A 
6,631,459 
   
Computers — 3.3% 
         
1,700,000 
 
EMC Corp., Series B 
A- 
1.75% 
12/01/2013 
N/A 
2,713,625 
3,000,000 
 
Netapp, Inc. 
NR 
1.75% 
06/01/2013 
N/A 
4,132,500 
3,000,000 
 
RadiSys Corp. 
NR 
2.75% 
02/15/2013 
N/A 
2,778,750 
3,250,000 
 
SanDisk Corp. 
BB- 
1.50% 
08/15/2017 
N/A 
3,895,937 
             
13,520,812 
   
Diversified Financial Services — 3.5% 
         
5,000,000 
 
Affiliated Managers Group, Inc. 
BBB- 
3.95% 
08/15/2038 
08/15/13 @ 100 
5,443,750 
6,575,000 
 
Janus Capital Group, Inc. 
BBB- 
3.25% 
07/15/2014 
N/A 
6,459,938 
3,018,000 
 
Jefferies Group, Inc. 
BBB 
3.88% 
11/01/2029 
11/01/17 @ 100 
2,670,930 
             
14,574,618 
   
Electrical Components & Equipment — 1.1% 
         
4,850,000 
 
General Cable Corp. 
B+ 
0.88% 
11/15/2013 
N/A 
4,613,563 
   
Electronics — 1.2% 
         
6,000,000 
 
Vishay Intertechnology, Inc.(a) 
BB+ 
2.25% 
05/15/2041 
N/A 
4,792,500 
   
Energy-Alternate Sources — 0.9% 
         
3,500,000 
 
Covanta Holding Corp. 
B 
3.25% 
06/01/2014 
N/A 
3,858,750 
   
Entertainment — 1.5% 
         
5,000,000 
 
International Game Technology 
BBB 
3.25% 
05/01/2014 
N/A 
6,006,250 
   
Health Care Products — 3.3% 
         
3,098,000 
 
Hologic, Inc., Series 2010(c) 
BB+ 
2.00% 
12/15/2037 
12/15/16 @ 100 
3,303,242 
5,875,000 
 
Hologic, Inc.(d) 
BB+ 
2.00% 
12/15/2037 
12/15/13 @ 100 
5,559,219 
6,100,000 
 
NuVasive, Inc. 
NR 
2.75% 
07/01/2017 
N/A 
4,948,625 
             
13,811,086 
 
 
See notes to financial statements.
 
 
10 l Annual Report l October 31, 2011
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments continued
 
               
Principal 
         
Optional Call 
 
Amount^ 
 
Description 
Rating* 
Coupon 
Maturity 
Provisions** 
Value 
   
Health Care Services — 3.7% 
         
$ 3,000,000 
 
AMERIGROUP Corp. 
BB+ 
2.00% 
05/15/2012 
N/A 
$ 4,012,500 
4,640,000 
 
LifePoint Hospitals, Inc. 
B 
3.50% 
05/15/2014 
N/A 
4,802,400 
3,000,000 
 
Lincare Holdings, Inc., Series B 
NR 
2.75% 
11/01/2037 
11/01/14 @ 100 
3,172,500 
3,000,000 
 
Molina Healthcare, Inc., Series MOH 
NR 
3.75% 
10/01/2014 
N/A 
3,108,750 
             
15,096,150 
   
Home Builders — 1.3% 
         
991,000 
 
DR Horton, Inc., Series DHI 
BB- 
2.00% 
05/15/2014 
N/A 
1,095,055 
4,000,000 
 
Lennar Corp.(a) 
B+ 
2.75% 
12/15/2020 
12/20/15 @ 100 
4,125,000 
             
5,220,055 
   
Insurance — 0.9% 
         
3,760,000 
 
Old Republic International Corp. 
BBB+ 
8.000% 
05/15/2012 
N/A 
3,764,700 
   
Internet — 4.4% 
         
4,500,000 
 
Digital River, Inc.(a) 
NR 
2.00% 
11/01/2030 
11/01/15 @ 100 
3,757,500 
2,000,000 
 
Equinix, Inc. 
B 
3.00% 
10/15/2014 
N/A 
2,202,500 
5,600,000 
 
Symantec Corp., Series B 
BBB 
1.00% 
06/15/2013 
N/A 
6,524,000 
6,300,000 
 
WebMD Health Corp.(a) 
NR 
2.50% 
01/31/2018 
N/A 
5,567,625 
             
18,051,625 
   
Iron & Steel — 2.6% 
         
4,250,000 
 
Allegheny Technologies, Inc. 
BBB- 
4.25% 
06/01/2014 
N/A 
5,790,625 
4,600,000 
 
Steel Dynamics, Inc. 
BB+ 
5.13% 
06/15/2014 
N/A 
4,922,000 
             
10,712,625 
   
Lodging — 2.9% 
         
2,650,000 
 
Gaylord Entertainment Co.(a) 
NR 
3.75% 
10/01/2014 
N/A 
2,931,563 
8,864,000 
 
MGM Resorts International 
CCC+ 
4.25% 
04/15/2015 
N/A 
8,886,160 
             
11,817,723 
   
Machinery-Diversified — 0.5% 
         
1,750,000 
 
AGCO Corp. 
BB+ 
1.25% 
12/15/2036 
12/19/13 @ 100 
2,209,375 
   
Media — 1.1% 
         
3,750,000 
 
XM Satellite Radio, Inc.(a) 
BB 
7.00% 
12/01/2014 
N/A 
4,762,500 
   
Mining — 2.4% 
         
4,100,000 
 
Kinross Gold Corp. (Canada) 
BBB- 
1.75% 
03/15/2028 
03/20/13 @ 100 
4,002,625 
4,000,000 
 
Newmont Mining Corp., Series A 
BBB+ 
1.25% 
07/15/2014 
N/A 
6,110,000 
             
10,112,625 
   
Miscellaneous Manufacturing — 1.1% 
         
4,850,000 
 
Trinity Industries, Inc. 
BB- 
3.88% 
06/01/2036 
06/01/18 @ 100 
4,656,000 
   
Oil & Gas — 0.9% 
         
3,500,000 
 
Lukoil International Finance BV (Russia) 
BBB- 
2.63% 
06/16/2015 
N/A 
3,780,875 
   
Oil & Gas Services — 0.6% 
         
2,725,000 
 
Hornbeck Offshore Services, Inc.(b) 
B+ 
1.63% 
11/15/2026 
11/15/13 @ 100 
2,629,625 
   
Packaging & Containers — 2.2% 
         
9,650,000 
 
Owens-Brockway Glass Container, Inc.(a) 
BB 
3.00% 
06/01/2015 
N/A 
8,938,312 
 
 
See notes to financial statements.
 
 
Annual Report l October 31, 2011 l 11
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments continued
 
               
Principal 
         
Optional Call 
 
Amount^ 
 
Description 
Rating* 
Coupon 
Maturity 
Provisions** 
Value 
   
Pharmaceuticals — 3.4% 
         
$ 2,700,000 
 
ENDO Pharmaceuticals Holdings, Inc. 
NR 
1.75% 
04/15/2015 
N/A 
$ 3,368,250 
2,500,000 
 
Isis Pharmaceuticals, Inc. 
NR 
2.63% 
02/15/2027 
02/15/12 @ 101 
2,271,875 
3,625,000 
 
Mylan, Inc. 
BB 
1.25% 
03/15/2012 
N/A 
3,661,250 
4,000,000 
 
Shire PLC, Series SHP (Channel Islands) 
NR 
2.75% 
05/09/2014 
N/A 
4,612,000 
             
13,913,375 
   
Real Estate — 1.8% 
         
6,781,000 
 
Forest City Enterprises, Inc. 
NR 
3.63% 
10/15/2014 
10/15/13 @ 100 
7,463,338 
   
Real Estate Investment Trusts — 4.1% 
         
2,030,000 
 
Annaly Capital Management, Inc. 
NR 
4.00% 
02/15/2015 
N/A 
2,354,800 
3,398,000 
 
Boston Properties, LP 
A- 
3.75% 
05/15/2036 
05/18/13 @ 100 
3,894,957 
3,000,000 
 
DDR Corp. 
BB 
1.75% 
11/15/2040 
11/20/15 @ 100 
3,022,500 
3,000,000 
 
Host Hotels & Resorts, LP(a) 
BB+ 
2.50% 
10/15/2029 
10/20/15 @ 100 
3,637,500 
4,960,000 
 
NorthStar Realty Finance, LP(a) 
NR 
7.50% 
03/15/2031 
03/15/16 @ 100 
4,222,200 
             
17,131,957 
   
Retail — 0.6% 
         
2,650,000 
 
RadioShack Corp.(a) 
Ba2 
2.50% 
08/01/2013 
N/A 
2,580,437 
   
Semiconductors — 3.9% 
         
5,000,000 
 
Intel Corp.(i) 
A- 
2.95% 
12/15/2035 
N/A 
5,387,500 
5,000,000 
 
Lam Research Corp.(a) 
BB+ 
0.50% 
05/15/2016 
N/A 
4,962,500 
3,209,000 
 
Micron Technology, Inc. 
BB- 
1.88% 
06/01/2014 
N/A 
3,092,674 
3,000,000 
 
Micron Technology, Inc., Series A(a) 
NR 
1.50% 
08/01/2031 
08/05/15 @ 100 
2,497,500 
             
15,940,174 
   
Telecommunications — 7.4% 
         
7,325,000 
 
Alcatel-Lucent USA, Inc., Series B (France) 
B 
2.88% 
06/15/2025 
06/20/13 @ 100 
6,958,750 
6,200,000 
 
Anixter International, Inc. 
B+ 
1.00% 
02/15/2013 
N/A 
6,936,250 
1,575,000 
 
Arris Group, Inc. 
NR 
2.00% 
11/15/2026 
11/15/13 @ 100 
1,613,391 
8,000,000 
 
Ciena Corp.(a) 
NR 
4.00% 
03/15/2015 
N/A 
8,170,000 
4,000,000 
 
SBA Communications Corp. 
NR 
1.88% 
05/01/2013 
N/A 
4,350,000 
1,685,000 
 
Virgin Media, Inc. 
B+ 
6.50% 
11/15/2016 
N/A 
2,552,775 
             
30,581,166 
   
Total Convertible Bonds — 72.0% 
         
   
(Cost $281,436,152) 
       
297,473,925 
   
Corporate Bonds — 41.7% 
         
   
Advertising — 0.3% 
         
1,250,000 
 
Lamar Media Corp. 
B+ 
7.88% 
04/15/2018 
04/15/14 @ 104 
1,315,625 
   
Agriculture — 0.2% 
         
750,000 
 
North Atlantic Trading Co.(a) 
B2 
11.50% 
07/15/2016 
07/15/13 @ 109 
716,250 
   
Auto Manufacturers — 0.5% 
         
200,000 
 
Chrysler Group, LLC/CG Co.-Issuer, Inc.(a) 
B 
8.00% 
06/15/2019 
06/15/15 @ 104 
185,000 
200,000 
 
Chrysler Group, LLC/CG Co.-Issuer, Inc.(a) 
B 
8.25% 
06/15/2021 
06/15/16 @ 104 
184,000 
1,000,000 
 
Ford Motor Co. 
BB+ 
6.63% 
10/01/2028 
N/A 
1,067,361 
250,000 
 
Jaguar Land Rover PLC (United Kingdom)(a) 
B+ 
7.75% 
05/15/2018 
05/15/14 @ 106 
248,750 
250,000 
 
Jaguar Land Rover PLC (United Kingdom)(a) 
B+ 
8.13% 
05/15/2021 
05/15/16 @ 104 
247,500 
             
1,932,611 
           
See notes to financial statements. 
         
           
12 l Annual Report l October 31, 2011 
         
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments continued
 
               
Principal 
         
Optional Call 
 
Amount^ 
 
Description 
Rating* 
Coupon 
Maturity 
Provisions** 
Value 
   
Auto Parts & Equipment — 1.4% 
         
$ 500,000 
 
Cooper Tire & Rubber Co. 
BB- 
8.00% 
12/15/2019 
N/A 
$ 520,000 
3,750,000 
 
Dana Holding Corp. 
BB- 
6.50% 
02/15/2019 
02/15/15 @ 103 
3,796,875 
320,000 
 
Goodyear Tire & Rubber Co. 
B+ 
8.25% 
08/15/2020 
08/15/15 @ 104 
344,000 
750,000 
 
Lear Corp. 
BB 
7.88% 
03/15/2018 
03/15/14 @ 104 
811,875 
500,000 
 
Pittsburgh Glass Works, LLC(a) 
B+ 
8.50% 
04/15/2016 
04/15/13 @ 104 
502,500 
             
5,975,250 
   
Banks — 2.5% 
         
1,750,000 
 
Ally Financial, Inc. 
B+ 
8.30% 
02/12/2015 
N/A 
1,841,875 
5,400,000 
 
Capital One Capital V 
BB 
10.25% 
08/15/2039 
N/A 
5,622,750 
2,000,000 
 
CIT Group, Inc. 
B+ 
7.00% 
05/01/2016 
01/01/12 @ 100 
2,005,000 
1,000,000 
 
Synovus Financial Corp. 
B+ 
5.13% 
06/15/2017 
N/A 
860,000 
             
10,329,625 
   
Beverages — 0.5% 
         
1,750,000 
 
Constellation Brands, Inc. 
BB+ 
7.25% 
09/01/2016 
N/A 
1,922,813 
   
Biotechnology — 0.2% 
         
1,000,000 
 
STHI Holding Corp.(a) 
B 
8.00% 
03/15/2018 
03/15/14 @ 106 
1,025,000 
   
Building Materials — 0.2% 
         
250,000 
 
Euramax International, Inc.(a) 
B- 
9.50% 
04/01/2016 
04/01/13 @ 107 
213,750 
250,000 
 
Nortek, Inc.(a) 
B 
8.50% 
04/15/2021 
04/15/16 @ 104 
223,125 
375,000 
 
Ply Gem Industries, Inc. 
B- 
8.25% 
02/15/2018 
02/15/14 @ 106 
355,313 
             
792,188 
   
Chemicals — 1.5% 
         
1,000,000 
 
CF Industries, Inc. 
BB+ 
7.13% 
05/01/2020 
N/A 
1,166,250 
500,000 
 
Hexion US Finance Corp. 
CCC+ 
9.00% 
11/15/2020 
11/15/15 @ 105 
438,750 
595,000 
 
Ineos Finance PLC (United Kingdom)(a) 
B 
9.00% 
05/15/2015 
05/15/13 @ 105 
614,337 
2,607,000 
 
Lyondell Chemical Co. 
BB- 
11.00% 
05/01/2018 
05/01/13 @ 100 
2,916,581 
1,375,000 
 
Vertellus Specialties, Inc.(a) 
B 
9.38% 
10/01/2015 
04/01/13 @ 105 
1,254,688 
             
6,390,606 
   
Coal — 0.4% 
         
1,075,000 
 
Alpha Natural Resources, Inc. 
BB 
6.25% 
06/01/2021 
06/01/16 @ 103 
1,066,937 
500,000 
 
SunCoke Energy, Inc.(a) 
B+ 
7.63% 
08/01/2019 
08/01/14 @ 106 
507,500 
             
1,574,437 
   
Commercial Services — 0.7% 
         
500,000 
 
AE Escrow Corp.(a) 
B 
9.75% 
03/15/2020 
09/15/15 @ 105 
522,500 
1,000,000 
 
Avis Budget Car Rental, LLC 
B 
8.25% 
01/15/2019 
10/15/14 @ 104 
1,002,500 
1,000,000 
 
Emergency Medical Services Corp.(a) 
B- 
8.13% 
06/01/2019 
06/01/14 @ 106 
1,005,000 
500,000 
 
Neff Rental, LLC(a) 
B- 
9.63% 
05/15/2016 
05/15/13 @ 107 
482,500 
             
3,012,500 
   
Computers — 0.7% 
         
2,600,000 
 
Seagate Technology International (Cayman Islands)(a) 
BBB 
10.00% 
05/01/2014 
05/01/13 @ 105 
2,970,500 
   
Diversified Financial Services — 1.6% 
         
500,000 
 
Ford Motor Credit Co., LLC 
BB+ 
12.00% 
05/15/2015 
N/A 
631,311 
1,500,000 
 
International Lease Finance Corp. 
BBB- 
8.25% 
12/15/2020 
N/A 
1,556,250 
750,000 
 
Marfrig Holding Europe BV (Netherlands)(a) 
B+ 
8.38% 
05/09/2018 
N/A 
577,500 
5,000,000 
 
Textron Financial Corp.(a) (e) 
B 
6.00% 
02/15/2067 
02/15/17 @ 100 
3,825,000 
             
6,590,061 
           
 
See notes to financial statements. 
         
           
           
Annual Report l October 31, 2011 l 13 
 
 
 

 
 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments continued
 
               
Principal 
         
Optional Call 
 
Amount^ 
 
Description 
Rating* 
Coupon 
Maturity 
Provisions** 
Value 
   
Electric — 0.4% 
         
$ 250,000 
 
AES Corp. 
BB- 
8.00% 
06/01/2020 
N/A 
$ 277,500 
500,000 
 
AES Corp.(a) 
BB- 
7.38% 
07/01/2021 
N/A 
537,500 
750,000 
 
Texas Competitive Electric Holdings Co., LLC(a) 
CCC 
11.50% 
10/01/2020 
04/01/16 @ 106 
648,750 
             
1,463,750 
   
Entertainment — 0.2% 
         
200,000 
 
Production Resource Group, Inc.(a) 
B- 
8.88% 
05/01/2019 
05/01/14 @ 107 
183,000 
500,000 
 
Regal Entertainment Group 
B- 
9.13% 
08/15/2018 
08/15/14 @ 105 
537,500 
             
720,500 
   
Food — 1.0% 
         
200,000 
 
Bumble Bee Acquisition Corp.(a) 
B 
9.00% 
12/15/2017 
12/15/14 @ 105 
201,500 
500,000 
 
Del Monte Foods Co.(a) 
CCC+ 
7.63% 
02/15/2019 
02/15/14 @ 104 
477,500 
1,500,000 
 
Land O’Lakes Capital Trust I(a) 
BB 
7.45% 
03/15/2028 
N/A 
1,462,500 
500,000 
 
Reddy ICE Corp. 
B- 
11.25% 
03/15/2015 
03/15/13 @ 106 
470,000 
1,550,000 
 
Smithfield Foods, Inc. 
BB- 
7.75% 
07/01/2017 
N/A 
1,681,750 
             
4,293,250 
   
Forest Products & Paper — 0.4% 
         
1,156,000 
 
AbitibiBowater, Inc.(a) 
BB- 
10.25% 
10/15/2018 
10/15/14 @ 105 
1,271,600 
500,000 
 
Verso Paper Holdings, LLC, Series B 
CCC+ 
11.38% 
08/01/2016 
08/01/12 @ 104 
372,500 
             
1,644,100 
   
Health Care Products — 0.3% 
         
1,500,000 
 
Rotech Healthcare, Inc. 
B 
10.50% 
03/15/2018 
03/15/15 @ 105 
1,200,000 
   
Health Care Services — 2.1% 
         
2,500,000 
 
Apria Healthcare Group, Inc. 
BB+ 
11.25% 
11/01/2014 
11/01/12 @ 106 
2,443,750 
1,750,000 
 
Capella Healthcare, Inc.(a) 
B 
9.25% 
07/01/2017 
07/01/13 @ 107 
1,811,250 
500,000 
 
Commmunity Health Systems, Inc. 
B 
8.88% 
07/15/2015 
07/15/12 @ 102 
513,125 
500,000 
 
National Mentor Holdings, Inc.(a) 
CCC+ 
12.50% 
02/15/2018 
02/15/14 @ 106 
460,000 
500,000 
 
Select Medical Corp. 
CCC+ 
7.63% 
02/01/2015 
02/01/12 @ 101 
467,500 
2,500,000 
 
Tenet Healthcare Corp. 
BB- 
8.88% 
07/01/2019 
07/01/14 @ 104 
2,837,500 
             
8,533,125 
   
Holding Companies-Diversified — 0.2% 
         
1,000,000 
 
Leucadia National Corp. 
B+ 
8.65% 
01/15/2027 
01/15/12 @ 102 
1,020,000 
   
Household Products & Housewares — 1.1% 
         
1,000,000 
 
Reynolds Group Issuer, Inc.(a) 
B- 
9.00% 
05/15/2018 
05/15/14 @ 104 
972,500 
500,000 
 
Reynolds Group Issuer, Inc.(a) 
BB- 
7.13% 
04/15/2019 
10/15/14 @ 104 
512,500 
2,000,000 
 
Spectrum Brands Holdings, Inc. 
B 
9.50% 
06/15/2018 
06/15/14 @ 105 
2,230,000 
1,000,000 
 
Yankee Candle Co., Inc., Series B 
CCC+ 
9.75% 
02/15/2017 
02/15/12 @ 105 
980,000 
             
4,695,000 
   
Insurance — 3.5% 
         
5,700,000 
 
Liberty Mutual Group, Inc.(a) (e) 
BB 
10.75% 
06/15/2088 
06/15/38 @ 100 
6,982,500 
5,500,000 
 
MetLife, Inc. 
BBB 
10.75% 
08/01/2069 
08/01/34 @ 100 
7,278,254 
             
14,260,754 
   
Investment Companies — 0.1% 
         
500,000 
 
Offshore Group Investments Ltd. (Cayman Islands)(a) 
B- 
11.50% 
08/01/2015 
02/01/13 @ 109 
547,500 
 
 
See notes to financial statements.
 
 
14 l Annual Report l October 31, 2011
 
 
 

 
 
                 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments continued 
 
           
 
Principal 
         
Optional Call 
 
 
Amount^ 
 
Description 
Rating* 
Coupon 
Maturity 
Provisions** 
Value 
     
Iron & Steel — 0.2% 
         
$ 575,000 
 
Algoma Acquisition Corp. (Canada)(a) 
CCC+ 
9.88% 
06/15/2015 
06/15/12 @ 102 
$ 468,625 
 
250,000 
 
Edgen Murray Corp. 
B- 
12.25% 
01/15/2015 
01/15/13 @ 106 
237,500 
               
706,125 
     
Leisure Time — 0.2% 
         
 
750,000 
 
Brunswick Corp. 
B 
7.13% 
08/01/2027 
N/A 
660,000 
     
Lodging — 3.3% 
         
 
1,000,000 
 
Caesars Entertainment Operating Co., Inc. 
CCC 
10.00% 
12/15/2018 
12/15/13 @ 105 
758,750 
 
1,750,000 
 
Marina District Finance Co., Inc. 
BB- 
9.88% 
08/15/2018 
08/15/14 @ 105 
1,736,875 
 
1,000,000 
 
MGM Resorts International 
CCC+ 
7.63% 
01/15/2017 
N/A 
935,000 
 
1,500,000 
 
Starwood Hotels & Resorts Worldwide, Inc. 
BB+ 
6.75% 
05/15/2018 
N/A 
1,672,500 
 
500,000 
 
Wyndham Worldwide Corp. 
BBB- 
6.00% 
12/01/2016 
N/A 
529,386 
 
7,106,000 
 
Wynn Las Vegas, LLC/Wynn Las Vegas Capital Corp. 
BBB- 
7.75% 
08/15/2020 
08/15/15 @ 104 
7,852,130 
               
13,484,641 
     
Machinery-Construction & Mining — 0.1% 
         
 
250,000 
 
Terex Corp. 
BB- 
10.88% 
06/01/2016 
06/01/13 @ 105 
278,750 
     
Machinery-Diversified — 0.6% 
         
 
1,500,000 
 
Case New Holland, Inc. 
BB+ 
7.88% 
12/01/2017 
N/A 
1,698,750 
EUR 
850,000 
 
Heidelberger Druckmaschinen AG (Germany)(a) 
B- 
9.25% 
04/15/2018 
04/15/14 @ 107 
797,302 
               
2,496,052 
     
Media — 1.6% 
         
$ 1,500,000 
 
CCO Holdings, LLC 
BB- 
6.50% 
04/30/2021 
04/30/15 @ 105 
1,507,500 
 
2,344,000 
 
Clear Channel Worldwide Holdings, Inc., Series B 
B 
9.25% 
12/15/2017 
12/15/12 @ 107 
2,554,960 
 
1,000,000 
 
Gannett Co., Inc. 
Baa3 
10.00% 
04/01/2016 
N/A 
1,095,000 
 
750,000 
 
Gray Television, Inc. 
CCC 
10.50% 
06/29/2015 
11/01/12 @ 108 
712,500 
 
1,000,000 
 
Univision Communications, Inc.(a) 
CCC+ 
8.50% 
05/15/2021 
11/15/15 @ 104 
905,000 
               
6,774,960 
     
Mining — 0.4% 
         
 
1,125,000 
 
FMG Resources August 2006 Pty Ltd. (Australia)(a) 
B+ 
6.88% 
02/01/2018 
02/01/14 @ 105 
1,085,625 
 
500,000 
 
FMG Resources August 2006 Pty Ltd. (Australia)(a) 
B+ 
8.25% 
11/01/2019 
11/01/15 @ 104 
507,500 
               
1,593,125 
     
Miscellaneous Manufacturing — 0.0%+ 
         
 
200,000 
 
JM Huber Corp.(a) 
BB- 
9.88% 
11/01/2019 
11/01/15 @ 105 
204,000 
     
Oil & Gas — 3.0% 
         
 
2,500,000 
 
Alta Mesa Holdings, LP/Alta Mesa Finance Services Corp. 
B 
9.63% 
10/15/2018 
10/15/14 @ 105 
2,337,500 
 
250,000 
 
Bill Barrett Corp. 
BB- 
7.63% 
10/01/2019 
10/01/15 @ 104 
265,000 
 
500,000 
 
Carrizo Oil & Gas, Inc. 
B- 
8.63% 
10/15/2018 
10/15/14 @ 104 
510,000 
 
1,000,000 
 
Clayton Williams Energy, Inc.(a) 
B 
7.75% 
04/01/2019 
04/01/15 @ 104 
930,000 
 
1,000,000 
 
Energy XXI Gulf Coast, Inc. 
B 
9.25% 
12/15/2017 
12/15/14 @ 105 
1,070,000 
 
1,000,000 
 
Hercules Offshore, Inc.(a) 
B- 
10.50% 
10/15/2017 
10/15/13 @ 105 
1,005,000 
 
1,000,000 
 
Petrohawk Energy Corp. 
BBB+ 
7.25% 
08/15/2018 
08/15/14 @ 104 
1,150,000 
 
1,000,000 
 
Pioneer Natural Resources Co. 
BB+ 
6.65% 
03/15/2017 
N/A 
1,091,050 
 
500,000 
 
Range Resources Corp. 
BB 
8.00% 
05/15/2019 
05/15/14 @ 104 
560,000 
 
1,500,000 
 
Tesoro Corp. 
BB+ 
9.75% 
06/01/2019 
06/01/14 @ 105 
1,695,000 
 
250,000 
 
Unit Corp. 
BB- 
6.63% 
05/15/2021 
05/15/16 @ 103 
246,250 
 
500,000 
 
W&T Offshore, Inc.(a) 
B 
8.50% 
06/15/2019 
06/15/15 @ 104 
512,500 
 
1,000,000 
 
Western Refining, Inc.(a) 
B 
11.25% 
06/15/2017 
06/15/13 @ 106 
1,110,000 
               
12,482,300 
 
See notes to financial statements. 
         
           
             
Annual Report l October 31, 2011 l 15 
 
 
 

 
 

                 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments continued 
         
           
Principal 
           
Optional Call 
 
Amount^ 
   
Description 
Rating* 
Coupon 
Maturity 
Provisions** 
Value 
     
Oil & Gas Services — 1.0% 
         
$ 1,000,000 
 
Forbes Energy Services Ltd.(a) 
B- 
9.00% 
06/15/2019 
06/15/15 @ 105 
$ 950,000 
 
1,500,000 
 
SESI, LLC(a) 
BB+ 
6.38% 
05/01/2019 
05/01/15 @ 103 
1,537,500 
 
1,518,000 
 
Stallion Oilfield Holdings Ltd. 
B 
10.50% 
02/15/2015 
02/15/13 @ 105 
1,631,850 
               
4,119,350 
     
Packaging & Containers — 0.2% 
         
 
125,000 
 
Sealed Air Corp.(a) 
BB 
8.38% 
09/15/2021 
09/15/16 @ 104 
135,625 
 
750,000 
 
US Corrugated, Inc. 
B3 
10.00% 
06/01/2013 
06/01/12 @ 100 
759,375 
               
895,000 
     
Pharmaceuticals — 1.8% 
         
 
2,760,000 
 
Aptalis Pharma, Inc. 
B 
12.75% 
03/01/2016 
03/01/12 @ 106 
2,939,400 
EUR 
2,000,000 
 
Capsugel FinanceCo SCA (Luxembourg)(a) 
B 
9.88% 
08/01/2019 
08/01/14 @ 107 
2,873,287 
$
 500,000 
 
ENDO Pharmaceuticals Holdings, Inc.(a) 
BB- 
7.25% 
01/15/2022 
07/15/16 @ 104 
541,250 
 
1,000,000 
 
Valeant Pharmaceuticals International(a) 
BB 
7.00% 
10/01/2020 
10/01/15 @ 104 
995,000 
               
7,348,937 
     
Pipelines — 0.3% 
         
 
500,000 
 
Crosstex Energy, LP 
B+ 
8.88% 
02/15/2018 
02/15/14 @ 104 
532,500 
 
500,000 
 
Eagle Rock Energy Partners, LP(a) 
B- 
8.38% 
06/01/2019 
06/01/15 @ 104 
505,000 
               
1,037,500 
     
Real Estate — 0.1% 
         
 
500,000 
 
Kennedy-Wilson, Inc.(a) 
BB- 
8.75% 
04/01/2019 
04/01/15 @ 104 
492,500 
     
Real Estate Investment Trusts — 0.2% 
         
 
750,000 
 
Rouse Co., LP 
BB+ 
6.75% 
11/09/2015 
05/09/13 @ 103 
759,375 
     
Retail — 4.0% 
         
 
1,500,000 
 
Burlington Coat Factory Warehouse Corp.(a) 
CCC 
10.00% 
02/15/2019 
02/15/15 @ 105 
1,492,500 
 
1,000,000 
 
Dave & Buster’s, Inc. 
CCC+ 
11.00% 
06/01/2018 
06/01/14 @ 106 
1,055,000 
 
2,000,000 
 
Fiesta Restaurant Group(a) 
B 
8.88% 
08/15/2016 
02/15/14 @ 104 
2,050,000 
 
1,500,000 
 
HOA Restaurant Group, LLC(a) 
B 
11.25% 
04/01/2017 
04/01/14 @ 106 
1,372,500 
 
1,000,000 
 
Landry’s Restaurants, Inc. 
B 
11.63% 
12/01/2015 
12/01/12 @ 106 
1,065,000 
 
5,000,000 
 
Ltd. Brands, Inc. 
BB+ 
6.63% 
04/01/2021 
N/A 
5,275,000 
 
250,000 
 
Needle Merger Sub Corp.(a) 
CCC+ 
8.13% 
03/15/2019 
03/15/14 @ 104 
240,000 
 
1,139,000 
 
Rite AID Corp. 
CCC 
9.38% 
12/15/2015 
06/15/12 @ 102 
1,076,355 
 
2,050,000 
 
Toys“R”US Property Co. II, LLC 
B+ 
8.50% 
12/01/2017 
12/01/13 @ 104 
2,175,562 
 
1,000,000 
 
Toys“R”US, Inc. 
CCC+ 
7.38% 
10/15/2018 
N/A 
925,000 
               
16,726,917 
     
Software — 0.3% 
         
 
250,000 
 
Emdeon, Inc.(a) 
Caa1 
11.00% 
12/31/2019 
12/31/15 @ 106 
261,250 
 
526,375 
 
First Data Corp. 
B- 
10.55% 
09/24/2015 
09/30/12 @ 103 
513,216 
 
625,000 
 
Lawson Software, Inc.(a) 
B- 
11.50% 
07/15/2018 
07/15/15 @ 106 
603,125 
               
1,377,591 
     
Storage & Warehousing — 0.3% 
         
 
1,000,000 
 
Niska Gas Storage US, LLC 
BB- 
8.88% 
03/15/2018 
03/15/14 @ 104 
1,040,000 
 
 
See notes to financial statements.
 
16 l Annual Report l October 31, 2011
 
 
 

 

                 
AVK l Advent Claymore Convertible Securities and Income Fund l Portfolio of Investments continued 
         
           
Principal 
           
Optional Call 
 
Amount^ 
   
Description 
Rating* 
Coupon 
Maturity 
Provisions** 
Value 
     
Telecommunications — 3.6% 
         
$ 1,500,000 
 
Crown Castle International Corp. 
B- 
9.00% 
01/15/2015 
01/15/13 @ 106 
$ 1,642,500 
 
300,000 
 
EH Holding Corp.(a) 
B+ 
6.50% 
06/15/2019 
N/A 
308,250 
 
150,000 
 
EH Holding Corp.(a) 
B- 
7.63% 
06/15/2021 
N/A 
156,000 
 
1,000,000 
 
Intelsat Jackson Holdings SA (Luxembourg) 
CCC+ 
11.25% 
06/15/2016 
06/15/12 @ 104 
1,057,500 
 
1,500,000 
 
Intelsat Luxembourg SA (Luxembourg) 
CCC+ 
11.25% 
02/04/2017 
02/15/13 @ 106 
1,492,500 
 
1,324,000 
 
iPCS, Inc.(e) 
BB- 
2.55% 
05/01/2013 
12/05/11 @ 100 
1,204,840 
 
500,000 
 
Level 3 Communications, Inc. 
CCC 
11.88% 
02/01/2019 
02/01/15 @ 106 
546,250 
 
1,500,000 
 
NII Capital Corp. 
B+ 
7.63% 
04/01/2021 
04/01/16 @ 104 
1,552,500 
 
750,000 
 
Virgin Media Finance PLC, Series 1 (United Kingdom) 
BB- 
9.50% 
08/15/2016 
08/15/13 @ 105 
840,000 
 
4,500,000 
 
Virgin Media Finance PLC (United Kingdom) 
BB- 
8.38% 
10/15/2019 
10/15/14 @ 104 
5,028,750 
EUR 
500,000 
 
Wind Acquisition Finance SA (Luxembourg)(a) 
BB- 
11.75% 
07/15/2017 
07/15/13 @ 106 
697,400 
$
500,000 
 
Windstream Corp. 
B+ 
7.75% 
10/01/2021 
10/01/16 @ 104 
523,750 
               
15,050,240 
     
Transportation — 0.5% 
         
 
1,500,000 
 
Navios Maritime Holdings, Inc. (Marshall Island) 
BB- 
8.88% 
11/01/2017 
11/01/13 @ 104 
1,443,750 
 
400,000 
 
Swift Services Holdings, Inc. 
B- 
10.00% 
11/15/2018 
11/15/14 @ 105 
416,000 
               
1,859,750 
     
Total Corporate Bonds — 41.7% 
         
     
(Cost $168,686,607) 
       
172,312,558 
     
Term Loans — 0.5%(f) 
         
 
997,500 
 
Chrysler Group LLC/CG Co-Issuer, Inc., Tranche B 
Ba2 
6.00% 
5/24/17 
N/A 
945,339 
 
1,000,000 
 
Revel Entertainment 
NR 
9.00% 
02/17/2017 
N/A 
911,667 
     
(Cost $1,828,572) 
       
1,857,006 
 
             
Number 
             
of Shares 
 
Description 
Rating* 
Coupon 
Maturity 
 
Value 
   
Convertible Preferred Stocks — 39.7% 
         
   
Advertising — 1.0% 
         
4,200 
 
Interpublic Group of Cos., Inc., Series B(g) 
B+ 
5.25% 
 
 
3,938,550 
   
Airlines — 1.7% 
         
235,000 
 
Continental Airlines Finance Trust II 
Caa1 
6.00% 
11/15/2030 
 
7,108,750 
   
Auto Manufacturers — 2.2% 
         
215,047 
 
General Motors Co., Series B 
B+ 
4.75% 
12/01/2013 
 
8,937,353 
   
Auto Parts & Equipment — 1.0% 
         
86,000 
 
Goodyear Tire & Rubber Co. 
NR 
5.88% 
04/01/2014 
 
4,318,920 
   
Banks — 9.9% 
         
5,251 
 
Bank of America Corp., Series L(g) 
BB+ 
7.25% 
 
 
4,494,856 
88,479 
 
Citigroup, Inc. 
NR 
7.50% 
12/15/2012 
 
8,409,044 
60,000 
 
Fifth Third Bancorp, Series G(g) 
BB 
8.50% 
 
 
8,631,600 
72,176 
 
KeyCorp, Series A(g) 
BB 
7.75% 
 
 
7,578,480 
6,000 
 
Webster Financial Corp., Series A(g) 
B+ 
8.50% 
 
 
6,517,500 
5,152 
 
Wells Fargo & Co., Series L(g) 
A- 
7.50% 
 
 
5,441,285 
             
41,072,765 
   
Computers — 1.7% 
         
89,000 
 
Unisys Corp., Series A 
NR 
6.25% 
03/01/2014 
 
6,861,900 
   
Diversified Financial Services — 0.5% 
         
211,200 
 
2010 Swift Mandatory Common Exchange Security Trust(a) 
NR 
6.00% 
12/31/2013 
 
2,030,435