gug58165-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, 2012 - October 31, 2013
 

 
 

 
 
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:  
 
 

 
 

 
 
GUGGENHEIMINVESTMENTS.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 guggenheiminvestments.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 Investments 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.

 
 

 
 
(Unaudited)
October 31, 2013
 
 
 
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 12 months ended October 31, 2013.
 
Advent Capital Management, LLC (“Advent” or the “Investment Adviser”) serves as the Fund’s Investment Adviser. Based in New York, New York, 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 October 31, 2013, Advent managed approximately $7.3 billion in assets.
 
Guggenheim Funds Distributors, LLC (the “Servicing Agent”) serves as the Servicing Agent to the Fund. The Servicing Agent is an affiliate of Guggenheim Partners, LLC, a global diversified financial services firm.
 
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 non-convertible income securities. The Fund may invest without limitation in foreign securities.
 
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, 2013, the Fund generated a total return based on market price of 12.90% and a return of 22.09% based on NAV. As of October 31, 2013, the Fund’s market price of $17.81 represented a discount of 9.87% to NAV of $19.76. The Fund uses financial leverage to finance the purchase of additional securities, a strategy which contributed to performance for the period.
 
Past performance is not a guarantee of future results. The Fund’s NAV performance data reflects fees and expenses of the Fund. The market price 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 2012 through October 2013, the Fund paid a monthly distribution of $0.0939 per share. The current monthly distribution represents an annualized distribution rate of 6.33% based upon the last closing market price of $17.81 as of October 31, 2013. 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 41 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 the greater of NAV per share or 95% of 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.
 
AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT | 3

 
 

 

DEAR SHAREHOLDER continued (Unaudited)
October 31, 2013
 
The Fund is managed by a team of experienced and seasoned professionals led by myself 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 influenced the Fund’s performance.
 
We thank you for your investment in the Fund and 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, including related investment risks, please visit the Fund’s website at guggenheiminvestments.com/avk.
 
Sincerely,
 
 
Tracy V. Maitland
President and Chief Executive Officer of the Advent Claymore Convertible Securities and
Income Fund
 
November 30, 2013
 
4 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT

 
 

 

QUESTIONS & ANSWERS (Unaudited)
October 31, 2013
 
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, the management team discusses the convertible-securities and high-yield markets and the performance of the Fund during the 12-month period ended October 31, 2013.
 
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. 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% of its managed assets in non-convertible income securities. The Fund may invest without limitation in foreign securities.
 
The Fund also uses a strategy of writing (selling) covered call options on up to 25% of the securities held in the portfolio. The objective of this strategy is to generate current gains from option premiums to enhance distributions payable to the holders of common shares. In addition, the Fund may invest in other derivatives, such as, put options, forward exchange currency contracts, futures contracts and swaps.
 
The Fund uses financial leverage to finance the purchase of additional securities. Although financial leverage may create an opportunity for increased return for shareholders, it also results in additional risks and can magnify the effect of any losses. There is no assurance that the strategy will be successful. If income and gains earned on securities purchased with the financial leverage proceeds are greater than the cost of the financial leverage, common shareholders’ return will be greater than if financial leverage had not been used. Conversely, if the income or gains from the securities purchased with the proceeds of financial leverage are less than the cost of the financial leverage, common shareholders’ return will be less than if financial leverage had not been used.
 
Historically, the primary means of implementing leverage had been through Auction Market Preferred Shares (“AMPS”), but other permitted means include borrowing or the issuance of commercial paper or other forms of debt. Earlier in the period, the Fund commenced a tender offer for up to 100% of its outstanding AMPS. The offer expired on December 13, 2012, and in the tender offer the Fund repurchased almost all of its outstanding AMPS. On May 10, 2013, the Fund announced an at-par redemption of all of its remaining outstanding AMPS. The Fund redeemed its remaining $1,575,000 of outstanding AMPS in June 2013.
 
The Fund refinanced its tendered AMPS through alternative forms of leverage, including borrowings under a margin loan agreement and reverse repurchase agreement transactions.
 
Please describe the economic and market environment over the last 12 months.
Global equity markets broadly performed well in 2013 as further monetary easing in the developed markets—United States, Europe and Japan—led to strong stock performance in all three geographies, while emerging markets, particularly in Asia where the Fund does much of its overseas convertible investing, managed to eke out small gains for the most part. Bond markets struggled as Western world risk-free rates began rising, but the effect on the shorter-duration corporate market, which is the Fund’s specialty in convertibles and high-yield, still gained on relatively high coupons and the lower duration.
 
In the U.S., corporate earnings continued to grow but at a slower pace given their elevated levels relative to GDP already. As of November 30, 2013, consensus earnings for the S&P 500 were forecast to grow approximately 7% over 2012 levels. Thus, the large gain in the S&P 500 index came from earnings multiple expansions, although this metric is still not at historically high levels and has a tendency to rise in periods where interest rates go from low to moderate levels. Economic growth is best described as steady with moderate GDP growth recorded and overcoming perceived headwinds from tax increases and lower government spending. Jobs growth posted decent gains, and other metrics such as industrial production and ISM surveys of manufacturing expanded at consistent rates. Productivity gains reaccelerated to levels near 2.0% after dipping in early 2013. Growth was good enough that the Federal Reserve has been considering reducing its expansionary purchases of existing bonds, which has had the effect of raising money supply.
 
Such speculation led to the U.S. dollar rising against counterparts before coming back down as investors began to bid up growth currencies around the world. Lower foreign currencies abroad helped to buttress growth, particularly in Europe, where austerity continues to put a ceiling on growth, but the European Central Bank retains many instruments to spur growth and may put them into effect over the short-term. Some major emerging markets like Brazil and China declined for the year but the Fund’s exposure to these areas was minor. Japan was particularly strong on moves by the new government to spur growth, and the Fund was able to take advantage.
 
The Fund’s largest asset class, convertible bonds, performed particularly well in this environment, with the exposure to cyclical, health care and technology issuers. Also helping was outperformance of mid-cap and small-cap companies allowing the underlying equities of convertible bond indices to do better than general large-cap equity ones and allowing the structural advantages of convertibles, with low duration and asymmetry via the option in the underlying warrant, to participate in equity gains without as much downside from rising bond yields.
 
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, 2013, the Fund generated a total return based on market price of 12.90% and a return of 22.09% based on NAV. As of October 31, 2013, the Fund’s market price of $17.81 represented a
 
AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT | 5

 
 

 

QUESTIONS & ANSWERS continued (Unaudited)
October 31, 2013
 
discount of 9.87% to NAV of $19.76. As of October 31, 2012, the Fund’s market price of $16.84 represented a discount of 2.04% to NAV of $17.19.
 
Past performance is not a guarantee of future results. The Fund’s NAV performance data reflects fees and expenses of the Fund. The market price of the Fund’s shares fluctuates from time to time, and it may be higher or lower than the Fund’s NAV. The Investment Adviser believes that, over the long term, the progress of the NAV will be reflected in the market price return to shareholders who continue to hold over that period.
 
How has the Fund’s leverage strategy affected performance?
The Fund utilizes leverage as part of its investment strategy, to finance the purchase of additional securities that provide increased income and potentially greater appreciation potential to common shareholders than could be achieved from a portfolio that is not leveraged. Leverage in the Fund was a contributor to performance for the period. The Fund’s leverage outstanding as of October 31, 2013, was $262 million, approximately 36% 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.
 
What was the impact of the Fund’s covered call strategy?
The Fund continued its strategy of seeking income through writing call options against equity and the equity portion of convertible bond holdings. With a strong equity market apparent in 2013 and volatility low, the Fund limited the writing of these options, seeing in general the income garnered not worth the upside signed away. The Fund also wrote options with longer maturities and higher strikes as another tactic to allow for more equity upside while still protecting downside should market corrections occur. In general, this strategy was beneficial as there was no period where the CBOE SPX Volatility Index (VIX) went above 20 during the year, a departure from prior years when sell-offs would generally produce spikes well above 20.
 
How did other market measures perform in this environment?
For the 12-month period ended October 31, 2013, the S&P 500 Index returned 27.18%. Global equities were equally strong, with the Morgan Stanley Capital International World Index returning 25.77%.
 
Many bond indices also delivered positive returns during the 12 months ended October 31, 2013, with measures of riskier parts of the market leading the pack. The return of the Bank of America Merrill Lynch High Yield Master II Index was 8.83%. The returns of the Bank of America Merrill Lynch All U.S. Convertibles Index and the Bank of America Merrill Lynch Global 300 Convertible Index were 23.94% and 17.68%, respectively. The Barclays U.S. Aggregate Bond Index (the “Barclays Aggregate”) fell 1.08% for the period.
 
The CBOE S&P 500 2% OTM Buy Write Index (BXY) returned 13.90%. It is important to remember that the Fund’s mandate differs materially from each of these indices and that the Fund maintains leverage and incurs transaction costs, advisory fees and other expenses, while these indices do not.
 
Please discuss the Fund’s distributions.
In each month from November 2012 through October 2013, the Fund paid a monthly distribution of $0.0939 per share. The current monthly distribution represents an annualized distribution rate of 6.33% based upon the last closing market price of $17.81 as of October 31, 2013. There is no guarantee of any future distributions or that the current returns and distribution rate will be maintained.
 
How was the Fund’s portfolio allocated among asset classes during the 12 months ended October 31, 2013, and how did this influence performance?
The Fund is diversified globally among convertible securities, high-yield bonds and equities.
 
As of October 31, 2012, 64.4% of the Fund’s total investments were in convertible securities. High yield bonds represented 29.9% and equity positions 2.6% of total investments. The rest, 3.1%, was in cash and other investments.
 
As of October 31, 2013, 68.9% of the Fund’s total investments were in convertible securities. High yield bonds represented 20.7% and equity positions 6.3% of total investments. The rest, 4.1%, was in cash and other investments.
 
Advent increased exposure to convertible and equity securities relative to high yield securities due to our belief equity markets would provide greater returns relative to bonds in a recovering economy. This view seemed to be confirmed as risk-free rates began rising in the second half of the fiscal year and the returns of convertibles and equities outpaced the return for high yield bonds for the period.
 
Which investment decisions had the greatest effect on the Fund’s performance?
Among top-performing investments were the convertible bonds of Micron Technology (2.0% of long-term investments at period end). The memory-chip company benefited from greater use of its products in smartphones and tablets and the accretive acquisition of bankrupt competitor Elpida Memory, Inc.
 
The convertible bond of Gilead Sciences (1.8% of long-term investments at period end) was another large contributor to return. Gilead Sciences was a steady performer all year, benefiting its convertible bonds, as the company had produced consistently good data and execution of its new hepatitis C drug, Sofosbuvir.
 
Convertible bonds of Ciena Corp. (1.4% of long-term investments at period end) also contributed to return. The company’s financial condition improved over the year, as its revenues climbed and margins improved. It has benefited from greater spending by telecom companies and growth of the market for fiber-optic communications equipment.
 
Holdings that detracted from the Fund’s performance included convertible bonds of iron ore miner Cliffs Natural Resources (not held in the portfolio at period end), which declined on lower prices for its commodity, because of higher competitive exports out of China and stagnant emerging market demand.
 
6 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT

 
 

 

QUESTIONS & ANSWERS continued (Unaudited)
October 31, 2013
 
A second large detractor was the convertible bond of Newmont Mining Corp., the world’s second-largest gold producer (0.6% of long-term investments at period end). The company has struggled to keep production costs under control in the face of slumping gold prices.
 
Another detractor from performance was the convertible bond of voice and health care software maker Nuance Communications (1.5% of long-term investments at period end). It had losses as growth slowed, with carriers more cautious about a second phase of investment in voice-enabled applications. Activist involvement in the company may presage a recovery in 2014.
 
Have there been any changes to the Fund’s investment guidelines?
The Commodity Futures Trading Commission (“CFTC”) recently amended its Rule 4.5, which excludes the Investment Adviser and the Investment Manager from registration as a commodity pool operator provided certain requirements are met. In order to permit the Investment Adviser and the Investment Manager to continue to claim this exclusion under the amended rule, beginning on January 1, 2013, the Fund limited its trading activity in futures, options on futures and swaps (excluding activity for “bona fide hedging purposes,” as defined under CFTC regulations) such that either:
 
the aggregate initial margin and premiums required to establish its futures, options on futures and swaps did not exceed 5% of the liquidation value of the Fund’s portfolio, after taking into account unrealized profits and losses on such positions; or
   
the aggregate net notional value of its futures, options on futures and swaps did not exceed 100% of the liquidation value of the Fund’s portfolio, after taking into account unrealized profits and losses on such positions.
 
The Fund and the Investment Manager do not believe that complying with the amended rule limits the Fund’s ability to use futures, options and swaps in the manner needed to effectively manage the portfolio.
 
Do you have any other comments about the markets and the Fund?
The Fund is facing a period in which equity markets attempt to sustain the strong earnings multiple expansion of the previous year, and both bond and equity markets look to actions of a new Federal Reserve Chairperson for clues on market money flows. The effect of health care reform and government budget trimming could be headwinds, but economic growth figures have easy comparisons after sluggish results in 2012 on lower retail spending and the effect of the first budget sequestration and tax increases on high-income earners.
 
Also, the international environment may be a source of opportunities, with monetary authorities looking to inject more stimuli in Europe, more fiscal and monetary stimulus likely in Japan, and new leadership managing economic growth in China. Wildcards exist with volatile commodity prices and in countries with similar sluggish economies but governments under political pressure, such as in Brazil and also in India, where elections loom in spring 2014.
 
The Investment Adviser views this Fund as opportunistic given its mandate to invest across corporate capital structures from loans to high-yield to convertibles to equity, and will continue to use its expansive research staff to find appropriate opportunities across the globe.
 
Index Definitions
Indices are unmanaged and do not experience fees, expenses or transaction costs, and it is not possible to invest directly in an index.
 
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.
 
MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.
 
Bank of America Merrill Lynch All U.S. Convertibles Index is comprised of approximately 500 issues of convertible bonds and preferred stock of all qualities.
 
Bank of America Merrill Lynch Global 300 Convertible Index measures the performance of convertible securities of issuers throughout the world.
 
The Barclays U.S. 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 Treasury, government-related, corporate, mortgage-backed securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities and collateralized mortgage-backed securities sectors.
 
Bank of America 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.
 
The CBOE S&P 500 2% OTM BuyWrite Index (BXY) uses the same methodology as the widely accepted CBOE S&P 500 BuyWrite Index (BXM), but the BXY Index is calculated using out-of-the-money S&P 500 Index (SPX) call options, rather than at-the-money SPX call options. The BXY strategy diversifies the buy-write opportunities currently provided by the BXM. The BXY Index yields lower monthly premiums in return for a greater participation in the upside moves of the S&P 500.
 
VIX is the ticker symbol for the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 index options. It is a weighted blend of prices for a range of options on the S&P 500 index.
 
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.
 
Please see guggenheiminvestments.com/avk for a detailed discussion of the Fund’s risks and considerations.
 
AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT | 7

 
 

 

FUND SUMMARY (Unaudited)
October 31, 2013

Fund Statistics
     
Share Price
  $ 17.81
Common Share Net Asset Value
  $ 19.76
Premium/Discount to NAV
    -9.87%
Net Assets ($000)
  $ 466,031

Total Returns
           
(Inception 4/30/03)
 
Market
 
NAV
One Year
    12.90 %     22.09 %
Three Year – average annual
    7.48 %     8.34 %
Five Year – average annual
    15.36 %     18.08 %
Ten Year – average annual
    5.82 %     5.82 %
Since Inception – average annual
    5.87 %     6.80 %

   
% of Long-Term
Top Ten Industries
 
Investments
Telecommunications
    10.1 %
Oil & Gas
    7.6 %
Pharmaceuticals
    7.5 %
Real Estate Investment Trusts
    7.4 %
Health Care Products
    5.7 %
Internet
    5.6 %
Semiconductors
    5.1 %
Banks
    4.2 %
Biotechnology
    3.4 %
Mining
    3.3 %

   
% of Long-Term
Top Ten Issuers
 
Investments
Hologic, Inc.
    2.7 %
Clearwire Communications, LLC / Clearwire Finance, Inc.
    2.2 %
Micron Technology, Inc.
    2.0 %
Alcatel-Lucent, Inc.
    2.0 %
Chesapeake Energy Corp.
    1.9 %
Gilead Sciences, inc.
    1.8 %
BioMarin Pharmaceutical, Inc.
    1.7 %
EMC Corp.
    1.7 %
WebMD Health Corp.
    1.6 %
SL Green Operating Partnership, LP
    1.5 %
 
Past performance does not guarantee future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions. NAV performance data reflects fees and expenses of the Fund. All portfolio data is subject to change daily. For more current information, please visit guggenheiminvestments.com/avk. The above summaries are provided for informational purposes only and should not be viewed as recommendations.
 
 
Country Breakdown (% of Total Investments)
     
United States
    82.0 %
Cayman Islands
    2.8 %
Luxembourg
    2.5 %
France
    1.9 %
Jersey
    1.7 %
United Kingdom
    1.6 %
Japan
    1.5 %
Singapore
    1.0 %
British Virgin Islands
    0.9 %
South Korea
    0.7 %
Mexico
    0.6 %
Marshall Islands
    0.6 %
Canada
    0.4 %
Australia
    0.3 %
Netherlands
    0.3 %
Austria
    0.2 %
Bermuda
    0.2 %
China
    0.2 %
Germany
    0.2 %
United Arab Emirates
    0.1 %
Italy
    0.1 %
Malaysia
    0.1 %
Bahamas
    0.1 %
Subject to change daily.
       

8 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT

 
 

 

PORTFOLIO OF INVESTMENTS
October 31, 2013

Principal
               
Optional Call
       
Amount~
 
Description
 
Rating*
Coupon
 
Maturity
 
Provisions**
   
Value
 
   
Long-Term Investments – 148.9%
                     
   
Convertible Bonds – 100.5%
                     
   
Aerospace & Defense – 0.3%
                     
1,301,000
 
L-3 Communications Holdings, Inc.(a)
 
BB+
3.000%
 
08/01/2035
 
11/25/13 @ 100
 
$
1,491,271
 
                           
   
Airlines – 0.1%
                     
155,000
 
United Airlines, Inc.
 
B
4.500%
 
01/15/2015
 
N/A
   
288,397
 
                           
   
Apparel – 0.1%
                     
EUR 200,000
 
Adidas AG, Series ADS (Germany)
 
NR
0.250%
 
06/14/2019
 
N/A
   
341,289
 
222,000
 
Iconix Brand Group, Inc.(a) (b)
 
NR
1.500%
 
03/15/2018
 
N/A
   
285,270
 
                       
626,559
 
                           
   
Auto Manufacturers – 1.1%
                     
2,816,000
 
Navistar International Corp.(a) (c)
 
CCC–
3.000%
 
10/15/2014
 
N/A
   
2,905,760
 
1,563,000
 
Navistar International Corp.(b)
 
CCC–
4.500%
 
10/15/2018
 
N/A
   
1,581,561
 
EUR 400,000
 
Volkswagen International Finance NV (Netherlands)(b)
 
BBB
5.500%
 
11/09/2015
 
N/A
   
634,513
 
                       
5,121,834
 
                           
   
Auto Parts & Equipment – 1.4%
                     
EUR 2,687,000
 
Faurecia, Series EO (France)
 
B3
3.250%
 
01/01/2018
 
N/A
   
974,884
 
5,905,000
 
Meritor, Inc.(a) (d)
 
B–
4.000%
 
02/15/2027
 
02/15/19 @ 100
   
5,443,672
 
                       
6,418,556
 
                           
   
Banks – 0.1%
                     
400,000
 
National Bank of Abu Dhabi PJSC, Series NBAD (United Arab Emirates)
 
AA–
1.000%
 
03/12/2018
 
N/A
   
431,210
 
                           
   
Biotechnology – 5.0%
                     
6,637,000
 
Cubist Pharmaceuticals, Inc.(a) (b)
 
NR
1.125%
 
09/01/2018
 
N/A
   
7,192,849
 
3,948,000
 
Gilead Sciences, Inc., Series C(a)
 
A–
1.000%
 
05/01/2014
 
N/A
   
12,453,473
 
1,111,000
 
InterMune, Inc.(a)
 
NR
2.500%
 
12/15/2017
 
N/A
   
1,464,437
 
2,839,000
 
Merrimack Pharmaceuticals, Inc.(a)
 
NR
4.500%
 
07/15/2020
 
N/A
   
2,173,609
 
                       
23,284,368
 
                           
   
Building Materials – 1.0%
                     
3,831,000
 
Cemex SAB de CV (Mexico)(a)
 
NR
4.875%
 
03/15/2015
 
N/A
   
4,443,960
 
                           
   
Commercial Services – 0.1%
                     
JPY 40,000,000
 
Park24 Co. Ltd. (Japan)(e)
 
NR
0.000%
 
04/26/2018
 
N/A
   
430,028
 
                           
   
Computers – 4.4%
                     
EUR 690,000
 
AtoS, Series ATOS (France)
 
NR
1.500%
 
07/01/2016
 
N/A
   
601,970
 
EUR 2,999
 
Capital Gemini SA, Series CAP (France)(e)
 
BBB
0.000%
 
01/01/2019
 
N/A
   
298,357
 
7,665,000
 
EMC Corp., Series B(a)
 
A
1.750%
 
12/01/2013
 
N/A
   
11,588,560
 
EUR 356,500
 
Ingenico, Series ING (France)
 
NR
2.750%
 
01/01/2017
 
N/A
   
288,063
 
7,683,000
 
SanDisk Corp.(a) (b)
 
BB
0.500%
 
10/15/2020
 
N/A
   
7,865,471
 
                       
20,642,421
 
                           
   
Diversified Financial Services – 0.5%
                     
414,000
 
Air Lease Corp.
 
NR
3.875%
 
12/01/2018
 
N/A
   
535,095
 
700,000
 
Hong Kong Exchanges and Clearing Ltd. (China)
 
NR
0.500%
 
10/23/2017
 
N/A
   
749,000
 
290,000
 
Portfolio Recovery Associates, Inc.(b)
 
NR
3.000%
 
08/01/2020
 
N/A
   
340,750
 
HKD 1,240,000
 
Power Regal Group Ltd. (British Virgin Islands)
 
NR
2.250%
 
06/02/2014
 
N/A
   
232,468
 
645,000
 
Walter Investment Management Corp.(a)
 
NR
4.500%
 
11/01/2019
 
N/A
   
673,622
 
                       
2,530,935
 

See notes to financial statements.
AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT | 9
 
 
 

 
 
PORTFOLIO OF INVESTMENTS continued
October 31, 2013

Principal
               
Optional Call
       
Amount~
 
Description
 
Rating*
Coupon
 
Maturity
 
Provisions**
   
Value
 
   
Electric – 0.1%
                     
CNY 2,200,000
 
China Power International Development Ltd. (China)
 
NR
2.250%
 
05/17/2016
 
N/A
 
$
524,506
 
                           
   
Electronics – 0.7%
                     
2,750,000
 
TPK Holding Co. Ltd., Series REGS (Cayman Islands)(e)
 
NR
0.000%
 
10/01/2017
 
N/A
   
2,585,000
 
283,000
 
Vishay Intertechnology, Inc.(b)
 
BB+
2.250%
 
11/15/2040
 
N/A
   
283,884
 
JPY 20,000,000
 
Yaskawa Electric Corp. (Japan)(e)
 
NR
0.000%
 
03/16/2017
 
N/A
   
266,283
 
                       
3,135,167
 
                           
   
Energy-Alternate Sources – 1.3%
                     
5,341,000
 
SolarCity Corp.(c)
 
NR
2.750%
 
11/01/2018
 
N/A
   
6,145,488
 
                           
   
Engineering & Construction – 0.1%
                     
400,000
 
YTL Corp. Finance Labuan Ltd. (Malaysia)
 
NR
1.875%
 
03/18/2015
 
N/A
   
437,000
 
                           
   
Food – 0.6%
                     
GBP 1,550,000
 
J Sainsbury PLC (United Kingdom)
 
NR
4.250%
 
07/16/2014
 
N/A
   
2,676,999
 
                           
   
Gas – 0.3%
                     
1,250,000
 
ENN Energy Holdings Ltd. (Cayman Islands)(e)
 
NR
0.000%
 
02/26/2018
 
N/A
   
1,479,688
 
                           
   
Hand & Machine Tools – 0.8%
                     
EUR 500,000
 
KUKA AG, Series KU2 (Germany)
 
NR
2.000%
 
02/12/2018
 
N/A
   
789,665
 
JPY 240,000,000
 
OSG Corp. (Japan)(e)
 
NR
0.000%
 
04/04/2022
 
N/A
   
2,976,455
 
                       
3,766,120
 
                           
   
Health Care Products – 8.2%
                     
7,804,000
 
HeartWare International, Inc.(a)
 
NR
3.500%
 
12/15/2017
 
N/A
   
8,652,685
 
HKD 25,000,000
 
Hengan International Group Co. Ltd. (Cayman Islands)(e)
 
NR
0.000%
 
06/27/2018
 
N/A
   
3,450,255
 
9,750,000
 
Hologic, Inc.(a) (d) (f)
 
B+
2.000%
 
12/15/2037
 
06/15/14 @ 101
   
9,756,143
 
4,857,000
 
Hologic, Inc., Series 2010(a) (d) (g)
 
B+
2.000%
 
12/15/2037
 
12/15/16 @ 100
   
5,713,046
 
2,999,000
 
Hologic, Inc., Series 2012(a) (d) (h)
 
B+
2.000%
 
03/01/2042
 
03/06/18 @ 100
   
3,143,327
 
2,787,000
 
Volcano Corp.(a)
 
NR
1.750%
 
12/01/2017
 
N/A
   
2,698,164
 
3,807,000
 
Wright Medical Group, Inc.(a)
 
NR
2.000%
 
08/15/2017
 
N/A
   
4,806,338
 
                       
38,219,958
 
                           
   
Health Care Services – 2.0%
                     
225,000
 
Brookdale Senior Living, Inc.
 
NR
2.750%
 
06/15/2018
 
N/A
   
273,516
 
7,481,000
 
LifePoint Hospitals, Inc.(a)
 
B
3.500%
 
05/15/2014
 
N/A
   
8,121,560
 
504,000
 
Molina Healthcare, Inc.(a) (b)
 
NR
1.125%
 
01/15/2020
 
N/A
   
515,655
 
225,000
 
WellPoint, Inc.(b)
 
A–
2.750%
 
10/15/2042
 
N/A
   
293,344
 
                       
9,204,075
 
                           
   
Holding Companies-Diversified – 0.2%
                     
400,000
 
Giant Great Ltd. (British Virgin Islands)
 
NR
3.000%
 
07/21/2016
 
N/A
   
509,600
 
400,000
 
Siem Industries, Inc., Series SUBC (Cayman Islands)
 
NR
1.000%
 
09/12/2019
 
N/A
   
426,360
 
                       
935,960
 
                           
   
Home Builders – 2.8%
                     
4,780,000
 
Lennar Corp.(a) (b)
 
BB–
2.000%
 
12/01/2020
 
12/02/13 @ 100
   
6,130,350
 
1,563,000
 
Lennar Corp.(b)
 
BB–
3.250%
 
11/15/2021
 
11/20/16 @ 100
   
2,617,048
 
2,787,000
 
Ryland Group, Inc.(a)
 
BB–
1.625%
 
05/15/2018
 
N/A
   
4,089,923
 
                       
12,837,321
 
                           
   
Household Products & Housewares – 0.1%
                     
580,000
 
Jarden Corp.(a) (b)
 
BB–
1.500%
 
06/15/2019
 
N/A
   
664,100
 
                           
   
Insurance – 1.9%
                     
6,102,000
 
Radian Group, Inc.(a)
 
B–
3.000%
 
11/15/2017
 
N/A
   
8,889,851
 

See notes to financial statements.
10 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT

 
 

 
 
PORTFOLIO OF INVESTMENTS continued
October 31, 2013

Principal
               
Optional Call
       
Amount~
 
Description
 
Rating*
Coupon
 
Maturity
 
Provisions**
   
Value
 
   
Internet – 7.0%
                     
360,000
 
BroadSoft, Inc.
 
NR
1.500%
 
07/01/2018
 
N/A
 
$
391,725
 
7,290,000
 
Ctrip.com International Ltd. (Cayman Islands)(b) (c)
 
NR
1.250%
 
10/15/2018
 
N/A
   
7,604,381
 
4,171,000
 
Equinix, Inc.(a)
 
B+
3.000%
 
10/15/2014
 
N/A
   
6,071,412
 
5,549,000
 
priceline.com, Inc.(a) (c)
 
BBB
1.000%
 
03/15/2018
 
N/A
   
7,376,702
 
11,300,000
 
WebMD Health Corp.(a)
 
NR
2.500%
 
01/31/2018
 
N/A
   
11,102,250
 
                       
32,546,470
 
                           
   
Investment Companies – 1.3%
                     
EUR 200,000
 
Aabar Investments PJSC, Series REGS (United Arab Emirates)
 
NR
4.000%
 
05/27/2016
 
N/A
   
318,531
 
5,400,000
 
Billion Express Investments Ltd. (British Virgin Islands)
 
NR
0.750%
 
10/18/2015
 
N/A
   
5,644,350
 
                       
5,962,881
 
                           
   
Iron & Steel – 2.4%
                     
1,045,000
 
Allegheny Technologies, Inc.
 
BBB–
4.250%
 
06/01/2014
 
N/A
   
1,083,534
 
410,297
 
ArcelorMittal, Series MTUS (Luxembourg)(a) (c)
 
B+
6.000%
 
01/15/2016
 
N/A
   
9,936,901
 
                       
11,020,435
 
                           
   
Lodging – 1.0%
                     
3,960,000
 
MGM Resorts International(a) (c)
 
B+
4.250%
 
04/15/2015
 
N/A
   
4,860,900
 
                           
   
Machinery-Diversified – 0.4%
                     
111,000
 
AGCO Corp.(a)
 
BB+
1.250%
 
12/15/2036
 
12/19/13 @ 100
   
159,771
 
JPY 31,000,000
 
Ebara Corp., Series 6 (Japan)(e)
 
NR
0.000%
 
03/19/2018
 
N/A
   
404,393
 
JPY 100,000,000
 
IHI Corp. (Japan)(e)
 
NR
0.000%
 
03/29/2016
 
N/A
   
1,503,669
 
                       
2,067,833
 
                           
   
Media – 1.8%
                     
336,000
 
Liberty Interactive, LLC(b)
 
BB
0.750%
 
03/30/2043
 
04/05/23 @ 100
   
403,200
 
5,703,000
 
Liberty Interactive, LLC(a) (b)
 
BB
1.000%
 
09/30/2043
 
10/05/16 @ 100
   
5,877,654
 
2,172,000
 
Liberty Media Corp.(b)
 
NR
1.375%
 
10/15/2023
 
N/A
   
2,290,103
 
                       
8,570,957
 
                           
   
Metal Fabricate & Hardware – 0.1%
                     
375,000
 
RTI International Metals, Inc.
 
NR
1.625%
 
10/15/2019
 
N/A
   
404,531
 
                           
   
Mining – 3.9%
                     
5,100,000
 
Glencore Finance Europe SA (Luxembourg)
 
BBB
5.000%
 
12/31/2014
 
N/A
   
6,033,300
 
3,583,000
 
Newmont Mining Corp., Series B(a)
 
BBB
1.625%
 
07/15/2017
 
N/A
   
3,887,555
 
8,705,000
 
Royal Gold, Inc.(a)
 
NR
2.875%
 
06/15/2019
 
N/A
   
8,318,716
 
                       
18,239,571
 
                           
   
Oil & Gas – 4.4%
                     
7,683,000
 
Chesapeake Energy Corp.(a)
 
BB–
2.250%
 
12/15/2038
 
12/15/18 @ 100
   
7,274,841
 
7,162,000
 
Cobalt International Energy, Inc.(a)
 
NR
2.625%
 
12/01/2019
 
N/A
   
7,354,479
 
500,000
 
Lukoil International Finance BV (Netherlands)
 
BBB
2.625%
 
06/16/2015
 
N/A
   
559,250
 
2,505,000
 
Premier Oil Finance Jersey Ltd., Series PMO (Jersey)
 
NR
2.500%
 
07/27/2018
 
N/A
   
2,951,140
 
300,000
 
Seadrill Ltd. (Bermuda)
 
NR
3.375%
 
10/27/2017
 
N/A
   
496,950
 
1,698,000
 
Stone Energy Corp.(a)
 
B–
1.750%
 
03/01/2017
 
N/A
   
1,864,616
 
                       
20,501,276
 
                           
   
Oil & Gas Services – 2.2%
                     
4,374,000
 
Hornbeck Offshore Services, Inc.(a)
 
BB–
1.500%
 
09/01/2019
 
N/A
   
5,552,246
 
EUR 3,538,000
 
Technip SA, Series TEC (France)
 
BBB+
0.500%
 
01/01/2016
 
N/A
   
4,698,506
 
                       
10,250,752
 

See notes to financial statements.
AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT | 11

 
 

 

PORTFOLIO OF INVESTMENTS continued
October 31, 2013

Principal
               
Optional Call
       
Amount~
 
Description
 
Rating*
Coupon
 
Maturity
 
Provisions**
   
Value
 
   
Pharmaceuticals – 10.8%
                     
2,760,000
 
Array BioPharma, Inc.(a)
 
NR
3.000%
 
06/01/2020
 
N/A
 
$
2,903,175
 
2,961,000
 
Auxilium Pharmaceuticals, Inc.(a)
 
NR
1.500%
 
07/15/2018
 
N/A
   
3,038,726
 
11,713,000
 
BioMarin Pharmaceutical, Inc.(a)
 
NR
1.500%
 
10/15/2020
 
N/A
   
12,079,031
 
1,288,000
 
Isis Pharmaceuticals, Inc.(a)
 
NR
2.750%
 
10/01/2019
 
N/A
   
2,746,660
 
2,637,000
 
Medivation, Inc.(a)
 
NR
2.625%
 
04/01/2017
 
N/A
   
3,733,003
 
112,000
 
Pacira Pharmaceuticals, Inc.(b)
 
NR
3.250%
 
02/01/2019
 
N/A
   
241,500
 
4,285,000
 
Salix Pharmaceuticals Ltd.(a)
 
NR
1.500%
 
03/15/2019
 
N/A
   
5,632,097
 
JPY 316,000,000
 
Sawai Pharmaceutical Co. Ltd. (Japan)(e)
 
NR
0.000%
 
09/17/2015
 
N/A
   
4,905,392
 
3,135,000
 
Shire PLC, Series SHP (Jersey)
 
NR
2.750%
 
05/09/2014
 
N/A
   
4,285,545
 
4,263,000
 
Theravance, Inc.(a)
 
NR
2.125%
 
01/15/2023
 
N/A
   
6,450,452
 
4,837,000
 
Vivus, Inc.(a) (b)
 
NR
4.500%
 
05/01/2020
 
N/A
   
4,386,555
 
                       
50,402,136
 
                           
   
Real Estate – 3.3%
                     
EUR 400,000
 
BENI Stabili SpA, REIT (Italy)
 
NR
3.375%
 
01/17/2018
 
N/A
   
579,908
 
SGD 9,500,000
 
CapitaLand Ltd., Series REGS (Singapore)
 
NR
1.850%
 
06/19/2020
 
N/A
   
7,333,615
 
6,149,000
 
Forest City Enterprises, Inc.(a) (b)
 
BB–
3.625%
 
08/15/2020
 
08/15/18 @ 100
   
6,548,685
 
EUR 90,455
 
IMMOFINANZ AG (Austria)
 
NR
4.250%
 
03/08/2018
 
N/A
   
571,655
 
GBP 200,000
 
Unite Jersey Issuer Ltd., Series UTG (Jersey)
 
NR
2.500%
 
10/10/2018
 
N/A
   
330,444
 
                       
15,364,307
 
                           
   
Real Estate Investment Trusts – 9.8%
                     
8,746,000
 
Annaly Capital Management, Inc.(a)
 
NR
5.000%
 
05/15/2015
 
N/A
   
8,904,521
 
1,538,000
 
BioMed Realty, LP(a) (b)
 
NR
3.750%
 
01/15/2030
 
01/21/15 @ 100
   
1,852,329
 
9,868,000
 
Boston Properties, LP(a) (b)
 
A–
3.625%
 
02/15/2014
 
N/A
   
10,009,852
 
293,000
 
DDR Corp.
 
BBB–
1.750%
 
11/15/2040
 
11/20/15 @ 100
   
348,670
 
GBP 300,000
 
Derwent London Capital Jersey Ltd. (Jersey)
 
BBB
2.750%
 
07/15/2016
 
N/A
   
596,692
 
GBP 2,000,000
 
Derwent London Capital No. 2 Jersey Ltd., Series DLN (Jersey)
 
BBB
1.125%
 
07/24/2019
 
N/A
   
3,259,151
 
GBP 300,000
 
Great Portland Estates Capital Jersey Ltd., Series GPOR (Jersey)
 
NR
1.000%
 
09/10/2018
 
N/A
   
498,512
 
272,000
 
Host Hotels & Resorts, LP(a) (b)
 
BBB–
2.500%
 
10/15/2029
 
10/20/15 @ 100
   
396,440
 
727,000
 
NorthStar Realty Finance, LP(b)
 
NR
5.375%
 
06/15/2033
 
06/15/23 @ 100
   
748,356
 
304,000
 
Pennymac Corp.(b)
 
NR
5.375%
 
05/01/2020
 
N/A
   
296,210
 
2,603,000
 
ProLogis, LP
 
BBB
3.250%
 
03/15/2015
 
N/A
   
3,056,898
 
8,400,000
 
SL Green Operating Partnership, LP(a) (b)
 
BB+
3.000%
 
10/15/2017
 
N/A
   
10,704,750
 
4,608,000
 
Starwood Property Trust, Inc.(a)
 
BB–
4.000%
 
01/15/2019
 
N/A
   
4,944,960
 
                       
45,617,341
 
                           
   
Retail – 0.1%
                     
253,000
 
Group 1 Automotive, Inc.(d)
 
BB
2.250%
 
06/15/2036
 
06/15/16 @ 100
   
303,758
 
EUR 208,047
 
Rallye SA, Series COFP (France)
 
NR
1.000%
 
10/02/2020
 
N/A
   
306,613
 
                       
610,371
 
                           
   
Semiconductors – 6.8%
                     
7,602,000
 
Advanced Micro Devices, Inc.(a)
 
B
6.000%
 
05/01/2015
 
N/A
   
7,934,588
 
320,000
 
Microchip Technology, Inc.
 
NR
2.125%
 
12/15/2037
 
N/A
   
532,800
 
2,901,000
 
Micron Technology, Inc.
 
BB–
1.875%
 
06/01/2014
 
N/A
   
3,725,972
 
5,504,000
 
Micron Technology, Inc., Series A(a) (c)
 
NR
1.500%
 
08/01/2031
 
08/05/15 @ 100
   
10,371,600
 
183,000
 
Novellus Systems, Inc.
 
BBB
2.625%
 
05/15/2041
 
N/A
   
305,724
 
357,000
 
ON Semiconductor Corp., Series B
 
BB+
2.625%
 
12/15/2026
 
12/20/16 @ 100
   
387,122
 
3,000,000
 
Semiconductor Manufacturing International Corp., Series REGS (Cayman Islands)(e)
 
NR
0.000%
 
11/07/2018
 
N/A
   
3,067,365
 

See notes to financial statements.
12 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT

 
 

 

PORTFOLIO OF INVESTMENTS continued
October 31, 2013

Principal
               
Optional Call
       
Amount~
 
Description
 
Rating *
Coupon
 
Maturity
 
Provisions**
   
Value
 
   
Semiconductors (continued)
                     
4,100,000
 
SK Hynix, Inc. (South Korea)
 
NR
2.650%
 
05/14/2015
 
N/A
 
$
4,807,250
 
406,000
 
Xilinx, Inc.(a)
 
BBB+
2.625%
 
06/15/2017
 
N/A
   
647,570
 
                       
31,779,991
 
                           
   
Software – 4.2%
                     
4,463,000
 
Allscripts Healthcare Solutions, Inc.(a) (b)
 
NR
1.250%
 
07/01/2020
 
N/A
   
4,744,727
 
251,000
 
Cornerstone OnDemand, Inc.(b)
 
NR
1.500%
 
07/01/2018
 
N/A
   
286,611
 
3,476,000
 
Electronic Arts, Inc.(a)
 
NR
0.750%
 
07/15/2016
 
N/A
   
3,871,395
 
9,995,000
 
Nuance Communications, Inc.(a)
 
BB–
2.750%
 
08/15/2027
 
08/20/14 @ 100
   
10,532,231
 
150,000
 
Salesforce.com, Inc.(b)
 
BB
0.250%
 
04/01/2018
 
N/A
   
164,062
 
                       
19,599,026
 
                           
   
Telecommunications – 7.7%
                     
EUR 1,566,050
 
Alcatel-Lucent, Series ALU (France)
 
CCC+
4.250%
 
07/01/2018
 
N/A
   
6,908,747
 
6,401,000
 
Ciena Corp.(a)
 
B
0.875%
 
06/15/2017
 
N/A
   
6,657,040
 
404,000
 
Ciena Corp.(a) (b)
 
B
3.750%
 
10/15/2018
 
N/A
   
576,710
 
1,562,000
 
Ciena Corp.
 
NR
4.000%
 
12/15/2020
 
N/A
   
2,271,734
 
13,184,000
 
Clearwire Communications, LLC / Clearwire Finance, Inc.(a) (b)
 
NR
8.250%
 
12/01/2040
 
12/01/17 @ 100
   
15,095,680
 
355,000
 
Ixia
 
NR
3.000%
 
12/15/2015
 
N/A
   
398,487
 
1,302,000
 
JDS Uniphase Corp.(b)
 
NR
0.625%
 
08/15/2033
 
08/20/18 @ 100
   
1,372,796
 
JPY 20,000,000
 
KDDI Corp. (Japan)(e)
 
NR
0.000%
 
12/14/2015
 
12/16/13 @ 100
   
378,504
 
1,302,000
 
Level 3 Communications, Inc.(a)
 
CCC+
6.500%
 
10/01/2016
 
N/A
   
2,166,202
 
                       
35,825,900
 
                           
   
Transportation – 0.1%
                     
JPY 20,000,000
 
Yamato Holdings Co. Ltd. (Japan)(e)
 
NR
0.000%
 
03/07/2016
 
N/A
   
257,058
 
                           
   
Total Convertible Bonds – 100.5%
                     
   
(Cost $442,290,017)
                 
468,507,508
 
                           
   
Corporate Bonds – 32.0%
                     
   
Aerospace & Defense – 0.2%
                     
625,000
 
Kratos Defense & Security Solutions, Inc.(a)
 
B
10.000%
 
06/01/2017
 
06/01/14 @ 105
   
684,375
 
                           
   
Auto Manufacturers – 0.6%
                     
1,250,000
 
Allied Specialty Vehicles, Inc.(b)
 
B+
8.500%
 
11/01/2019
 
11/01/16 @ 104
   
1,256,250
 
1,250,000
 
Chrysler Group, LLC / CG Co.-Issuer, Inc.(a)
 
B
8.250%
 
06/15/2021
 
06/15/16 @ 104
   
1,420,312
 
                       
2,676,562
 
                           
   
Auto Parts & Equipment – 1.0%
                     
1,075,000
 
Dana Holding Corp.(a)
 
BB
6.750%
 
02/15/2021
 
02/15/16 @ 103
   
1,174,437
 
1,000,000
 
Goodyear Tire & Rubber Co.(a)
 
B+
8.250%
 
08/15/2020
 
08/15/15 @ 104
   
1,135,000
 
500,000
 
Pittsburgh Glass Works, LLC(a) (b)
 
B
8.500%
 
04/15/2016
 
04/15/14 @ 102
   
524,700
 
300,000
 
Titan International, Inc.(b)
 
B+
6.875%
 
10/01/2020
 
10/01/16 @ 105
   
309,000
 
1,250,000
 
TRW Automotive, Inc.(a) (b)
 
BBB–
4.500%
 
03/01/2021
 
N/A
   
1,281,250
 
                       
4,424,387
 
                           
   
Banks – 5.1%
                     
5,214,000
 
Ally Financial, Inc.(a)
 
B+
4.625%
 
06/26/2015
 
N/A
   
5,454,923
 
1,450,000
 
Ally Financial, Inc.(a)
 
B+
7.500%
 
09/15/2020
 
N/A
   
1,701,937
 
975,000
 
CIT Group, Inc.(a) (b)
 
BB–
5.500%
 
02/15/2019
 
N/A
   
1,060,313
 
9,769,000
 
Emigrant Bancorp, Inc.(a) (b)
 
B–
6.250%
 
06/15/2014
 
N/A
   
9,964,380
 
5,334,000
 
Synovus Financial Corp.(a)
 
B+
5.125%
 
06/15/2017
 
N/A
   
5,467,350
 
                       
23,648,903
 

See notes to financial statements.
AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT | 13

 
 

 
 
PORTFOLIO OF INVESTMENTS continued
October 31, 2013

Principal
               
Optional Call
       
Amount~
 
Description
 
Rating*
Coupon
 
Maturity
 
Provisions**
   
Value
 
   
Building Materials – 0.2%
                     
1,050,000
 
Boise Cascade Co.(a)
 
B+
6.375%
 
11/01/2020
 
11/01/15 @ 105
 
$
1,102,500
 
                           
   
Chemicals – 1.8%
                     
1,250,000
 
Ashland, Inc.(a)
 
BB
4.750%
 
08/15/2022
 
05/15/22 @ 100
   
1,206,250
 
1,250,000
 
Celanese US Holdings, LLC(a)
 
BB+
4.625%
 
11/15/2022
 
N/A
   
1,232,812
 
1,250,000
 
Cornerstone Chemical Co., Series AI(a)
 
B–
9.375%
 
03/15/2018
 
03/15/15 @ 107
   
1,312,500
 
625,000
 
Phibro Animal Health Corp.(a) (b)
 
B
9.250%
 
07/01/2018
 
07/01/14 @ 105
   
676,562
 
625,000
 
Rain CII Carbon, LLC / CII Carbon Corp.(b)
 
BB–
8.250%
 
01/15/2021
 
01/15/16 @ 106
   
648,438
 
1,250,000
 
Rockwood Specialties Group, Inc.(a)
 
BB+
4.625%
 
10/15/2020
 
10/15/15 @ 103
   
1,290,625
 
625,000
 
Tronox Finance, LLC(a)
 
BB–
6.375%
 
08/15/2020
 
08/15/15 @ 105
   
640,625
 
1,275,000
 
Vertellus Specialties, Inc.(a) (b)
 
CCC+
9.375%
 
10/01/2015
 
10/01/14 @ 100
   
1,244,719
 
                       
8,252,531
 
                           
   
Coal – 0.2%
                     
751,000
 
SunCoke Energy, Inc.(a)
 
B+
7.625%
 
08/01/2019
 
08/01/14 @ 106
   
809,203
 
                           
   
Commercial Services – 0.7%
                     
925,000
 
ADT Corp.(a) (b)
 
BB–
6.250%
 
10/15/2021
 
N/A
   
982,812
 
925,000
 
Cenveo Corp.(a)
 
CCC+
8.875%
 
02/01/2018
 
02/01/14 @ 104
   
936,562
 
1,250,000
 
Prospect Medical Holdings, Inc.(a) (b)
 
B–
8.375%
 
05/01/2019
 
05/01/15 @ 106
   
1,348,438
 
                       
3,267,812
 
                           
   
Computers – 0.3%
                     
1,250,000
 
Seagate HDD Cayman (Cayman Islands)(a) (b)
 
BBB–
4.750%
 
06/01/2023
 
N/A
   
1,221,875
 
                           
   
Diversified Financial Services – 0.4%
                     
625,000
 
Denali Borrower, LLC / Denali Finance Corp.(b)
 
BB+
5.625%
 
10/15/2020
 
10/15/16 @ 104
   
620,312
 
250,000
 
Nationstar Mortgage, LLC / Nationstar Capital Corp.
 
B+
6.500%
 
08/01/2018
 
08/01/15 @ 103
   
260,000
 
150,000
 
Nationstar Mortgage, LLC / Nationstar Capital Corp.(a)
 
B+
7.875%
 
10/01/2020
 
10/01/16 @ 104
   
161,062
 
825,000
 
Nationstar Mortgage, LLC / Nationstar Capital Corp.(a)
 
B+
6.500%
 
07/01/2021
 
01/01/17 @ 103
   
814,688
 
                       
1,856,062
 
                           
   
Electrical Components & Equipment – 0.1%
                     
625,000
 
International Wire Group Holdings, Inc.(a) (b)
 
B
8.500%
 
10/15/2017
 
10/15/15 @ 104
   
667,188
 
                           
   
Engineering & Construction – 0.2%
                     
1,077,000
 
MasTec, Inc.
 
BB–
4.875%
 
03/15/2023
 
03/15/18 @ 102
   
1,029,881
 
                           
   
Entertainment – 0.1%
                     
644,000
 
Six Flags Entertainment Corp.(a) (b)
 
BB–
5.250%
 
01/15/2021
 
01/15/16 @ 104
   
634,340
 
                           
   
Environmental Control – 0.5%
                     
1,250,000
 
Casella Waste Systems, Inc.
 
CCC
7.750%
 
02/15/2019
 
02/15/15 @ 104
   
1,268,750
 
1,250,000
 
Clean Harbors, Inc.(a)
 
BB+
5.125%
 
06/01/2021
 
12/01/16 @ 103
   
1,273,437
 
                       
2,542,187
 
                           
   
Food – 0.5%
                     
1,500,000
 
Land O’Lakes Capital Trust I(a) (b)
 
BB
7.450%
 
03/15/2028
 
N/A
   
1,477,500
 
950,000
 
Marfrig Holding Europe BV (Netherlands)(a) (b)
 
B
9.875%
 
07/24/2017
 
01/24/16 @ 105
   
953,563
 
                       
2,431,063
 
                           
   
Forest Products & Paper – 0.9%
                     
1,200,000
 
Appvion, Inc.(a)
 
CCC+
11.250%
 
12/15/2015
 
N/A
   
1,368,000
 
925,000
 
Catalyst Paper Corp. (Canada)(a) (i)
 
NR
11.000%
 
10/30/2017
 
12/15/13 @ 100
   
531,875
 
300,000
 
Neenah Paper, Inc.(b)
 
BB–
5.250%
 
05/15/2021
 
05/15/16 @ 104
   
293,250
 
1,200,000
 
Sappi Papier Holding GmbH (Austria)(a) (b)
 
BB
6.625%
 
04/15/2021
 
04/15/16 @ 103
   
1,134,000
 

See notes to financial statements.
14 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND ANNUAL REPORT

 
 

 

PORTFOLIO OF INVESTMENTS continued
October 31, 2013

Principal
               
Optional Call
       
Amount~
 
Description
 
Rating*
Coupon
 
Maturity
 
Provisions**
   
Value
 
   
Forest Products & Paper (continued)
                     
300,000
 
Tembec Industries, Inc. (Canada)
 
CCC+
11.250%
 
12/15/2018
 
12/15/14 @ 106
 
$
329,250
 
325,000
 
Verso Paper Holdings, LLC / Verso Paper, Inc.
 
B+
11.750%
 
01/15/2019
 
01/15/15 @ 109
   
338,000
 
                       
3,994,375
 
                           
   
Health Care Products – 0.3%
                     
1,250,000
 
Biomet, Inc.(a)
 
B–
6.500%
 
08/01/2020
 
08/01/15 @ 105
   
1,334,375
 
                           
   
Health Care Services – 2.1%
                     
1,250,000
 
Fresenius Medical Care US Finance, Inc.(a) (b)
 
BB+
5.750%
 
02/15/2021
 
N/A
   
1,328,125
 
2,575,000
 
HCA Holdings, Inc.(a)
 
B–
7.750%
 
05/15/2021
 
11/15/15 @ 104
   
2,826,063
 
1,875,000
 
Health Net, Inc.(a)
 
BB
6.375%
 
06/01/2017
 
N/A
   
2,010,938
 
625,000
 
HealthSouth Corp.(a)
 
BB–
8.125%
 
02/15/2020
 
02/15/15 @ 104
   
691,406
 
1,250,000
 
IASIS Healthcare, LLC / IASIS Capital Corp.(a)
 
CCC+
8.375%
 
05/15/2019
 
05/15/14 @ 106
   
1,331,250
 
1,625,000
 
Tenet Healthcare Corp.(a) (b)
 
B+
6.000%
 
10/01/2020
 
N/A
   
1,721,484
 
                       
9,909,266
 
                           
   
Household Products & Housewares – 0.4%
                     
1,875,000
 
Reynolds Group Issuer, Inc. / Reynolds Group Issuer, LLC
 
CCC+
9.000%
 
04/15/2019
 
10/15/14 @ 105
   
2,015,625
 
                           
   
Insurance – 0.1%
                     
300,000
 
Fidelity & Guaranty Life Holdings, Inc.(b)
 
BB–
6.375%
 
04/01/2021
 
04/01/16 @ 105
   
314,250
 
                           
   
Internet – 0.4%
                     
1,250,000
 
Equinix, Inc.(a)
 
BB
5.375%
 
04/01/2023
 
04/01/18 @ 103
   
1,246,875
 
500,000
 
NetFlix, Inc.(a) (b)
 
BB–
5.375%
 
02/01/2021
 
N/A
   
513,750
 
                       
1,760,625
 
                           
   
Iron & Steel – 0.3%
                     
300,000
 
Commercial Metals Co.
 
BB+
4.875%
 
05/15/2023
 
02/15/23 @ 100
   
286,500
 
835,000
 
Steel Dynamics, Inc.(a)
 
BB+
6.375%
 
08/15/2022
 
08/15/17 @ 103
   
905,975
 
                       
1,192,475
 
                           
   
Leisure Time – 0.1%
                     
300,000
 
Carlson Wagonlit BV (Netherlands)(b)
 
B+
6.875%
 
06/15/2019
 
06/15/15 @ 105
   
312,000
 
                           
   
Lodging – 0.3%
                     
900,000
 
Caesars Entertainment Operating Co., Inc.(a)
 
B–
8.500%
 
02/15/2020
 
02/15/16 @ 104
   
834,188
 
522,856
 
Inn of the Mountain Gods Resort & Casino(b)
 
NR
9.250%
 
11/30/2020
 
10/01/14 @ 107
   
499,327
 
16
 
MTR Gaming Group, Inc.
 
B–
11.500%
 
08/01/2019
 
08/01/15 @ 106
   
18
 
                       
1,333,533
 
                           
   
Machinery-Construction & Mining – 0.0%+