gug59400ncsr.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
 
Investment Company Act file number  811-21309
 
 Advent Claymore Convertible Securities and Income Fund 
(Exact name of registrant as specified in charter)
 
1271 Avenue of the Americas, 45th Floor New York, NY 10020 
(Address of principal executive offices) (Zip code)
 
Robert White, Treasurer
1271 Avenue of the Americas, 45th Floor New York, NY 10020 
(Name and address of agent for service)
 
Registrant's telephone number, including area code: (212) 482-1600 
 
Date of fiscal year end:  October 31
 
Date of reporting period:  April 30, 2014
 
 
 
 

 
 
Item 1.  Reports to Stockholders.
 
The registrant's semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), is as follows:
 

 
 
 
 

 
 
 
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.
 
 
 

 

   
 
April 30, 2014 
 
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 six months ended April 30, 2014.
 
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 April 30, 2014, Advent managed approximately $8.3 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 six-month period ended April 30, 2014, the Fund generated a total return based on market price of 5.57% and a total return of 3.75% based on NAV. As of April 30, 2014, the Fund’s market price of $18.24 represented a discount of 8.53% to NAV of $19.94. 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 2013 through April 2014, the Fund paid a monthly distribution of $0.0939 per share. The most recent monthly distribution represents an annualized distribution rate of 6.18% based upon the last closing market price of $18.24 as of April 30, 2014. 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 l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT l 3
 
 
 

 
   
DEAR SHAREHOLDER (unaudited) continued 
April 30, 2014 
 
 
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
 
May 31, 2014
 
 

4 l AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT
 
 
 

 
 

   
QUESTIONS & ANSWERS (unaudited) 
April 30, 2014 
 
 
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 six-month period ended April 30, 2014.
 
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, 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, shareholders’ return will be less than if financial leverage had not been used.
 
The Fund has available to it several ways of implementing leverage, including borrowing and reverse repurchase agreements or the issuance of commercial paper or other forms of debt. The amount of financial leverage the Fund employs as a percentage of total Fund assets was approximately 36% as of April 30, 2014.
 
Please describe the economic and market environment over the six months ended April 30, 2014.
 
Securities markets around the globe continued to perform well in the six months ended April 30, 2014, as the optimal situation of recovering economic growth combined with continuously low interest rates to produce gains in most classes of bonds and equities in the period. The U.S. continued to lead the world economy with strong growth in 2013’s final quarter, and a weather-related dip in the 2014 first quarter was expected to give way to resumption of robust economic production. After a nearly year-long decline, risk-free bond prices even started rising again in 2014, helped by the economic dip and expectations that Federal Reserve monetary policy will not revert to any tightening until well into 2015. Corporate bond returns remained impressive given lower Treasury yields, tightening corporate credit spreads, and a robust issuance environment led by investors seeking yield again with the falling risk-free rates.
 
Risks remain abundant although their realization has not had a negative impact on markets in the aggregate over the past several years. Removal of central bank-generated liquidity in the U.S. is an ongoing issue, but has not had a negative impact on U.S. equity prices. In fact, tapering seems to have affected emerging market money flows more, although this segment is under 15% of the global convertible bond universe, much of it in Asian nations with strong nominal economic growth. Of note is the recent decline in small-cap U.S. stocks, which can be a harbinger of broader market underperformance, but actual economic data, particularly in the U.S., generally suggest little risk and, if anything, acceleration in figures such as employment and fixed investment. Corporate profit growth in particular seems to be on a steady pace of high-single-digit percent year-over-year growth, which has been accommodative of a rising multiple trend on Price/Earnings (“P/E”) figures as it occurs. There remains economic downside potential in Europe, where reported figures have remained sluggish and unemployment high, but promised monetary expansion by the European Central Bank (“ECB”) in the event of more substantial weakness would seem to provide market participants with some protection.
 
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 six-month period ended April 30, 2014, the Fund generated a total return based on market price of 5.57% and a total return of 3.75% based on NAV. As of April 30, 2014, the Fund’s market price of $18.24 represented a discount of 8.53% to NAV of $19.94. As of October 31, 2013, the Fund’s market price of $17.81 represented a discount of 9.87% to NAV of $19.76.
 
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 April 30, 2014, including borrowings and leverage through reverse repurchase agreements, 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 shares to be more volatile. Leverage adds value only when the return on securities purchased exceeds the cost of leverage.
 
 

AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT l 5
 
 
 

 

   
QUESTIONS & ANSWERS (unaudited) continued 
April 30, 2014 
 
 
What was the impact of the Fund’s covered call strategy?
 
Generating premiums through the sale of call options against equity and selected convertible holdings remains a core strategy of the Fund. As was the case in the prior period, however, volatility and thus the level of premiums generated remained low in the marketplace, and the Investment Adviser found it prudent to limit the premiums garnered from the buy-writes by selling options with higher strike prices. This had the effect of allowing greater appreciation of the underlying equities and raising the effective delta (a ratio comparing the change in price of an underlying asset to the change in the price of the option) of the equity subportfolio. Until more serious economic fears take hold, we expect volatility to remain near cycle lows of below 15 for the CBOE Volatility Index (VIX).
 
How did other market measures perform in this environment?
 
For the six-month period ended April 30, 2014, the S&P 500 Index returned 8.36%, and the Morgan Stanley Capital International World Index returned 6.32%. The Barclays U.S. Aggregate Bond Index returned 1.74% for the period. The return of the Bank of America Merrill Lynch High Yield Master II Index was 4.76%.
 
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 8.22% and 5.17%, respectively. The CBOE S&P 500 2% OTM Buy Write Index (BXY) returned 8.90%. 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 2013 through April 2014, the Fund paid a monthly distribution of $0.0939 per share. The current monthly distribution represents an annualized distribution rate of 6.18% based upon the last closing market price of $18.24 as of April 30, 2014. 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 six months ended April 30, 2014, and how did this influence performance?
 
The Fund is diversified globally among convertible securities, high-yield bonds and equities.
 
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.
 
As of April 30, 2014, 60.6% of the Fund’s total investments were in convertible securities. High yield bonds represented 27.3% and equity positions 8.6% of total investments. The rest, 3.5%, was in cash and other investments.
 
The Fund lowered its sizable weighting in convertibles in favor of high-yield non-convertible debt, as the convertible market richened noticeably in the period, helped by limited supply particularly in the investment-grade segment. We felt the method of realizing compressing corporate credit spreads, an expectation we had due to the strong economy and still very strong issuance market in high-yield, was to invest more in high-yield bonds. Lower coupons in convertible debt also led us into more equities of the same issuers for higher dividend yields and better relative value.
 
International investments were 21% of the Fund’s assets as of April 2014. The Fund has generally had a higher-than-historical allocation to foreign securities, seeing more opportunities in global markets with more upside in economic growth and P/E ratios than in the U.S.
 
Which investment decisions had the greatest effect on the Fund’s performance?
 
Among top-performing investments was the convertible bond of Micron Technology, Inc. (1.0% of long-term investments at period end). The company continued a run that has lasted over several quarters, as profits continue to ramp with the integration of the cut-rate acquisition Elpida Memory in Japan, and with recovering PC demand helping consumption of Micron’s core DRAM memory chips.
 
Convertible bonds of D.R. Horton (not held in the portfolio at period end) also contributed to return. The company benefited from higher home values and greater demand over the period, including growth of its high-end home division.
 
Convertible bonds of InterMune, Inc. (0.6% of long-term investments at period end) also contributed to return. The stock spiked in February after test data for its pulmonary fibrosis drug pirfenidone showed good results and may become the first drug approved to treat the disease. The selection of Intermune reflects the Fund’s competitive advantage in research resources in the biotechnology and ethical drugs industry.
 
Holdings that detracted from the Fund’s performance included a convertible bond of Exelixis, Inc. (0.6% of long-term investments at period end), which fell after the company’s prostate cancer drug cabozantinib had its trial extended and thus far has failed to extend its market from the current use for thyroid cancer. We believe the drug will eventually be approved for prostrate treatment. We also believe the security’s status as another below-par bond with an attractive coupon will put a floor on price trading near-term, with intermediate-term stock upside.
 
Another detractor from performance was Yandex NV (0.7% of long-term investments at period end), a Russian internet services provider which declined as part of the geopolitical fears related to Ukraine. However, the company also had margin challenges on traffic acquisition costs to offset strong revenues. The Fund holds a convertible bond below par with significant stock volatility and so feels the upside/downside is favorable.
 
A third large detractor was a convertible bond of Hornbeck Offshore Services, Inc. (0.6% of long-term investments at period end), which owns offshore support vessels used mainly by deepwater oil drillers. The company, which focuses mostly on the Gulf of Mexico, has been hurt by falling demand for its floating rigs.
 
How is the Fund positioned for a world of rising interest rates?
 
Convertible bonds remain by far the largest security type the Fund invests in, and the Investment Adviser believes the asset class performs well in an environment of rising rates because the duration of convertible bonds tends to be lower than that of the Treasury, municipal, or investment grade
 
 

6 l AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT
 
 
 

 
 
   
QUESTIONS & ANSWERS (unaudited) continued 
April 30, 2014 
 
 
corporate bond classes, and because the equity component of the bonds performs well, particularly where the rising rates are being caused by a healthy and growing economy. Within the convertible and high-yield share classes, the Fund has been recently positioned to have duration below that of market indices to limit the risk of loss with higher interest rates.
 
Do you anticipate any changes or updates to the implementation of the Fund’s strategy?
 
The Fund will continue to pursue its investment objective to provide total return through a combination of capital appreciation and current income by investing at least 80% of its managed assets in a diversified portfolio of convertible securities and non-convertible income-producing securities, with at least 60% of its managed assets in convertible securities and up to 40% of its managed assets in non-convertible income-producing securities. However, in order to seek to enhance shareholder value, Advent intends to implement certain changes to the investment process by which the Fund’s investment strategy is implemented. Advent’s institutional strategies, which invest in the same asset classes as the Fund, have provided superior performance relative to applicable benchmarks. Accordingly, Advent intends to reallocate the Fund’s portfolio over time to establish a core portfolio of convertible securities that will be managed, subject to the Fund’s investment policies and restrictions, in a manner similar to that of Advent’s Balanced Convertible Strategy. Advent’s Balanced Convertible Strategy seeks a high total return by investing in a portfolio of U.S. dollar denominated convertible securities that provide equity-like returns, while seeking to limit downside risk. This core portfolio of convertible securities will be supplemented by a portfolio of high yield securities selected in a manner similar to that of Advent’s High Yield Strategy. Advent’s High Yield Strategy seeks income and total return by investing primarily in high yielding corporate credit using fundamental and relative value analysis to identify undervalued securities. Advent will allocate a separate portion of the Fund’s portfolio to increase or decrease relative overall exposure to convertible securities, high yield securities and equities. This portion of the Fund’s portfolio will incorporate leverage and operate as an asset allocation tool reflecting Advent’s conservative management philosophy and its views on the relative value of these three asset classes under changing market conditions.
 
Do you have any other comments about the markets and the Fund?
 
After banner equity returns in 2013 and the slow start to U.S. and European economic growth in 2014, few market participants expect robust double-digit returns in either bonds or stocks for the near future, and the Fund is positioned accordingly, with a greater emphasis on less-risky, dividend-paying equities and high-yield bonds where corporate spreads seem to be among the few opportunities for return enhancement over the near-term. Both of these asset classes would seem to benefit from falling risk-free rates which is a more visible near-term theme as of this writing.
 
European and Asian rates are also falling as the market digests both sluggish continental Europe and emerging market economic growth and the likelihood of central bank action at the ECB and Bank of Japan to do more formal quantitative easing. Both of these are broadly positive for many asset classes, especially the core convertible bond area, and it is up to the Investment Adviser to evaluate the best opportunities for the Fund through its research and security trading expertise.
 
Index Definitions
 
Indices are unmanaged, do not use leverage, 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 l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT l 7
 
 
 

 
   
FUND SUMMARY (Unaudited) 
April 30, 2014 
 
     
Fund Statistics 
   
Share Price 
 
$18.24 
Common Share Net Asset Value 
 
$19.94 
Premium/Discount to NAV 
 
-8.53% 
Net Assets ($000) 
 
$470,234 
 
Total Returns 
   
(Inception 4/30/03) 
Market 
NAV 
Six Month 
5.57% 
3.75% 
One Year 
10.61% 
11.93% 
Three Year - average annual 
5.63% 
5.43% 
Five Year - average annual 
18.47% 
16.97% 
Ten Year - average annual 
6.39% 
5.53% 
Since Inception - average annual 
6.12% 
6.84% 
 
   
% of Long-Term 
Top Ten Industries 
 
Investments 
Oil & Gas 
 
8.4% 
Telecommunications 
 
7.6% 
Internet 
 
7.1% 
Software 
 
7.1% 
Biotechnology 
 
6.6% 
Mining 
 
5.7% 
Media 
 
4.5% 
Real Estate Investment Trusts 
 
4.2% 
Semiconductors 
 
3.6% 
Banks 
 
3.6% 
 
   
% of Long-Term 
Top Ten Issuers 
 
Investments 
Chesapeake Energy Corp. 
 
2.3% 
Prospect Capital Corp. 
 
2.2% 
Goldcorp, Inc. 
 
2.2% 
Clearwire Communications, LLC / Clearwire Finance, Inc 
2.1% 
Glencore Finance Europe SA 
 
2.1% 
Yahoo!, Inc. 
 
1.8% 
Ciena Corp. 
 
1.7% 
Citrix Systems, Inc. 
 
1.6% 
United States Steel Corp. 
 
1.6% 
Annaly Capital Mangement, Inc. 
 
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 expense 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.
 
 
 

8 l AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT
 
 
 

 
 

   
FUND SUMMARY (Unaudited) continued 
April 30, 2014 
 
   
Country Breakdown (% of Total Investments) 
 
United States 
78.8% 
Cayman Islands 
4.1% 
Luxembourg 
3.4% 
Canada 
3.1% 
France 
2.5% 
Netherlands 
1.1% 
Japan 
0.9% 
Hungary 
0.8% 
Austria 
0.7% 
South Korea 
0.6% 
United Kingdom 
0.6% 
Marshall Islands 
0.6% 
Switzerland 
0.5% 
Australia 
0.5% 
Bermuda 
0.4% 
Jersey 
0.2% 
Spain 
0.2% 
Germany 
0.2% 
Panama 
0.1% 
Italy 
0.1% 
China 
0.1% 
Belguim 
0.1% 
Finland 
0.1% 
British Virgin Islands 
0.1% 
Liberia 
0.1% 
United Arab Emirates 
0.1% 
Sweden 
0.0%* 
*Less than 0.1%. 
 
 
Subject to change daily. 
 
 
 

AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT l 9
 
 
 

 
 

   
PORTFOLIO OF INVESTMENTS (Unaudited) 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating*
Coupon 
Maturity 
Provisions** 
Value 
   
Long-Term Investments – 152.0% 
         
   
Convertible Bonds – 90.8% 
         
   
Airlines – 0.0%† 
         
117,000 
 
United Airlines, Inc. 
B 
4.500% 
01/15/2015 
N/A 
$ 255,938 
   
Apparel – 0.1% 
         
EUR 200,000 
 
Adidas AG, Series ADS (Germany) 
NR 
0.250% 
06/14/2019 
N/A 
334,574 
163,000 
 
Iconix Brand Group, Inc.(a) 
NR 
1.500% 
03/15/2018 
N/A 
236,758 
             
571,332 
   
Auto Manufacturers – 0.9% 
         
3,385,000 
 
Navistar International Corp.(a) (b) 
CCC– 
4.500% 
10/15/2018 
N/A 
3,423,081 
EUR 400,000 
 
Volkswagen International Finance NV (Netherlands)(b) 
BBB 
5.500% 
11/09/2015 
N/A 
653,564 
             
4,076,645 
   
Auto Parts & Equipment – 1.1% 
         
EUR 2,437,000 
 
Faurecia, Series EO (France) 
B3 
3.250% 
01/01/2018 
N/A 
1,171,081 
2,600,000 
 
Meritor, Inc.(a) 
B– 
7.875% 
03/01/2026 
12/01/20 @ 100 
3,969,875 
             
5,140,956 
   
Banks – 0.3% 
         
EUR 400,000 
 
CaixaBank SA, Series REPS (Spain) 
NR 
4.500% 
11/22/2016 
N/A 
584,971 
EUR 300,000 
 
CAJA de Ahorros y Pensiones de Barcelona, Series CABK (Spain) 
NR 
1.000% 
11/25/2017 
N/A 
475,656 
EUR 200,000 
 
Espirito Santo Financial Group SA (Luxembourg) 
B2 
3.125% 
12/02/2018 
N/A 
335,059 
             
1,395,686 
   
Biotechnology – 9.8% 
         
6,257,000 
 
BioMarin Pharmaceutical, Inc.(a) 
NR 
1.500% 
10/15/2020 
N/A 
6,475,995 
6,929,000 
 
Cubist Pharmaceuticals, Inc.(a) (b) 
NR 
1.125% 
09/01/2018 
N/A 
7,912,052 
304,000 
 
Cubist Pharmaceuticals, Inc.(b) 
NR 
1.875% 
09/01/2020 
N/A 
352,070 
4,679,000 
 
Exelixis, Inc.(a) 
NR 
4.250% 
08/15/2019 
N/A 
4,240,344 
1,232,000 
 
Gilead Sciences, Inc., Series D(a) 
A– 
1.625% 
05/01/2016 
N/A 
4,253,486 
4,681,000 
 
Illumina, Inc.(a) (b) 
NR 
0.250% 
03/15/2016 
N/A 
7,960,649 
2,083,000 
 
Incyte Corp. Ltd.(a) (b) 
NR 
0.375% 
11/15/2018 
N/A 
2,545,165 
253,000 
 
Incyte Corp. Ltd.(b) 
NR 
1.250% 
11/15/2020 
N/A 
309,767 
1,689,000 
 
InterMune, Inc. 
NR 
2.500% 
12/15/2017 
N/A 
4,282,671 
226,000 
 
InterMune, Inc. 
NR 
2.500% 
09/15/2018 
N/A 
284,760 
257,000 
 
Medicines Co. 
NR 
1.375% 
06/01/2017 
N/A 
304,545 
2,940,000 
 
Medivation, Inc.(a) 
NR 
2.625% 
04/01/2017 
N/A 
4,046,175 
2,805,000 
 
Theravance, Inc.(a) 
NR 
2.125% 
01/15/2023 
N/A 
3,299,381 
             
46,267,060 
   
Computers – 0.3% 
         
EUR 2,999 
 
Cap Gemini SA, Series CAP (France)(c) 
BBB 
0.000% 
01/01/2019 
N/A 
315,508 
EUR 37,986 
 
Econocom Group, Series EBAB (Belgium) 
NR 
1.500% 
01/15/2019 
N/A 
612,519 
EUR 356,500 
 
Ingenico, Series ING (France) 
NR 
2.750% 
01/01/2017 
N/A 
312,875 
339,000 
 
SanDisk Corp.(b) 
BB 
0.500% 
10/15/2020 
N/A 
386,036 
             
1,626,938 
 
 
See notes to financial statements.
 

10 l AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT
 
 
 

 
 
   
PORTFOLIO OF INVESTMENTS (Unaudited) continued 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating*
Coupon 
Maturity 
Provisions** 
Value 
   
Diversified Financial Services – 2.1% 
         
409,000 
 
Air Lease Corp. 
NR 
3.875% 
12/01/2018 
N/A 
$ 594,328 
EUR 400,000 
 
Azimut Holding SpA (Italy) 
NR 
2.125% 
11/25/2020 
N/A 
634,651 
300,000 
 
Hong Kong Exchanges International Ltd. (China) 
NR 
0.500% 
10/23/2017 
N/A 
340,875 
EUR 3,900,000 
 
Magyar Nemzeti Vagyonkezelo Zrt, Series RICH (Hungary) 
Ba1 
3.375% 
04/02/2019 
N/A 
5,612,758 
420,000 
 
Portfolio Recovery Associates, Inc.(b) 
NR 
3.000% 
08/01/2020 
N/A 
495,075 
2,181,000 
 
Walter Investment Management Corp.(a) 
NR 
4.500% 
11/01/2019 
N/A 
2,033,783 
             
9,711,470 
   
Electric – 0.3% 
         
EUR 400,000 
 
CEZ MH BV, Series MOL (Netherlands)(c) 
A– 
0.000% 
08/04/2017 
N/A 
575,016 
CNY 2,200,000 
 
China Power International Development Ltd. (China) 
NR 
2.250% 
05/17/2016 
N/A 
494,528 
CNY 1,000,000 
 
China Power International Development Ltd. (China) 
NR 
2.750% 
09/18/2017 
N/A 
195,868 
             
1,265,412 
   
Electrical Components & Equipment – 0.1% 
         
JPY 25,000,000 
 
Nidec Corp. (Japan)(c) 
NR 
0.000% 
09/18/2015 
N/A 
293,074 
   
Electronics – 0.7% 
         
2,334,000 
 
Fluidigm Corp.(a) 
NR 
2.750% 
02/01/2034 
02/06/21 @ 100 
2,481,334 
258,000 
 
Vishay Intertechnology, Inc.(b) 
BB+ 
2.250% 
11/15/2040 
N/A 
292,024 
JPY 35,000,000 
 
Yaskawa Electric Corp. (Japan)(c) 
NR 
0.000% 
03/16/2017 
N/A 
414,586 
             
3,187,944 
   
Gas – 0.3% 
         
1,000,000 
 
ENN Energy Holdings Ltd. (Cayman Islands)(c) 
NR 
0.000% 
02/26/2018 
N/A 
1,249,750 
   
Hand & Machine Tools – 0.8% 
         
EUR 500,000 
 
KUKA AG, Series KU2 (Germany) 
NR 
2.000% 
02/12/2018 
N/A 
855,293 
JPY 240,000,000 
 
OSG Corp. (Japan)(c) 
NR 
0.000% 
04/04/2022 
N/A 
2,815,271 
             
3,670,564 
   
Health Care Products – 3.0% 
         
5,232,000 
 
HeartWare International, Inc.(a) 
NR 
3.500% 
12/15/2017 
N/A 
6,072,390 
349,000 
 
Hologic, Inc., Series 2010(a) (d) (e) 
B+ 
2.000% 
12/15/2037 
12/15/16 @ 100 
393,716 
2,787,000 
 
Volcano Corp.(a) 
NR 
1.750% 
12/01/2017 
N/A 
2,685,971 
3,852,000 
 
Wright Medical Group, Inc.(a) 
NR 
2.000% 
08/15/2017 
N/A 
4,812,592 
             
13,964,669 
   
Health Care Services – 0.3% 
         
218,000 
 
Brookdale Senior Living, Inc. 
NR 
2.750% 
06/15/2018 
N/A 
286,125 
366,000 
 
Molina Healthcare, Inc.(a) 
NR 
1.125% 
01/15/2020 
N/A 
415,181 
453,000 
 
WellPoint, Inc. 
A– 
2.750% 
10/15/2042 
N/A 
664,778 
             
1,366,084 
   
Holding Companies-Diversified – 0.4% 
         
400,000 
 
Giant Great Ltd. (British Virgin Islands) 
NR 
3.000% 
07/21/2016 
N/A 
607,600 
EUR 150,000 
 
Industrivarden AB, Series INDU (Sweden) 
A– 
2.500% 
02/27/2015 
N/A 
283,168 
EUR 307,500 
 
Misarte, Series PP (France) 
NR 
3.250% 
01/01/2016 
N/A 
766,745 
EUR 300,000 
 
OHL Investments SA, Series OHL (Spain) 
NR 
4.000% 
04/25/2018 
N/A 
438,323 
             
2,095,836 
 
   
See notes to financial statements. 
 
 
 
AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT l 11 
 
 
 

 
 
   
PORTFOLIO OF INVESTMENTS (Unaudited) continued 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating*
Coupon 
Maturity 
Provisions** 
Value 
   
Home Builders – 2.6% 
         
3,904,000 
 
Lennar Corp.(a) (b) 
BB– 
3.250% 
11/15/2021 
11/20/16 @ 100 
$ 6,788,080 
3,928,000 
 
Ryland Group, Inc.(a) 
BB– 
1.625% 
05/15/2018 
N/A 
5,430,460 
             
12,218,540 
   
Home Furnishings – 0.6% 
         
EUR 1,700,000 
 
Steinhoff Finance Holding GmbH, Series SHF (Austria) 
NR 
4.000% 
01/30/2021 
N/A 
2,766,061 
   
Household Products & Housewares – 1.9% 
         
HKD 32,000,000 
 
Biostime International Holdings Ltd. (Cayman Islands)(c) 
NR 
0.000% 
02/20/2019 
N/A 
4,057,078 
675,000 
 
Jarden Corp.(a) (b) 
BB– 
1.500% 
06/15/2019 
N/A 
799,453 
4,355,000 
 
Jarden Corp.(b) 
BB– 
1.125% 
03/15/2034 
N/A 
4,357,722 
             
9,214,253 
   
Insurance – 2.7% 
         
5,898,000 
 
Radian Group, Inc.(a) 
B– 
3.000% 
11/15/2017 
N/A 
8,334,611 
358,000 
 
Radian Group, Inc. 
B– 
2.250% 
03/01/2019 
N/A 
519,548 
CHF 2,960,000 
 
Swiss Life Holding AG, Series SLHN (Switzerland)(c) 
BBB 
0.000% 
12/02/2020 
N/A 
3,935,124 
             
12,789,283 
   
Internet – 9.4% 
         
360,000 
 
BroadSoft, Inc. 
NR 
1.500% 
07/01/2018 
N/A 
371,475 
10,425,000 
 
Ctrip.com International Ltd. (Cayman Islands)(a) (b) (f) 
NR 
1.250% 
10/15/2018 
N/A 
10,262,109 
5,733,000 
 
Equinix, Inc.(a) 
B+ 
3.000% 
10/15/2014 
N/A 
9,434,368 
5,026,000 
 
HomeAway, Inc.(a) (b) 
NR 
0.125% 
04/01/2019 
N/A 
4,846,949 
726,000 
 
Priceline Group, Inc.(a) 
BBB 
1.000% 
03/15/2018 
N/A 
1,018,669 
1,796,000 
 
Priceline Group, Inc.(b) 
BBB 
0.350% 
06/15/2020 
N/A 
2,139,485 
956,000 
 
SINA Corp. (Cayman Islands)(b) 
NR 
1.000% 
12/01/2018 
N/A 
870,558 
2,411,000 
 
Vipshop Holdings Ltd. (Cayman Islands)(a) 
NR 
1.500% 
03/15/2019 
N/A 
2,432,096 
7,775,000 
 
Yahoo!, Inc.(a) (b) (c) 
BB+ 
0.000% 
12/01/2018 
N/A 
7,993,672 
5,473,000 
 
Yandex NV (Netherlands)(b) 
NR 
1.125% 
12/15/2018 
N/A 
4,785,454 
             
44,154,835 
   
Investment Companies – 3.5% 
         
EUR 200,000 
 
Aabar Investments PJSC, Series REGS (United Arab Emirates) 
NR 
4.000% 
05/27/2016 
N/A 
344,557 
16,003,000 
 
Prospect Capital Corp.(a) (b) 
BBB 
4.750% 
04/15/2020 
N/A 
16,043,008 
             
16,387,565 
   
Iron & Steel – 2.4% 
         
7,053 
 
ArcelorMittal, Series MTUS (Luxembourg)(a) 
B+ 
6.000% 
01/15/2016 
N/A 
171,476 
11,110,000 
 
United States Steel Corp.(a) 
BB– 
4.000% 
05/15/2014 
N/A 
11,165,550 
             
11,337,026 
   
Leisure Time – 0.4% 
         
1,562,000 
 
Callaway Golf Co. 
NR 
3.750% 
08/15/2019 
08/15/15 @ 100 
1,969,096 
   
Lodging – 1.0% 
         
3,308,000 
 
MGM Resorts International(a) 
B+ 
4.250% 
04/15/2015 
N/A 
4,728,372 
   
Machinery-Diversified – 1.5% 
         
3,907,000 
 
Chart Industries, Inc.(a) 
BB– 
2.000% 
08/01/2018 
N/A 
4,825,145 
JPY 31,000,000 
 
Ebara Corp., Series 6 (Japan)(c) 
NR 
0.000% 
03/19/2018 
N/A 
415,169 
1,750,000 
 
Haitian International Holdings Ltd. (Cayman Islands) 
NR 
2.000% 
02/13/2019 
N/A 
1,722,525 
             
6,962,839 
 
 
See notes to financial statements.
 

12 l AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT
 
 
 

 
 
   
PORTFOLIO OF INVESTMENTS (Unaudited) continued 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating*
Coupon 
Maturity 
Provisions** 
Value 
   
Media – 3.3% 
         
2,983,000 
 
Liberty Interactive, LLC(a) 
BB 
0.750% 
03/30/2043 
04/05/23 @ 100 
$ 3,874,171 
5,310,000 
 
Liberty Interactive, LLC(a) (b) 
BB 
1.000% 
09/30/2043 
10/05/16 @ 100 
5,582,138 
6,278,000 
 
Liberty Media Corp.(b) 
NR 
1.375% 
10/15/2023 
N/A 
6,073,965 
             
15,530,274 
   
Metal Fabricate & Hardware – 0.1% 
         
500,000 
 
MISUMI Group, Inc. (Japan)(c) 
NR 
0.000% 
10/22/2018 
N/A 
493,750 
   
Mining – 7.7% 
         
13,800,000 
 
Glencore Finance Europe SA (Luxembourg) 
BBB 
5.000% 
12/31/2014 
N/A 
15,138,600 
15,400,000 
 
Goldcorp, Inc. (Canada)(a) 
BBB+ 
2.000% 
08/01/2014 
N/A 
15,486,625 
2,164,000 
 
Newmont Mining Corp., Series B(a) 
BBB 
1.625% 
07/15/2017 
N/A 
2,323,595 
3,019,000 
 
Royal Gold, Inc.(a) 
NR 
2.875% 
06/15/2019 
N/A 
3,126,552 
             
36,075,372 
   
Miscellaneous Manufacturing – 0.2% 
         
JPY 45,000,000 
 
Nikkiso Co. Ltd. (Japan)(c) 
NR 
0.000% 
08/02/2018 
N/A 
463,877 
500,000 
 
Siemens Financieringsmaatschappij NV, Series WW (Netherlands) 
A+ 
1.650% 
08/16/2019 
N/A 
595,305 
             
1,059,182 
   
Oil & Gas – 2.6% 
         
7,161,000 
 
Chesapeake Energy Corp.(a) 
BB– 
2.250% 
12/15/2038 
12/15/18 @ 100 
6,802,950 
3,156,000 
 
Cobalt International Energy, Inc.(a) 
NR 
2.625% 
12/01/2019 
N/A 
2,968,613 
1,500,000 
 
Energy XXI Bermuda Ltd. (Bermuda)(a) (b) 
B– 
3.000% 
12/15/2018 
N/A 
1,483,125 
400,000 
 
Premier Oil Finance Jersey Ltd., Series PMO (Jersey) 
NR 
2.500% 
07/27/2018 
N/A 
463,760 
300,000 
 
Seadrill Ltd. (Bermuda) 
NR 
3.375% 
10/27/2017 
N/A 
411,900 
             
12,130,348 
   
Oil & Gas Services – 1.1% 
         
3,615,000 
 
Hornbeck Offshore Services, Inc.(a) 
BB– 
1.500% 
09/01/2019 
N/A 
4,125,619 
300,000 
 
Subsea 7 SA (Luxembourg) 
NR 
3.500% 
10/13/2014 
N/A 
383,760 
EUR 615,500 
 
Technip SA, Series TEC (France) 
BBB+ 
0.500% 
01/01/2016 
N/A 
812,490 
             
5,321,869 
   
Pharmaceuticals – 3.0% 
         
3,882,000 
 
Array BioPharma, Inc.(a) 
NR 
3.000% 
06/01/2020 
N/A 
3,658,785 
2,974,000 
 
Auxilium Pharmaceuticals, Inc.(a) 
NR 
1.500% 
07/15/2018 
N/A 
3,542,777 
3,166,000 
 
Herbalife Ltd. (Cayman Islands)(a) (b) (f) 
NR 
2.000% 
08/15/2019 
N/A 
2,815,777 
616,000 
 
Omnicare, Inc. 
BB 
3.500% 
02/15/2044 
02/15/19 @ 93 
626,780 
2,466,000 
 
Orexigen Therapeutics, Inc.(a) (b) 
NR 
2.750% 
12/01/2020 
N/A 
2,530,733 
485,000 
 
Salix Pharmaceuticals Ltd.(a) 
NR 
1.500% 
03/15/2019 
N/A 
862,694 
             
14,037,546 
   
Real Estate – 1.7% 
         
EUR 200,000 
 
Conwert Immobilien Invest SE (Austria) 
NR 
4.500% 
09/06/2018 
N/A 
313,415 
6,149,000 
 
Forest City Enterprises, Inc.(a) (b) 
BB– 
3.625% 
08/15/2020 
08/15/18 @ 100 
6,383,431 
EUR 108,455 
 
IMMOFINANZ AG (Austria) 
NR 
4.250% 
03/08/2018 
N/A 
715,590 
GBP 300,000 
 
St Modwen Properties Securities Jersey Ltd., Series SMP (Jersey) 
NR 
2.875% 
03/06/2019 
N/A 
513,239 
GBP 200,000 
 
Unite Jersey Issuer Ltd., Series UTG (Jersey) 
NR 
2.500% 
10/10/2018 
N/A 
356,689 
             
8,282,364 
 
   
See notes to financial statements. 
 
 
 
AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT l 13 
 
 
 

 

   
PORTFOLIO OF INVESTMENTS (Unaudited) continued 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating *
Coupon 
Maturity 
Provisions** 
Value 
   
Real Estate Investment Trusts – 5.0% 
         
9,312,000 
 
American Realty Capital Properties, Inc.(a) 
NR 
3.000% 
08/01/2018 
N/A 
$ 9,649,560 
10,563,000 
 
Annaly Capital Management, Inc.(a) 
NR 
5.000% 
05/15/2015 
N/A 
10,873,288 
EUR 300,000 
 
Beni Stabili SpA (Italy) 
NR 
3.375% 
01/17/2018 
N/A 
492,814 
308,000 
 
DDR Corp. 
BBB– 
1.750% 
11/15/2040 
11/20/15 @ 100 
364,595 
GBP 200,000 
 
Great Portland Estates Capital Jersey Ltd., Series GPOR (Jersey) 
NR 
1.000% 
09/10/2018 
N/A 
361,688 
182,000 
 
Host Hotels & Resorts, LP(a) (b) 
BBB 
2.500% 
10/15/2029 
10/20/15 @ 100 
300,641 
355,000 
 
NorthStar Realty Finance, LP(b) 
NR 
5.375% 
06/15/2033 
06/15/23 @ 100 
584,863 
239,000 
 
Pennymac Corp. 
NR 
5.375% 
05/01/2020 
N/A 
231,830 
550,000 
 
Starwood Property Trust, Inc.(a) 
BB– 
4.000% 
01/15/2019 
N/A 
637,656 
             
23,496,935 
   
Retail – 0.1% 
         
233,000 
 
Group 1 Automotive, Inc.(d) 
BB 
2.250% 
06/15/2036 
06/15/16 @ 100 
297,949 
EUR 208,047 
 
Rallye SA, Series COFP (France) 
NR 
1.000% 
10/02/2020 
N/A 
334,146 
             
632,095 
   
Semiconductors – 4.2% 
         
HKD 4,000,000 
 
ASM Pacific Technology Ltd. (Cayman Islands) 
NR 
2.000% 
03/28/2019 
N/A 
571,790 
320,000 
 
Microchip Technology, Inc. 
NR 
2.125% 
12/15/2037 
N/A 
592,600 
5,863,000 
 
Micron Technology, Inc., Series G(a) 
BB– 
3.000% 
11/15/2043 
11/20/18 @ 83 
6,793,751 
310,000 
 
Novellus Systems, Inc. 
BBB 
2.625% 
05/15/2041 
N/A 
551,413 
2,990,000 
 
NVIDIA Corp.(a) (b) 
BB+ 
1.000% 
12/01/2018 
N/A 
3,382,437 
257,000 
 
ON Semiconductor Corp., Series B 
BB+ 
2.625% 
12/15/2026 
12/20/16 @ 100 
314,183 
2,600,000 
 
Semiconductor Manufacturing International Corp., Series REGS (Cayman Islands)(c) 
NR 
0.000% 
11/07/2018 
N/A 
2,728,375 
3,400,000 
 
SK Hynix, Inc. (South Korea)(a) 
NR 
2.650% 
05/14/2015 
N/A 
4,423,400 
242,000 
 
SunEdison, Inc.(b) 
NR 
2.000% 
10/01/2018 
N/A 
362,546 
             
19,720,495 
   
Software – 7.6% 
         
2,589,000 
 
Allscripts Healthcare Solutions, Inc.(a) (b) 
NR 
1.250% 
07/01/2020 
N/A 
2,901,298 
11,366,000 
 
Citrix Systems, Inc.(b) 
NR 
0.500% 
04/15/2019 
N/A 
11,366,000 
4,621,000 
 
Cornerstone OnDemand, Inc.(a) (b) 
NR 
1.500% 
07/01/2018 
N/A 
4,802,952 
HKD 23,000,000 
 
Kingsoft Corp. Ltd. (Cayman Islands) 
NR 
1.250% 
04/11/2019 
N/A 
2,808,899 
9,570,000 
 
Nuance Communications, Inc.(a) 
BB– 
2.750% 
08/15/2027 
08/20/14 @ 100 
10,036,537 
448,000 
 
Proofpoint, Inc.(b) 
NR 
1.250% 
12/15/2018 
N/A 
450,800 
261,000 
 
Salesforce.com, Inc. 
NR 
0.250% 
04/01/2018 
N/A 
287,753 
2,966,000 
 
ServiceNow, Inc.(a) (b) (c) 
NR 
0.000% 
11/01/2018 
N/A 
2,984,538 
             
35,638,777 
   
Telecommunications – 7.4% 
         
EUR 1,266,050 
 
Alcatel-Lucent, Series ALU (France) 
CCC+ 
4.250% 
07/01/2018 
N/A 
5,996,585 
3,640,000 
 
Ciena Corp.(b) 
NR 
4.000% 
03/15/2015 
N/A 
4,220,125 
7,401,000 
 
Ciena Corp.(a) 
B 
0.875% 
06/15/2017 
N/A 
7,336,241 
258,000 
 
Ciena Corp. 
NR 
4.000% 
12/15/2020 
N/A 
343,785 
13,184,000 
 
Clearwire Communications, LLC / Clearwire Finance, Inc.(a) (b) 
Ba1 
8.250% 
12/01/2040 
12/01/17 @ 100 
15,342,880 
351,000 
 
Finisar Corp.(b) 
NR 
0.500% 
12/15/2033 
12/22/18 @ 100 
402,553 
355,000 
 
Ixia 
NR 
3.000% 
12/15/2015 
N/A 
373,859 
EUR 200,000 
 
Nokia OYJ, Series REGS (Finland) 
B+ 
5.000% 
10/26/2017 
N/A 
610,664 
             
34,626,692 
 
 
See notes to financial statements.
 

14 l AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT
 
 
 

 
   
PORTFOLIO OF INVESTMENTS (Unaudited) continued 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating*
Coupon 
Maturity 
Provisions** 
Value 
   
Transportation – 0.3% 
         
600,000 
 
Golar LNG Ltd. (Bermuda) 
NR 
3.750% 
03/07/2017 
N/A 
$ 673,140 
JPY 40,000,000 
 
Kawasaki Kisen Kaisha Ltd. (Japan)(c) 
NR 
0.000% 
09/26/2018 
N/A 
395,007 
JPY 30,000,000 
 
Yamato Holdings Co., Ltd. (Japan)(c) 
NR 
0.000% 
03/07/2016 
N/A 
357,269 
             
1,425,416 
   
Total Convertible Bonds – 90.8% 
         
   
(Cost $424,959,363) 
       
427,138,343 
   
Corporate Bonds – 42.9% 
         
   
Aerospace & Defense – 0.3% 
         
1,250,000 
 
Kratos Defense & Security Solutions, Inc.(a) 
B 
10.000% 
06/01/2017 
06/01/15 @ 103 
1,317,969 
   
Agriculture – 0.1% 
         
625,000 
 
Vector Group Ltd.(b) 
B+ 
7.750% 
02/15/2021 
02/15/16 @ 106 
671,875 
   
Airlines – 0.0%† 
         
150,000 
 
Air Canada (Canada)(b) 
B– 
7.750% 
04/15/2021 
N/A 
153,187 
   
Auto Manufacturers – 0.9% 
         
1,250,000 
 
Allied Specialty Vehicles, Inc.(a) (b) 
B+ 
8.500% 
11/01/2019 
11/01/16 @ 104 
1,346,875 
2,500,000 
 
Chrysler Group, LLC / CG Co.-Issuer, Inc.(a) 
B 
8.000% 
06/15/2019 
06/15/15 @ 104 
2,750,000 
             
4,096,875 
   
Auto Parts & Equipment – 0.8% 
         
1,075,000 
 
Dana Holding Corp.(a) 
BB+ 
6.750% 
02/15/2021 
02/15/16 @ 103 
1,170,406 
1,000,000 
 
Goodyear Tire & Rubber Co.(a) 
B+ 
8.250% 
08/15/2020 
08/15/15 @ 104 
1,111,250 
1,250,000 
 
TRW Automotive, Inc.(a) (b) 
BBB– 
4.500% 
03/01/2021 
N/A 
1,303,125 
             
3,584,781 
   
Banks – 3.9% 
         
9,045,000 
 
CIT Group, Inc.(a) 
BB– 
5.375% 
05/15/2020 
N/A 
9,689,456 
8,075,000 
 
Synovus Financial Corp.(a) 
B+ 
5.125% 
06/15/2017 
N/A 
8,539,313 
             
18,228,769 
   
Biotechnology – 0.3% 
         
1,250,000 
 
Novasep Holding SAS (France)(b) 
B– 
8.000% 
12/15/2016 
N/A 
1,232,813 
   
Building Materials – 0.2% 
         
1,050,000 
 
Boise Cascade Co.(a) 
B+ 
6.375% 
11/01/2020 
11/01/15 @ 105 
1,134,000 
   
Chemicals – 2.7% 
         
6,104,000 
 
Ashland, Inc.(a) 
BB 
4.750% 
08/15/2022 
05/15/22 @ 100 
6,058,220 
1,250,000 
 
Celanese US Holdings, LLC(a) 
BB+ 
4.625% 
11/15/2022 
N/A 
1,262,500 
1,250,000 
 
Cornerstone Chemical Co., Series AI(a) 
B– 
9.375% 
03/15/2018 
03/15/15 @ 107 
1,331,250 
625,000 
 
HIG BBC Intermediate Holdings, LLC / HIG BBC Holdings Corp.(b) (g) 
NR 
10.500% 
09/15/2018 
03/15/16 @ 105 
640,625 
2,041,000 
 
Rockwood Specialties Group, Inc.(a) 
BB+ 
4.625% 
10/15/2020 
10/15/15 @ 103 
2,102,230 
1,275,000 
 
Vertellus Specialties, Inc.(a) (b) 
CCC+ 
9.375% 
10/01/2015 
10/01/14 @ 100 
1,297,312 
             
12,692,137 
   
Coal – 0.4% 
         
625,000 
 
Alpha Natural Resources, Inc. 
B– 
9.750% 
04/15/2018 
N/A 
590,625 
500,000 
 
CONSOL Energy, Inc.(b) 
BB 
5.875% 
04/15/2022 
04/15/17 @ 104 
516,250 
751,000 
 
SunCoke Energy, Inc.(a) 
B+ 
7.625% 
08/01/2019 
08/01/14 @ 106 
805,448 
             
1,912,323 
 
   
See notes to financial statements. 
 
 
 
AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT l 15 
 
 
 
 

 
 

   
PORTFOLIO OF INVESTMENTS (Unaudited) continued 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating*
Coupon 
Maturity 
Provisions** 
Value 
   
Commercial Services – 1.4% 
         
925,000 
 
ADT Corp.(a) (b) 
BB– 
6.250% 
10/15/2021 
N/A 
$ 966,625 
925,000 
 
Cenveo Corp.(a) 
CCC+ 
8.875% 
02/01/2018 
02/01/15 @ 102 
960,844 
4,096,000 
 
Prospect Medical Holdings, Inc.(a) (b) 
B– 
8.375% 
05/01/2019 
05/01/15 @ 106 
4,474,880 
             
6,402,349 
   
Computers – 0.1% 
         
625,000 
 
Seagate HDD Cayman (Cayman Islands)(a) (b) 
BBB– 
4.750% 
06/01/2023 
N/A 
628,906 
   
Diversified Financial Services – 0.8% 
         
1,450,000 
 
Ally Financial, Inc.(a) 
BB 
7.500% 
09/15/2020 
N/A 
1,723,687 
625,000 
 
Jefferies Finance, LLC / JFIN Co.-Issuer Corp.(b) 
B 
6.875% 
04/15/2022 
04/15/17 @ 105 
628,125 
1,450,000 
 
Nationstar Mortgage, LLC / Nationstar Capital Corp.(a) 
B+ 
6.500% 
06/01/2022 
12/01/17 @ 103 
1,377,500 
             
3,729,312 
   
Electric – 0.3% 
         
1,250,000 
 
Calpine Corp.(a) (b) 
BB– 
7.875% 
01/15/2023 
01/15/17 @ 104 
1,406,250 
   
Engineering & Construction – 0.2% 
         
1,077,000 
 
MasTec, Inc.(a) 
BB– 
4.875% 
03/15/2023 
03/15/18 @ 102 
1,044,690 
   
Entertainment – 0.4% 
         
1,250,000 
 
Churchill Downs, Inc.(a) (b) 
BB 
5.375% 
12/15/2021 
12/15/16 @ 104 
1,284,375 
644,000 
 
Six Flags Entertainment Corp.(a) (b) 
BB– 
5.250% 
01/15/2021 
01/15/16 @ 104 
652,050 
             
1,936,425 
   
Environmental Control – 0.5% 
         
1,250,000 
 
Casella Waste Systems, Inc.(a) 
CCC 
7.750% 
02/15/2019 
02/15/15 @ 104 
1,315,625 
1,250,000 
 
Clean Harbors, Inc.(a) 
BB+ 
5.125% 
06/01/2021 
12/01/16 @ 103 
1,270,313 
             
2,585,938 
   
Food – 0.7% 
         
1,500,000 
 
Land O’Lakes Capital Trust I(a) (b) 
BB 
7.450% 
03/15/2028 
N/A 
1,481,250 
1,836,000 
 
Simmons Foods, Inc.(b) 
CCC 
10.500% 
11/01/2017 
11/01/14 @ 105 
1,992,060 
             
3,473,310 
   
Forest Products & Paper – 0.7% 
         
1,250,000 
 
Appvion, Inc.(b) 
CCC+ 
9.000% 
06/01/2020 
12/01/16 @ 105 
1,273,437 
625,000 
 
Catalyst Paper Corp. (Canada)(g) (h) 
NR 
11.000% 
10/30/2017 
06/06/14 @ 100 
564,844 
1,200,000 
 
Sappi Papier Holding GmbH (Austria)(a) (b) 
BB 
6.625% 
04/15/2021 
04/15/16 @ 103 
1,254,000 
300,000 
 
Tembec Industries, Inc. (Canada) 
CCC+ 
11.250% 
12/15/2018 
12/15/14 @ 106 
328,500 
             
3,420,781 
   
Health Care Products – 0.4% 
         
1,875,000 
 
Biomet, Inc. 
B– 
6.500% 
08/01/2020 
08/01/15 @ 105 
2,060,156 
   
Health Care Services – 2.3% 
         
1,250,000 
 
Fresenius Medical Care US Finance, Inc.(a) (b) 
BB+ 
5.750% 
02/15/2021 
N/A 
1,337,500 
2,575,000 
 
HCA Holdings, Inc.(a) 
B– 
7.750% 
05/15/2021 
11/15/15 @ 104 
2,835,719 
1,875,000 
 
Health Net, Inc.(a) 
BB 
6.375% 
06/01/2017 
N/A 
2,048,437 
625,000 
 
HealthSouth Corp.(a) 
BB– 
8.125% 
02/15/2020 
02/15/15 @ 104 
681,250 
1,875,000 
 
IASIS Healthcare, LLC / IASIS Capital Corp.(a) 
CCC+ 
8.375% 
05/15/2019 
05/15/15 @ 104 
1,996,875 
1,625,000 
 
Tenet Healthcare Corp.(a) (b) 
B+ 
6.000% 
10/01/2020 
N/A 
1,709,297 
             
10,609,078 
   
Household Products & Housewares – 0.4% 
         
1,875,000 
 
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC(a) 
CCC+ 
9.000% 
04/15/2019 
10/15/14 @ 105 
2,010,938 
 
 
See notes to financial statements.
 

16 l AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT
 
 
 

 
 

   
PORTFOLIO OF INVESTMENTS (Unaudited) continued 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating*
Coupon 
Maturity 
Provisions** 
Value 
   
Internet – 0.3% 
         
1,250,000 
 
Equinix, Inc.(a) 
BB 
5.375% 
04/01/2023 
04/01/18 @ 103 
$ 1,278,125 
   
Iron & Steel – 0.3% 
         
300,000 
 
Commercial Metals Co. 
BB+ 
4.875% 
05/15/2023 
02/15/23 @ 100 
289,500 
835,000 
 
Steel Dynamics, Inc.(a) 
BB+ 
6.375% 
08/15/2022 
08/15/17 @ 103 
916,413 
             
1,205,913 
   
Leisure Time – 0.5% 
         
1,250,000 
 
Carlson Wagonlit BV (Netherlands)(a) (b) 
B+ 
6.875% 
06/15/2019 
06/15/15 @ 105 
1,342,187 
GBP 625,000 
 
Travelex Financing PLC (United Kingdom)(b) 
B 
8.000% 
08/01/2018 
08/01/15 @ 104 
1,158,240 
             
2,500,427 
   
Lodging – 0.1% 
         
575,000 
 
Caesars Entertainment Operating Co., Inc.(a) 
CCC– 
8.500% 
02/15/2020 
02/15/16 @ 104 
498,813 
16 
 
MTR Gaming Group, Inc. 
B– 
11.500% 
08/01/2019 
08/01/15 @ 106 
18 
             
498,831 
   
Machinery-Construction & Mining – 0.2% 
         
775,000 
 
Permian Holdings, Inc.(b) 
B– 
10.500% 
01/15/2018 
07/15/15 @ 108 
786,625 
   
Machinery-Diversified – 0.3% 
         
1,250,000 
 
Waterjet Holdings, Inc.(a) (b) 
B 
7.625% 
02/01/2020 
02/01/17 @ 104 
1,334,375 
   
Media – 3.6% 
         
5,814,000 
 
Clear Channel Communications, Inc. 
CCC+ 
9.000% 
12/15/2019 
07/15/15 @ 105 
6,220,980 
312,000 
 
Clear Channel Communications, Inc. 
CCC+ 
11.250% 
03/01/2021 
03/01/16 @ 108 
352,950 
625,000 
 
DISH DBS Corp. 
BB– 
5.125% 
05/01/2020 
N/A 
657,812 
6,702,000 
 
Numericable Group SA (France)(b) 
B+ 
4.875% 
05/15/2019 
05/15/16 @ 104 
6,777,397 
950,000 
 
Numericable Group SA (France)(b) 
B+ 
6.000% 
05/15/2022 
05/15/17 @ 105 
973,750 
637,000 
 
Radio One, Inc.(b) 
CCC 
9.250% 
02/15/2020 
02/15/17 @ 105 
680,794 
1,250,000 
 
Starz, LLC / Starz Finance Corp.(a) 
BB 
5.000% 
09/15/2019 
09/15/15 @ 103 
1,301,563 
             
16,965,246 
   
Mining – 1.0% 
         
375,000 
 
Barminco Finance Pty Ltd. (Australia)(a) (b) 
B– 
9.000% 
06/01/2018 
N/A 
347,813 
589,000 
 
First Quantum Minerals Ltd. (Canada)(a) (b) 
B+ 
6.750% 
02/15/2020 
02/15/17 @ 103 
597,835 
589,000 
 
First Quantum Minerals Ltd. (Canada)(a) (b) 
B+ 
7.000% 
02/15/2021 
02/15/18 @ 104 
600,044 
1,875,000 
 
FMG Resources August 2006 Pty Ltd. (Australia)(a) (b) 
BB– 
6.875% 
04/01/2022 
04/01/17 @ 103 
2,013,281 
1,250,000 
 
St Barbara Ltd. (Australia)(a) (b) 
B– 
8.875% 
04/15/2018 
10/15/15 @ 107 
1,043,750 
             
4,602,723 
   
Miscellaneous Manufacturing – 1.1% 
         
925,000 
 
Dispensing Dynamics International(a) (b) 
B– 
12.500% 
01/01/2018 
01/01/16 @ 106 
1,003,625 
3,912,000 
 
LSB Industries, Inc.(a) (b) 
B+ 
7.750% 
08/01/2019 
08/01/16 @ 104 
4,205,400 
             
5,209,025 
   
Oil & Gas – 6.6% 
         
2,542,000 
 
Alta Mesa Holdings, LP / Alta Mesa Finance Services Corp.(a) 
CCC+ 
9.625% 
10/15/2018 
10/15/14 @ 105 
2,707,230 
1,100,000 
 
Bill Barrett Corp.(a) 
B 
7.625% 
10/01/2019 
10/01/15 @ 104 
1,193,500 
800,000 
 
BreitBurn Energy Partners, LP / BreitBurn Finance Corp.(a) 
B– 
7.875% 
04/15/2022 
01/15/17 @ 104 
870,000 
925,000 
 
Chesapeake Energy Corp. 
BB– 
4.875% 
04/15/2022 
04/15/17 @ 104 
927,312 
1,650,000 
 
Clayton Williams Energy, Inc.(a) 
B– 
7.750% 
04/01/2019 
04/01/15 @ 104 
1,765,500 
975,000 
 
Drill Rigs Holdings, Inc. (Marshall Islands)(a) (b) 
B 
6.500% 
10/01/2017 
10/01/15 @ 103 
1,011,562 
1,250,000 
 
Energy XXI Gulf Coast, Inc.(a) (b) 
B+ 
7.500% 
12/15/2021 
12/15/16 @ 106 
1,328,125 
 
   
See notes to financial statements. 
 
 
 
AVK l ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT l 17 
 
 
 

 
   
PORTFOLIO OF INVESTMENTS (Unaudited) continued 
April 30, 2014 
 
               
Principal 
         
Optional Call 
 
Amount~ 
 
Description 
Rating *
Coupon 
Maturity 
Provisions** 
Value 
   
Oil & Gas (continued) 
         
1,250,000 
 
Halcon Resources Corp.(b) 
CCC+ 
9.750% 
07/15/2020 
07/15/16 @ 105 
$ 1,340,625 
4,682,000