fengdr/iStock via Getty Images Convertible Securities can provide bond-like downside protection, via their coupons, and can also add additional upside potential, as convertibles usually rise in tandem with an issuer's stock price. Parsing through convertibles is time consuming. Fortunately, there are closed end funds, "CEF's", such as the Advent Convertible & Income Fund ( AVK ) with managers who ...
fengdr/iStock via Getty Images Convertible Securities can provide bond-like downside protection, via their coupons, and can also add additional upside potential, as convertibles usually rise in tandem with an issuer's stock price. Parsing through convertibles is time consuming. Fortunately, there are closed end funds, "CEF's", such as the Advent Convertible & Income Fund ( AVK ) with managers who are tasked with the research. Fund Profile: "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 30% of its managed assets in convertible securities and up to 70% of its managed assets in lower-grade, non-convertible income securities." ( AVK ) AVK was incepted on 4/29/2003. It's a ~mid-size fund, with $573 million in net assets, and 163 thousand in average daily volume. It holds 590 positions, and management uses leverage, which was at 37.92% as of 3/5/26. Hence, the 4.53% expense ratio includes 2.94% in Interest expense. Hidden Dividend Stocks Plus Holdings: As of 1/31/26, Convertible Securities formed just under 50% of AVK's holdings, followed by 41% in High Yield Securities, and 7% in Equities. AVK has ~78% in US-based investments, and ~22% in International holdings. AVK site Tech, at 17.88%, and Financials, at 17.20% are its 2 biggest sector exposures, followed by Industrials, at 15%, Consumer Discretionary, at 12.39%, and Healthcare, at 12.34%. AVK's remaining sector exposures run from Media, at 6.43%, down to Transportation, at 1.34%: AVK site 42% of AVK's fixed income holdings are unrated, while ~47% are non-investment grade, and ~11% are investment grade: AVK site 3-5 year maturities, at ~29%, were its biggest exposure, followed by 5-7 years, at 15%, 1-3 ...