Advent Claymore raises $520 million for convertible and junk fund

New York, May 1 - The Advent Claymore Convertible Securities and Income Fund Inc. raised $520 million in an initial public offering for a closed-end fund that will primarily invest in convertibles and junk bonds.

The size could go to $598 million if the greenshoe is exercised and the managers said they expect to offer Auction Market Preferred Shares within 90 days that could take total assets to more than $800 million.

Under normal conditions, the new fund will invest 60% of its assets in convertibles and 40% in non-convertible junk bonds, according to a prospectus filed with the Securities and Exchange Commission, although the document noted the proportions will vary. Since some of the convertibles will be below investment grade, roughly 70% of the assets will be in junk-rated securities.

The fund's investment objective is to provide total return through capital appreciation and current income.

Advent Capital Management, LLC, a specialist in convertibles and high yield, is the fund's investment advisor. Before the latest fund offering, it managed $1.7 billion in assets. Tracy

Maitland, is chief investment officer while F. Barry Nelson and Les Levi are portfolio managers.

Claymore Securities, Inc. is the servicing agent.

Trading in the fund began Thursday under the ticker "AVK" on the New York Stock Exchange.

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