Edgar Filing: ADVENT CLAYMORE CONVERTIBLE SECURITIES & INCOME FUND

gug56990-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: April 30, 2013

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:

WWW.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 www.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, 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 six months ended April 30, 2013.

Advent Capital Management, LLC (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, 2013, Advent managed approximately $6.5 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.

For the six-month period ended April 30, 2013, the Fund generated a total return based on market price of 7.75% and a return of 13.17% based on NAV. As of April 30, 2013, the Fund’s market price of $17.55 represented a discount of 6.95% to NAV of $18.86. The Fund uses financial leverage to finance the purchase of additional securities, a strategy which contributed to performance for the period. All Fund returns cited—whether based on NAV or market price—assume the reinvestment of all distributions.

In each month from November 2012 through April 2013, the Fund paid a monthly distribution of $0.0939 per common share. The current monthly distribution represents an annualized distribution rate of 6.42% based upon the last closing market price of $17.55 as of April 30, 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 39 of this report. When shares trade at a discount to NAV, the DRIP takes advantage of the discount by reinvesting the monthly dividend distribution in common shares of the Fund purchased in the market at a price less than NAV. Conversely, when the market price of the Fund’s common shares is at a premium above NAV, the DRIP reinvests participants’ dividends in newly-issued common shares at NAV, subject to an Internal Revenue Service (“IRS”) limitation that the purchase price cannot be more than 5% below the market price per share. The DRIP provides a cost-effective means to accumulate additional shares and enjoy the benefits of compounding returns over time. The DRIP effectively provides an income averaging technique, which causes shareholders to accumulate a larger number of Fund shares when the share price is lower than when the price is higher.

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DEAR SHAREHOLDER continued (Unaudited)

April 30, 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, please visit the Fund’s website at www.guggenheiminvestments.com/avk.

Sincerely,

Tracy V. Maitland

President and Chief Executive Officer of the Advent Claymore Convertible Securities and Income Fund

May 31, 2013

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QUESTIONS & ANSWERS (Unaudited)

April 30, 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 six-month period ended April 30, 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% 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. Historically, the primary means 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 Fund offered to purchase the AMPS at 99% of the liquidation preference of $25,000 per share (or $24,750 per share), plus any unpaid dividends accrued through the expiration of the offer. On December 13, 2012, the Fund announced the expiration and results of tender offer. The Fund repurchased 10,417 AMPS, which represented approximately 99.4% of its previously outstanding AMPS.

The Fund refinanced its tendered AMPS through alternative forms of leverage, including borrowings under a margin loan agreement and reverse repurchase agreement transactions. The Fund initially sought a total amount of outstanding leverage immediately after the conclusion of the tender offer approximately equal to the aggregate liquidation preference of the Fund’s AMPS prior to the tender offer. However, the actual amount of the Fund’s total leverage may vary over time and the Fund may, from time to time, seek to increase or decrease its total outstanding leverage, within limits of the Investment Company Act of 1940, as determined by the Board of Directors and Fund management.

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.

On May 10, 2013, after the period end, the Fund announced an at-par redemption of all of its remaining outstanding AMPS. The Fund expects to redeem its remaining $1.6 million of outstanding AMPS by June 26, 2013.

Please describe the economic and market environment over the last six months.

Security markets throughout the globe advanced sharply for the six months ended April 30, 2013 as quantitative easing by a number of central banks along with reasonable economic growth in many areas conspired to raise asset prices across stock and bond markets. U.S. and European broad market equity indices both advanced double-digits in the six months and the Japanese equity markets rocketed higher on aggressive money printing by the new government there.

Equity investors were rewarded by corporate profits remaining strong and issuers finding more than ample access to capital at ever-declining borrowing rates. U.S. economic reports and statistics, particularly those tied to the housing market and employment showed encouraging progress throughout the six months. The U.S. fiscal situation improved with the growing economy and near-term resolution of the most recent partisan negotiations over the federal budget and debt limits. Europe avoided any near-term repeats of sovereign confidence crises, and Japanese asset prices rose on an ask-questions-later mentality given the magnitude of quantitative easing implemented. Select emerging markets such as China, Brazil and India struggled relatively as GDP growth rates moderated and some commodity prices declined, but developed nation security markets almost universally advanced.

Emphasis on finding yield pervaded as it has in prior reporting periods, although the asset type focus seemed to shift toward high-dividend or defensive equities, as bond prices rose so high they heavily limited yield to

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QUESTIONS & ANSWERS continued (Unaudited)

April 30, 2013

investors. The best performing sectors in the U.S. market were traditionally lower-beta, less cyclical ones such as consumer staples, health care and utilities, as dividends in many cases made equities higher-yielding than bonds from the same issuer.

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, 2013, the Fund generated a total return based on market price of 7.75% and a return of 13.17% based on NAV. As of April 30, 2013, the Fund’s market price of $17.55 represented a discount of 6.95% to NAV of $18.86. As of October 31, 2012, the Fund’s market price of $16.84 represented a discount of 2.04% to NAV of $17.19.

The market value and NAV of the Fund’s shares fluctuate from time to time, and the Fund’s market value may be higher or lower than its NAV. The Investment Adviser believes that, over the long term, the fluctuations of the NAV will be reflected in the market price return to shareholders.

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, 2013, was $264 million, approximately 37% 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’s covered call strategy had limited upside in the current market characterized by strong equity performance and low volatility levels. The VIX levels were the lowest since 2007 and this made income more difficult to earn with options premiums often offset by foregone equity profits.

The Fund generally had lower equity exposure than prior periods, seeing better risk/reward ratios in convertibles, and this also led to lower impact of the covered call strategy. The VIX Index fell from 17.8 at the end of October 2012 to 13.5 at the end of April 2013 in reaction to the strong markets, as investors seemed to climb a “wall of worry” in becoming increasingly confident that risk factors were not playing out.

How did other market measures perform in this environment?

For the six-month period ended April 30, 2013, the S&P 500 Index returned 14.42%. International equities were even stronger, with the Morgan Stanley Capital International Europe-Australasia-Far East Index (the “MSCI EAFE”) returning 16.90%.

Many bond indices also delivered positive returns during the six months ended April 30, 2013, with measures of riskier parts of the market leading the pack. The return of the Merrill Lynch High Yield Master II Index was 7.26%. The returns of the Merrill Lynch All U.S. Convertibles Index and the Merrill Lynch Global 300 Convertible Index were 12.69% and 9.28%, respectively. The Barclays U.S. Aggregate Bond Index (the “Barclays Aggregate”) rose 0.90% for the period.

It is important to remember that the Fund’s mandate differs materially from each of these indices and that the Fund maintains leverage while these indices do not.

Please discuss the Fund’s distributions.

How was the Fund’s portfolio allocated among asset classes during the six months ended April 30, 2013, and what did this mean for performance?

The Fund is diversified globally among convertible securities, high-yield bonds and equities, but can reallocate assets, as appropriate.

As of October 31, 2012, 64.4% of the Fund’s total investments were in convertible securities. High-yield bonds accounted for 29.9% of total investments, and equity positions represented 2.6%. The rest of the Fund’s total investments, 3.1%, were in other investments.

As of April 30, 2013, 65.6% of the Fund’s total investments were in convertible securities. High-yield bonds accounted for 28.7% of total investments, and equity positions represented 1.6%. The rest of the Fund’s assets, approximately 4.1%, were in cash and other investments.

The primary change in allocation over the period involved increasing the convertible allocation. For the first quarter of 2013, the return of the high-yield bond market represented the weakest performance to begin a year since 2008, and premium prices and extended valuations are reducing the likelihood that high-yield bonds will continue to provide equity-like returns.

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QUESTIONS & ANSWERS continued (Unaudited)

April 30, 2013

Advent believes that relative value now favors the convertible market and thus increased its convertible allocation going into 2013. Given the hybrid structure of convertible securities, these instruments behaved like stocks in the strengthening market experienced over the period, capturing a meaningful proportion of the upside moves of equities. The fixed income feature of convertibles reduces equity sensitivity in declining markets, so the increased exposure helps protect the portfolio against market volatility.

Which investment decisions had the greatest effect on the Fund’s performance?

Among the holdings that made the strongest contribution to performance were convertible bonds of Theravance (0.9% of long-term investments at period end), which jumped in April 2013 as the markets reacted to the strength of the company’s product pipeline and decision to split itself into two entities, one being a biotechnology research and development company that enhanced its value as an acquisition target.

Convertible bonds of Gilead Sciences, Inc., a research-based biopharmaceutical company (1.3% of long-term investments at period end), were also a contributor to performance. The company benefited from revenue expectations for its medicines that treat human immunodeficiency virus/AIDS, liver diseases such as hepatitis B virus and hepatitis C virus, serious cardiovascular/metabolic and respiratory conditions.

Preferred shares held in Bank of America (1.4% of long-term investments at period end) continued to push higher given its yield advantage, with its 7.25% coupon, and the improving credit picture leading to better capital markets results at its Merrill Lynch unit and the improving U.S. housing market assisting the financial stability of the commercial bank.

Holdings that detracted from the Fund’s performance included convertible bonds of Cliffs Natural Resources (not held at period end), the iron ore producer, whose shares have slumped along with the entire mining sector amid lower demand from China and tumbling commodity prices.

Convertible bonds of steelmaker ArcelorMittal (1.5% of long-term investments at period end) also continued to fall in value, as have those of many basic materials-related companies. This was due primarily to declining prices of underlying commodities generally, in this case, steel and iron ore, which were plagued by production overcapacity in Russia and China in particular.

Another detractor was convertible bonds Royal Gold (1.3% of long-term investments at period end). They declined as the company’s shares were forced lower along with others tied to the price of gold, when the price plunged on poor demand reports and perceptions of a winding down of central bank quantitative easing.

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 from registration as a commodity pool operator provided certain requirements are met. In order to permit the Investment Adviser 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 Advisor do not believe that complying with the amended rule limits the Fund’s ability to use futures, options and swaps to the extent that it has used them in the past.

Do you have any other comments about the markets and the Fund?

With such strong market performance in the period, it’s natural that investors might have felt more cautious at the period end, although there are many indications that the economy is generally growing in the U.S. and some other parts of the world. It is worth noting that equities which have struggled to keep up with the strong overall market include many in cyclical industries such as materials and technology, which are also among the most prominent issuers of straight and convertible debt.

While Treasury yields remained very low during the period and corporate credit spreads tightened noticeably, they are still near the middle of historic ranges in terms of nominal percentage points over risk-free Treasuries.

Advent believes its sizeable research staff and bottom-up fundamental focus places it in a strong position to identify issuer-specific opportunities as they arise across the convertible and high yield markets.

Index Definitions

Indices are unmanaged 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.

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QUESTIONS & ANSWERS continued (Unaudited)

April 30, 2013

The MSCI EAFE Index is a free float-adjusted market capitalization weighted index designed to reflect the movements of stock markets in developed countries of Europe and the Pacific Basin. The index is calculated in U.S. dollars and is constructed to represent about 60% of market capitalization in each country.

The Merrill Lynch All U.S. Convertibles Index is comprised of approximately 500 issues of convertible bonds and preferred stock of all qualities.

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.

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.

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.

Convertible Securities. The Fund is not limited in the percentage of its assets that may be invested in convertible securities. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. The market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, the convertible security’s market value tends to reflect the market price of the common stock of the issuing company when that stock price is greater than the convertible’s “conversion price,” which is the predetermined price at which the convertible security could be exchanged for the associated stock.

Structured and Synthetic Convertible Securities Risk. The value of structured convertible securities can be affected by interest rate changes and credit risks of the issuer. Such securities may be structured in ways that limit their potential for capital appreciation and the entire value of the security may be at a risk of loss depending on the performance of the underlying equity security. Structured convertible securities may be less liquid than other convertible securities. The value of a synthetic convertible security will respond differently to market fluctuations than a convertible security because a synthetic convertible security is composed of two or more separate securities, each with its own market value. In addition, if the value of the underlying common stock or the level of the index involved in the convertible component falls below the exercise price of the warrant or option, the warrant or option may lose all value.

Interest Rate Risk. In addition to the risks discussed above, convertible securities and nonconvertible income securities are subject to certain risks, including:


	•	if interest rates go up, the value of convertible securities and noncon-vertible income securities in the Fund’s portfolio generally will decline;

	•	during periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest in lower yielding securities. This is known as call or prepayment risk. Lower grade securities have call features that allow the issuer to repurchase the security prior to its stated maturity. An issuer may redeem a lower grade security if the issuer can refinance the security at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer; and

	•	during periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected principal payments. This may lock in a below market interest rate, increase the security’s duration (the estimated period until the security is paid in full) and reduce the value of the security. This is known as extension risk.

Credit Risk. Credit risk is the risk that one or more securities in the Fund’s portfolio will decline in price, or fail to pay interest or principal when due, because the issuer of the security experiences a decline in its financial status. The Fund’s investments in convertible and nonconvertible debt securities involve credit risk. However, in general, lower rated, lower grade and noninvestment grade securities carry a greater degree of risk that the issuer will lose its ability to make interest and principal payments, which could have a negative impact on the Fund’s net asset value or dividends.

Equity Securities Risk. Equity risk is the risk that securities held by the Fund will fall due to general market or economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, and the particular circumstances and performance of particular companies whose securities the Fund holds.

Lower Grade Securities Risks. Investing in lower grade and non-investment grade securities (commonly known as “junk bonds”) involves additional risks, including credit risk. Credit risk is the risk that one or more securities in the Fund’s portfolio will decline in price, or fail to pay interest or principal when due, because the issuer of the security experiences a decline in its financial status.

Preferred Securities Risks. There are special risks associated with investing in preferred securities, including risks related to deferral, noncumulative dividends, subordination, liquidity, limited voting rights and special redemption rights.

Foreign Securities and Emerging Markets Risk. The Fund may invest without limitation in foreign securities. Investing in non-U.S. issuers may involve unique risks, such as currency, political, economic and market risk. In addition, investing

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QUESTIONS & ANSWERS continued (Unaudited)

April 30, 2013

in emerging markets entails additional risk including, but not limited to (1) news and events unique to a country or region, (2) smaller market size, resulting in lack of liquidity and price volatility, (3) certain national policies which may restrict the Fund’s investment opportunities, (4) less uniformity in accounting and reporting requirements, (5) unreliable securities valuation and (6) custody risk.

Smaller Company Risk. The general risks associated with corporate incomeproducing and equity securities are particularly pronounced for securities issued by companies with smaller market capitalizations. These companies may have limited product lines, markets or financial resources, or they may depend on a few key employees. As a result, they may be subject to greater levels of credit, market and issuer risk. Securities of smaller companies may trade less frequently and in lesser volume than more widely held securities and their values may fluctuate more sharply than other securities. Companies with medium-sized market capitalizations may have risks similar to those of smaller companies.

Risk Associated with the Fund’s Covered Call Option Writing Strategy. The ability of the Fund to achieve its investment objective of providing total return through a combination of current income and capital appreciation is partially dependent on the successful implementation of its covered call option strategy.

There are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. A decision as to whether, when and how to use options involves the exercise of skill and judgment, and even a well conceived transaction may be unsuccessful to some degree because of market behavior or unexpected events. As the writer of a covered call option, the Fund forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline.

Illiquid Investments. The Fund may invest without limit in illiquid securities. The Fund may also invest without limit in Rule 144A Securities. Although many of the Rule 144A Securities in which the Fund invests may be, in the view of the Investment Adviser, liquid, if qualified institutional buyers are unwilling to purchase these Rule 144A Securities, they may become illiquid. Illiquid securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of illiquid securities.

Strategic Transactions. The Fund may use various other investment management techniques that also involve certain risks and special considerations, including engaging in hedging and risk management transactions, including interest rate and foreign currency transactions, options, futures, swaps, caps, floors, and collars and other derivatives transactions.

Financial Leverage Risk. 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.

Risks Associated with Refinancing of Auction Preferred Shares. Historically, the Fund primarily utilized financial leverage through the issuance of AMPS. The Fund has repurchased pursuant to a tender offer or announced the redemption of all of its outstanding AMPS. The Fund is refinancing its tendered AMPS through alternative forms of leverage, including borrowings under a margin loan agreement and reverse repurchase agreement transactions. The leverage represented by the AMPS was perpetual in that the AMPS had no fixed repayment date. In contrast, the financial leverage represented by borrowings under a margin loan agreement and reverse repurchase agreements must be renewed. If the Fund is unable to renew or refinance such borrowings, the Fund will be forced to decrease the amount of its leverage (i.e., sell assets and use the proceeds of such sales to repay such borrowings). Such an event could have negative consequences for the Fund, including requiring the Fund to sell investments at a loss, tax consequences to the Fund or its shareholders and reducing the return to common shareholders of the Fund. The calculation for determining the dividend rate for the AMPS is based on a different methodology than the calculation for determining the interest rate charged to borrowings or the cost of reverse repurchase agreement financing utilized by the Fund. As a result, depending on the market conditions, leverage costs under the Fund’s current financing arrangements may be higher or lower than leverage costs would have been for the AMPS.

With respect to borrowings under the Fund’s margin loan agreement, under the provisions of the Investment Company Act of 1940, as amended (the “1940 Act”), the Fund, immediately after the issuance of senior securities constituting indebtedness, must have an “asset coverage” of at least 300% (i.e., the indebtedness may not exceed 33 1/3% of the Fund’s managed assets after the issuance of such borrowings). Because reverse repurchase agreement transactions may be considered to be the practical equivalent of borrowing funds, they constitute a form of leverage. With respect to leverage incurred through reverse repurchase agreement transactions, the Fund intends to earmark or segregate cash or liquid securities in accordance with applicable interpretations of the Staff of the Securities and Exchange Commission. As a result of such segregation, the Fund’s obligations under such transactions will not be considered senior securities representing indebtedness for purposes of the 1940 Act. Therefore, the Fund’s ability to utilize leverage through such transactions will not be limited by the 1940 Act restrictions on senior securities representing indebtedness, but will be limited by the Fund’s maximum overall leverage levels approved by the Board and will be limited by the availability of cash or liquid securities to earmark or segregate in connection with such transactions. The types of leverage utilized by the Fund, along with the actual amount of the Fund’s total leverage, may vary over time. The Fund may, from time to time, seek to increase or decrease its total outstanding leverage, within limits of the 1940 Act, as determined by the Board and management of the Fund.

In addition to the risks described above, the Fund is also subject to: Foreign Currency Risk, Derivatives Risk, Counterparty Risk, Management Risk, Market Disruption Risk, and Anti-Takeover Provisions. Please see www.guggenheiminvestments.com/avk for a more detailed discussion about Fund risks and considerations.

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FUND SUMMARY (Unaudited)

April 30, 2013

Fund Statistics
Share Price	$	17.55
Common Share Net Asset Value	$	18.86
Premium/Discount to NAV		-6.95%
Net Assets Applicable to Common Shares ($000)	$	444,808

Total Returns
(Inception 4/30/03)	Market		NAV
Six Month	7.75	%	13.17	%
One Year	18.53	%	15.84	%
Three Year - average annual	8.10	%	6.79	%
Five Year - average annual	2.93	%	2.53	%
Since Inception - average annual	5.68	%	6.34	%

	% of Long-Term
Top Ten Industries		Investments
Oil & Gas		7.5	%
Pharmaceuticals		6.2	%
Telecommunications		5.9	%
Mining		5.3	%
Semiconductors		5.3	%
Biotechnology		4.7	%
Real Estate Investment Trusts		4.6	%
Software		4.5	%
Banks		4.2	%
Health Care Products		3.7	%

	% of Long-Term
Top Ten Issuers	Investments
Sprint Nextel Corp.	2.4	%
Illumina, Inc.	1.9	%
Hologic, Inc.	1.9	%
Nuance Communications, Inc.	1.8	%
Ciena Corp.	1.8	%
Glencore Finance Europe SA	1.7	%
Micron Technology, Inc.	1.7	%
ArcelorMittal	1.5	%
WebMD Health Corp.	1.5	%
Reynolds Group Issuer, 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. All portfolio data is subject to change daily. For more current information, please visit www.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	82.3	%
Luxembourg	3.4	%
Canada	1.7	%
Jersey	1.6	%
Cayman Islands	1.4	%
Netherlands	1.4	%
Japan	1.4	%
France	1.2	%
United Kingdom	1.0	%
China	0.9	%
British Virgin Islands	0.8	%
Australia	0.6	%
South Korea	0.6	%
Marshall Islands	0.6	%
Bermuda	0.5	%
Austria	0.3	%
Taiwan	0.3	%
Liberia	0.0	%*
* Less than 0.1%

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

PORTFOLIO OF INVESTMENTS (Unaudited)

April 30, 2013

Principal

Optional Call

Amount~

Description

Rating*

Coupon

Maturity

Provisions**

Value

Long-Term Investments – 151.7%

Convertible Bonds – 94.0%

Aerospace & Defense – 0.7%

3,000,000

Alliant Techsystems, Inc.(a)

BB–

3.000%

08/15/2024

08/20/14 @ 100

3,316,875

Apparel – 0.3%

1,272,000

Iconix Brand Group, Inc.(a) (b)

1.500%

03/15/2018

N/A

1,451,670

Auto Manufacturers – 2.0%

3,526,000

Navistar International Corp.(a)

CCC+

3.000%

10/15/2014

N/A

3,633,984

EUR 3,800,000

Volkswagen International Finance NV (Netherlands)(b)

BBB

5.500%

11/09/2015

N/A

5,173,144

8,807,128

Auto Parts & Equipment – 0.7%

3,466,000

Meritor, Inc.(c)

B–

4.000%

02/15/2027

02/15/19 @ 100

3,084,740

Biotechnology – 7.2%

3,770,000

Cubist Pharmaceuticals, Inc.(a)

2.500%

11/01/2017

N/A

6,385,437

1,016,000

Dendreon Corp.

2.875%

01/15/2016

N/A

808,990

4,052,000

Gilead Sciences, Inc., Series C(a)

A–

1.000%

05/01/2014

N/A

9,099,273

12,402,000

Illumina, Inc.(a) (b)

0.250%

03/15/2016

N/A

12,913,583

2,645,000

InterMune, Inc.(a)

2.500%

12/15/2017

N/A

2,808,659

32,015,942

Building Materials – 0.4%

1,800,000

Asia Cement Corp. (Taiwan)(d)

0.00%

06/07/2016

N/A

1,883,250

Coal – 3.3%

7,586,000

Alpha Appalachia Holdings, Inc.(a)

B+

3.250%

08/01/2015

N/A

7,244,630

7,953,000

Alpha Natural Resources, Inc.(a)

B–

2.375%

04/15/2015

N/A

7,495,702

14,740,332

Computers – 4.4%

6,529,000

EMC Corp., Series B(a) (e)

1.750%

12/01/2013

N/A

9,201,842

4,455,000

NetApp, Inc.(a)

BBB+

1.750%

06/01/2013

N/A

4,861,519

4,448,000

SanDisk Corp.(a)

1.500%

08/15/2017

N/A

5,615,600

19,678,961

Diversified Financial Services – 2.9%

4,400,000

Hong Kong Exchanges and Clearing Ltd. (China)

0.500%

10/23/2017

N/A

4,849,900

HKD 22,000,000

Tong Jie Ltd., Series 363 (British Virgin Islands)(d)

0.00%

02/18/2018

N/A

2,894,364

4,855,000

Walter Investment Management Corp.(a)

4.500%

11/01/2019

N/A

5,164,506

12,908,770

Electric – 0.4%

CNY 7,700,000

China Power International Development Ltd. (China)

2.250%

05/17/2016

N/A

1,620,247

Electronics – 0.7%

2,500,000

TPK Holding Co. Ltd., Series REGS (Cayman Islands)(d)

0.00%

10/01/2017

N/A

3,281,875

Food – 0.6%

GBP 1,550,000

J Sainsbury PLC (United Kingdom)

4.250%

07/16/2014

N/A

2,663,313

Gas – 1.0%

3,750,000

ENN Energy Holdings Ltd. (Cayman Islands)(d)

0.00%

02/26/2018

N/A

4,289,062

Hand & Machine Tools – 0.7%

JPY 250,000,000

OSG Corp. (Japan)(d)

0.00%

04/04/2022

N/A

3,099,014

See notes to financial statements.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 11

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

Principal

Optional Call

Amount~

Description

Rating*

Coupon

Maturity

Provisions**

Value

Health Care Products – 5.7%

6,698,000

HeartWare International, Inc.(a)

3.500%

12/15/2017

N/A

8,489,715

3,430,000

Hologic, Inc., Series 2010(a) (c) (f)

B+

2.000%

12/15/2037

12/15/16 @ 100

3,927,350

1,764,000

Hologic, Inc.(a) (c) (g)

B+

2.000%

12/15/2037

12/15/13 @ 100

1,773,931

6,940,000

Hologic, Inc., Series 2012(a) (c) (h)

B+

2.000%

03/01/2042

03/06/18 @ 100

7,091,813

4,067,000

Volcano Corp.(a)

1.750%

12/01/2017

N/A

3,957,699

25,240,508

Health Care Services – 3.0%

7,481,000

LifePoint Hospitals, Inc.(a)

3.500%

05/15/2014

N/A

8,144,939

4,822,000

Molina Healthcare, Inc.(a) (b)

1.125%

01/15/2020

N/A

5,129,402

13,274,341

Home Builders – 2.3%

2,500,000

Lennar Corp.(a) (b)

BB–

2.000%

12/01/2020

12/01/13 @ 100

3,775,000

1,250,000

Ryland Group, Inc.(a)

BB–

1.625%

05/15/2018

N/A

1,972,656

4,050,000

Toll Brothers Finance Corp.(a) (b)

BB+

0.500%

09/15/2032

09/15/17 @ 100

4,280,344

10,028,000

Home Furnishings – 0.3%

JPY 160,000,000

Sharp Corp., Series 20 (Japan)(d)

0.00%

09/30/2013

N/A

1,550,149

Insurance – 1.8%

6,098,000

Radian Group, Inc.(a)

CCC+

3.000%

11/15/2017

N/A

7,942,645

Internet – 3.4%

1,000,000

BroadSoft, Inc.

1.500%

07/01/2018

N/A

1,020,000

2,883,000

Symantec Corp., Series B(a) (e)

BBB

1.000%

06/15/2013

N/A

3,659,608

11,300,000

WebMD Health Corp.(a)

2.500%

01/31/2018

N/A

10,410,125

15,089,733

Investment Companies – 0.6%

2,400,000

Billion Express Investments Ltd. (British Virgin Islands)

0.750%

10/18/2015

N/A

2,479,800

Lodging – 1.8%

7,114,000

MGM Resorts International(a)

B+

4.250%

04/15/2015

N/A

7,892,094

Machinery-Diversified – 0.7%

2,488,000

AGCO Corp.(a)

BB+

1.250%

12/15/2036

12/19/13 @ 100

3,305,930

Media – 0.5%

GBP 800,000

ITV PLC (United Kingdom)

BBB–

4.000%

11/09/2016

N/A

2,289,777

Metal Fabricate & Hardware – 0.6%

2,542,000

RTI International Metals, Inc.

1.625%

10/15/2019

N/A

2,605,550

Mining – 6.3%

10,300,000

Glencore Finance Europe SA (Luxembourg)

BBB

5.000%

12/31/2014

N/A

11,847,575

6,113,000

Newmont Mining Corp., Series B(a)

BBB+

1.625%

07/15/2017

N/A

6,949,717

9,143,000

Royal Gold, Inc.(a)

2.875%

06/15/2019

N/A

9,017,284

27,814,576

Oil & Gas – 4.9%

8,254,000

Chesapeake Energy Corp.(a)

BB–

2.250%

12/15/2038

12/15/18 @ 100

7,346,060

1,780,000

Cobalt International Energy, Inc.

2.625%

12/01/2019

N/A

1,992,487

533,000

Goodrich Petroleum Corp.(e)

CCC

5.000%

10/01/2029

10/01/14 @ 100

532,667

3,500,000

Lukoil International Finance BV (Netherlands)

BBB

2.625%

06/16/2015

N/A

3,867,500

See notes to financial statements.

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

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

Principal					Optional Call
Amount~	Description	Rating*	Coupon	Maturity	Provisions**		Value
	Oil & Gas (continued)
4,363,000	Premier Oil Finance Jersey Ltd., Series PMO (Jersey)	NR	2.500%	07/27/2018	N/A	$	5,231,237
2,898,000	Stone Energy Corp.(a) (b)	B–	1.750%	03/01/2017	N/A		2,677,028
							21,646,979

	Oil & Gas Services – 3.3%
5,429,000	Hornbeck Offshore Services, Inc.(a) (b)	BB–	1.500%	09/01/2019	N/A		6,284,067
EUR 6,616,500	Technip SA, Series TEC (France)	BBB+	0.500%	01/01/2016	N/A		8,588,335
							14,872,402

	Pharmaceuticals – 9.0%
6,600,000	Auxilium Pharmaceuticals, Inc.(a)	NR	1.500%	07/15/2018	N/A		6,187,500
2,033,000	Endo Health Solutions, Inc.(a)	NR	1.750%	04/15/2015	N/A		2,747,091
1,483,000	Isis Pharmaceuticals, Inc.(a) (b)	NR	2.750%	10/01/2019	N/A		2,265,282
2,746,000	Medivation, Inc.(a)	NR	2.625%	04/01/2017	N/A		3,598,976
2,504,000	Salix Pharmaceuticals Ltd.(a)	NR	2.750%	05/15/2015	N/A		3,317,800
4,557,000	Salix Pharmaceuticals Ltd.(a)	NR	1.500%	03/15/2019	N/A		4,955,738
JPY 363,000,000	Sawai Pharmaceutical Co. Ltd. (Japan)(d)	NR	0.00%	09/17/2015	N/A		5,077,379
5,325,000	Shire PLC, Series SHP (Jersey)	NR	2.750%	05/09/2014	N/A		5,838,863
4,320,000	Theravance, Inc.(a)	NR	2.125%	01/15/2023	N/A		6,137,100
							40,125,729

	Real Estate – 1.1%
4,335,000	Forest City Enterprises, Inc.(a)	B	4.250%	08/15/2018	N/A		4,912,097

	Real Estate Investment Trusts – 5.9%
1,801,000	Annaly Capital Management, Inc.(a)	NR	4.000%	02/15/2015	N/A		2,258,013
2,541,000	Boston Properties, LP(a) (b)	A–	3.625%	02/15/2014	N/A		2,683,931
3,099,000	Health Care REIT, Inc.(a)	BBB	3.000%	12/01/2029	12/01/14 @ 100		4,520,666
4,000,000	Host Hotels & Resorts, LP(a) (b)	BBB–	2.500%	10/15/2029	10/20/15 @ 100		5,755,000
2,037,000	Redwood Trust, Inc.(a)	NR	4.625%	04/15/2018	N/A		2,296,718
7,000,000	SL Green Operating Partnership, LP(a) (b)	BB+	3.000%	10/15/2017	N/A		8,640,625
							26,154,953

	Semiconductors – 8.1%
7,370,000	Advanced Micro Devices, Inc.(a)	B	6.000%	05/01/2015	N/A		7,480,550
4,759,000	Intel Corp.(a)	A–	3.250%	08/01/2039	N/A		6,112,365
2,541,000	LAM Research Corp.	BBB–	1.250%	05/15/2018	N/A		2,909,445
6,504,000	Micron Technology, Inc., Series A(a)	NR	1.500%	08/01/2031	08/05/15 @ 100		7,373,910
3,809,000	Micron Technology, Inc., Series E(b)	BB–	1.625%	02/15/2033	02/20/18 @ 100		4,330,357
3,600,000	SK Hynix, Inc. (South Korea)	NR	2.650%	05/14/2015	N/A		4,078,800
2,679,000	Xilinx, Inc.(a)	BBB+	2.625%	06/15/2017	N/A		3,827,621
							36,113,048

	Software – 6.1%
6,881,000	Electronic Arts, Inc.(a)	NR	0.750%	07/15/2016	N/A		6,734,779
8,004,000	Microsoft Corp.(a) (b) (d)	AAA	0.00%	06/15/2013	N/A		8,204,100
10,170,000	Nuance Communications, Inc.(a)	BB–	2.750%	08/15/2027	08/20/14 @ 100		12,337,481
							27,276,360

	Telecommunications – 2.7%
3,864,000	Ciena Corp.(a)	B	0.875%	06/15/2017	N/A		3,545,220
7,785,000	Ciena Corp.(a) (b)	B	3.750%	10/15/2018	N/A		8,685,141
							12,230,361

See notes to financial statements.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 13

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

Principal					Optional Call
Amount~	Description	Rating*	Coupon	Maturity	Provisions**		Value
	Transportation – 0.6%
2,542,000	Ship Finance International Ltd. (Bermuda)	NR	3.250%	02/01/2018	N/A	$	2,524,524

	Total Convertible Bonds – 94.0%
	(Cost $393,566,962)						418,210,735

	Corporate Bonds – 45.2%
	Aerospace & Defense – 0.2%
625,000	Kratos Defense & Security Solutions, Inc.	B	10.000%	06/01/2017	06/01/14 @ 105		692,188

	Apparel – 0.0%+
100,000	Wolverine World Wide, Inc.(a) (b)	B+	6.125%	10/15/2020	10/15/16 @ 103		109,375

	Auto Manufacturers – 1.6%
625,000	Chrysler Group, LLC / CG Co.-Issuer, Inc.	B	8.000%	06/15/2019	06/15/15 @ 104		703,125
1,300,000	Ford Motor Co.(a)	BB+	6.625%	10/01/2028	N/A		1,570,351
4,618,000	Navistar International Corp.(a) (e)	CCC+	8.250%	11/01/2021	11/01/14 @ 104		4,831,582
							7,105,058

	Auto Parts & Equipment – 2.3%
3,200,000	Dana Holding Corp.(a)	BB	6.750%	02/15/2021	02/15/16 @ 103		3,520,000
1,120,000	Goodyear Tire & Rubber Co.(a)	B+	8.250%	08/15/2020	08/15/15 @ 104		1,258,600
4,632,000	Meritor, Inc.(a)	B–	8.125%	09/15/2015	N/A		5,025,720
500,000	Pittsburgh Glass Works, LLC(a) (b)	B+	8.500%	04/15/2016	04/15/14 @ 102		517,500
							10,321,820

	Banks – 3.5%
1,450,000	Ally Financial, Inc.(a)	B+	7.500%	09/15/2020	N/A		1,796,188
7,335,000	CIT Group, Inc.(a) (b)	BB–	5.500%	02/15/2019	N/A		8,306,887
5,334,000	Synovus Financial Corp.(a)	B	5.125%	06/15/2017	N/A		5,414,010
							15,517,085

	Building Materials – 0.3%
1,138,000	Ainsworth Lumber Co. Ltd. (Canada)(a) (b)	B	7.500%	12/15/2017	12/15/14 @ 104		1,246,110

	Chemicals – 1.0%
625,000	Ashland, Inc.(b)	BB	4.750%	08/15/2022	05/15/22 @ 100		654,687
1,250,000	Cornerstone Chemical Co., Series AI	B–	9.375%	03/15/2018	03/15/15 @ 107		1,331,250
625,000	Phibro Animal Health Corp.(b)	B	9.250%	07/01/2018	07/01/14 @ 105		679,688
625,000	Tronox Finance, LLC(b)	BB–	6.375%	08/15/2020	08/15/15 @ 105		625,781
1,275,000	Vertellus Specialties, Inc.(a) (b)	B–	9.375%	10/01/2015	10/01/13 @ 102		1,169,813
							4,461,219

	Coal – 0.2%
751,000	SunCoke Energy, Inc.(a)	B+	7.625%	08/01/2019	08/01/14 @ 106		816,713

	Commercial Services – 1.0%
625,000	Cenveo Corp.	CCC+	11.500%	05/15/2017	05/15/15 @ 106		553,125
925,000	Cenveo Corp.	B–	8.875%	02/01/2018	02/01/14 @ 104		941,187
1,050,000	Neff Rental, LLC / Neff Finance Corp.(a) (b)	B–	9.625%	05/15/2016	05/15/14 @ 104		1,128,750
400,000	Sotheby’s(a) (b)	BB	5.250%	10/01/2022	10/01/17 @ 103		411,500
1,250,000	United Rentals North America, Inc.(a)	BB	5.750%	07/15/2018	07/15/15 @ 103		1,368,750
							4,403,312

	Computers – 0.5%
1,875,000	Seagate HDD Cayman (Cayman Islands)(a)	BB+	7.000%	11/01/2021	05/01/16 @ 104		2,076,563

	Diversified Financial Services – 1.0%
1,530,000	Air Lease Corp.(a)	NR	6.125%	04/01/2017	N/A		1,683,000

See notes to financial statements.

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

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

Principal					Optional Call
Amount~	Description	Rating*	Coupon	Maturity	Provisions**		Value
	Diversified Financial Services (continued)
500,000	Ford Motor Credit Co., LLC(a)	BB+	12.000%	05/15/2015	N/A	$	606,006
1,400,000	International Lease Finance Corp.(a)	BBB–	8.250%	12/15/2020	N/A		1,753,500
150,000	Nationstar Mortgage, LLC / Nationstar Capital Corp.(a) (b)	B+	7.875%	10/01/2020	10/01/16 @ 104		168,750
225,000	Nationstar Mortgage, LLC / Nationstar Capital Corp.(b)	B+	6.500%	07/01/2021	01/01/17 @ 103		237,094
							4,448,350

	Electric – 0.1%
250,000	AES Corp.(a)	BB–	8.000%	06/01/2020	N/A		304,375

	Electrical Components & Equipment – 0.3%
1,250,000	International Wire Group Holdings, Inc.(a) (b)	B	8.500%	10/15/2017	10/15/15 @ 104		1,293,750

	Electronics – 0.6%
2,537,000	Viasystems, Inc.(a) (b)	BB–	7.875%	05/01/2019	05/01/15 @ 106		2,720,932

	Entertainment – 0.1%
644,000	Six Flags Entertainment Corp.(b)	BB–	5.250%	01/15/2021	01/15/16 @ 104		668,150

	Environmental Control – 0.3%
1,250,000	Casella Waste Systems, Inc.	CCC	7.750%	02/15/2019	02/15/15 @ 104		1,215,625

	Food – 0.6%
1,500,000	Land O’Lakes Capital Trust I(a) (b)	BB	7.450%	03/15/2028	N/A		1,513,125
300,000	Marfrig Holding Europe BV (Netherlands)(b)	B+	9.875%	07/24/2017	01/24/16 @ 105		282,000
325,000	Marfrig Holding Europe BV (Netherlands)(a) (b)	B+	8.375%	05/09/2018	N/A		290,875
625,000	Simmons Foods, Inc.(b)	CCC-	10.500%	11/01/2017	11/01/14 @ 105		634,375
							2,720,375

	Forest Products & Paper – 1.3%
1,200,000	Appleton Papers, Inc.(a)	CCC+	11.250%	12/15/2015	N/A		1,374,000
1,050,000	Boise Cascade, LLC / Boise Cascade Finance Corp.(a) (b)	B+	6.375%	11/01/2020	11/01/15 @ 105		1,126,125
1,250,000	Catalyst Paper Corp. (Canada)(i)	NR	11.000%	10/30/2017	12/15/13 @ 100		968,750
1,250,000	Resolute Forest Products, Inc.(b)	BB–	5.875%	05/15/2023	05/15/17 @ 104		1,237,500
1,200,000	Sappi Papier Holding GmbH (Austria)(a) (b)	BB	6.625%	04/15/2021	04/15/16 @ 103		1,266,000
							5,972,375

	Health Care Services – 2.1%
3,200,000	HCA Holdings, Inc.(a)	B–	7.750%	05/15/2021	11/15/15 @ 104		3,636,000
1,875,000	Health Net, Inc.(a)	BB	6.375%	06/01/2017	N/A		2,036,719
625,000	HealthSouth Corp.	BB–	8.125%	02/15/2020	02/15/15 @ 104		698,437
1,250,000	IASIS Healthcare, LLC / IASIS Capital Corp.(a)	CCC+	8.375%	05/15/2019	05/15/14 @ 106		1,328,125
1,375,000	Tenet Healthcare Corp.(a)	B+	8.875%	07/01/2019	07/01/14 @ 104		1,557,188
							9,256,469

	Home Builders – 0.0%+
150,000	Beazer Homes USA, Inc.(b)	CCC	7.250%	02/01/2023	02/01/18 @ 104		157,500

	Household Products & Housewares – 2.6%
8,750,000	Reynolds Group Issuer, Inc.(a)	CCC+	8.500%	05/15/2018	05/15/14 @ 104		9,362,500
200,000	Reynolds Group Issuer, Inc.	CCC+	9.875%	08/15/2019	08/15/15 @ 105		225,000
500,000	Reynolds Group Issuer, Inc.(a)	B+	5.750%	10/15/2020	10/15/15 @ 104		525,000
125,000	Spectrum Brands Escrow Corp.(b)	B–	6.375%	11/15/2020	11/15/16 @ 103		136,875
125,000	Spectrum Brands Escrow Corp.(b)	B–	6.625%	11/15/2022	11/15/17 @ 103		138,125
700,000	Spectrum Brands, Inc.(a)	B	9.500%	06/15/2018	06/15/14 @ 105		790,125
400,000	Yankee Candle Co., Inc., Series B	CCC+	9.750%	02/15/2017	02/15/14 @ 102		415,504
							11,593,129

See notes to financial statements.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 15

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

Principal					Optional Call
Amount~	Description	Rating*	Coupon	Maturity	Provisions**		Value
	Insurance – 0.1%
300,000	Fidelity & Guaranty Life Holdings, Inc.(b)	B+	6.375%	04/01/2021	04/01/16 @ 105	$	312,750

	Internet – 0.4%
1,250,000	Equinix, Inc.(a)	BB	5.375%	04/01/2023	04/01/18 @ 103		1,315,625
500,000	NetFlix, Inc.(b)	BB–	5.375%	02/01/2021	N/A		517,500
							1,833,125

	Iron & Steel – 0.7%
35,000	AK Steel Corp.	B–	8.375%	04/01/2022	04/01/17 @ 104		30,450
1,355,000	Edgen Murray Corp.(a) (b)	B+	8.750%	11/01/2020	11/01/15 @ 107		1,448,156
650,000	Optima Specialty Steel, Inc.(a) (b)	B	12.500%	12/15/2016	12/15/14 @ 106		711,750
150,000	Permian Holdings, Inc.(b)	B–	10.500%	01/15/2018	07/15/15 @ 108		155,625
835,000	Steel Dynamics, Inc.(a) (b)	BB+	6.375%	08/15/2022	08/15/17 @ 103		918,500
							3,264,481

	Leisure Time – 0.3%
300,000	Carlson Wagonlit BV (Netherlands)(b)	B+	6.875%	06/15/2019	06/15/15 @ 105		319,500
100,000	Royal Caribbean Cruises Ltd. (Liberia)(a)	BB	5.250%	11/15/2022	N/A		104,000
625,000	Viking Cruises Ltd. (Bermuda)(b)	B+	8.500%	10/15/2022	10/15/17 @ 104		701,562
							1,125,062

	Lodging – 1.8%
900,000	Caesars Entertainment Operating Co., Inc.	B–	8.500%	02/15/2020	02/15/16 @ 104		871,313
2,620,000	Inn of the Mountain Gods Resort & Casino(b) (j)	NR	1.250%	11/30/2020	10/01/13 @ 100		2,449,700
300,000	MCE Finance Ltd. (Cayman Islands)(b)	BB–	5.000%	02/15/2021	02/15/16 @ 104		304,875
1,250,000	MGM Resorts International(a)	B+	7.625%	01/15/2017	N/A		1,425,000
2,619,756	MTR Gaming Group, Inc.(a) (k)	B–	11.500%	08/01/2019	08/01/15 @ 106		2,776,941
							7,827,829

	Machinery-Diversified – 0.4%
570,000	Case New Holland, Inc.(a)	BB+	7.875%	12/01/2017	N/A		681,150
925,000	Cleaver-Brooks, Inc.(a) (b)	B	8.750%	12/15/2019	12/15/15 @ 107		1,022,125
							1,703,275

	Media – 1.7%
1,500,000	CCO Holdings, LLC(a)	BB–	6.500%	04/30/2021	04/30/15 @ 105		1,635,000
312,000	Clear Channel Communications, Inc.(b)	CCC+	11.250%	03/01/2021	03/01/16 @ 108		332,280
625,000	Clear Channel Worldwide Holdings, Inc.(b)	B	6.500%	11/15/2022	11/15/17 @ 103		673,437
3,819,000	Media General, Inc.(a)	B–	11.750%	02/15/2017	02/15/14 @ 106		4,334,565
625,000	Univision Communications, Inc.(b)	B+	6.875%	05/15/2019	05/15/15 @ 103		685,938
							7,661,220

	Mining – 1.9%
1,250,000	American Gilsonite Co.(a) (b)	B	11.500%	09/01/2017	09/01/14 @ 109		1,334,375
3,164,000	FMG Resources August 2006 Pty Ltd. (Australia)(a) (b)	B+	6.875%	02/01/2018	02/01/14 @ 105		3,381,525
335,000	FMG Resources August 2006 Pty Ltd. (Australia)(a) (b)	B+	8.250%	11/01/2019	11/01/15 @ 104		370,175
1,400,000	Inmet Mining Corp. (Canada)(a) (b)	B+	8.750%	06/01/2020	06/01/16 @ 104		1,519,000
625,000	Kaiser Aluminum Corp.(a)	BB–	8.250%	06/01/2020	06/01/16 @ 104		714,063
350,000	New Gold, Inc. (Canada)(b)	BB–	6.250%	11/15/2022	11/15/17 @ 103		362,250
625,000	St Barbara Ltd. (Australia)(b)	B	8.875%	04/15/2018	10/15/15 @ 107		619,531
							8,300,919

See notes to financial statements.

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

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

Principal					Optional Call
Amount~	Description	Rating*	Coupon	Maturity	Provisions**		Value
	Miscellaneous Manufacturing – 0.4%
625,000	Dispensing Dynamics International(b)	B–	12.500%	01/01/2018	01/01/16 @ 106	$	659,375
1,075,000	Trinseo Materials Operating SCA / Trinseo Materials Finance, Inc. (Luxembourg)(a) (b)	B+	8.750%	02/01/2019	08/01/15 @ 104		1,077,687
							1,737,062

	Oil & Gas – 6.2%
2,342,000	Alta Mesa Holdings, LP / Alta Mesa Finance Services Corp.(a)	B	9.625%	10/15/2018	10/15/14 @ 105		2,529,360
1,100,000	Bill Barrett Corp.(a)	B+	7.625%	10/01/2019	10/01/15 @ 104		1,204,500
800,000	BreitBurn Energy Partners, LP / BreitBurn Finance Corp.	B	7.875%	04/15/2022	01/15/17 @ 104		884,000
200,000	Calumet Specialty Products Partners, LP / Calumet Finance Corp.(b)	B	9.625%	08/01/2020	08/01/16 @ 105		228,500
950,000	Chesapeake Energy Corp.(a)	BB–	7.250%	12/15/2018	N/A		1,104,375
400,000	Clayton Williams Energy, Inc.(a)	B–	7.750%	04/01/2019	04/01/15 @ 104		414,000
1,300,000	Drill Rigs Holdings, Inc. (Marshall Islands)(a) (b)	B	6.500%	10/01/2017	10/01/15 @ 103		1,322,750
175,000	EP Energy, LLC / EP Energy Finance, Inc.(a)	B	9.375%	05/01/2020	05/01/16 @ 105		204,750
100,000	EPL Oil & Gas, Inc.(b)	B–	8.250%	02/15/2018	02/15/15 @ 104		108,000
1,250,000	Halcon Resources Corp.(b)	CCC+	9.750%	07/15/2020	07/15/16 @ 105		1,371,875
1,250,000	Hercules Offshore, Inc.(a) (b)	B	10.250%	04/01/2019	04/01/15 @ 108		1,440,625
1,625,000	OGX Austria GmbH (Austria)(b)	B–	8.375%	04/01/2022	04/01/17 @ 104		995,312
350,000	Parker Drilling Co.	B+	9.125%	04/01/2018	04/01/14 @ 105		385,000
6,830,000	PetroBakken Energy Ltd. (Canada)(a) (b)	CCC+	8.625%	02/01/2020	02/01/16 @ 104		7,069,050
1,503,000	Plains Exploration & Production Co.(a)	B	6.125%	06/15/2019	06/15/16 @ 103		1,673,966
625,000	Plains Exploration & Production Co.	B	6.875%	02/15/2023	02/15/18 @ 103		714,844
500,000	Range Resources Corp.(a)	BB	8.000%	05/15/2019	05/15/14 @ 104		550,000
180,000	Range Resources Corp.(a)	BB	5.000%	08/15/2022	02/15/17 @ 103		192,600
1,250,000	Samson Investment Co.(a) (b)	B–	9.750%	02/15/2020	02/15/16 @ 105		1,334,375
630,000	SandRidge Energy, Inc.	B–	7.500%	03/15/2021	03/15/16 @ 104		656,775
295,000	SandRidge Energy, Inc.	B–	7.500%	02/15/2023	08/15/17 @ 104		305,325
625,000	Talos Production, LLC / Talos Production Finance, Inc.(b)	CCC+	9.750%	02/15/2018	02/15/15 @ 105		618,750
1,250,000	Tesoro Corp.(a)	BB+	5.375%	10/01/2022	10/01/17 @ 103		1,337,500
250,000	Unit Corp.	BB–	6.625%	05/15/2021	05/15/16 @ 103		268,750
500,000	W&T Offshore, Inc.(a)	B	8.500%	06/15/2019	06/15/15 @ 104		547,500
							27,462,482

	Oil & Gas Services – 0.5%
800,000	Forbes Energy Services Ltd.	B	9.000%	06/15/2019	06/15/15 @ 105		794,000
1,500,000	SESI, LLC(a)	BBB–	6.375%	05/01/2019	05/01/15 @ 103		1,635,000
							2,429,000

	Packaging & Containers – 0.0%+
125,000	Sealed Air Corp.(b)	BB–	8.375%	09/15/2021	09/15/16 @ 104		146,875

	Pharmaceuticals – 0.3%
1,250,000	Valeant Pharmaceuticals International(b)	BB–	6.375%	10/15/2020	10/15/16 @ 103		1,390,625

	Pipelines – 0.6%
150,000	Atlas Pipeline Partners, LP / Atlas Pipeline Finance Corp.(b)	B+	5.875%	08/01/2023	02/01/18 @ 103		154,500
500,000	Crosstex Energy, LP / Crosstex Energy Finance Corp.(a)	B+	8.875%	02/15/2018	02/15/14 @ 104		548,750
1,175,000	Eagle Rock Energy Partners, LP(a)	B	8.375%	06/01/2019	06/01/15 @ 104		1,271,937
300,000	Genesis Energy, LP / Genesis Energy Finance Corp.(b)	B	5.750%	02/15/2021	02/15/17 @ 103		316,313
400,000	Tesoro Logistics, LP(b)	BB–	5.875%	10/01/2020	10/01/16 @ 103		432,000
							2,723,500

See notes to financial statements.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 17

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

Principal					Optional Call
Amount~	Description	Rating*	Coupon	Maturity	Provisions**		Value
	Real Estate – 0.2%
750,000	Kennedy-Wilson, Inc.(a)	BB–	8.750%	04/01/2019	04/01/15 @ 104	$	827,813

	Real Estate Investment Trusts – 0.7%
75,000	Corrections Corp. of America(b)	BB+	4.625%	05/01/2023	N/A		78,375
2,090,000	Host Hotels & Resorts, LP(a)	BBB–	6.000%	10/01/2021	07/01/21 @ 100		2,449,219
570,000	OMEGA Healthcare Investors, Inc.(a)	BBB–	5.875%	03/15/2024	03/15/17 @ 103		625,575
							3,153,169

	Retail – 1.3%
625,000	Burlington Coat Factory Warehouse Corp.	CCC	10.000%	02/15/2019	02/15/15 @ 105		702,344
1,275,000	Burlington Holdings, LLC / Burlington Holding Finance, Inc.(a) (b) (l)	CCC	9.000%	02/15/2018	02/15/14 @ 102		1,329,188
625,000	Dave & Buster’s, Inc.	B–	11.000%	06/01/2018	06/01/14 @ 106		710,156
1,000,000	Fiesta Restaurant Group, Inc.(a)	B	8.875%	08/15/2016	02/15/14 @ 104		1,088,750
750,000	Jo-Ann Stores, Inc.(b)	CCC+	8.125%	03/15/2019	03/15/14 @ 104		804,375
100,000	Sally Holdings, LLC / Sally Capital, Inc.(a)	BB+	5.750%	06/01/2022	06/01/17 @ 103		108,250
625,000	Toys “R” Us, Inc.	CCC+	7.375%	10/15/2018	N/A		600,781
215,000	Wok Acquisition Corp.(b)	CCC+	10.250%	06/30/2020	06/30/16 @ 105		237,306
							5,581,150

	Software – 0.7%
3,032,000	First Data Corp.(a) (b)	B–	8.250%	01/15/2021	01/15/16 @ 104		3,236,660

	Storage & Warehousing – 1.1%
4,359,000	Niska Gas Storage US, LLC / Niska Gas Storage Canada ULC(a)	B+	8.875%	03/15/2018	03/15/14 @ 104		4,696,822

	Telecommunications – 5.6%
1,250,000	Cincinnati Bell, Inc.(a)	CCC+	8.750%	03/15/2018	03/15/14 @ 104		1,281,250
700,000	Cricket Communications, Inc.	CCC+	7.750%	10/15/2020	10/15/15 @ 104		715,750
300,000	Hughes Satellite Systems Corp.	B+	6.500%	06/15/2019	N/A		335,250
625,000	Intelsat Luxembourg SA (Luxembourg)(b)	CCC+	7.750%	06/01/2021	06/01/17 @ 104		660,937
1,000,000	Level 3 Communications, Inc.	CCC	11.875%	02/01/2019	02/01/15 @ 106		1,181,250
1,100,000	NII Capital Corp.(a)	CCC	7.625%	04/01/2021	04/01/16 @ 104		979,000
1,800,000	Sorenson Communications, Inc.(a) (b)	NR	10.500%	02/01/2015	02/01/14 @ 100		1,683,000
12,564,000	Sprint Nextel Corp.(b)	BB–	9.000%	11/15/2018	N/A		15,485,130
625,000	Sprint Nextel Corp.	B+	9.250%	04/15/2022	N/A		784,375
650,000	Telesat Canada / Telesat, LLC (Canada)(b)	B–	6.000%	05/15/2017	05/15/14 @ 103		694,688
500,000	Windstream Corp.(a)	B	7.750%	10/01/2021	10/01/16 @ 104		555,000
650,000	Windstream Corp.(a)	B	7.500%	06/01/2022	06/01/17 @ 104		719,875
							25,075,505

	Transportation – 0.7%
190,000	Gulfmark Offshore, Inc.(a)	BB–	6.375%	03/15/2022	03/15/17 @ 103		199,500
625,000	Navios Maritime Holdings, Inc. / Navios Maritime Finance II US, Inc.
	(Marshall Islands)(a)	B+	8.125%	02/15/2019	02/15/15 @ 104		595,312
950,000	Navios Maritime Holdings, Inc. / Navios Maritime Finance US, Inc.
	(Marshall Islands)(a)	BB–	8.875%	11/01/2017	11/01/13 @ 104		1,003,437
625,000	Navios South American Logistics, Inc. / Navios Logistics Finance US, Inc.
	(Marshall Islands)(b)	B+	9.250%	04/15/2019	04/15/14 @ 107		685,938
275,000	Navios South American Logistics, Inc. / Navios Logistics Finance US, Inc.
	(Marshall Islands)	B+	9.250%	04/15/2019	04/15/14 @ 107		301,813

See notes to financial statements.

18 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

Principal

Optional Call

Amount~

Description

Rating *

Coupon

Maturity

Provisions**

Value

Transportation (continued)

400,000

Swift Services Holdings, Inc.

B+

10.000%

11/15/2018

11/15/14 @ 105

460,000

3,246,000

Total Corporate Bonds – 45.2%

(Cost $191,009,420)

200,835,797

Term Loans – 0.9%(m)

1,240,530

Chrysler Group LLC/CG Co.-Isser, Inc., Tranche B

6.000%

05/24/2017

N/A

1,261,544

625,000

Intrawest ULC

CCC

10.750%

12/04/2018

N/A

654,687

2,250,000

Sorenson Communication, Inc. Term Loan

9.500%

10/31/2014

N/A

2,291,485

(Cost $4,138,136)

4,207,716

Number

of Shares

Description

Value

Convertible Preferred Stocks – 9.0%

Auto Manufacturers – 1.6%

154,914

General Motors Co., Series B(a)

BB–

4.750%

12/01/2013

7,200,403

Auto Parts & Equipment – 0.8%

76,400

Goodyear Tire & Rubber Co.

5.875%

04/01/2014

3,329,512

Banks – 2.8%

7,378

Bank of America Corp., Series L(a) (n)

BB+

7.250%

—

9,183,249

134,000

Synovus Financial Corp., Series tMED(e)

8.250%

05/15/2013

3,319,180

12,502,429

Insurance – 1.0%

89,141

MetLife, Inc.(a)

BBB–

5.000%

03/26/2014

4,470,421

Iron & Steel – 2.4%

501,253

ArcelorMittal, Series MTUS (Luxembourg)(a) (e)

B+

6.000%

01/15/2016

10,455,837

Oil & Gas – 0.4%

42,150

Apache Corp., Series D(a)

BBB

6.000%

08/01/2013

1,783,788

Total Convertible Preferred Stocks – 9.0%

(Cost $37,709,692)

39,742,390

Common Stocks – 2.5%

Health Care Services – 0.3%

49,747

Brookdale Senior Living, Inc.(a) (o)

1,282,975

Internet – 1.3%

8,492

priceline.com, Inc.(e) (o)

5,910,347

Real Estate Investment Trusts – 0.4%

90,660

Spirit Realty Capital, Inc.

1,951,910

Telecommunications – 0.5%

71,079

Vodafone Group PLC, ADR (United Kingdom)

2,174,307

Total Common Stocks – 2.5%

(Cost $10,821,761)

11,319,539

Warrants – 0.1%

446,146

MannKind Corp.(a) (o)

02/08/2016

557,682

(Cost $287,157)

Total Long-Term Investments – 151.7%

(Cost $637,533,128)

674,873,859

See notes to financial statements.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 19

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

		Expiration	Exercise
Contracts	Options Purchased(m)	Month	Price		Value
	Put Options Purchased – 0.0%+
1,016	Cliffs Natural Resources, Inc.	May 2013	$16.00	$	10,160
1,869	iShares Russell 2000 Index Fund	May 2013	86.00		22,428
2,804	iShares Russell 2000 Index Fund	May 2013	87.00		44,864
1,016	iShares Russell 2000 Index Fund	May 2013	88.00		22,352
	(Cost $703,025)				99,804

Number
of Shares	Description				Value

	Short-Term Investments – 5.4%
	Money Market – 5.4%
23,691,388	Goldman Sachs Financial Prime Obligations – Administration Share
	Class(p)				23,691,388
	(Cost $23,691,388)

	Total Investments – 157.1%
	(Cost $661,927,541)				698,665,051
	Other Assets in excess of Liabilities – 2.4%				10,780,655
	Total Value of Options Written – (0.2%) (Premiums received $1,006,573)				(1,063,181	)
	Preferred Shares, at redemption value – (-0.4% of Net Assets
	Applicable to Common Shareholders or -0.2% of Total Investments)				(1,575,000	)
	Margin Loan – (38.2%)				(170,000,000	)
	Reverse Repurchase Agreements – (20.7%)				(92,000,000	)
	Net Assets Applicable to Common Shareholders – 100.0%			$	444,807,525

ADR – American Depositary Receipt

BV – Limited Liability Company

CNY – Chinese Yuan Renminbi

EUR – Euro

GBP – Great Britain Pound

GmbH – Limited Liability

HKD – Hong Kong Dollar

JPY – Japanese Yen

LLC – Limited Liability Company

LP – Limited Partnership

N/A- Not Applicable

NV – Publicly Traded Company

PLC – Public Limited Company

Pty – Proprietary

SA – Corporation

SCA – Limited Partnership

ULC – Unlimited Liability Company

	All percentages shown in the Portfolio of Investments are based on Net Assets Applicable to Common Shareholders, unless otherwise noted.

~	The principal amount is denominated in U.S. Dollars unless otherwise noted.

*	Ratings shown are per Standard & Poor’s Rating Group, Moody’s Investor Services, Inc. or Fitch Ratings. Securities classified as NR are not rated. (For securities not rated by Standard & Poor’s Rating Group, the rating by Moody’s Investor Services, Inc. is provided. Likewise, for securities not rated by Standard & Poor’s Rating Group and Moody’s Investor Services, Inc., the rating by Fitch Ratings is provided.) All ratings are unaudited. The ratings apply to the credit worthiness of the issuers of the underlying securities and not to the Fund or its shares.

**	Date and price of the earliest optional call provision. There may be other call provisions at varying prices at later dates. All optional call provisions are unaudited.

+	Less than 0.1%

(a)	All or a portion of these securities have been physically segregated in connection with borrowings and reverse repurchase agreements. As of April 30, 2013, the total amount segregated was $451,662,557.

(b)	Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2013 these securities amounted to $170,672,704, which represents 38.4% of net assets applicable to common shares.

See notes to financial statements.

20 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

PORTFOLIO OF INVESTMENTS (Unaudited) continued

April 30, 2013

(c)	Security is a “step coupon” bond where the coupon increases or decreases at a predetermined date. The rate shown reflects the rate in effect at the end of the reporting period.

(d)	Zero coupon bond.

(e)	All or a portion of this security is segregated as collateral (or a potential collateral for future transactions) for written options.

(f)	Security becomes an accreting bond after December 15, 2016 with a 2.00% principal accretion rate.

(g)	Security becomes an accreting bond after December 15, 2013 with a 2.00% principal accretion rate.

(h)	Security becomes an accreting bond after March 1, 2018 with a 2.00% principal accretion rate.

(i)	The issuer of this security may elect to pay the 11.000% coupon entirely in cash, or accrue interest at a rate of 13.000% per annum and make interest payments as follows: (1) 7.5% in cash and (2) 5.5% payment-in-kind shares issued out of the restructuring.

(j)	The issuer of this security will make interest payments of 1.250% payment-in-kind shares until first notes issued are repaid. Thereafter, 2.125% payment-in-kind shares and 11.875% in cash.

(k)	The issuer of this security may elect to accrue interest at a rate of 11.500% per annum and make interest payments as follows: (1) 10.500% in cash and (2) 1.000% in payment-in-kind shares until August 1, 2013. Thereafter, the issuer will pay the 11.500% coupon entirely in cash.

(l)	Payment-in-kind toggle note. The issuer in each interest period has the option to pay interest in cash or to issue payment-in-kind shares of the note.

(m)	Term loans held by the Fund have a variable interest rate feature which is periodically adjusted based on an underlying interest rate benchmark. In addition, term loans may include mandatory and/or optional prepayment terms. As a result, the actual maturity dates of the loan may be different than the amounts disclosed in the portfolios of investments. Term loans may be considered restricted in that the Fund may be contractually obligated to secure approval from the Agent Bank and/or Borrower prior to the sale or disposition of loan.

(n)	Security is perpetual and, thus does not have a predetermined maturity date. The coupon rate shown is in effect as of April 30, 2013.

(o)	Non-income producing security.

(p)	All or a portion of this security has been segregated in connection with forward exchange currency contracts and unfunded loan commitments. At April 30, 2013, the total amount segregated was $23,691,388.

Contracts
(100 shares		Expiration		Exercise
per contract)	Options Written(a)	Month		Price		Value
	Call Options Written – (0.2%)
2,541	ArcelorMittal	January 2014	$	14.00	$	(232,501	)
2,540	MGM Resorts International	January 2015		17.00		(416,560	)
84	priceline.com, Inc.	January 2014		750.00		(414,120	)
	Total Value of Options Written – (0.2%)
	(Premiums received $1,006,573)				$	(1,063,181	)

(a) Non-income producing security.

See notes to financial statements.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 21

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

April 30, 2013

Assets
Investments in securities, at value (cost $661,927,541)	$	698,665,051
Foreign currency, at value (cost $455,341)		458,908
Securities sold receivable		21,884,483
Interest receivable		6,629,900
Unrealized appreciation on forward exchange currency contracts		161,324
Dividends receivable		74,748
Unrealized appreciation on unfunded loan commitments		11,876
Total assets		727,886,290
Liabilities
Margin loan		170,000,000
Reverse repurchase agreements		92,000,000
Payable for securities purchased		16,824,508
Options written, at value (premiums received of $1,006,573)		1,063,181
Unrealized depreciation on forward exchange currency contracts		557,739
Advisory fee payable		309,175
Due to custodian		151,817
Servicing fee payable		120,235
Interest due on borrowings		49,529
Trustees fee payable		13,999
Administration fee payable		11,726
Dividends payable - preferred shares		270
Accrued expenses and other liabilities		401,586
Total liabilities		281,503,765
Preferred Stock, at redemption value
Auction Market Preferred Shares
$0.001 par value per share; 11,000 authorized, and 63 issued and outstanding at $25,000 per share liquidation preference		1,575,000
Net Assets Applicable to Common Shareholders	$	444,807,525
Composition of Net Assets Applicable to Common Shareholders
Common Stock, $0.001 par value per share; unlimited number of shares authorized, 23,580,877 shares issued and outstanding	$	23,581
Additional paid-in capital		557,563,677
Net unrealized appreciation on investments, unfunded loan commitments, written options and foreign currency translation		36,323,221
Accumulated net realized loss on investments, swaps, written options, futures and foreign currency transactions		(144,456,911	)
Undistributed net investment income		(4,646,043	)
Net Assets Applicable to Common Shareholders	$	444,807,525
Net Asset Value Applicable to Common Shareholders (based on 23,580,877 common shares outstanding)	$	18.86

See notes to financial statements.

22 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

STATEMENT OF OPERATIONS For the six months ended April 30, 2013 (Unaudited)

April 30, 2013

Investment Income
Interest	$	13,185,459
Dividends		1,693,330
Total income			$	14,878,789
Expenses
Advisory fee		1,840,117
Interest expense		1,634,461
Servicing agent fee		715,601
Professional fees		164,797
Trustees’ fees and expenses		83,528
Preferred share maintenance		76,895
Administration fee		70,941
Fund accounting		64,437
Insurance		48,003
Printing		41,757
Custodian		41,539
ICI dues		18,100
NYSE listing fee		11,765
Transfer agent		9,591
Rating agency fee		3,126
Miscellaneous		33,904
Total expenses				4,858,562
Net investment income				10,020,227
Realized and Unrealized Gain on Investments, Unfunded Loan Commitments, Options, and Foreign Currency Transactions:
Net realized gain (loss) on:
Investments				15,611,537
Written Options				572,669
Foreign currency transactions				(388,914	)
Net change in unrealized appreciation (depreciation) on:
Investments				27,724,540
Unfunded loan commitments				11,876
Written Options				(60,698	)
Foreign currency translations				(405,981	)
Net realized and unrealized gain on investments, unfunded loan commitments, written options and foreign currency transactions				43,065,029
Distributions to Preferred Shareholders from net investment income				(452,773	)
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations			$	52,632,483

See notes to financial statements.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 23

STATEMENT OF CHANGES IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

April 30, 2013

		For the
		Six Months Ended			For the
		April 30, 2013			Year Ended
		(Unaudited)			October 31, 2012
Change in Net Assets Applicable to Common
Shareholders Resulting from Operations:
Net investment income	$	10,020,227		$	25,122,159
Net realized gain (loss) on investments, swaps, options, futures and foreign currency transactions		15,795,292			25,331,716
Net change in unrealized appreciation on investments, unfunded loan commitments options, futures and foreign currency translation		27,269,737			(22,336,354	)
Distributions to Preferred Shareholders:
From net investment income		(452,773	)		(3,915,928	)
Net increase in net assets applicable to Common Shareholders resulting from operations		52,632,483			24,201,593
Distributions to Common Shareholders:
From and in excess of net investment income		(13,285,466	)		(31,782,306	)
Total increase in net assets applicable to common shareholders		39,347,017			(7,580,713	)
Net Assets Applicable to Common Shareholders
Beginning of period		405,460,508			413,041,221
End of period (including undistributed net investment income of ($4,646,043) and ($928,031), respectively)	$	444,807,525		$	405,460,508

See notes to financial statements.

24 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

STATEMENT OF CASH FLOWS For the six months ended April 30, 2013 (Unaudited)

April 30, 2013

Cash Flows from Operating Activities:
Net increase in net assets resulting from operations	$	52,632,483
Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to
Net Cash Provided by Operating and Investing Activities:
Net change in unrealized appreciation on investments		(27,736,019	)
Net change in unrealized appreciation on unfunded loan commitments		(11,876	)
Net change unrealized depreciation on written options		60,698
Net change in unrealized depreciation on foreign currency translations		405,584
Net realized gain on investments		(15,611,537	)
Purchase of long-term investments		(753,424,886	)
Proceeds from sale of long-term investments		760,871,322
Net proceeds (purchases) from sale of short-term investments		(5,078,483	)
Net amortization/accretion of premium/discount		583,409
Net increase in premiums received on written options		280,689
Increase in securities sold receivable		(8,325,551	)
Decrease in interest receivable		42,312
Decrease in dividends receivable		222,937
Increase in foreign currency, at value		(458,908	)
Decrease in other assets		48,002
Increase in interest due on borrowings		49,529
Decrease in dividends payable - preferred shares		(141,212	)
Increase in payable for securities purchased		7,773,697
Increase in servicing fee payable		472
Increase in investment advisory fee payable		1,214
Decrease in administrative fee payable		(76	)
Increase in trustee fee payable		6,297
Decrease in accrued expenses and other liabilities		(168,956	)
Increase in due to custodian payable		142,098
Net Cash Provided by Operating and Investing Activities		12,163,239
Cash Flows From Financing Activities:
Dividends paid to preferred shareholders		(452,773	)
Dividends paid to common shareholders		(13,285,466	)
Redemption of auction preferred shares		(260,425,000	)
Reverse Repurchase Agreements		92,000,000
Margin Loan		170,000,000
Net Cash Used by Financing Activities		(12,163,239	)
Net change in cash		—
Cash at Beginning of Period		—
Cash at End of Period	$	—
Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest	$	1,584,932

See notes to financial statements.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 25

FINANCIAL HIGHLIGHTS

April 30, 2013

	For the
Per share operating performance	Six Months Ended			For the			For the			For the			For the			For the
for a share of common stock	April 30, 2013			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
outstanding throughout the period	(unaudited)			October 31, 2012			October 31, 2011			October 31, 2010			October 31, 2009			October 31, 2008
Net asset value, beginning of period	$	17.19		$	17.52		$	19.38		$	16.28		$	12.52		$	28.23
Income from investment operations
Net investment income (a)		0.42			1.06			1.37			1.29			1.06			1.66
Net realized and unrealized gain/loss on investments, unfunded loan commitments, swaps, options, futures and foreign currency transactions		1.83			0.13			(1.48	)		3.11			4.10			(14.66	)
Distributions to preferred shareholders:
From net investment income (common share equivalent basis)		(0.02	)		(0.17	)		(0.17	)		(0.17	)		(0.20	)		(0.49	)
From net realized gains (common share equivalent basis)		—			—			—			—			—			(0.03	)
Total preferred distributions (common share equivalent basis)		(0.02	)		(0.17	)		(0.17	)		(0.17	)		(0.20	)		(0.52	)
Total from investment operations		2.23			1.02			(0.28	)		4.23			4.96			(13.52	)
Distributions to Common Shareholders:
From and in excess of net investment income		(0.56	)		(1.35	)		(1.58	)		(1.13	)		(1.19	)		(2.05	)
From net realized gain		—			—			—			—			—			(0.13	)
Return of capital		—			—			—			—			(0.01	)		(0.01	)
Total distributions to Common Shareholders		(0.56	)		(1.35	)		(1.58	)		(1.13	)		(1.20	)		(2.19	)
Net asset value, end of period	$	18.86		$	17.19		$	17.52		$	19.38		$	16.28		$	12.52
Market value, end of period	$	17.55		$	16.84		$	15.87		$	18.19		$	14.24		$	13.11
Total investment return (b)
Net asset value		13.17	%		6.18	%		-1.91	%		26.65	%		42.52	%		-51.06	%
Market value		7.75	%		15.54	%		-4.82	%		36.74	%		20.34	%		-41.96	%
Ratios and supplemental data
Net assets, applicable to Common Shareholders, end of period (thousands)	$	444,808		$	405,461		$	413,041		$	457,050		$	383,925		$	295,101
Preferred shares, at redemption value ($25,000 per share liquidation preference) (thousands)	$	1,575		$	262,000		$	262,000		$	262,000		$	262,000		$	275,000
Preferred shares asset coverage per share (d)	$	7,085,437		$	63,689		$	64,412		$	68,612		$	61,634		$	51,827
Ratios to Average Net Assets applicable to Common Shares:
Net operating expenses		1.53	%(c)		1.72	%(e)		1.58	%		1.50	%		1.77	%		1.22	%
Interest expense		0.78	%(c)		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Total net expenses		2.31	%(c)		1.72	%(e)		1.58	%		1.50	%		1.77	%		1.22	%
Fee waiver		0.00	%(c)		0.00	%		0.01	%		0.07	%		0.18	%		0.25	%
Total gross expenses		2.31	%(c)		1.72	%(e)		1.59	%		1.57	%		1.95	%		1.47	%
Net Investment Income, after fee waiver, prior to effect of dividends to preferred shares, including interest expense		4.76	%(c)		6.23	%		7.11	%		7.12	%		7.98	%		7.14	%
Net Investment Income, before fee waiver, prior to effect of dividends to preferred shares, including interest expense		4.76	%(c)		6.23	%		7.10	%		7.05	%		7.80	%		6.89	%
Net Investment Income, after fee waiver, after effect of dividends to preferred shares, including interest expense		4.55	%(c)		5.26	%		6.25	%		6.18	%		6.47	%		4.92	%
Net Investment Income, before fee waiver, after effect of dividends to preferred shares, including interest expense		4.55	%(c)		5.26	%		6.24	%		6.11	%		6.29	%		4.67	%
Portfolio turnover rate		114	%		218	%		93	%		65	%		121	%		87	%
Senior Indebtedness
Total borrowings outstanding (in thousands)	$	262,000		$	–		$	–		$	–		$	–		$	–
Asset coverage per $1,000 of indebtedness (f)	$	2,704		$	–		$	–		$	–		$	–		$	–

(a)	Based on average shares outstanding during the period.
(b)	Total investment return is calculated assuming a purchase of a common share at the beginning of the period and a sale on the last day of the period reported either at net asset value (“NAV”) or market price per share. Dividends and distributions are assumed to be reinvested at NAV for NAV returns or the prices obtained under the Fund’s Dividend Reinvestment Plan for market value returns. Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized.
(c)	Annualized.
(d)	Calculated by subtracting the Fund’s total liabilities from the Fund’s total assets and dividing by the total number of preferred shares outstanding.
(e)	Expense ratio does not reflect the fees and expenses incurred indirectly by the Fund as a result of its investment in shares of business development companies. If these fees were included in the expense ratio, the increase to the expense ratio would be approximately 0.08% for the year ended October 31, 2012.
(f)	Calculated by subtracting the Fund’s total liabilities (not including the borrowings) from the Fund’s total assets and dividing by the total borrowings.

See notes to financial statements.

26 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)

April 30, 2013

Note 1 – Organization:

Advent Claymore Convertible Securities and Income Fund (the “Fund”) was organized as a Delaware statutory trust on February 19, 2003. The Fund is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended.

The Fund’s investment objective is to provide total return through a combination of capital appreciation and current income. The Fund will pursue its investment objective by investing at least 80% of its assets in a diversified portfolio of convertible securities and non-convertible income securities.

Note 2 – Accounting Policies:

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates.

The following is a summary of significant accounting policies followed by the Fund:

(a) Valuation of Investments

Securities listed on an exchange are valued at the last reported sale price on the primary exchange on which they are traded. Equity securities traded on an exchange for which there are no transactions on a given day are valued at the mean of the closing bid and asked prices. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Equity securities not listed on a securities exchange or NASDAQ are valued at the mean of the closing bid and asked prices. Debt securities are valued by independent pricing services or dealers using the mean of the closing bid and asked prices for such securities or, if such prices are not available, at prices for securities of comparable maturity, quality and type. If sufficient market activity is limited or does not exist, the pricing providers or broker-dealers may utilize proprietary valuation models which consider market characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, or other unique security features in order to estimate relevant cash flows, which are then discounted to calculate a security’s fair value. Exchange-traded options are valued at the closing price, if traded that day. If not traded, they are valued at the mean of the bid and asked prices on the primary exchange on which they are traded. Futures contracts are valued using the settlement price established each day on the exchange on which they are traded. Swaps are valued daily by independent pricing services or dealers using the mid price. Forward exchange currency contracts are valued daily at current exchange rates. The Fund values money market funds at net asset value. Short-term securities with remaining maturities of 60 days or less at the time of purchase are valued at amortized cost, which approximates market value.

For those securities where quotations or prices are not available, the valuations are determined in accordance with procedures established in good faith by management and approved by the Board of Trustees. A valuation committee consisting of representatives from investments, fund administration, legal and compliance is responsible for the oversight of the valuation process of the Fund and convenes monthly, or more frequently as needed. The valuation committee reviews monthly Level 3 fair valued securities methodology, price overrides, broker quoted securities, price source changes, illiquid securities, stale priced securities, halted securities, price challenges, fair valued securities sold and back testing trade prices in relation to prior day closing prices. On a quarterly basis, the valuations and methodologies of all Level 3 fair valued securities are presented to the Fund’s Board of Trustees.

Valuations in accordance with these procedures are intended to reflect each security’s (or asset’s) “fair value”. Such “fair value” is the amount that the Fund might reasonably expect to receive for the security (or asset) upon its current sale. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one security to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the initial cost of the security, (iii) the existence of any contractual restrictions on the security’s disposition, (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies, (v) quotations or evaluated prices from broker-dealers and/or pricing services, (vi) information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange traded securities), (vii) an analysis of the company’s financial statements, and (viii) an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold (e.g. the existence of pending merger activity, public offerings or tender offers that might affect the value of the security). There were no securities fair valued in accordance with such procedures established by the Board of Trustees at April 30, 2013.

GAAP requires disclosure of fair valuation measurements as of each measurement date. In compliance with GAAP, the Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s investments and summarized in the following fair value hierarchy:

Level 1 – quoted prices in active markets for identical securities

Level 2 – quoted prices in inactive markets or other significant observable inputs (e.g. quoted prices for similar securities; interest rates; prepayment speed; credit risk; yield curves)

Level 3 – significant unobservable inputs (e.g. discounted cash flow analysis; non-market based methods used to determine fair value)

Observable inputs are those based upon market data obtained from independent sources, and unobservable inputs reflect the Fund’s own assumptions based on the best information available. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following are certain inputs and techniques that are generally utilized to evaluate how to classify each major type of investment in accordance with GAAP.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 27

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

Equity Securities (Common and Preferred Stock) – Equity securities traded in active markets where market quotations are readily available are categorized as Level 1. Equity securities traded in inactive markets and certain foreign equities are valued using inputs which include broker quotes, prices of securities closely related where the security held is not trading but the related security is trading, and evaluated price quotes received from independent pricing providers. To the extent that these inputs are observable, such securities are categorized as Level 2. To the extent that these inputs are unobservable, such securities are categorized as Level 3.

Convertible Bonds & Notes – Convertible bonds and notes are valued by independent pricing providers who employ matrix pricing models utilizing various inputs such as market prices, broker quotes, prices of securities with comparable maturities and qualities, and closing prices of corresponding underlying securities. To the extent that these inputs are observable, such securities are categorized as Level 2. To the extent that these inputs are unobservable, such securities are categorized as Level 3.

Corporate Bonds & Notes – Corporate bonds and notes are valued by independent pricing providers who employ matrix pricing models utilizing various inputs such as market prices, broker quotes, and prices of securities with comparable maturities and qualities. To the extent that these inputs are observable, such securities are categorized as Level 2. To the extent that these inputs are unobservable, such securities are categorized as Level 3.

The Fund did not hold any Level 3 securities during the period ended April 30, 2013.

The following table represents the Fund’s investments carried on the Statement of Assets and Liabilities by caption and by level within the fair value hierarchy as of April 30, 2013:


		Quoted Prices
		in Active			Significant
		Markets for			Other			Significant
		Identical			Observable			Unobservable
		Assets			Inputs			Inputs
Description		(Level 1	)		(Level 2	)		(Level 3	)		Total
(value in $000s)
Assets:
Convertible Bonds	$	—		$	418,211		$	—		$	418,211
Corporate Bonds		—			200,836			—			200,836
Term Loans		—			4,208			—			4,208
Convertible Preferred Stocks		39,742			—			—			39,742
Common Stocks		11,319			—			—			11,319
Warrants		—			558			—			558
Put Options Purchased		100			—			—			100
Money Market Fund		23,691			—			—			23,691
Forward Exchange
Currency Contracts		—			161			—			161
Unfunded loan commitments		—			12			—			12
Total	$	74,852		$	623,986		$	—		$	698,838
Liabilities:
Call Options Written	$	1,063		$	—		$	—		$	1,063
Forward Exchange
Currency Contracts		—			558			—			558
Total	$	1,063		$	558		$	—		$	1,621

If not referenced in the table, please refer to the Portfolio of Investments for a breakdown of investment type by industry category.

There were no transfers between levels.

(b) Investment Transactions and Investment Income

Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Discounts on debt securities purchased are accreted to interest income over the lives of the respective securities using the effective interest method. Premiums on debt securities purchased are amortized to interest income up to the next call date of the respective securities using the effective interest method.

The Fund invests in preferred stocks and fixed-income securities which are convertible into common stock. Convertible securities may be converted either at a stated price or rate within a specified period of time into a specified number of shares of common stock. Traditionally, convertible securities have paid dividends or interest greater than on the related common stocks, but less than fixed income non-convertible securities. By investing in a convertible security, the Fund may participate in any capital appreciation or depreciation of a company’s stock, but to a lesser degree than if it had invested in that company’s common stock. Convertible securities rank senior to common stock in a corporation’s capital structure and, therefore, entail less risk than the corporation’s common stock.

(d) Currency Translation

Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the bid and asked price of respective exchange rates on the last day of the period. Purchases and sales of investments denominated in foreign currencies are translated at the exchange rate on the date of the transaction.

The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Foreign exchange realized gain or loss resulting from the holding of a foreign currency, expiration of a currency exchange contract, difference in exchange rates between the trade date and settlement date of an investment purchased or sold, and the difference between dividends or interest actually received compared to the amount shown in the Fund’s accounting records on the date of receipt are included as net realized gains or losses on foreign currency transactions in the Fund’s Statement of Operations.

Foreign exchange gain or loss on assets and liabilities, other than investments, are included in unrealized appreciation (depreciation) on foreign currency translation in the Fund’s Statement of Operations.

28 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

(e) Covered Call Options

The Fund will pursue its objective by employing an option strategy of writing (selling) covered call options or put options on up to 25% of the securities held in the portfolio of the Fund. The Fund seeks to generate current gains from option premiums as a means to enhance distributions payable to shareholders.

When an option is written, the premium received is recorded as an asset with an equal liability and is subsequently marked to market to reflect the current market value of the option written. These liabilities are reflected as options written, at value, in the Statement of Assets and Liabilities. Premiums received from writing options which expire unexercised are recorded on the expiration date as a realized gain. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase transactions, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss.

(f) Swaps

A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The Fund entered into swap agreements to manage its exposure to interest rates and/or credit risk or to generate income. The swaps are valued daily by independent pricing services or dealers using the mid price and any unrealized gain or loss is included in the Statement of Assets and Liabilities. Gain or loss is realized upon periodic payments and ultimately upon the termination of the swap and is equal to the difference between the Fund’s basis in the swap and the proceeds of the closing transaction, including any fees. During the period that the swap agreement is open, the Fund may be subject to risk from the potential inability of the other party (the “Counterparty”) to meet the terms of the agreement. The swaps involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. Upon termination of a swap agreement, a payable to or receivable from the swap counterparty is established on the Statement of Assets and Liabilities to reflect the net gain/loss, including interest income/expense, on terminated swap positions, according to the terms of the swap agreement.

Realized gain (loss) upon termination of swap contracts is recorded on the Statement of Operations. Fluctuations in the value of swap contracts are recorded as a component of net change in unrealized appreciation (depreciation) of swap contracts. Upfront premiums paid and/or received by the Fund are recognized as a realized gain or loss when the contract matures or is terminated. Net periodic payments received by the Fund are included as part of realized gain (loss) and, in the case of accruals for periodic payments, are included as part of unrealized appreciation (depreciation) on the Statement of Operations.

(g) Futures

The Fund may enter into futures contracts to hedge against market and other risks in the portfolio. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. Fluctuations in the value of open futures contracts are recorded for financial reporting purposes as unrealized appreciation and depreciation by the Fund.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the Statement of Assets and Liabilities. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(h) Forward Exchange Currency Contracts

The Fund entered into forward exchange currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchases and sales commitments denominated in foreign currencies and for investment purposes. Forward exchange currency contracts are agreements between two parties to buy and sell currencies at a set price on a future date. Fluctuations in the value of open forward exchange currency contracts are recorded for financial reporting purposes as unrealized appreciation and depreciation by the Fund until the contracts are closed. When the contracts are closed, realized gains and losses are recorded, and included on the Statement of Operations.

Forward exchange currency contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.

(i) Term Loans

Term loans in which the Fund typically invests are not listed on a securities exchange or board of trade. Term loans are typically bought and sold by institutional investors in individually negotiated transactions. The term loan market generally has fewer trades and less liquidity than the secondary market for other types of securities. Due to the nature of the term loan market, the actual settlement date may not be certain at the time of purchase or sale. Interest income on term loans is not accrued until settlement date. Typically, term loans are valued by independent pricing services using broker quotes.

(j) Risks and Other Considerations

In the normal course of business, the Fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to, among other things, changes in the market (market risk) or the potential inability of a counterparty to meet the terms of an agreement (counterparty risk). The Fund is also exposed to other risks such as, but not limited to, concentration, interest rate, credit and financial leverage risks.

Concentration of Risk. It is the Fund’s policy to invest a significant portion of its assets in convertible securities. Although convertible securities do derive part of their value from that of the securities into which they are convertible, they are not considered derivative financial instruments. However, certain of the Fund’s investments include features which render them more sensitive to price changes in their underlying securities. Consequently, this exposes the Fund to greater downside risk than traditional convertible securities, but still less than that of the underlying common stock.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 29

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

Credit Risk. Credit risk is the risk that one or more of the securities in the Fund’s portfolio will decline in price, or fail to pay interest and principal when due, because the issuer of the security experiences a decline in its financial status. In general, lower rated securities carry a greater degree of risk that the issuer will lose its ability to make interest and principal payments, which could have a negative impact on the Fund’s net asset value or dividends.

Interest Rate Risk. Convertible and nonconvertible income securities are subject to certain interest rate risks. If interest rates go up, the value of convertible and nonconvertible income securities in the Fund’s portfolio generally will decline. Also during periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected principal payments. This may lock in a below market interest rate, increase the security’s duration (the estimated period until the security is paid in full) and reduce the value of the security. This is known as extension risk. During periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest in lower yielding securities. This is known as call or prepayment risk. Lower grade securities have call features that allow the issuer to repurchase the security prior to its stated maturity. An issuer may redeem a lower grade security if the issuer can refinance the security at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer.

Foreign Securities and Emerging Markets Risk. Investing in non-U.S. issuers may involve unique risks, such as currency, political, economic and market risk. In addition, investing in emerging markets entails additional risk including, but not limited to: news and events unique to a country or region; smaller market size, resulting in lack of liquidity and price volatility; and certain national policies which may restrict the Fund’s investment opportunities; less uniformity in accounting and reporting requirements; unreliable securities valuation; and custody risk.

Leverage Risk. Certain risks are associated with the leveraging of common stock. Both the net asset value and the market value of shares of common stock may be subject to higher volatility and a decline in value.

(k) Distributions to Shareholders

The Fund declares and pays monthly dividends to common shareholders. These dividends consist of investment company taxable income, which generally includes qualified dividend income, ordinary income and short-term capital gains. Any net realized long-term gains are distributed annually to common shareholders. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 7.

Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

(l) Recent Accounting Pronouncements

In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities”. The update enhances disclosures about offsetting of financial assets and liabilities to enable investors to understand the effect of these arrangements on a fund’s financial position. The ASU is effective for interim and annual reporting periods beginning on or after January 1, 2013. The Fund believes the adoption of this ASU will not have a material impact on the financial statements.

Note 3 – Investment Management Agreement, Servicing Agreement and Other Agreements:

Pursuant to the Investment Management Agreement (the “Agreement”) between the Fund and the Adviser, the Adviser is responsible for the daily management for the Fund’s portfolio of investments, which includes buying and selling securities for the Fund, as well as investment research. The Adviser will receive an annual fee from the Fund based on the average value of the Fund’s Managed Assets. Managed Assets means the total assets of the Fund (including any assets attributable to any preferred shares that may be outstanding or otherwise attributable to the use of leverage, if any) minus the sum of accrued liabilities (other than debt representing financial leverage, if any). In addition, subject to the approval of the Fund’s Board of Trustees, a pro rata portion of the salaries, bonuses, health insurance, retirement benefits and similar employment costs for the time spent on Fund operations (other than the provision of services required under the Agreement) of all personnel employed by the Adviser who devote substantial time to Fund operations may be reimbursed by the Fund to the Adviser. For the six months ended April 30, 2013, the Adviser was not reimbursed by the Fund for these items. The annual fee will be determined as follows:

(a) If the average value of the Fund’s Managed Assets (calculated monthly) is greater than $250 million, the fee will be a maximum amount equal to 0.54% of the average value of the Fund’s Managed Assets.

Pursuant to a Servicing Agreement between the Fund and Guggenheim Funds Distributors, LLC, the Fund’s servicing agent (the “Servicing Agent”), the Servicing Agent will act as servicing agent to the Fund. The Servicing Agent will receive an annual fee from the Fund, which will be based on the average value of the Fund’s Managed Assets. The fee will be determined as follows:

(a) If the average value of the Fund’s Managed Assets (calculated monthly) is greater than $250 million, the fee will be a maximum amount equal to 0.21% of the average value of the Fund’s Managed Assets.

30 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

The Bank of New York Mellon (“BNY”) acts as the Fund’s custodian, accounting agent and auction agent. As custodian, BNY is responsible for the custody of the Fund’s assets. As accounting agent, BNY is responsible for maintaining the books and records of the Fund’s securities and cash. As auction agent, BNY is responsible for conducting the auction of the preferred shares.

Rydex Fund Services, LLC (“RFS”) provides fund administration services to the Fund. As compensation for its services performed under the Administration Agreement, RFS receives an administration fee payable monthly at the annual rate set forth below as a percentage of the average daily managed assets of the Fund:

Managed Assets	Rate
First $200,000,000	0.0275	%
Next $300,000,000	0.0200	%
Next $500,000,000	0.0150	%
Over $1,000,000,000	0.0100	%

Certain officers and trustees of the Fund are also officers and directors of the Adviser or Servicing Agent. The Fund does not compensate its officers or trustees who are officers of the aforementioned firms.

Note 4 – Federal Income Taxes:

The Fund intends to continue to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, no provision for U.S. federal income taxes is required. In addition, by distributing substantially all of its ordinary income and long-term capital gains, if any, during each calendar year, the Fund avoids a 4% federal excise tax that is assessed on the amount of the under distribution.

At April 30, 2013, the cost and related gross unrealized appreciation and depreciation on investments for tax purposes, excluding unfunded loan commitments, written options, futures contracts, forward exchange currency contracts and foreign currency translations are as follows:

Net Tax

Cost of

Unrealized

Investments

Gross Tax

Appreciation

Depreciation on

for Tax

Unrealized

Derivatives and

Purposes

Appreciation

Depreciation

Investments

Foreign Currency

$664,092,420

$46,704,469

$(12,131,838

)

$34,572,631

$(449,456

)

The differences between book basis and tax basis unrealized appreciation/(depreciation) are attributable to the tax deferral of losses on wash sales and income adjustments for tax purposes on certain convertible securities.

As of October 31, 2012, the components of accumulated earnings/(losses) (excluding paid-in capital) on a tax basis were as follows:


	Undistributed			Undistributed
	Ordinary			Long-Term
	Income/			Gains/
	(Accumulated			(Accumulated
	Ordinary Loss	)		Capital Loss	)
$	—		$	(158,426,709	)

The differences between book basis and tax basis undistributed long-term gains/(accumulated capital losses) are attributable to the tax deferral of losses on wash sales and straddles.

At October 31, 2012, for federal income tax purposes, the Fund had a capital loss carryforward of $158,426,709 available to offset possible future capital gains. Of the capital loss carryforward, $30,168,214 expires on October 31, 2016, $126,966,852 expires on October 31, 2017 and $1,291,643 expires on October 31, 2019. Per the Regulated Investment Company Modernization Act of 2010, capital loss carryforwards generated in taxable years beginning after December 22, 2010 must be fully used before capital loss carryforwards generated in taxable years prior to December 22, 2010; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.

For the year ended October 31, 2012, the tax character of distributions paid, as reflected in the Statement of Changes in Net Assets, of $35,698,234 was ordinary income.

For all open tax years and all major jurisdictions, management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e. generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Fund is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

Note 5 – Investments in Securities:

For the six months ended April 30, 2013, purchases and sales of investments, other than short-term securities, were $753,424,886 and $760,871,322, respectively.

Note 6 – Derivatives:

(a) Covered Call and Put Options

An option on a security is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the security underlying the option at a specified exercise or “strike” price. The writer of an option on a security has the obligation upon exercise of the option to deliver the underlying security upon payment of the exercise price (in the case of a call) or to pay the exercise price upon delivery of the underlying security (in the case of a put).

There are several risks associated with transactions in options on securities. As the writer of a covered call option, the Fund forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. A writer of a put option is exposed to the risk of loss if the fair value of the underlying security declines, but profits only to the extent of the premium received if the underlying security increases in value. The writer of an option has no control over the time when it may be required to fulfill its obligation as writer of the option. Once an option writer has received an exercise notice,

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 31

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price.

The Fund entered into written option contracts for the six months ended April 30, 2013. Details of the transactions were as follows:


	Number of Contracts			Premiums Received
Options outstanding, beginning of year	2,218		$	725,884
Options written during the period	52,359			5,189,664
Options expired during the period	(2,995	)		(277,940	)
Options closed during the period	(46,417	)		(4,631,035	)
Options outstanding, end of period	5,165		$	1,006,573

(b) Swaps

Swap agreements are contracts between parties in which one party agrees to make periodic payments to the Counterparty based on the change in market value or level of a specified rate, index or asset. In return, the Counterparty agrees to make periodic payments to the first party based on the return of a different specified rate, index or asset. Swap agreements will usually be done on a net basis, the Fund receiving or paying only the net amount of the two payments. The net amount of the excess, if any, of the Fund’s obligations over its entitlements with respect to each swap is accrued on a daily basis and an amount of cash or highly liquid securities having an aggregate value at least equal to the accrued excess is maintained in an account at the Fund’s custodian bank.

The Fund is party to various derivative contracts governed by International Swaps and Derivatives Association Master Agreements (“ISDA agreements”). The Fund’s ISDA agreements, which are separately negotiated with each Counterparty, typically contain provisions allowing, absent other considerations, a Counterparty to exercise rights, to the extent not otherwise waived, against the Fund in the event the Fund does not meet certain collateral requirements or the Fund’s net assets decline over time by a pre-determined percentage or fall below a pre-determined floor. With respect to certain counterparties, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the Fund’s Statement of Assets and Liabilities in Restricted Cash. Collateral can be in the form of cash or securities as agreed to by the Fund and the applicable Counterparty. Collateral requirements are determined based on the Fund’s net position with each Counterparty. The ISDA agreements also contain provisions, absent other conditions, for the Fund to exercise rights, to the extent not otherwise waived, against counterparties (i.e. decline in a Counterparty’s credit rating below a specified level). Such rights for both the Counterparty and the Fund often include the ability to terminate (i.e., close out) open contracts at prices which may favor the Counterparty, which could have an adverse effect on the Fund. The ISDA agreements with certain counterparties allow the Fund and Counterparty to offset certain derivative instruments’ payables or receivables with collateral posted to a segregated custody account.

Credit default swap transactions involve the Fund’s agreement to exchange the credit risk of an issuer. A buyer of a credit default swap is said to buy protection by paying periodic fees in return for a contingent payment from the seller if the issuer has a credit event such as bankruptcy, a failure to pay outstanding obligations or deteriorating credit while the swap is outstanding. A seller of a credit default swap is said to sell protection and thus collects the periodic fees and profits if the credit of the issuer remains stable or improves while the swap is outstanding. However, the seller in a credit default swap contract would be required to pay an agreed-upon amount, which approximates the notional amount of the swap, to the buyer in the event of an adverse credit event of the issuer.

At April 30, 2013, there were no swap agreements outstanding.

A futures contract is an agreement to buy or sell a specified underlying security for a fixed price at a future date. Upon entering into a futures contract, the Fund is required to make an initial margin deposit with either the broker or with its custodian in an account in the broker’s name of cash or liquid securities equal to a specified percentage of the contract amount. Subsequent payments (“variation margin”) are made or received by the Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities. During the period the futures contracts is open, changes in the value of the contract are recorded as unrealized gain (loss) on the Statement of Operations. When the futures contract is closed or expired, the Fund records a realized gain (loss) on the Statement of Operations.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market. The Fund uses futures contracts to hedge against market and other risks in the Fund’s portfolio.

At April 30, 2013, there were no futures contracts outstanding.

(d) Forward Exchange Currency Contracts

A forward exchange currency contract is a commitment to purchase or sell a foreign currency on a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contracts and the closing of such contracts would be included in net realized gain or loss on foreign currency transactions.

Risk may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The face or contract amount, in U.S. dollars, reflects the total exposure the Fund has in that particular currency contract.

32 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

At April 30, 2013, the following forward exchange currency contracts were outstanding:

					Value at	Net Unrealized
Contracts to Buy		Counterparty	Settlement Date	Settlement Value	4/30/13	Appreciation
CHF	355,000
for USD	376,920	The Bank of New York Mellon	6/19/2013	$376,920	$382,337	$5,417
EUR	106,000
for USD	137,352	The Bank of New York Mellon	6/19/2013	137,352	139,797	2,445
EUR	300,000
for USD	386,227	The Bank of New York Mellon	6/19/2013	386,227	395,652	9,425
EUR	298,000
for USD	381,896	The Bank of New York Mellon	6/19/2013	381,896	393,015	11,119
EUR	327,000
for USD	429,351	The Bank of New York Mellon	6/19/2013	429,351	431,261	1,910
EUR	2,386,000
for USD	3,101,843	The Bank of New York Mellon	6/19/2013	3,101,843	3,146,754	44,911
EUR	1,088,000
for USD	1,425,031	The Bank of New York Mellon	6/19/2013	1,425,031	1,434,899	9,868
EUR	1,071,000
for USD	1,402,116	The Bank of New York Mellon	6/19/2013	1,402,116	1,412,478	10,362
GBP	1,515,000
for USD	2,309,895	The Bank of New York Mellon	6/19/2013	2,309,895	2,357,184	47,289
						$142,746

						Net Unrealized
					Value at	Appreciation/
Contracts to Sell		Counterparty	Settlement Date	Settlement Value	4/30/13	(Depreciation)
CHF	355,000
for USD	376,480	The Bank of New York Mellon	6/19/2013	$376,480	$382,337	($5,857)
EUR	323,000
for USD	423,354	The Bank of New York Mellon	6/19/2013	423,354	425,985	(2,631)
EUR	406,000
for USD	525,924	The Bank of New York Mellon	6/19/2013	525,924	535,449	(9,525)
EUR	302,000
for USD	392,080	The Bank of New York Mellon	6/19/2013	392,080	398,290	(6,210)
EUR	8,900,000
for USD	11,665,186	The Bank of New York Mellon	6/19/2013	11,665,186	11,737,683	(72,497)
EUR	2,300,000
for USD	2,983,459	The Bank of New York Mellon	6/19/2013	2,983,459	3,033,334	(49,875)
EUR	3,937,000
for USD	5,128,269	The Bank of New York Mellon	6/19/2013	5,128,269	5,192,276	(64,007)
EUR	2,134,000
for USD	2,793,017	The Bank of New York Mellon	6/19/2013	2,793,017	2,814,406	(21,389)
GBP	3,266,000
for USD	4,948,578	The Bank of New York Mellon	6/19/2013	4,948,578	5,081,560	(132,982)
GBP	1,450,000
for USD	2,193,725	The Bank of New York Mellon	6/19/2013	2,193,725	2,256,051	(62,326)
JPY	112,500,000
for USD	1,173,788	The Bank of New York Mellon	6/19/2013	1,173,788	1,155,210	18,578
JPY	349,000,000
for USD	3,545,087	The Bank of New York Mellon	6/19/2013	3,545,087	3,583,718	(38,631)
JPY	176,000,000
for USD	1,780,124	The Bank of New York Mellon	6/19/2013	1,780,124	1,807,262	(27,138)
JPY	98,000,000
for USD	984,710	The Bank of New York Mellon	6/19/2013	984,710	1,006,316	(21,606)
JPY	156,000,000
for USD	1,564,033	The Bank of New York Mellon	6/19/2013	1,564,033	1,601,891	(37,858)
JPY	29,000,000
for USD	292,581	The Bank of New York Mellon	6/19/2013	292,581	297,788	(5,207)
						($539,161)
Total unrealized depreciation for forward exchange currency contracts						($396,415)

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 33

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

(e) Summary of Derivatives Information

The Fund is required by GAAP to disclose: a) how and why a fund uses derivative instruments, b) how derivatives instruments are accounted for, and c) how derivative instruments affect a fund’s financial position, results of operations and cash flows.

The following table presents the types of derivatives in the Fund by location as presented on the Statement of Assets Liabilities as of April 30, 2013.

Statement of Assets and Liabilities Presentation of Fair Values of Derivative Instruments:
(amount in thousands)
	Asset Derivatives		Liability Derivatives
Derivatives not accounted for as hedging instruments	Statement of Assets and Liabilities Location	Fair Value	Statement of Assets and Liabilities Location	Fair Value
Forward exchange risk	Unrealized appreciation on forward exchange currency contracts	$161	Unrealized depreciation on forward exchange currency contracts	$558
Equity risk	Investments in securities, at value
	(Options Purchased)	100	Options written, at value	1,063
Total		$261		$1,621

The following table presents the effect of Derivatives Instruments on the Statement of Operations for the six months ended April 30, 2013.

Effect of Derivative Instruments on the Statement of Operations
(amounts in thousands)
Amount of Realized Gain/(Loss) on Derivatives
Derivatives not
accounted for					Foreign
as hedging					Currency
instruments		Options			Transactions			Total
Equity risk	$	(1,663	)	$	—		$	(1,663	)
Forward exchange risk		—			(389	)		(389	)
Total	$	(1,663	)	$	(389	)	$	(2,052	)

Change in Unrealized Appreciation/(Depreciation) on Derivatives
Derivatives not
accounted for					Foreign
as hedging					Currency
instruments		Options			Translations			Total
Equity risk	$	(52	)	$	—		$	(52	)
Forward exchange risk		—			(406	)		(406	)
Total	$	(52	)	$	(406	)	$	(458	)

Derivative Volume
Forward Exchange Currency Contracts:
Average Settlement Value Purchased	$	1,453,482
Average Settlement Value Sold		1,416,190
Ending Settlement Value Purchased		9,950,632
Ending Settlement Value Sold		40,770,397

As of April 30, 2013, the Fund has a net liability position of $1,395,792 on derivative contracts and collateral posted is $36,259,958.

Note 7 – Capital:

Common Shares

The Fund has an unlimited amount of common shares, $0.001 par value, authorized and 23,580,877 issued and outstanding. In connection with the Fund’s dividend reinvestment plan, the Fund issued no shares during the six months ended April 30, 2013, and during the year ended October 31, 2012. At April 30, 2013, Advent Capital Management LLC, the Fund’s investment adviser, owned 10,030 shares of the Fund.

Preferred Shares

On June 19, 2003, the Fund’s Board of Trustees authorized the issuance of Auction Market Preferred Shares (“AMPS”), as part of the Fund’s leverage strategy. AMPS issued by the Fund have seniority over the common shares.

On July 24, 2003, the Fund issued 2,150 shares of Series M7, 2,150 shares of Series T28, 2,150 shares of Series W7 and 2,150 shares of Series TH28, each with a liquidation value of $25,000 per share plus accrued dividends. In addition, on March 16, 2004, the Fund issued 1,200 shares of Series F7 and 1,200 shares of Series W28 each with a liquidation value of $25,000 per share plus accrued dividends.

Since issuance, the Fund redeemed preferred shares during the year ended October 31, 2009 and the six months ended April 30, 2013. The number of shares redeemed and the number of preferred shares outstanding at April 30, 2013 are as follows:

				Number of
	Number of			Shares
	Shares		Amount	Outstanding
Series	Redeemed		Redeemed	April 30, 2013
M7	2,125	$	53,125,000	25
T28	2,148	$	53,700,000	2
W7	2,120	$	53,000,000	30
W28	1,199	$	29,975,000	1
TH28	2,148	$	53,700,000	2
F7	1,197	$	29,925,000	3

34 |AVK |ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

Dividends are accumulated daily at a rate set through an auction process. The broad auction-rate preferred securities market, including the Fund’s AMPS, has experienced considerable disruption since mid-February 2008. The result has been failed auctions on nearly all auction-rate preferred shares, including the Fund’s AMPS. A failed auction is not a default, nor does it require the redemption of the Fund’s AMPS.

Provisions in the AMPS offering documents establish a maximum rate in the event of a failed auction. The AMPS reference rate is the seven-day LIBOR Rate for a dividend period of 7 to 21 days, and the one-month LIBOR Rate for a dividend period of more than 21 days but fewer than 49 days. For AAA rated AMPS, the maximum rate, for auctions for which the Fund has not given notice that the auction will consist of net capital gains or other taxable income, is the higher of the reference rate times 125% or the reference rate plus 1.25%. Distributions of net realized gains, if any, are made annually.

For the six months ended April 30, 2013, the annualized dividend rates ranged from:


	High		Low		At April 30, 2013
Series M7	1.44	%	1.42	%	1.42	%
Series T28	1.46	%	0.18	%	1.45	%
Series W7	1.44	%	1.42	%	1.42	%
Series W28	1.46	%	0.18	%	1.45	%
Series TH28	1.47	%	0.18	%	0.18	%
Series F7	1.44	%	0.15	%	0.15	%

The Fund is subject to certain limitations and restrictions while Preferred Shares are outstanding. Failure to comply with these limitations and restrictions could preclude the Fund from declaring any dividends or distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of Preferred Shares at their liquidation value.

Preferred Shares, which are entitled to one vote per share, generally vote with the common stock but vote separately as a class to elect two trustees and on any matters affecting the rights of the Preferred Shares.

Note 8 – Unfunded Loan Commitments

Pursuant to the terms of certain loan agreements, the Fund held unfunded loan commitments as of April 30, 2013. The Fund is obligated to fund these loan commitments at the borrower’s discretion. The Fund intends to reserve against such contingent obligations by designating cash and liquid securities as a reserve.

As of April 30, 2013, the Fund had the following unfunded loan commitments which could be extended at the option of the borrower:

Commitment

Maturity

Rate if

Par

Unrealized

Borrower

Date

funded

Value

Appreciation

Caraustar

Industries, Inc.

5/1/19

7.5

625,000

10,938

HJ Heinz Co

10/31/14

5.0

1,500,000

938

Note 9 – Borrowings

On November 9, 2012 the Fund entered into a five year Margin Loan Agreement with an approved counterparty whereby the counterparty has agreed to provide secured financing to the Fund and the Fund will provide pledged collateral to the lender. The interest rate on the amount borrowed is 1.74%. On December 20, 2012, the Fund borrowed $170,000,000 under the Margin Loan Agreement. At April 30, 2013, $170,000,000 was outstanding in connection with the Margin Loan Agreement.

On December 20, 2012, the Fund entered into a three year fixed rate reverse repurchase agreement. Under a reverse repurchase agreement, the Fund temporarily transfers possession of a portfolio instrument to another party, such as a bank or broker-dealer, in return for cash. At the same time, the Fund agrees to repurchase the instrument at an agreed upon time and price, which reflects an interest payment. Such agreements have the economic effect of borrowings. The Fund may enter into such agreements when it is able to invest the cash acquired at a rate higher than the cost of the agreement, which would increase earned income. When the Fund enters into a reverse repurchase agreement, any fluctuations in the market value of the instruments transferred to another party or the instruments in which the proceeds may be invested would affect the market value of the Fund’s assets. As a result, such transactions may increase fluctuations in the market value of the Fund’s assets. On December 20, 2012, the Fund entered into a $92,000,000 reverse repurchase agreement with Bank of America Merrill Lynch which expires on December 20, 2015. The interest rate on the reverse repurchase agreement is 1.63%.

Note 10 – Indemnifications:

In the normal course of business, the Fund enters into contracts that contain a variety of representations, which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss to be remote.

Note 11 – Subsequent Events:

Subsequent to April 30, 2013, the Fund declared on May 1, 2013, a monthly dividend to common shareholders of $0.0939 per common share. The dividend is payable on May 31, 2013, to shareholders of record on May 15, 2013.

On June 3, 2013, the Fund declared a monthly dividend to common shareholders of $0.0939 per common share. The dividend is payable on June 28, 2013 to shareholders of record on June 14, 2013.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 35

NOTES TO FINANCIAL STATEMENTS (Unaudited) continued

April 30, 2013

On May 10, 2013, the Fund announced an at-par redemption of its remaining $1,575,000 outstanding AMPS. The liquidation price will be equal to the liquidation preference of $25,000 per share, plus accumulated but unpaid dividends as of the applicable redemption dates as noted in the table below:


		Number of
		Shares		Amount	Redemption
Series	CUSIP	Redeemed		Redeemed	Date
Series M7	00764C208	25	$	625,000	June 18, 2013
Series T28	00764C307	2	$	50,000	June 26, 2013
Series W7	00764C406	30	$	750,000	June 13, 2013
Series W28	00764C703	1	$	25,000	June 13, 2013
Series TH28	00764C505	2	$	50,000	June 14, 2013
Series F7	00764C604	3	$	75,000	June 17, 2013

At a meeting held on June 20, 2013, the Board, including the Independent Trustees advised by their independent legal counsel, determined to re-approve the Investment Management Agreement as in the best interest of the Fund and its shareholders for an additional one-year period. Although the Agreement had been considered and approved at a meeting held on April 2, 2013, the reconsideration will enable the annual contract review to occur at the Board meeting in the second quarter going forward. In connection with the June 20, 2013 meeting, the Board received specific updated expense, performance and other information to support their conclusion.

The Fund has performed an evaluation of subsequent events through the date of issuance of this report and has determined that there are no material events that would require disclosure other than the events discussed above.

36 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

SUPPLEMENTAL INFORMATION (Unaudited)

April 30, 2013

Federal Income Tax Information

In January 2014, you will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by you in the calendar year 2013.

Trustees

The Trustees of the Advent Claymore Convertible Securities and Income Fund and their principal occupations during the past five years:


Name, Address, Year of Birth and Position(s) Held with Registrant	Term of Office* and Length of Time Served	Principal Occupations During the Past Five Years and Other Affiliations	Number of Funds in Fund Complex** Overseen by Trustee	Other Directorships Held by Trustee
Independent Trustees:
Daniel L. Black+ Year of birth: 1960 Trustee	Since 2005	Managing Partner, the Wicks Group of Cos., LLC (2003-present). Formerly, Managing Director and Co-head of the Merchant Banking Group at BNY Capital Markets, a division of BNY Mellon (1998-2003).	3	Director, Bendon Publishing International (2012-present). Director of Antenna International, Inc. (2010-present). Director of Bonded Services, Ltd. (2011- present). Director of Penn Forest Education Group, Inc. (2007-2009).
Randall C. Barnes++ Year of birth: 1951 Trustee	Since 2005	Private Investor (2001-present). Formerly, Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997), President, Pizza Hut International (1991-1993) and Senior Vice President, Strategic Planning and New Business Development of PepsiCo, Inc. (1987-1990).	48	None.
Derek Medina+ Year of birth: 1966 Trustee	Since 2003	Senior Vice President, Business Affairs at ABC News (2008-present). Vice President, Business Affairs and News Planning at ABC News (2003-2008). Formerly, Executive Director, Office of the President at ABC News (2000-2003). Former Associate at Cleary Gottlieb Steen & Hamilton (law firm) (1995-1998). Former associate in Corporate Finance at J.P. Morgan/ Morgan Guaranty (1988-1990).	3	Director, Young Scholar’s Institute (2005-present); Director, Oliver Scholars (2011-present).
Ronald A. Nyberg++ Year of birth: 1953 Trustee	Since 2003	Partner of Nyberg & Cassioppi, LLC, a law firm specializing in corporate law, estate planning and business transactions (2000-present). Formerly, Executive Vice President, General Counsel and Corporate Secretary of Van Kampen Investments (1982-1999).	50	None.
Gerald L. Seizert, CFA, CIC+ Year of birth: 1952 Trustee	Since 2003	Chief Executive Officer of Seizert Capital Partners, LLC, where he directs the equity disciplines of the firm and serves as a manager of the firm’s hedge fund. Formerly, Co-Chief Executive (1998-1999) and a Managing Partner and Chief Investment Officer-Equities of Munder Capital Management, LLC (1995-1999). Former Vice President and Portfolio Manager of Loomis, Sayles & Co., L.P. (asset manager) (1984-1995). Former Vice President and Portfolio Manager at First of America Bank (1978-1984).	3	Director, Beaumont Hospital (2012-present).
Michael A. Smart+ Year of birth: 1960 Trustee	Since 2003	Managing Partner, Cordova, Smart & Williams, LLC (2003-present). Former, Principal Advisor First Atlantic Capital Ltd., (2001-2004). Formerly, a Managing Director in Investment Banking-The Private Equity Group (1995-2001) and a Vice President in Investment Banking-Corporate Finance (1992-1995) at Merrill Lynch & Co. Founding Partner of The Carpediem Group, a private placement firm (1991-1992). Former, Associate at Dillon, Read and Co. (investment bank) (1988-1990).	3	Chairman, Board of Directors, Berkshire Blanket, Inc. (2006- present); President and Chairman, Board of Directors, Sqwincher Holdings (2006-present); Board of Directors, Sprint Industrial Holdings (2007-present); Board of Directors, National Association of Investment Companies (“NAIC”) (2010-present).

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 37

SUPPLEMENTAL INFORMATION (Unaudited) continued

April 30, 2013

Name, Address, Year of Birth and Position(s) Held with Registrant	Term of Office* and Length of Time Served	Principal Occupations During the Past Five Years and Other Affiliations	Number of Funds in Fund Complex** Overseen by Trustee	Other Directorships Held by Trustee
Interested Trustees:
Tracy V. Maitland+ø Year of birth: 1960 Trustee, President and Chief Executive Officer	Since 2003	President of Advent Capital Management, LLC, which he founded in June 2001. Prior to June 2001, President of Advent Capital Management, a division of Utendahl Capital.	3	None.

+	Address for all Trustees noted: 1271 Avenue of the Americas, 45th Floor, New York, NY 10020.

++	Address for all Trustees noted: 2455 Corporate West Drive, Lisle, IL 60532.

*	After a Trustee’s initial term, each Trustee is expected to serve a three-year term concurrent with the class of Trustees for which he serves:

	-	Messrs. Seizert, Medina and Barnes, as Class I Trustees, are expected to stand for re-election at the Fund’s 2013 annual meeting of shareholders.

	-	Mr. Smart and Black, as a Class II Trustees, are expected to stand for re-election at the Fund’s 2014 annual meeting of shareholders.

	-	Messrs. Maitland and Nyberg, as Class III Trustees, are expected to stand for re-election at the Fund’s 2015 annual meeting of shareholders.

**	The Guggenheim Funds Fund Complex consists of U.S. registered investment companies advised or serviced by Guggenheim Funds Investment Advisors, LLC or Guggenheim Funds Distributors, LLC. The Guggenheim Funds Fund Complex is overseen by multiple Boards of Trustees.

ø	Mr. Maitland is an “interested person” (as defined in section 2(a)(19) of the 1940 Act) of the Fund because of his position as an officer of Advent Capital Management, LLC, the Fund’s Advisor.

Officers

The Officers of the Advent Claymore Convertible Securities and Income Fund and their principal occupations during the past five years:

Name, Address*, Year of Birth and Position(s) Held with Registrant	Term of Office** and Length of Time Served	Principal Occupations During the Past Five Years and Other Affiliations
Officers:
Robert White Year of birth: 1965 Treasurer and Chief Financial Officer	Since 2005	Chief Financial Officer, Advent Capital Management, LLC (July 2005-present). Previously, Vice President, Client Service Manager, Goldman Sachs Prime Brokerage (1997-2005).
Edward C. Delk Year of birth: 1968 Chief Compliance Officer and Secretary	Since 2012	General Counsel and Chief Compliance Officer, Advent Capital Management, LLC (2012-present). Formerly, Assistant General Counsel and Chief Compliance Officer, Insight Venture Management, LLC (2009-2012). Associate General Counsel, TIAA-CREF (2008-2009). Principal, Legal Department, The Vanguard Group, Inc. (2000-2008).
Douglas Teresko Year of birth: 1971 Vice President and Assistant Secretary	Since 2013	Managing Director and Co-Portfolio Manager, Advent Capital Management, LLC (2011-present). Formerly, Portfolio Manager of Credit Suisse (2005-2011); Portfolio Manager of DKR Capital (2003-2005); Portfolio Manager, GDO Capital (2001-2003); Portfolio Manager of Citadel Investment Group (1999-2001).

*	Address for all Officers: 1271 Avenue of the Americas, 45th Floor, New York, NY 10020.
**	Officers serve at the pleasure of the Board of Trustees and until his or her successor is appointed and qualified or until his or her earlier resignation or removal.

38 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

DIVIDEND REINVESTMENT PLAN (Unaudited)

April 30, 2013

Unless the registered owner of common shares elects to receive cash by contacting the Plan Administrator, all dividends declared on common shares of the Fund will be automatically reinvested by Computershare Shareowner Services LLC (the “Plan Administrator”), Administrator for shareholders in the Fund’s Dividend Reinvestment Plan (the “Plan”), in additional common shares of the Fund. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution. Some brokers may automatically elect to receive cash on your behalf and may re-invest that cash in additional common shares of the Fund for you. If you wish for all dividends declared on your common shares of the Fund to be automatically reinvested pursuant to the Plan, please contact your broker.

The Plan Administrator will open an account for each common shareholder under the Plan in the same name in which such common shareholder’s common shares are registered. Whenever the Fund declares a dividend or other distribution (together, a “Dividend”) payable in cash, non-participants in the Plan will receive cash and participants in the Plan will receive the equivalent in common shares. The common shares will be acquired by the Plan Administrator for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized common shares from the Fund (“Newly Issued Common Shares”) or (ii) by purchase of outstanding common shares on the open market (“Open-Market Purchases”) on the New York Stock Exchange or elsewhere. If, on the payment date for any Dividend, the closing market price plus estimated brokerage commission per common share is equal to or greater than the net asset value per common share, the Plan Administrator will invest the Dividend amount in Newly Issued Common Shares on behalf of the participants. The number of Newly Issued Common Shares to be credited to each participant’s account will be determined by dividing the dollar amount of the Dividend by the net asset value per common share on the payment date; provided that, if the net asset value is less than or equal to 95% of the closing market value on the payment date, the dollar amount of the Dividend will be divided by 95% of the closing market price per common share on the payment date. If, on the payment date for any Dividend, the net asset value per common share is greater than the closing market value plus estimated brokerage commission, the Plan Administrator will invest the Dividend amount in common shares acquired on behalf of the participants in Open-Market Purchases.

If, before the Plan Administrator has completed its Open-Market Purchases, the market price per common share exceeds the net asset value per common share, the average per common share purchase price paid by the Plan Administrator may exceed the net asset value of the common shares, resulting in the acquisition of fewer common shares than if the Dividend had been paid in Newly Issued Common Shares on the Dividend payment date. Because of the foregoing difficulty with respect to Open-Market Purchases, the Plan provides that if the Plan Administrator is unable to invest the full Dividend amount in Open-Market Purchases during the purchase period or if the market discount shifts to a market premium during the purchase period, the Plan Administrator may cease making Open-Market Purchases and may invest the uninvested portion of the Dividend amount in Newly Issued Common Shares at net asset value per common share at the close of business on the Last Purchase Date provided that, if the net asset value is less than or equal to 95% of the then current market price per common share; the dollar amount of the Dividend will be divided by 95% of the market price on the payment date.

The Plan Administrator maintains all shareholders’ accounts in the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by shareholders for tax records. Common shares in the account of each Plan participant will be held by the Plan Administrator on behalf of the Plan participant, and each shareholder proxy will include those shares purchased or received pursuant to the Plan. The Plan Administrator will forward all proxy solicitation materials to participants and vote proxies for shares held under the Plan in accordance with the instruction of the participants.

There will be no brokerage charges with respect to common shares issued directly by the Fund. However, each participant will pay a pro rata share of brokerage commission incurred in connection with Open-Market Purchases. The automatic reinvestment of Dividends will not relieve participants of any Federal, state or local income tax that may be payable (or required to be withheld) on such Dividends.

The Fund reserves the right to amend or terminate the Plan. There is no direct service charge to participants with regard to purchases in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants.

All correspondence or questions concerning the Plan should be directed to the Plan Administrator, Computershare Shareowner Services, PO Box 358015, Pittsburgh, PA 15252-8015, Attention: Shareholder Services Department; Phone Number: (866) 488-3559.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 39

INVESTMENT MANAGEMENT AGREEMENT RE-APPROVAL

April 30, 2013

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) contemplates that the Board of Trustees (the “Board”) of Advent/Claymore Convertible Securities and Income Fund (the “Fund”), including a majority of the Trustees who have no direct or indirect interest in the investment management agreement and are not “interested persons” of the Fund, as defined in the 1940 Act (the “Independent Trustees”), is required to annually review and re-approve the terms of the Fund’s existing investment management agreement and approve any newly proposed terms therein. In this regard, the Board reviewed and re-approved, during the most recent six month period covered by this report, the investment management agreement (the “Management Agreement”) with Advent Capital Management, LLC (“Advent”) for the Fund.

More specifically, at a meeting held on April 2, 2013, the Board, including the Independent Trustees advised by their independent legal counsel, considered the factors and reached the conclusions described below relating to the re-approval of the Management Agreement.

Nature, Extent and Quality of Services

The Independent Trustees received and considered various data and information regarding the nature, extent and quality of services provided to the Fund by Advent under the Investment Management Agreement. The Independent Trustees reviewed and analyzed the responses of Advent to a detailed series of requests submitted by the Independent Trustees’ independent legal counsel on behalf of such Trustees which included, among other things, information about the background and experience of the senior management and the expertise of, and amount of attention devoted to the Fund by personnel of Advent. In this regard, the Independent Trustees specifically reviewed the qualifications, background and responsibilities of the persons primarily responsible for day-to-day portfolio management services for the Fund.

The Independent Trustees evaluated the ability of Advent including its resources, reputation and other attributes, to attract and retain highly qualified investment professionals, including research, advisory and supervisory personnel. Accordingly, the Independent Trustees considered information regarding the compensation structures for the personnel of Advent involved in providing services to the Fund.

The Independent Trustees also considered the commitment of Advent to the Fund and the hiring of senior level persons whose activities would relate, in part, to the Fund. The Independent Trustees discussed the changes in personnel at Advent responsible for services to the Fund.

The Independent Trustees noted the favorable regulatory history of Advent.

Based on the above factors, together with those referenced below, the Independent Trustees concluded that they were satisfied with the nature, extent and quality of the investment management services provided to the Fund by Advent.

Fund Performance and Expenses

The Independent Trustees considered the performance results for the Fund on a market price and net asset value basis over various time periods. They also considered these results in comparison to the performance results of one group of other closed-end funds that were determined to be similar to the Fund in terms of investment strategy (the “Peer Group”). They recognized that the number of other funds in the Peer Group was small and that for a variety of reasons, Peer Group comparisons may have limited usefulness. The Board also was aware that the performance benchmarks may not be useful comparisons due to the fact that the convertible securities in the benchmarks include convertibles with characteristics unlike those purchased for the Fund. The Fund had outperformed its peer average since inception (based on net asset value) but had underperformed it for the one-, three- and five-years ended February 28, 2013. The Fund similarly had outperformed its index (75% Merrill Lynch All Convertibles Index/25% Merrill Lynch U.S. High Yield Master II) since inception (based on net asset value), but had underperformed it over one-, three- and five-years ended February 28, 2013.

The Board was advised of the views of Advent that the comparability of the Fund to its revised peer group remains limited due to the substantially different asset blends of the Fund, the higher leverage employed by the Fund and the Fund’s lower levels of assets under management (and therefore higher expense ratios). The Board noted that the Fund had invested consistent with its convertible securities investment focus following the 2008 financial crisis when other peers seem to have opportunistically overweighted equities and high-yield bonds.

The Board concluded that the Fund was being managed consistent with its mandate. The Independent Trustees considered the steps management has continued to take to address the Fund’s underperformance, which include enhancements to risk management, implementation of investment guideline changes and changes to the portfolio management team and will continue to monitor performance on an on-going basis. The Board also reviewed information about the discount at which the Fund’s shares have traded as compared with its peers.

40 | AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT

INVESTMENT MANAGEMENT AGREEMENT RE-APPROVAL continued

April 30, 2013

The Independent Trustees received and considered statistical information regarding the Fund’s total expense ratio (based on net assets applicable to common shares) and its various components. They also considered comparisons of these expenses to the expense information for the Fund’s Peer Group. The Independent Trustees recognized that the expense ratio of the Fund (expressed as a percentage of net assets attributable to common shares) was higher than expense ratios of certain Peer Group funds because of the Fund’s leverage, and because certain funds in the Peer Group had no leverage or lower leverage, and therefore reported lower expense ratios and because of the small size of the Fund and the overall complex in relation to peers. The Independent Trustees also noted that expense ratio comparison with the Peer Group was difficult, because the items included in other funds’ definitions of expenses may differ from those used for the Fund. The Independent Trustees considered that the Fund benefited from the use of leverage despite the costs. The Board recognized that the Fund had incurred significant non-recurring expenses in 2012 related to the refinancing of its leverage and redemption of preferred stock.

Based on the above-referenced considerations and other factors, the Independent Trustees concluded that the overall performance results and expense comparison supported the re-approval of the Investment Management Agreement of the Fund.

Investment Management Fee Rate

The Independent Trustees reviewed and considered the contractual investment management fee rate for the Fund (the “Management Agreement Rate”) payable by the Fund to Advent for investment management services. Additionally, the Independent Trustees received and considered information comparing the Management Agreement Rate (on a stand-alone basis exclusive of service fee/administrative fee rates) with those of the other funds in the Peer Group. The Independent Trustees concluded that the fees were fair and equitable based on relevant factors, including the Fund’s performance results and total expenses relative to its Peer Group.

Profitability

The Independent Trustees received and considered an estimated profitability analysis of Advent based on the Management Agreement Rate. The Independent Trustees concluded that, in light of the costs of providing investment management services to the Fund, the profits and other ancillary benefits that Advent received with regard to providing these services to the Fund were not unreasonable.

Economies of Scale

The Independent Trustees received and considered information regarding whether there have been economies of scale with respect to the management of the Fund, whether the Fund has appropriately benefited from any economies of scale and whether there is potential for realization of any further economies of scale. The Independent Trustees concluded that the opportunity to benefit from economies of scale was diminished in the context of closed-end funds.

Information about Services to Other Clients

The Independent Trustees also received and considered information about the nature, extent and quality of services and fee rates offered by Advent to its other clients. In particular, Advent explained that its hedge fund clients pay higher fees than the Fund. Advent also confirmed that the Fund differs from certain other accounts advised by Advent in that the Fund is more complex to manage, requires greater resources from Advent and differs in terms of investment strategy and use of leverage. The Independent Trustees also noted the differing services provided to the Fund in relation to those typically provided to hedge funds and separate accounts. Advent also noted that certain pension funds enjoyed discounts on fees, as disclosed in Advent’s Form ADV.

After considering the above-described factors and based on the deliberations and their evaluation of the information provided to them, the Board concluded that re-approval of the Investment Management Agreement was in the best interest of the Fund and its shareholders.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 41

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FUND INFORMATION

April 30, 2013

Board of Trustees Randall C. Barnes Daniel L. Black Tracy V. Maitland* Chairman Derek Medina Ronald A. Nyberg Gerald L. Seizert Michael A. Smart		Officers Tracy V. Maitland President and Chief Executive Officer Robert White Treasurer and Chief Financial Officer Edward C. Delk Secretary and Chief Compliance Officer Douglas Teresko Vice President and Assistant Secretary	Investment Adviser Advent Capital Management, LLC New York, New York Servicing Agent Guggenheim Funds Distributors, LLC Lisle, Illinois Accounting Agent and Custodian The Bank of New York Mellon Corp. New York, New York Administrator Rydex Fund Services, LLC Lisle, Illinois	Preferred Stock- Dividend Paying Agent Computershare Shareowner Services, LLC Jersey City, New Jersey Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP New York, New York Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP New York, New York















*	Trustee is an “interested person” of the Fund as defined in the Investment Company Act of 1940, as amended, because of his position as an officer of the Advisor.
*

Portfolio Managers of the Fund

The portfolio managers of the Fund are Tracy Maitland (Chief Investment Officer), Paul Latronica (Managing Director) and Hart Woodson (Managing Director).

Privacy Principles of the Fund

The Fund is committed to maintaining the privacy of its shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Fund collects, how the Fund protects that information and why, in certain cases, the Fund may share information with select other parties.

Generally, the Fund does not receive any non-public personal information relating to its shareholders, although certain non-public personal information of its shareholders may become available to the Fund. The Fund does not disclose any non-public personal information about its shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator).

The Fund restricts access to non-public personal information about its shareholders to employees of the Fund’s investment advisor, its affiliates and the Fund’s Administrator with a legitimate business need for the information. The Fund maintains physical, electronic and procedural safeguards designed to protect the non-public personal information of its shareholders.

Questions concerning your shares of Advent Claymore Convertible Securities and Income Fund?

•	If your shares are held in a Brokerage Account, contact your Broker.

•	If you have physical possession of your shares in certificate form, contact the Fund’s Transfer Agent:
	Computershare Shareowner Services LLC, 480 Washington Boulevard, Jersey City, NJ 07310; (866) 488-3559.

This report is sent to shareholders of Advent Claymore Convertible Securities and Income Fund for their information. It is not a Prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in this report.

A description of the Fund’s proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Fund at (866) 274-2227. Information regarding how the Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request by calling the Fund at (866) 274-2227, by visiting the Fund’s website at www.guggenheiminvestments.com/avk or by accessing the Fund’s Form N-PX on the U.S. Securities & Exchange Commission’s (“SEC”) website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC website at www.sec.gov or by visiting the Fund’s website at www.guggenheiminvestments.com/avk . The Fund’s Form N-Q may also be viewed and copied at the SEC’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Notice to Shareholders

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund from time to time may purchase shares of its common and preferred stock in the open market or in private transactions.

AVK | ADVENT CLAYMORE CONVERTIBLE SECURITIES AND INCOME FUND SEMIANNUAL REPORT | 43

ABOUT THE FUND MANAGER

Advent Capital Management, LLC

Advent Capital Management, LLC (“Advent”) is a registered investment adviser, based in New York, which specializes in convertible and high-yield securities for institutional and individual investors. The firm was established by Tracy V. Maitland, a former Director in the Convertible Securities sales and trading division of Merrill Lynch. Advent’s investment discipline emphasizes capital structure research, encompassing equity fundamentals as well as credit research, with a focus on cash flow and asset values while seeking to maximize total return.

Investment Philosophy

Advent believes that superior returns can be achieved while reducing risk by investing in a diversified portfolio of global equity, convertible and high-yield securities. The Fund Manager seeks securities with attractive risk/reward characteristics. Advent employs a bottom-up security selection process across all of the strategies it manages. Securities are chosen from those that the Fund Manager believes have stable-to-improving fundamentals and attractive valuations.

Investment Process

Advent manages securities by using a strict four-step process:

1	Screen the convertible and high-yield markets for securities with attractive risk/reward characteristics and favorable cash flows;

2	Analyze the quality of issues to help manage downside risk;

3	Analyze fundamentals to identify catalysts for favorable performance; and

4	Continually monitor the portfolio for improving or deteriorating trends in the financials of each investment.

Advent Capital Management, LLC

1271 Avenue of the Americas

New York, NY 10020

Guggenheim Funds Distributors, LLC

2455 Corporate West Drive

Lisle, IL 60532

Member FINRA/SIPC

(06/13)

NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE

CEF-AVK-SAR-0413

Item 2. Code of Ethics.

Not applicable for a semi-annual reporting period.

Item 3. Audit Committee Financial Expert.

Not applicable for a semi-annual reporting period.

Item 4. Principal Accountant Fees and Services.

Not applicable for a semi-annual reporting period.

Item 5. Audit Committee of Listed Registrants.

Not applicable for a semi-annual reporting period.

Item 6. Schedule of Investments.

The Schedule of Investments is included as part of Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for a semi-annual reporting period.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

(a) (1) Tracy Maitland, Hart Woodson, and Paul Latronica(the “Portfolio Managers”) are primarily responsible for the day-to-day management of the registrant’s portfolio. The following provides information regarding the Portfolio Managers as of April 30, 2013:

Name	Since	Professional Experience
Tracy Maitland	2003 (Inception)	Chief Executive Officer and Founder at Advent Capital Management, LLC.
Hart Woodson	2007 (Inception)	Portfolio Manager at Advent Capital Management, LLC since March 2007. He was previously a Senior Vice President at GAMCO Investments, Inc. from 1994-2007.
Paul Latronica	2011	Portfolio Manager at Advent Capital Management, LLC. He has been associated with Advent Capital Management for more than fifteen years.

(a) (2) (i-iii) Other accounts managed. The following summarizes information regarding each of the other accounts managed by them as of April 30, 2013:

Tracy Maitland

Type of Account	Number of Accounts	Total Assets in the Accounts	Number of Accounts In Which the Advisory Fee is Based on Performance	Total Assets in the Accounts In Which the Advisory Fee is Based on Performance
Registered investment companies	2	$628,466,217.20	0	0
Other pooled investment vehicles	1	$13,013,261.58	0	0
Other accounts	55	$3,801,264,340.81	1	$ 406,596,087.84

Paul Latronica

Type of Account	Number of Accounts	Total Assets in the Accounts	Number of Accounts In Which the Advisory Fee is Based on Performance	Total Assets in the Accounts In Which the Advisory Fee is Based on Performance
Registered investment companies	2	$628,466,217.20	0	0
Other pooled investment vehicles	6	$652,653,944.14	0	0
Other accounts	15	$1,999,340,878.84	0	0

Hart Woodson

Type of Account	Number of Accounts	Total Assets in the Accounts	Number of Accounts In Which the Advisory Fee is Based on Performance	Total Assets in the Accounts In Which the Advisory Fee is Based on Performance
Registered investment companies	2	$628,466,217.20	0	0
Other pooled investment vehicles	5	$639,640,682.56	0	0
Other accounts	3	$350,495,590.02	0	0

(a) (2) (iv) Conflicts of Interest. If another account of the Portfolio Managers has investment objectives and policies that are similar to those of the registrant, the Portfolio Managers will allocate orders pro-rata among the registrant and such other accounts, or, if the Portfolio Managers deviate from this policy, the Portfolio Managers will allocate orders such that all accounts (including the registrant) receive fair and equitable treatment.

(a) (3) Compensation Structure. The salaries of the Portfolio Managers are fixed at an industry-appropriate amount and generally reviewed annually. In addition, a discretionary bonus may be awarded to the Portfolio Managers, if appropriate. Bonuses are generally considered on an annual basis and based upon a variety of factors, including, but not limited to, the overall success of the firm, an individual's responsibility and his/her performance versus expectations. The bonus is determined by senior management at Advent Capital Management, LLC. Compensation is based on the entire employment relationship and not based solely on the performance of the registrant or any other single account or type of account. In addition, all Advent Capital Management, LLC employees are also eligible to participate in a 401(k) plan.

(a) (4) Securities ownership. The following table discloses the dollar range of equity securities of the registrant beneficially owned by the Portfolio Managers as of April 30, 2013:

Name of Portfolio Manager	Dollar Range of Equity Securities in Fund
Tracy Maitland	$5,001- $50,000
Paul Latronica	$5,001- $50,000
Hart Woodson	$100,001 - $500,000

(b) Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None

Item 10. Submission of Matters to a Vote of Security Holders.

The registrant has not made any material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) as of a date within 90 days of this filing and have concluded based on such evaluation, as required by Rule 30a-3(b) under the Investment Company Act, that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certification of principal executive officer and principal financial officer pursuant to Rule 30a-2(a) of the Investment Company Act.

(a)(3) Not applicable.

(b) Certification of principal executive officer and principal financial officer pursuant to Rule 30a-2(b) of the Investment Company Act and Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Advent Claymore Convertible Securities and Income Fund

By: Tracy V. Maitland

Name: Tracy V. Maitland

Title: President and Chief Executive Officer

Date: July 8, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: Tracy V. Maitland

Name: Tracy V. Maitland

Title: President and Chief Executive Officer

Date: July 8, 2013

By: /s/ Robert White

Name: Robert White

Title: Treasurer and Chief Financial Officer

Date: July 8, 2013