The Calamos Global Total Return Fund yields 8.23% but has underperformed the MSCI World Index, making it less appealing for core portfolio positions. The fund's recent performance has been disappointing, with a 1.17% share price increase, underperforming both the S&P 500 and MSCI World Index. The United States may be poised to outperform foreign markets over the next year or two, yet this fund appears to be decreasing its U.S. exposure.
The Calamos Global Total Return CEF has rallied +33% since our 'Buy' rating, driven by a risk-on environment and lower yield curve. The fund's discount to NAV has narrowed significantly, now trading at fair value, making it less attractive for new entries. High allocations to semiconductor equities, which have seen stellar performance, now face stretched valuations, increasing risk for new investors.
The Calamos Global Total Return Fund offers a high level of income and inflation protection through a diversified portfolio of equities and convertible bonds. The fund's 8.34% yield and potential for share price appreciation make it attractive, despite a lower yield compared to peers. The fund appears to have been able to take advantage of recent strength in TSM, which it would not have been able to do without the foreign exposure.
Contango Holdings (LSE:CGO) shares soared in Monday's early deals after it unveiled a new deal which promises to unlock the Muchesu coal project in Zimbabwe. The company, in a statement, said it had agreed to sell a 51% interest in the project to Wencai Huo, a Zimbabwe-based Chinese investor with experience in the coal mining industry in the region.
This is a market in which the winners not only keep winning, but they continue to lap the broader market over and over again. And though everyone has been calling for a broadening out of stocks, that's not happening. So until the narrative changes, stick with what's working. And in CEFs, what's working are the Calamos leveraged equity and fixed-income funds. And none have been better than the Calamos Global Total Return Fund.
Calamos Global Total Return Fund offers a high yield of 8.98%, comparable to other high-yielding equity funds in the market. The CGO closed-end fund invests primarily in equities as opposed to fixed-income, which should allow it to provide a bit of inflation protection. The fund has outperformed the S&P 500 Index and the MSCI World Index over the past two months, which might be partly due to the high level of leverage employed.
The Calamos Global Total Return Fund offers geographic diversification and a high distribution yield of 9.15%. The fund has underperformed major equity indices and has a negative return of 10.36% over the past three years. The fund invests in a combination of equities and bonds, but its performance has been disappointing compared to comparable index funds.
For the third month in four, equity CEFs (+1.81%) witnessed gains while their fixed income CEF (+0.52%) counterparts for the fourth month in a row posted plus-side returns.
Calamos Global Total Return is a multi-asset closed-end fund. CGO holds a mix of global equities, convertibles, and bonds, with a focus on information technology and a global mandate beyond North America. The fund is currently trading at a -9% discount to net asset value, historically at the lower end of its range, making it potentially attractive for investors.