CGO - CGO: Good International Exposure And Very Strong Excess Returns

2024-06-10 17:51:19 ET

Summary

• 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 fund is underweight the United States, although it has increased its position a bit recently. This might be an attempt to front-run a carry trade.
• The fund has covered all the distributions that it has paid out since the end of October and earned significant excess returns.

The Calamos Global Total Return Fund ( CGO ) is a closed-end fund, or CEF, that invests its assets in securities from all over the world. This should be immediately apparent given the name of the fund, and like all closed-end funds, it delivers the majority of its total return to the shareholders through the payment of regular distributions. This has allowed the fund to boast an 8.98% yield at the current price, which is in line with some of the highest-yielding equity funds in the market. Here is how the yield of the Calamos Global Total Return Fund compares to that of its peers:

For further details see: