CGO - CGO: Good Portfolio But Poor Relative Performance Plagues This Global CEF

2024-03-24 09:07:31 ET

Summary

• 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.
• The fund has failed to cover its distribution over the past two years and may be at risk of reducing its payout.
• The fund is trading at a discount to net asset value, but it is currently more expensive than its recent average.

The Calamos Global Total Return Fund ( CGO ) is a closed-end fund that can be employed by investors who are seeking to achieve a certain amount of geographic diversification and the upside potential inherent in common equities without needing to sacrifice the upside potential of common equities. As is the case with most closed-end funds, the Calamos Global Total Return Fund boasts a very attractive distribution yield, as its 9.15% current yield is much more attractive than most other things in the market today. Morningstar classifies this fund as a "Hybrid - Global Allocation" fund, so here is how its yield compares to that of some other funds with the same classification:

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