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:
Fund | Current Distribution Yield |
Calamos Global Total Return Fund | 9.15% |
Clough Global Opportunities Fund ( GLO ) | 11.29% |
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund ( ETO ) | 6.61% |
Guggenheim Active Allocation Fund ( GUG ) | 9.63% |
LMP Capital and Income Fund ( SCD ) | 9.02% |
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For further details see:
CGO: Good Portfolio, But Poor Relative Performance Plagues This Global CEF