Calamos Investments, a prominent global investment firm, has recently made a significant announcement regarding the August 2025 monthly distributions for its seven closed-end funds. This crucial update provides shareholders with detailed insights into the sources of these distributions, aligning with the firm’s commitment to transparency and adherence to established distribution plans for their diverse portfolio of closed-end funds.
The announcement meticulously outlines the estimated distribution sources for several of the Calamos Global Total Return Fund, Calamos Global Dynamic Income Fund, Calamos Dynamic Convertible and Income Fund, Calamos Convertible Opportunities and Income Fund, and Calamos Convertible and High Income Fund. These estimates reflect cumulative year-to-date experience, with the firm attributing these figures equally to each regular distribution disbursed throughout the year.
For the remaining two closed-end funds operating under a managed distribution policy, specific information mandated by an exemptive order from the US Securities and Exchange Commission has been provided. This includes a detailed breakdown of the estimated distribution sources, as required by Section 19 of the Investment Company Act of 1940, as amended, and its related rules. The estimates categorize percentages attributed to current and prior fiscal year net investment income, net realized short-term capital gain, net realized long-term capital gain, and return of capital or other capital sources.
Investors are advised to understand the concept of a ‘return of capital,’ which may occur if the fund distributes more than its income and capital gains. It is vital not to misconstrue a return of capital distribution as an indicator of the fund’s investment performance, nor should it be confused with traditional ‘yield’ or ‘income.’ This distinction is crucial for accurate financial assessment and planning.
Furthermore, the firm emphasizes that the amounts and sources of distributions detailed in this 19(a) notice are purely estimates and are not intended for tax reporting purposes. The actual figures for accounting and tax purposes will ultimately depend on the fund’s investment experience over the remainder of its fiscal year and are subject to potential changes based on prevailing tax regulations. Official tax reporting will be provided via Form 1099 DIV at the end of the calendar year.
The article also clarifies that while the Net Asset Value (NAV) performance can offer an indication of a fund’s investment performance, it does not fully capture the value of a shareholder’s investment. The true value is determined by the fund’s market price, which is influenced by the dynamics of supply and demand for its shares in the open market, highlighting the dual perspective for evaluating fund performance.
A notable benefit highlighted is the opportunity for shareholders to accumulate additional shares through the automatic dividend reinvestment plan. This plan offers an efficient method for current shareholders to increase their holdings, potentially leading to cost savings, especially if shares are trading at a discount, as distributions are reinvested at market price through an open market purchase program. This strategic approach supports long-term growth and compounding for investors in these Calamos Investments offerings.
Crucially, past performance is explicitly stated as no guarantee of future results. Like all investments, market prices will fluctuate, and shares may trade above or below net asset value upon sale, potentially being worth more or less than the original investment. This cautionary note underscores the inherent risks associated with market-traded instruments, particularly closed-end funds, which frequently trade at a discount.
Calamos Investments, headquartered in the metropolitan area with various global offices, remains a diversified global investment firm. It provides innovative investment strategies across alternatives, multi-asset, convertible, fixed income, equity, and sustainable equity, serving a broad spectrum of clients including corporations, pension funds, endowments, and individuals through various investment vehicles, solidifying its position in the financial landscape.
