I am retired and take educated guesses on all things financial.

January 13, 2008

January 14, 2008: Calamos Global Total Return Closed-End Fund makes sense for defense

The Calamos Global Total Return Fund (initiated in October, 2005) invests in a diversified portfolio of global equity, global convertible issues and high-yield fixed income securities. Calamos Holdings, LLC are headquartered in Naperville, IL outside Chicago. The Calamos family maintains a steady, experienced hand over their domain of funds. I particularly appreciate a genuine interest this LLC has for all shareholders, whether they be institutional or the modest individual investor.

The Calamos Global Total Return Fund (CGO) portfolio's latest breakdown (Dec. 31, 2007) has its 110 holdings in the following proportion: Foreign Stock (44%), Domestic Bond (24%), Convertibles (15%), Domestic Stock (11%), Cash (4%), Foreign Bond (1%), Preferred Stock (1%). Market Cap Allocation appears to be approximately 72% Giant Cap, 25% Large Cap and 3% Medium Cap. During 2007, The Global Return Fund easily beat two comps, the Morningstar World Allocation average and the Dow Jones Moderate Portfolio TR USD (up 20.7%, 11.8% and 8.0% respectively). This closed-end fund often trades at a modest premium from its net asset value, currently $139m. The stated distribution rate is 7.27%. Ordinary distributions are paid monthly. Annual expenses are at about 1.20%.

Calamos has as a primary objective a steady and predictable income stream from this fund and other closed-end funds in its arsenal. Steady income with international diversification seems an appropriate fit at this time. A strong defense in a potential bear market is a good thing. An excellent management team with decades of experience helps, too.

In regards to where CGO is situated worldwide, I believe the breakdown to be as follows: 20% U.S., 15% Australasia, 15% Eurozone, 14% Japan, 9% Asia Developed, 7% U.K., 6% European, 5% Latin America, 1% Canada. Top stocks included Nokia, Nintendo, Singapore Exchange, Petro China, Infosys Technologies, ASX Ltd., QBE Insurace Group Ltd., Punch Taverns 5% CV, Givaudan Nederland and British American Tobacco. Remember that 41% of the portfolio is in bonds, preferreds and convertibles that throw off cash.

I am usually not a fan of closed-end funds, but I like the Calamos strategy and approach. They have a nice stable of products. You can see them all and more at

DISCLOSURE: I do not own CGO, but do own another Calamos product.

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