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CGO 9.92%*
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Dynamic Convertible and Income Fund (CCD)

Fund Details

AS OF 3/21/19
Market Price:
$20.20
NAV:
$20.33
Premium/Discount:
-0.64%
Market Change:
$0.20
Annual Distribution:
9.92%*
Latest Distribution:
$0.1670
Ticker:
CCD
NAV Ticker:
XCCDX
IPO Date:
03/27/15
IPO Share Price:
$25.00
IPO NAV:
$23.83

Resources

CEF Market and Fund Update – December 2018

Calamos CEFs Initiate Turnaround from Q4 2018 Sell-Off
December 2018

Senior Vice President and Director of Closed-End Fund Products Robert F. Bush, Jr. provides an analysis of the funds’ performance during the fourth quarter’s extreme volatility and subsequent turnaround. Calamos’ exposure and expertise in convertible securities were instrumental in mitigating the volatility as convertibles have generally outperformed bonds, and been comparable to stocks, while exhibiting lower volatility.

OVERVIEW

The fund invests in convertibles and other below-investment-grade (high yield) fixed income securities with the aim of generating total return through a combination of capital appreciation and income. To help generate income and achieve a favorable risk/reward profile, the investment team also has the flexibility to sell options.

CCD Fact Sheet A discussion of the Calamos Dynamic Convertible and Income Fund performance, related market commentary, and outlook.

KEY FEATURES

  • Aims to provide consistent income through monthly distributions set at levels the investment team believes are sustainable.
  • By investing at least 50% in convertibles, the fund seeks upside participation in equity markets with less downside exposure than an equity-only portfolio over a full market cycle.
  • Actively allocates assets between convertibles, fixed income and equity securities to optimize risk-managed returns.
  • Term-limit structure optimizes market price relationship to NAV.
  • Judicious use of leverage seeks to enhance overall returns by achieving a positive spread on investments over borrowing costs.

PORTFOLIO FIT

With the objective of mitigating stock market volatility, the fund offers an income-generating allocation that can participate in upside equity movements with limited downside exposure.

WHEN INTEREST RATES RISE, CONVERTIBLES HISTORICALLY PERFORM WELL

In the past 20 years when the 10-year Treasury yield rose more than 100 basis points, convertibles:

  • Outperformed traditional fixed income asset classes
  • Tended to deliver equity-like returns with periods of notable outperformance

CCD Chart

Source: Morningstar Direct and Bloomberg. Data as of 1/31/17. Rising rate environment periods from troughs to peak from October 1993 to December 2016. Indexes are unmanaged, do not reflect the deduction of fees and expenses, and are not available for direct investment. The performance of the Fund will differ, and may vary materially, from that of any index. Performance data quoted represents past performance, which is no guarantee of future results. BofA Merrill Lynch All U.S. Convertibles Index was not used as a proxy for the fund. A basis point equals 1/100th of a percentage point.

Fund Data

AS OF 2/28/19
Managed Assets $736,947,003
Total Common Share Assets $492,347,003
Shares Outstanding 24,423,703
Average Daily Volume (mo.) 86,021
Total Percent Leveraged 33.19%
Debt Coverage Ratio 408%
Leverage Assets $244,600,000
Debt Leverage $180,600,000
Average Portfolio Turnover 59.9%
Expense Ratio (based upon managed assets) 2.10%

Fees & Expenses

AS OF 2/28/19
Management Fees 1.00%
Leverage Expense 1.03%
Other Expenses 0.07%
Total 2.10%

Important Fund Information

Current Annualized Distribution Rate is the Fund’s most recent distribution, expressed as an annualized percentage of the Fund’s current market price per share. Estimates are calculated on a tax basis rather than on a generally accepted accounting principles (GAAP) basis, but should not be used for tax reporting purposes. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year. This information is not legal or tax advice. Consult a professional regarding your specific legal or tax matters. Under the Fund’s level rate distribution policy, distributions paid to common shareholders may include net investment income, net realized short-term capital gains and return of capital. When the net investment income and net realized short-term capital gains are not sufficient, a portion of the level rate distribution will be a return of capital. In addition, a limited number of distributions per calendar year may include net realized long-term capital gains. Distribution rate may vary.

You can purchase or sell common shares daily. Like any other stock, market price will fluctuate with the market. Upon sale, your shares may have a market price that is above or below net asset value and may be worth more or less than your original investment. Shares of closed-end funds frequently trade at a market price that is below their net asset value.

Investments by the Fund in lower-rated securities involve substantial risk of loss and present greater risks than investments in higher rated securities, including less liquidity and increased price sensitivity to changing interest rates and to a deteriorating economic environment. Fixed income securities are subject to interest-rate risk; as interest rates go up, the value of debt securities in the Fund’s portfolio generally will decline. There are certain risks associated with an investment in a convertible bond such as default risk—that the company issuing a convertible security may be unable to repay principal and interest—and interest rate risk—that the convertible may decrease in value if interest rates increase.

Investment Adviser Repurchase Risk. The Adviser will enter into the 10b5-1 Plan on behalf of itself and its affiliates under which Wells Fargo Securities, LLC, as agent for the Adviser, will buy up to $20 million of our common shares in the aggregate during the period beginning after 45 days after the closing of this offering and ending conditions and daily purchase limits. See “Management of the Fund — Related-Party Transactions” in the Fund’s preliminary prospectus for additional details regarding the 10b5-1 Plan. Whether purchases will be made under the 10b5-1 Plan and how much will be purchased at any time is uncertain, dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities may have the effect of maintaining the market price of our common shares or suppressing a decline in the market price of the common shares, and, as a result, the price of our common shares may be higher than the price that otherwise might exist in the open market. Conversely, any eventual sale of repurchased shares by the Adviser or its affiliates may act as a catalyst for a decline in the Fund’s market price, and therefore the market price of our common shares may be lower than the price that might otherwise exist in the open market.

Limited Term Risk. Unless the Termination Date is amended by shareholders in accordance with the Declaration of Trust, the Fund will be terminated on the 15th anniversary of its effective date, currently expected to be March 26th, 2030. If the Fund’s Board of Trustees believes that under then current market conditions it is in the best interests of the Fund to do so, the Fund may extend the Termination Date for one year, which is anticipated to be March 26th, 2031, without a shareholder vote, upon the affirmative vote of three-quarters of the Trustees then in office. Beginning one year before the Termination Date (the “wind-down period”), the Fund may begin liquidating all or a portion of the Fund’s portfolio. During the wind-down period the Fund may deviate from its investment strategy. As a result, during the wind-down period the Fund’s distributions may decrease, and such distributions may include a return of capital.

Legal Proceedings Risk. Calamos has been named as a defendant in a Section 36(b) complaint captioned Chill v. Calamos Advisors LLC, et al., which was filed in the United States District Court for the Southern District of New York on February 11, 2015 (the “Complaint”). The Defendants believe that the Complaint is without merit, and intend to defend themselves vigorously against the allegations. Calamos also believes that the Complaint will not have a material adverse effect on the ability of Calamos to perform its obligations under its investment management agreement with the Fund.


NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Distribution History

AS OF 2/28/19

Cumulative Distribution History

AS OF 2/28/19

Year to Date Distribution Detail

Ex Date Payable Date Distribution Ordinary Income Short-Term Capital Gains Long-Term Capital Gains Return Of Capital Press Releases
March 3/11/19 3/20/19 0.1670 0.0160 0.0000 0.0000 0.1510 Press Release
February 2/11/19 2/20/19 0.1670 0.0301 0.0000 0.0000 0.1369 Press Release

Ordinary income includes net investment income and short-term capital gains. The distribution tables provided here are for informational purposes only. Estimates are calculated on a tax basis rather than on a generally accepted accounting principles (GAAP) basis, but should not be used for tax reporting purposes. Distributions may be subject to re-characterization for tax purposes after the end of the fiscal year. Individual (non-corporate) shareholders with taxable accounts will receive written notification regarding the components and tax treatment for distributions via Form 1099-DIV. If your distributions are reinvested in additional shares, you will receive a statement reflecting the reinvestment of the distribution. This information is not legal or tax advice. Consult a professional regarding your specific legal or tax matters.

2018 Distribution Detail

For final tax characterization of distributions click here.

Important Fund Information

Current Annualized Distribution Rate is the Fund’s most recent distribution, expressed as an annualized percentage of the Fund’s current market price per share. Estimates are calculated on a tax basis rather than on a generally accepted accounting principles (GAAP) basis, but should not be used for tax reporting purposes. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year. This information is not legal or tax advice. Consult a professional regarding your specific legal or tax matters. Under the Fund’s level rate distribution policy, distributions paid to common shareholders may include net investment income, net realized short-term capital gains and return of capital. When the net investment income and net realized short-term capital gains are not sufficient, a portion of the level rate distribution will be a return of capital. In addition, a limited number of distributions per calendar year may include net realized long-term capital gains. Distribution rate may vary.

You can purchase or sell common shares daily. Like any other stock, market price will fluctuate with the market. Upon sale, your shares may have a market price that is above or below net asset value and may be worth more or less than your original investment. Shares of closed-end funds frequently trade at a market price that is below their net asset value.

Investments by the Fund in lower-rated securities involve substantial risk of loss and present greater risks than investments in higher rated securities, including less liquidity and increased price sensitivity to changing interest rates and to a deteriorating economic environment. Fixed income securities are subject to interest-rate risk; as interest rates go up, the value of debt securities in the Fund’s portfolio generally will decline. There are certain risks associated with an investment in a convertible bond such as default risk—that the company issuing a convertible security may be unable to repay principal and interest—and interest rate risk—that the convertible may decrease in value if interest rates increase.

Investment Adviser Repurchase Risk. The Adviser will enter into the 10b5-1 Plan on behalf of itself and its affiliates under which Wells Fargo Securities, LLC, as agent for the Adviser, will buy up to $20 million of our common shares in the aggregate during the period beginning after 45 days after the closing of this offering and ending conditions and daily purchase limits. See “Management of the Fund — Related-Party Transactions” in the Fund’s preliminary prospectus for additional details regarding the 10b5-1 Plan. Whether purchases will be made under the 10b5-1 Plan and how much will be purchased at any time is uncertain, dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities may have the effect of maintaining the market price of our common shares or suppressing a decline in the market price of the common shares, and, as a result, the price of our common shares may be higher than the price that otherwise might exist in the open market. Conversely, any eventual sale of repurchased shares by the Adviser or its affiliates may act as a catalyst for a decline in the Fund’s market price, and therefore the market price of our common shares may be lower than the price that might otherwise exist in the open market.

Limited Term Risk. Unless the Termination Date is amended by shareholders in accordance with the Declaration of Trust, the Fund will be terminated on the 15th anniversary of its effective date, currently expected to be March 26th, 2030. If the Fund’s Board of Trustees believes that under then current market conditions it is in the best interests of the Fund to do so, the Fund may extend the Termination Date for one year, which is anticipated to be March 26th, 2031, without a shareholder vote, upon the affirmative vote of three-quarters of the Trustees then in office. Beginning one year before the Termination Date (the “wind-down period”), the Fund may begin liquidating all or a portion of the Fund’s portfolio. During the wind-down period the Fund may deviate from its investment strategy. As a result, during the wind-down period the Fund’s distributions may decrease, and such distributions may include a return of capital.

Legal Proceedings Risk. Calamos has been named as a defendant in a Section 36(b) complaint captioned Chill v. Calamos Advisors LLC, et al., which was filed in the United States District Court for the Southern District of New York on February 11, 2015 (the “Complaint”). The Defendants believe that the Complaint is without merit, and intend to defend themselves vigorously against the allegations. Calamos also believes that the Complaint will not have a material adverse effect on the ability of Calamos to perform its obligations under its investment management agreement with the Fund.


NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

SHARE PRICE / NAV HISTORY

PREMIUM / DISCOUNT

Important Fund Information

Current Annualized Distribution Rate is the Fund’s most recent distribution, expressed as an annualized percentage of the Fund’s current market price per share. Estimates are calculated on a tax basis rather than on a generally accepted accounting principles (GAAP) basis, but should not be used for tax reporting purposes. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year. This information is not legal or tax advice. Consult a professional regarding your specific legal or tax matters. Under the Fund’s level rate distribution policy, distributions paid to common shareholders may include net investment income, net realized short-term capital gains and return of capital. When the net investment income and net realized short-term capital gains are not sufficient, a portion of the level rate distribution will be a return of capital. In addition, a limited number of distributions per calendar year may include net realized long-term capital gains. Distribution rate may vary.

You can purchase or sell common shares daily. Like any other stock, market price will fluctuate with the market. Upon sale, your shares may have a market price that is above or below net asset value and may be worth more or less than your original investment. Shares of closed-end funds frequently trade at a market price that is below their net asset value.

Investments by the Fund in lower-rated securities involve substantial risk of loss and present greater risks than investments in higher rated securities, including less liquidity and increased price sensitivity to changing interest rates and to a deteriorating economic environment. Fixed income securities are subject to interest-rate risk; as interest rates go up, the value of debt securities in the Fund’s portfolio generally will decline. There are certain risks associated with an investment in a convertible bond such as default risk—that the company issuing a convertible security may be unable to repay principal and interest—and interest rate risk—that the convertible may decrease in value if interest rates increase.

Investment Adviser Repurchase Risk. The Adviser will enter into the 10b5-1 Plan on behalf of itself and its affiliates under which Wells Fargo Securities, LLC, as agent for the Adviser, will buy up to $20 million of our common shares in the aggregate during the period beginning after 45 days after the closing of this offering and ending conditions and daily purchase limits. See “Management of the Fund — Related-Party Transactions” in the Fund’s preliminary prospectus for additional details regarding the 10b5-1 Plan. Whether purchases will be made under the 10b5-1 Plan and how much will be purchased at any time is uncertain, dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities may have the effect of maintaining the market price of our common shares or suppressing a decline in the market price of the common shares, and, as a result, the price of our common shares may be higher than the price that otherwise might exist in the open market. Conversely, any eventual sale of repurchased shares by the Adviser or its affiliates may act as a catalyst for a decline in the Fund’s market price, and therefore the market price of our common shares may be lower than the price that might otherwise exist in the open market.

Limited Term Risk. Unless the Termination Date is amended by shareholders in accordance with the Declaration of Trust, the Fund will be terminated on the 15th anniversary of its effective date, currently expected to be March 26th, 2030. If the Fund’s Board of Trustees believes that under then current market conditions it is in the best interests of the Fund to do so, the Fund may extend the Termination Date for one year, which is anticipated to be March 26th, 2031, without a shareholder vote, upon the affirmative vote of three-quarters of the Trustees then in office. Beginning one year before the Termination Date (the “wind-down period”), the Fund may begin liquidating all or a portion of the Fund’s portfolio. During the wind-down period the Fund may deviate from its investment strategy. As a result, during the wind-down period the Fund’s distributions may decrease, and such distributions may include a return of capital.

Legal Proceedings Risk. Calamos has been named as a defendant in a Section 36(b) complaint captioned Chill v. Calamos Advisors LLC, et al., which was filed in the United States District Court for the Southern District of New York on February 11, 2015 (the “Complaint”). The Defendants believe that the Complaint is without merit, and intend to defend themselves vigorously against the allegations. Calamos also believes that the Complaint will not have a material adverse effect on the ability of Calamos to perform its obligations under its investment management agreement with the Fund.


NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Annualized Returns

AS OF 2/28/19
Market Price-8.97%8.51%17.38%3.26%
NAV-2.13%7.09%14.18%5.68%

Calendar Year-To-Date Total Return

AS OF 2/28/19
Market Price18.44%-9.57%26.45%8.57%-22.81%
NAV13.59%-3.61%16.81%5.80%-8.12%

*2015 performance data from inception date of 3/27/15 through 12/31/15

Important Fund Information

Current Annualized Distribution Rate is the Fund’s most recent distribution, expressed as an annualized percentage of the Fund’s current market price per share. Estimates are calculated on a tax basis rather than on a generally accepted accounting principles (GAAP) basis, but should not be used for tax reporting purposes. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year. This information is not legal or tax advice. Consult a professional regarding your specific legal or tax matters. Under the Fund’s level rate distribution policy, distributions paid to common shareholders may include net investment income, net realized short-term capital gains and return of capital. When the net investment income and net realized short-term capital gains are not sufficient, a portion of the level rate distribution will be a return of capital. In addition, a limited number of distributions per calendar year may include net realized long-term capital gains. Distribution rate may vary.

You can purchase or sell common shares daily. Like any other stock, market price will fluctuate with the market. Upon sale, your shares may have a market price that is above or below net asset value and may be worth more or less than your original investment. Shares of closed-end funds frequently trade at a market price that is below their net asset value.

Investments by the Fund in lower-rated securities involve substantial risk of loss and present greater risks than investments in higher rated securities, including less liquidity and increased price sensitivity to changing interest rates and to a deteriorating economic environment. Fixed income securities are subject to interest-rate risk; as interest rates go up, the value of debt securities in the Fund’s portfolio generally will decline. There are certain risks associated with an investment in a convertible bond such as default risk—that the company issuing a convertible security may be unable to repay principal and interest—and interest rate risk—that the convertible may decrease in value if interest rates increase.

Investment Adviser Repurchase Risk. The Adviser will enter into the 10b5-1 Plan on behalf of itself and its affiliates under which Wells Fargo Securities, LLC, as agent for the Adviser, will buy up to $20 million of our common shares in the aggregate during the period beginning after 45 days after the closing of this offering and ending conditions and daily purchase limits. See “Management of the Fund — Related-Party Transactions” in the Fund’s preliminary prospectus for additional details regarding the 10b5-1 Plan. Whether purchases will be made under the 10b5-1 Plan and how much will be purchased at any time is uncertain, dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities may have the effect of maintaining the market price of our common shares or suppressing a decline in the market price of the common shares, and, as a result, the price of our common shares may be higher than the price that otherwise might exist in the open market. Conversely, any eventual sale of repurchased shares by the Adviser or its affiliates may act as a catalyst for a decline in the Fund’s market price, and therefore the market price of our common shares may be lower than the price that might otherwise exist in the open market.

Limited Term Risk. Unless the Termination Date is amended by shareholders in accordance with the Declaration of Trust, the Fund will be terminated on the 15th anniversary of its effective date, currently expected to be March 26th, 2030. If the Fund’s Board of Trustees believes that under then current market conditions it is in the best interests of the Fund to do so, the Fund may extend the Termination Date for one year, which is anticipated to be March 26th, 2031, without a shareholder vote, upon the affirmative vote of three-quarters of the Trustees then in office. Beginning one year before the Termination Date (the “wind-down period”), the Fund may begin liquidating all or a portion of the Fund’s portfolio. During the wind-down period the Fund may deviate from its investment strategy. As a result, during the wind-down period the Fund’s distributions may decrease, and such distributions may include a return of capital.

Legal Proceedings Risk. Calamos has been named as a defendant in a Section 36(b) complaint captioned Chill v. Calamos Advisors LLC, et al., which was filed in the United States District Court for the Southern District of New York on February 11, 2015 (the “Complaint”). The Defendants believe that the Complaint is without merit, and intend to defend themselves vigorously against the allegations. Calamos also believes that the Complaint will not have a material adverse effect on the ability of Calamos to perform its obligations under its investment management agreement with the Fund.


NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Sector Weightings

AS OF 2/28/19
% of Assets
Information Technology 29.7%
Health Care 19.2%
Financials 11.6%
Communication Services 8.5%
Consumer Discretionary 7.7%
Industrials 6.3%
Energy 6.1%
Utilities 3.7%
Real Estate 3.0%
Materials 1.7%
Consumer Staples 0.9%

Portfolio Asset Allocation

AS OF 2/28/19

Top 10 Holdings Adobe Logo View All Holdings

AS OF 2/28/19
Company Security Type % of Net Assets
Workday, Inc. Convertible Bonds 2.4%
Wells Fargo & Company Convertible Preferred Stocks 2.4%
Palo Alto Networks, Inc. Convertible Bonds 2.2%
Splunk, Inc. Convertible Bonds 2.1%
Bank of America Corp. Convertible Preferred Stocks 1.9%
Microchip Technology, Inc. Convertible Bonds 1.9%
Tesla, Inc. Convertible Bonds 1.7%
Intel Corp. Convertible Bonds 1.6%
Allergan, PLC Stocks 1.5%
NextEra Energy, Inc. DECS,ACES,PRIDES 1.4%
Total 19.1%

Country Exposure

AS OF 2/28/19
Country%
United States 91.1%
China 1.9%
Netherlands 1.4%
Israel 1.3%
Ireland 1.1%
United Kingdom 0.5%
Luxembourg 0.4%
France 0.4%
Canada 0.4%
Switzerland 0.1%

Regional Exposure

AS OF 2/28/19
North America 91.4%
Europe 4.0%
Asia/Pacific 1.9%
Middle East/Africa 1.3%
Caribbean 0.1%

Quality Allocation

AS OF 2/28/19
Class %
AAA 0.0%
AA 1.4%
A 3.9%
BBB 9.4%
BB 15.9%
B 11.8%
CCC and below 1.4%
Unrated Securities 56.2%

Bond Duration

AS OF 2/28/19
Weighted Avg. Duration 2.8 years
Weighted Avg. Maturity 5.1 years

Important Fund Information

Current Annualized Distribution Rate is the Fund’s most recent distribution, expressed as an annualized percentage of the Fund’s current market price per share. Estimates are calculated on a tax basis rather than on a generally accepted accounting principles (GAAP) basis, but should not be used for tax reporting purposes. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year. This information is not legal or tax advice. Consult a professional regarding your specific legal or tax matters. Under the Fund’s level rate distribution policy, distributions paid to common shareholders may include net investment income, net realized short-term capital gains and return of capital. When the net investment income and net realized short-term capital gains are not sufficient, a portion of the level rate distribution will be a return of capital. In addition, a limited number of distributions per calendar year may include net realized long-term capital gains. Distribution rate may vary.

You can purchase or sell common shares daily. Like any other stock, market price will fluctuate with the market. Upon sale, your shares may have a market price that is above or below net asset value and may be worth more or less than your original investment. Shares of closed-end funds frequently trade at a market price that is below their net asset value.

Investments by the Fund in lower-rated securities involve substantial risk of loss and present greater risks than investments in higher rated securities, including less liquidity and increased price sensitivity to changing interest rates and to a deteriorating economic environment. Fixed income securities are subject to interest-rate risk; as interest rates go up, the value of debt securities in the Fund’s portfolio generally will decline. There are certain risks associated with an investment in a convertible bond such as default risk—that the company issuing a convertible security may be unable to repay principal and interest—and interest rate risk—that the convertible may decrease in value if interest rates increase.

Investment Adviser Repurchase Risk. The Adviser will enter into the 10b5-1 Plan on behalf of itself and its affiliates under which Wells Fargo Securities, LLC, as agent for the Adviser, will buy up to $20 million of our common shares in the aggregate during the period beginning after 45 days after the closing of this offering and ending conditions and daily purchase limits. See “Management of the Fund — Related-Party Transactions” in the Fund’s preliminary prospectus for additional details regarding the 10b5-1 Plan. Whether purchases will be made under the 10b5-1 Plan and how much will be purchased at any time is uncertain, dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities may have the effect of maintaining the market price of our common shares or suppressing a decline in the market price of the common shares, and, as a result, the price of our common shares may be higher than the price that otherwise might exist in the open market. Conversely, any eventual sale of repurchased shares by the Adviser or its affiliates may act as a catalyst for a decline in the Fund’s market price, and therefore the market price of our common shares may be lower than the price that might otherwise exist in the open market.

Limited Term Risk. Unless the Termination Date is amended by shareholders in accordance with the Declaration of Trust, the Fund will be terminated on the 15th anniversary of its effective date, currently expected to be March 26th, 2030. If the Fund’s Board of Trustees believes that under then current market conditions it is in the best interests of the Fund to do so, the Fund may extend the Termination Date for one year, which is anticipated to be March 26th, 2031, without a shareholder vote, upon the affirmative vote of three-quarters of the Trustees then in office. Beginning one year before the Termination Date (the “wind-down period”), the Fund may begin liquidating all or a portion of the Fund’s portfolio. During the wind-down period the Fund may deviate from its investment strategy. As a result, during the wind-down period the Fund’s distributions may decrease, and such distributions may include a return of capital.

Legal Proceedings Risk. Calamos has been named as a defendant in a Section 36(b) complaint captioned Chill v. Calamos Advisors LLC, et al., which was filed in the United States District Court for the Southern District of New York on February 11, 2015 (the “Complaint”). The Defendants believe that the Complaint is without merit, and intend to defend themselves vigorously against the allegations. Calamos also believes that the Complaint will not have a material adverse effect on the ability of Calamos to perform its obligations under its investment management agreement with the Fund.


NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Literature

CCD Quarterly Commentary A quarterly discussion of the Calamos Dynamic Convertible and Income Fund performance, related market commentary, and outlook.
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CCD Fact Sheet The CCD launch sheet provides a snap shot of the fund strategy, performance, composition, and returns.
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CCD AnnualReport The CCD annual report includes a letter from John P. Calamos, Sr. to shareholders outlining the fund performance, as well as a comprehensive review of the fund’s activities and financial performance.
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CCD Semi Annual Report The CCD semiannual report includes a letter from John P. Calamos, Sr. to shareholders and provides a comprehensive review of the fund’s activities and financial performance for a six month period.
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CCD Prospectus This prospectus supplement, together with the accompanying prospectus, sets forth concisely the information that you should know before investing. You should read the accompanying prospectus and prospectus supplement, which contain important information, before deciding whether to invest in our securities.
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CCD SAI This prospectus supplement, together with the accompanying prospectus, sets forth concisely the information that you should know before investing. You should read the accompanying prospectus and prospectus supplement, which contain important information, before deciding whether to invest in our securities.
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Convertible Securities: Structures, Valuation, Market Environment, and Asset Allocation A comprehensive overview of convertible securities, including history, structures, valuation, market environment, and roles within asset allocation.
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Important Fund Information

Current Annualized Distribution Rate is the Fund’s most recent distribution, expressed as an annualized percentage of the Fund’s current market price per share. Estimates are calculated on a tax basis rather than on a generally accepted accounting principles (GAAP) basis, but should not be used for tax reporting purposes. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year. This information is not legal or tax advice. Consult a professional regarding your specific legal or tax matters. Under the Fund’s level rate distribution policy, distributions paid to common shareholders may include net investment income, net realized short-term capital gains and return of capital. When the net investment income and net realized short-term capital gains are not sufficient, a portion of the level rate distribution will be a return of capital. In addition, a limited number of distributions per calendar year may include net realized long-term capital gains. Distribution rate may vary.

You can purchase or sell common shares daily. Like any other stock, market price will fluctuate with the market. Upon sale, your shares may have a market price that is above or below net asset value and may be worth more or less than your original investment. Shares of closed-end funds frequently trade at a market price that is below their net asset value.

Investments by the Fund in lower-rated securities involve substantial risk of loss and present greater risks than investments in higher rated securities, including less liquidity and increased price sensitivity to changing interest rates and to a deteriorating economic environment. Fixed income securities are subject to interest-rate risk; as interest rates go up, the value of debt securities in the Fund’s portfolio generally will decline. There are certain risks associated with an investment in a convertible bond such as default risk—that the company issuing a convertible security may be unable to repay principal and interest—and interest rate risk—that the convertible may decrease in value if interest rates increase.

Investment Adviser Repurchase Risk. The Adviser will enter into the 10b5-1 Plan on behalf of itself and its affiliates under which Wells Fargo Securities, LLC, as agent for the Adviser, will buy up to $20 million of our common shares in the aggregate during the period beginning after 45 days after the closing of this offering and ending conditions and daily purchase limits. See “Management of the Fund — Related-Party Transactions” in the Fund’s preliminary prospectus for additional details regarding the 10b5-1 Plan. Whether purchases will be made under the 10b5-1 Plan and how much will be purchased at any time is uncertain, dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities may have the effect of maintaining the market price of our common shares or suppressing a decline in the market price of the common shares, and, as a result, the price of our common shares may be higher than the price that otherwise might exist in the open market. Conversely, any eventual sale of repurchased shares by the Adviser or its affiliates may act as a catalyst for a decline in the Fund’s market price, and therefore the market price of our common shares may be lower than the price that might otherwise exist in the open market.

Limited Term Risk. Unless the Termination Date is amended by shareholders in accordance with the Declaration of Trust, the Fund will be terminated on the 15th anniversary of its effective date, currently expected to be March 26th, 2030. If the Fund’s Board of Trustees believes that under then current market conditions it is in the best interests of the Fund to do so, the Fund may extend the Termination Date for one year, which is anticipated to be March 26th, 2031, without a shareholder vote, upon the affirmative vote of three-quarters of the Trustees then in office. Beginning one year before the Termination Date (the “wind-down period”), the Fund may begin liquidating all or a portion of the Fund’s portfolio. During the wind-down period the Fund may deviate from its investment strategy. As a result, during the wind-down period the Fund’s distributions may decrease, and such distributions may include a return of capital.

Legal Proceedings Risk. Calamos has been named as a defendant in a Section 36(b) complaint captioned Chill v. Calamos Advisors LLC, et al., which was filed in the United States District Court for the Southern District of New York on February 11, 2015 (the “Complaint”). The Defendants believe that the Complaint is without merit, and intend to defend themselves vigorously against the allegations. Calamos also believes that the Complaint will not have a material adverse effect on the ability of Calamos to perform its obligations under its investment management agreement with the Fund.


NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE