The following post was written by Robert Bush, Calamos Senior Vice President and Director of Closed-End Fund Products.
As of last night, Calamos Long/Short Equity & Dynamic Income Trust (CPZ) was trading at a 10.72% discount to NAV, offering compelling value not only relative to the performance of its underlying portfolio, but also in the context of what it has offered.
|Investment||Q1 2021 Returns|
|Calamos Long/Short Equity & Dynamic Income Trust (CPZ)|
|S&P 500 Index||6.17%|
|MSCI World Index||5.04%|
|ICE BofA All U.S. Convertibles Index (VXA0)||2.86%|
|ICE BofA U.S. High Yield Index||0.82%|
Co-CIO and Senior Co-Portfolio Manager Michael Grant’s insight into financial markets is reflected in the equity investments related to CPZ:
At its current price discount (4/08/21) to NAV of 10.72%, CPZ offers compelling value. However, the increased distributions and the recent performance has attracted interest in the product and motivated return on price, which has helped narrow the discount over the past several months.
|Quarter-end||Quarter-end Discount||Monthly Distribution Per Share||NAV Returns for Previous Quarter||Price Returns for Previous Quarter|
CPZ may make an excellent addition to a client who is concerned about equity market volatility and high current market valuations, and in search of income that is not necessarily tied to high duration or low credit fixed income securities. In addition, CPZ currently is not emphasizing emerging markets or small cap stocks, which have come under pressure recently. In spite of outstanding recent performance, for now, CPZ still offers a compelling value for investors.
Investment professionals, for more information on CPZ or any of our seven closed-end funds, contact your Calamos Investment Consultant at 888-571-2567 or firstname.lastname@example.org
Before investing carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-800-582-6959. Read it carefully before investing.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. 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.
Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe information provided here is reliable, but do not warrant its accuracy or completeness. The material is not intended as an offer or solicitation for the purchase of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only and is not intended to provide—and should not be relied on for—accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The securities highlighted are discussed for illustrative purposes only. They are not recommendations.
Shares of closed-end funds frequently trade at a market price that is below their net asset value. Leverage creates risks which may adversely affect return, including the likelihood of greater volatility of net asset value and market price of common shares; and fluctuations in dividend rates on any preferred shares.
The Calamos Closed-end Funds maintain a level distribution policy. Under the Fund's level rate distribution policy, distributions paid to common shareholders typically include net investment income and net realized short-term capital gains. 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. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year.
Investment policies, management fees and other matters of interest to prospective investors may be found in each closed-end fund prospectus.
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. The Fund’s most recent distribution was $0.1300 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 managed distribution policy, distributions paid to common shareholders may include net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital. When the net investment income and net realized 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.
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.
The ICE BofA All U.S. Convertibles Index (VXA0) measures the return of all U.S. convertibles.
The ICE BofA U.S. High Yield Index is an unmanaged index of U.S. high yield debt securities.
The S&P 500 Index is generally considered representative of the U.S. stock market.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The index is calculated on a total return basis, which includes reinvestment of gross dividends before deduction of withholding taxes.