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WATCH: The ICI Panel on Launching and Supporting a Closed-end Fund

For a deep dive on launching and subsequently supporting a closed-end fund in the aftermarket, watch this video from the Nov. 4 Investment Company Institute Virtual Closed-End Fund conference.

Calamos Founder, Chairman and Global Chief Investment Officer John P. Calamos, Sr., President and Head of Global Distribution Robert F. Behan, and Senior Vice President and Director of Closed-End Fund Products Robert F. Bush, Jr. offer their thoughts on:

  • Product design, including considerations specific to the closed-end fund wrapper and as an income strategy
  • IPO expenses, including the recently introduced no-load structure (see this post)
  • The lead manager and the work involved in building the syndicate
  • The multiple players on the internal team, including the board, product, legal, accounting, fund administration, distribution and marketing
  • The sales campaign
  • The importance of aftermarket support. At Calamos, this includes quarterly webcasts, commentary, blog posts, and the new monthly Calamos Closed-End Fund Snapshot.

The panelists’ participation in the conference is just one expression of Calamos’ commitment to closed-end fund education and support of Calamos closed-end funds.

“It’s imperative,” Bush stressed, “for our sales force to work as advocates for closed-end funds for our shareholders. The research community that covers the closed-end fund space is excellent. They’re dedicated, hard-working people. And the research they put out is phenomenal. The problem is there just isn’t enough of them. So, as a sponsor of closed-end funds, it’s imperative for us to defend the funds and to supply information….The best educated consumer is your best customer. I firmly, firmly believe in that.”

Investment professionals, for more on Calamos closed-end funds, please contact your Calamos Investment Consultant at 888-571-2567 or

Video recorded November 4, 2020.

All Calamos closed-end funds: 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.

Convertible Securities Risk. The value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors also, may have an effect on the convertible security's investment value.

The Fund(s) may invest in derivative securities, including options. The use of derivatives present risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. There is no assurance that any derivative strategy used by the Fund will succeed. One of the risks associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. 

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 the variable rates of the leverage financing. The ratio is the percent of borrowing to total assets.

Each fund has specific risks, which are outlined in the respective funds' prospectuses. The general risks involved in investing in a closed end fund include market volatility risk, dividend and income risk, and loss of investment risk. Please refer to each fund's prospectus, annual and semi-annual reports at for complete information on the fund's performance, investments and risks. 

Market Price is the price that the fund closed at on the primary listing exchange on the as of date referenced above. 

NAV is the net asset value of the fund on the as of date referenced above and equals the value of all the fund's assets (less liabilities) divided by the number of shares outstanding. 

Premium/Discount is the percentage difference between the net asset value of a fund and the market price.