Calamos Dynamic Convertible and Income Fund (CCD) and two other Calamos funds will transition from managed to level distribution plans starting January 1, 2025. Under the new policy, CCD will maintain monthly distributions at 19.5 cents per share, while CHI and CHY will distribute 9.5 and 10 cents per share respectively.
The level distribution policy aims to provide stable, consistent, and predictable distribution rates. However, success depends on market conditions, interest rates, and overall market performance. Distributions may include return of capital if insufficient investment income is available, which could increase the funds' expense ratios. The funds may sell portfolio securities to meet distribution requirements, potentially at less opportune times.
Calamos Investments has raised the monthly distribution rate of the Calamos Convertible Opportunities and Income Fund (NASDAQ: CHI) to 9.50 cents per share, a 19% increase from the previous 8.00 cents. The new distribution is payable on February 19, 2021, and reflects an annualized yield of 8.13% based on a market price of $14.03 per share as of January 20, 2021. Calamos cites strong active management and attractive leverage costs as key factors contributing to this increase, positioning the fund for continued performance in 2021.