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Calamos Global Dynamic Income Fund (CHW) is a balanced global closed-end fund that should appeal to aggressive income-oriented investors. The fund has the flexibility to dynamically allocate among equities, fixed income securities and structured products across countries, sectors, credit tiers and companies of differing size. The fund can write call options against 100% of the managed assets to generate additional income.

This was the CHW holdings mix in the last report:

  • Common 57.1%
  • Convertible Bonds 18.5%
  • Corporate Bonds 15.3%
  • Cash 4.5%
  • Convertible Pfd 3.5%
  • Sovereign Bonds 0.8%
  • Other 0.3%

CHW is a fairly liquid with an average daily trading volume of over 200,000 shares a day. Its average credit quality is BB+.

CHW is fairly priced now and is trading at an above average discount to NAV. But it has appreciated quite a bit from the lows in 2009. It is important to use a trailing stop loss or similar risk management technique to protect against major losses.

Here are some relevant statistics on the fund:

The Calamos Global Dynamic Income Fund pays monthly.

  • Total Net Assets: 728.55 MM
  • Total Common Assets: 537.55 MM
  • Expense ratio: 1.49% (excluding leverage costs)
  • Discount to NAV: -12.0%
  • Distribution rate: 7.43% Income Only: 2.69%
  • Leverage: 26.1%
  • Turnover Ratio: 36% (annualized)
  • Call Option Overlay: 10.4%

Full Disclosure: Long CHW.

Source: Calamos Global Dynamic Income Fund: An Aggressive Income Investment