METRO CHICAGO, Ill., Dec. 18,
2024 /PRNewswire/ -- Calamos
Investments® announced today that Calamos Dynamic
Convertible and Income Fund (NASDAQ: CCD), Calamos Convertible
Opportunities and Income Fund (NASDAQ: CHI), and Calamos
Convertible and High Income Fund (NASDAQ: CHY) will transition
from a managed distribution plan to a level distribution plan
effective as of January 1, 2025.
Under the new level distribution policy, each of CCD, CHI and
CHY intend to continue their current practice of making monthly
distributions to shareholders, at a constant and fixed (but not
guaranteed) rate currently set at 19.5
cents per share, 9.5 cents per
share and 10 cents per share,
respectively.
Calamos Investments believes this policy will allow each of CCD,
CHI, and CHY to maintain stable, consistent and predictable rates
of distribution that are sustainable over the long-term. However,
there can be no guarantee that the level distribution policy will
be successful in achieving its goals. The Funds' ability to
maintain a stable level of distributions to shareholders will
depend on a number of factors, including changes in the financial
market, market interest rates, and performance of overall equity,
convertible and fixed income markets. As portfolio and market
conditions change, the ability of each Fund to continue to make
distributions in accordance with its level distribution policy may
be affected.
While Calamos Investments expects that any declaration of
distributions to shareholders will continue to be made and
announced monthly, the Funds may cease distributions entirely, at
any time, without prior notice to shareholders. The announcement
of, amendment to, or later termination of a Fund's level
distribution policy may have an adverse effect on the market price
of the Fund's common shares. The Funds may at times, in their
discretion, pay out less than the entire amount of net investment
income earned in any particular period, and may at times, pay out
such accumulated undistributed income in addition to net investment
income earned in other periods in order to allow the Funds to
maintain a stable level of distributions.
As a result, the dividend paid by the Funds to shareholders for
any particular period may be more or less than the amount of net
investment income earned by the Funds during such period. For
federal income tax purposes, each Fund is required to distribute
substantially all of its net investment income each year—both to
reduce its federal income tax liability and to avoid a potential
federal excise tax. The Funds intend to distribute all realized net
capital gains, if any, at least annually.
To the extent that insufficient investment income is available
on a monthly basis, the Funds' distributions may consist of return
of capital in order to maintain the distribution amount. A return
of capital occurs when some or all of the money that shareholders
invested in the respective Fund is paid back to them. A return of
capital does not necessarily reflect a Fund's investment
performance and should not be confused with 'yield' or 'income.'
Any such returns of capital will decrease the respective Fund's
total assets and, therefore, will likely have the effect of
increasing the Fund's expense ratio. In addition, the level
distribution policy may require the Funds to sell their portfolio
securities at a less than opportune time to meet the distribution
amount.
Investors should not make any conclusions about the respective
Fund's investment performance from the amount of that Fund's
distributions or that Fund's level distribution policy. With each
distribution that does not consist solely of net investment income,
the Funds will issue a press release to shareholders providing
detailed information regarding the amount and composition of the
distribution and other related information. The amounts and sources
of distributions that will be reported in the notices to
shareholders will only be estimates and will not be provided for
tax reporting purposes. The actual amounts and sources of the
distributions for tax reporting purposes will depend upon each
Fund's investment experience during its full fiscal year and may be
subject to changes based on tax regulations.
Additional information about the funds can be found on
www.calamos.com.
Important Notes about Performance and Risk
Past
performance is no guarantee of future results. As with other
investments, market price will fluctuate with the market and 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. Returns at NAV reflect the deduction of a Fund's
management fee, debt leverage costs and other expenses. 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 discount which is a market
price that is below their net asset value.
About Calamos
Calamos Investments is a diversified global investment firm
offering innovative investment strategies, including alternatives,
multi-asset, convertible, fixed income, private credit, equity, and
sustainable equity. With over $40
billion in AUM, including more than $17 billion in liquid alternatives assets as of
November 30, 2024, the firm offers
strategies through ETFs, mutual funds, closed-end funds, interval
funds, and UCITS funds and separately managed portfolios. Clients
include financial advisors, wealth management platforms, pension
funds, foundations & endowments, and individuals, globally.
Headquartered in the Chicago metropolitan area, the firm
also has offices in New York, San
Francisco, Milwaukee, Portland (Oregon), and the Miami area. For
more information, visit us on LinkedIn, on
Twitter (@Calamos), on Instagram (@calamos_investments), or
at www.calamos.com.
*Calamos Investments LLC, referred to herein as Calamos
Investments®, is a financial services company offering such
services through its subsidiaries: Calamos Advisors LLC, Calamos
Wealth Management LLC, Calamos Investments LLP, and Calamos
Financial Services LLC.
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SOURCE Calamos Investments