Calamos Global Total Return Fund (CGO): International Exposure Boosts Performance Despite Tech Exposure

The Calamos Global Total Return Fund (CGO) is a closed-end fund that provides international exposure and high income levels. While its global exposure is a plus, tech exposure weighs on performance. The fund is managed by Bloomberg-experienced finance expert Hiroshi Watanabe.

The Calamos Global Total Return Fund (CGO) is a closed-end fund that offers investors global exposure and high income levels. Managed by Bloomberg-experienced finance expert Hiroshi Watanabe, the fund provides a high level of income, boasting a 9.23% yield at the current share price [1]. This yield is significantly higher than major domestic and global equity indices, such as the S&P 500 Index (1.30%), NASDAQ 100 Index (0.63%), and MSCI World Index (1.49%) [1].

However, the fund's global exposure is not its only characteristic. The Calamos Global Total Return Fund also invests in technology stocks, which has weighed on its performance. While the fund's global exposure has been a plus, the tech sector's performance has been a significant drag on the fund's total return. Over the past decade, the fund has underperformed several of its peer funds, including the Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund and the LMP Capital and Income Fund [1].

The fund's tech exposure has also been a factor in its recent underperformance. Despite the fund's 41.6% exposure to foreign markets, it has underperformed both the S&P 500 Index and the MSCI World Index year-to-date. The fund's shares have declined by 10.11% since our last discussion, while the fund's net asset value has fallen by 9.46% [1]. This underperformance is particularly notable given the strong performance of international markets over the past few months.

The fund's tech exposure has also been a factor in its recent underperformance. Despite the fund's 41.6% exposure to foreign markets, it has underperformed both the S&P 500 Index and the MSCI World Index year-to-date. The fund's shares have declined by 10.11% since our last discussion, while the fund's net asset value has fallen by 9.46% [1]. This underperformance is particularly notable given the strong performance of international markets over the past few months.

The fund's performance has been impacted by the U.S. government's trade policies, which have led to a decrease in the value of the U.S. dollar. This has boosted foreign stocks in U.S. dollar terms, providing an opportunity for global funds to outperform domestic indices. However, the Calamos Global Total Return Fund has not been able to take advantage of this opportunity due to its high allocation to the United States [1].

Overall, the Calamos Global Total Return Fund offers investors global exposure and high income levels. However, its tech exposure has weighed on its performance, leading to underperformance relative to its peers and the broader market. Investors should carefully consider the fund's exposure to the tech sector and its potential impact on future performance.

References:
[1] https://seekingalpha.com/article/4779663-cgo-international-exposure-plus-but-tech-exposure-weighs-on-performance