Along with regular distributions, closed-end funds (CEFS) may offer investors many attractive benefits.
For example, adept CEF managers may provide potential returns through leverage. This comes along with the added benefit of pricing transparency, with investors able to buy and sell throughout the trading day. Additionally, the fixed quantity of closed-end fund shares means CEF traders don’t often need to keep cash on the sidelines to meet redemptions.
Cultivate Capital Appreciation With CCEF
While the perks of closed-end fund investing may seem impressive, experienced strategies can use CEFs to unlock capital appreciation. One such fund is the Calamos CEF Income & Arbitrage ETF (CCEF).
Primarily, the fund seeks to provide high monthly income through CEF investing. Crucially, CCEF seeks to do so by investing in closed-end funds trading at discounts. By utilizing discounted closed-end funds, CCEF may provide income and capital appreciation within a single ETF wrapper.
Closed-end funds can trade at a discount when their share price drops below its underlying NAV. Through a strategy that targets exposure toward these discounted products, CCEF offers investors the potential to outperform the closed-end fund market as a whole.
This fund can also be a valuable choice for investors who want to access the closed-end fund market but lack the CEF experience to cultivate capital appreciation. CCEF is an active fund managed by Calamos Investments, with roughly two decades of experience steering through the closed-end fund market.
CCEF’s results show how well the fund’s capital appreciation strategy can deliver. As of July 31, 2024, the fund’s market price has risen 13.40% since the fund’s inception in January 2024. CCEF has delivered higher than the S-Network Composite Closed-End Fund Index, which has risen 11.41% in the same period.
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Disclosure Information
Before investing, carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.
An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.
Risks of investing in the Fund include risks associated with (1) the Fund’s investment in closed-end fund shares; (2) the closed-end funds’ investments; and (3) any other investments of the Fund, including investments in ETFs, BDCs, and derivative instruments. The shares of closed-end funds may trade at a discount or premium to, or at, their NAV. The securities of closed-end funds may be leveraged. As a result, the Fund, may be exposed indirectly to leverage through an investment in such securities. An investment in securities of closed-end funds that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the long-term returns of its shares) will be diminished.
In addition, closed-end funds are allowed to invest in a greater amount of illiquid securities than open-end mutual funds. Investments in illiquid securities pose risks related to uncertainty in valuations, volatile market prices, and limitations on resale that may have an adverse effect on the ability of the fund to dispose of the securities promptly or at reasonable prices. The Fund may invest in BDCs, which typically operate to invest in, or lend capital to, early stage-to-mature private companies as well as small public companies. The Fund’s investment in shares of ETFs subjects it to the risks of owning the securities underlying the ETF, as well as the same structural risks faced by an investor purchasing shares of the Fund, including authorized participant concentration risk, market maker risk, premium-discount risk and trading issues risk. Derivatives are instruments, such as futures and forward foreign currency contracts, whose value is derived from that of other assets, rates or indices. The use of derivatives for non-hedging purposes may be considered more speculative than other types of investments.
Calamos Financial Services LLC, Distributor
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Calamos Financial Services LLC
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866.363.9219 | www.calamos.com | [email protected]
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Calamos and Calamos Investments are registered trademarks of Calamos LLC.
