NAPERVILLE, Ill., May 4, 2015 /PRNewswire/ -- Calamos Investments®* and the Board of Trustees for the Calamos Dynamic Convertible and Income Fund (NASDAQ: CCD) announced today the declaration of the first monthly distributions since the launch of the fund on March 27, 2015. A distribution of 16.7 cents per share has been declared for each of June, July and August of 2015. On an annualized basis this distribution reflects a current yield of 8.02% based upon an IPO price of $25.00 per share.
Calamos Dynamic Convertible and Income Fund is designed to offer total return through a combination of capital appreciation and current income by investing primarily in a portfolio of convertible and income producing securities, including high yield bonds. To help generate income and attempt to achieve a more favorable reward/risk profile, the fund has the flexibility to opportunistically write options on a portion of the portfolio's securities.
Declaration
Distribution (Level Rate)
Payable date
Record date
Ex-dividend date
May 4, 2015
$0.167
06/15/15
06/10/15
6/08/15
May 4, 2015
$0.167
07/15/15
07/10/15
07/08/15
May 4, 2015
$0.167
08/14/15
08/11/15
08/07/15
Additional information about the fund can be found on our web site at: www.calamos.com/CCD.
Based on our current estimates, we anticipate that $0.167 of the distribution payable 06/15/15 would be paid from ordinary income or capital gains, and that approximately $0.000 would represent a return of capital. Estimates of the character of the distributions payable 07/15/15 and 08/14/15 respectively are subject to greater uncertainty due to the amount of time between declaration and payment date, and are therefore not included. To the extent a distribution declared in this press release is, prior to payment date, described in a subsequent press release, we would anticipate providing or updating estimates as to the character of such distributions.
Monthly distributions offer shareholders the opportunity to accumulate more shares in the fund via the automatic dividend reinvestment plan. For example, if the fund's shares are trading at a premium, distributions will be automatically reinvested through the plan at NAV or 95% of the market price, whichever is greater; if shares are trading at a discount, distributions will be reinvested at the market price through an open market purchase program. Thus, the plan offers current shareholders an efficient method of accumulating additional shares with a potential for cost savings. Please see the dividend reinvestment plan for more information.
The fund intends to employ a level rate distribution policy, paying monthly distributions at the stated rates. Under the level rate distribution policy, distributions paid to common shareholders typically include net investment income and net realized short-term capital gains. When the net investment income, net realized short-term capital gains, and any net realized long-term capital gains are not sufficient, a portion of a level rate distribution will be a return of capital. A limited number of distributions per calendar year may include net realized long-term capital gains. There is no guarantee that the funds will realize capital gains in any given year. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year. All shareholders with taxable accounts will receive written notification regarding the components and tax treatment for distributions via Form 1099-DIV. Distributions from the fund are generally subject to Federal income taxes. For purposes of maintaining the level rate distribution policy, the fund may realize short-term capital gains on securities that, if sold at a later date, would have resulted in long-term capital gains. Maintenance of a level rate distribution policy may increase transaction and tax costs associated with the fund. Please see www.calamos.com/taxcenter.aspx for more information.
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.
About Calamos
Calamos Investments LLC is a diversified global investment firm offering innovative investment strategies including equity, lower-volatility equity, fixed income, convertible and alternative investments. The firm offers strategies through separately managed portfolios, mutual funds, closed-end funds, private funds, UCITS funds, and exchange traded funds. Clients include major corporations, pension funds, endowments, foundations and individuals, as well as the consultants and financial advisors who serve them. Headquartered in the Chicago metropolitan area, the firm also has offices in London and New York. For more information visit 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.
