Calamos Discusses Minimal Closed End Fund Exposure to 'Headline' Financials
19 September 2008 - 12:30AM
PR Newswire (US)
- As a result of Calamos' risk management processes, the Funds
possessed extremely minimal and/or hedged exposure to recent
'headline' holdings such as AIG, Lehman, Fannie Mae and Freddie Mac
NAPERVILLE, Ill., Sept. 18 /PRNewswire-FirstCall/ -- In the past
few weeks, closed-end funds have experienced tremendous downward
pressure on share prices as financial markets continue to
experience upheaval. News regarding Fannie Mae and Freddie Mac
along with the more recent bankruptcy filing of Lehman and the U.S.
Government bailout of AIG has further weakened investor confidence
in the short term. Given the largely unprecedented nature of
current market events, we believe it is important to provide our
shareholders with perspective on how these events and specific
holdings have impacted Calamos' Closed-End Funds. We have been
monitoring these events for some time -- and have taken timely
actions that we believe will benefit our shareholders long-term.
Overall, exposure to these names is minimal The Calamos portfolios
were, to a significant degree, well-positioned to withstand the
failure of certain names. The table below shows the Funds' exposure
to AIG, Washington Mutual, Lehman, Fannie Mae and Freddie Mac as of
September 16, 2008. It is worth noting that one of the benefits of
owning a Fund is the professional management employed and the
diversification of holdings used by the managers to spread risk.
Select Calamos Closed-End Fund Portfolio Weightings As of 9/16/2008
AIG WM LEH FNM FRE Calamos Convertible and High Income Fund (CHY)
0.13% (p) 0.00% 0.00% 0.00% 0.00% Calamos Convertible Opportunities
and Income Fund (CHI) 0.14% (p) 0.00% 0.00% 0.00% 0.00% Calamos
Global Total Return Fund (CGO) 0.10% (p) 0.00% 0.00% 0.00% 0.00%
Calamos Global Dynamic Income Fund (CHW) 0.03% (p) 0.00% 0.00%
2.09%(n)** 1.05% (n)** Calamos Strategic Total Return Fund (CSQ)
0.15% (cs) 0.30%(cs,p) 0.00% 0.00% 0.00% p = preferred cs = common
stock n = short-term agency notes with the implied backing of the
U.S. Government Selected weightings reflect the fair market value
of the referenced investment as a percentage of the fair market
value of all investments, including short-term investments and
cash, on September 16, 2008. Ongoing risk management -- and
maintaining a long-term perspective for our clients At Calamos, our
investment philosophy is rooted in the continuous management of
risk. Our early movement away from the financial sector is tangible
evidence of this philosophy. At the same time, we are not immune
from the current widespread negativity and its impact on the
overall market. Despite these challenges, we continue to maintain a
positive long-term outlook. We intend to take advantage of the many
opportunities resulting from the current market dislocation.
Ultimately, we will continue to serve the best long-term interests
of our shareholders by striving to create wealth through our
risk-managed approach. About Calamos Calamos Investments is a
diversified investment firm offering equity, fixed-income,
convertible and alternative investment strategies, among others.
The firm serves institutions and individuals via separately managed
accounts and a family of open-end and closed-end funds, providing a
risk-managed approach to capital appreciation and income-producing
strategies. For more information, visit http://www.calamos.com/.
DATASOURCE: Calamos Investments CONTACT: Ken Fincher, Vice
President of Calamos Advisors LLC, +1-630-245-1076, Web site:
http://www.calamos.com/
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