Calamos Convertible Opportunities and Income Fund (CHI)
CHI Price and Sentiment
CHI Latest news
No portfolio or strategy can be perfect. But can there be a strategy that can work well in a bull market, a bear market, or a stagnant market, generate a decent income, and conserve capital, all at the same time? We also want our strategy to avoid roller-coaster rides of index investing, have low volatility and limited drawdowns in case of deep corrections.
CHI is a convertible fund that also incorporates high-yield bond exposure. The fund has delivered investors solid results, though it has become more fairly valued as of late.
For income investors, closed-end funds remain an attractive investment class that covers a variety of asset classes and promise high distributions and reasonable total returns.
CHI has a distribution of 7.56% which is reasonably attractive if the distribution is covered. I continue my series where I look at CEFs beyond the yield with a look at CHI.
In the summer of 2020, I created a small “piggy bank” portfolio consisting of six titles entirely dedicated to ETFs and ETNs as an adjunct to my Cupolone Income Portfolio. I named this new portfolio my Giotto Income Portfolio, in honor of the famous Florentine painter and architect.
NCV pays a relatively high distribution rate compared to its peers, even after it cut its distribution last year. Interestingly enough, the fund is also trading at a deeper discount than its peers and is becoming a tempting target.
CHI seems to be expensive at a quick first glance; however, diving a bit deeper might change one's opinion. The fund earlier in 2021 boosted its distribution, and they should be able to maintain the current rate for the foreseeable future.
Convertible closed-end funds offer high-yield exposure to an asset class that complements common and preferred equity.
ICVT facts and portfolio. Historical behavior. A tactical ETF rotation.
Convertible bonds offer benefits similar to equities together with some of the downside protection of bonds. The best way to invest in convertibles is through actively managed CEFs.