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You are right, @davidmoran, to question a description of a strategy that includes the pointless use of jargon. If the manager sells a lot of shares for a gain, he does not "unlock" capital gains. How, for instance, can a mutual fund "approximate" a benchmark? The former editor in you must cringe when you read this tripe.
My bête noire these days is NPR reporters being interviewed about almost any subject (grave or frivolous) who respond to each question with "Yeah, so, I mean..."
A very experienced financial writer friend whom I freelance with sometimes quickly fixed Uppaluri's comical regurgitation:
The fund's concept is to track the total return of the Russell 1000 Index while having less of that return consist of income. It invests in a representative sample of stocks in the index, favoring those with low or no dividends, and also minimizes capital gains in two ways: by managing how they're offset by losses and by keeping turnover low. In recent performance the fund's total return has been well within its target [+/- tktk] limit, while on average trading only 14% of holdings a year.
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My bête noire these days is NPR reporters being interviewed about almost any subject (grave or frivolous) who respond to each question with "Yeah, so, I mean..."
thanks
A very experienced financial writer friend whom I freelance with sometimes quickly fixed Uppaluri's comical regurgitation:
The fund's concept is to track the total return of the Russell 1000 Index while having less of that return consist of income. It invests in a representative sample of stocks in the index, favoring those with low or no dividends, and also minimizes capital gains in two ways: by managing how they're offset by losses and by keeping turnover low. In recent performance the fund's total return has been well within its target [+/- tktk] limit, while on average trading only 14% of holdings a year.