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2014 estimated (preliminary) year end distributions
Another year-end of mutual fund estimated distributions is upon us. If you find any fund's estimated distributions that are not posted, please post them here so that we may keep them centralized on the board as well as for the benefit of others.
so you can take the total of the estimated distribution (income and dividends) and multiply it by the number of shares you own and obtain a dollar value
Thanks to The Shadow. ("The SHADOW knows...") And to all the others who have added to the list here. My question is about the TRP est. numbers--- particularly about PRESX Europe and PRSVX Small-cap Value. Can those estimates really be trusted, after a pretty stinky year, so far? If so, how do we account for the discrepancy?
PRESX YTD is down -10.72%, but with an over 2% rise, just on Friday last. And yet: a larger pay-out (.35 cents/share) is estimated--- bigger than last year's.
PRSVX is down YTD by -7.74%. But a pay-out of $2.63 is estimated. How on earth.......???????????
I've found in past years the distribution totals were fairly accurate but would shift a little in the amounts of dividends vs. short term cap gains vs. long term capital gains.
These gains are based only of the gains and losses the fund incurred when selling a security that was in the fund.
This distribution has nothing to do with the YTD or any other investor performance, although a fund that has lost money is likely to have more shares redeemed by shareholders. This could force the fund to sell some assets to pay the shareholders getting out. Some funds try to manage the distributions to minimize taxable income passed to the remaining shareholders, and some don't.
Ok. Buying and selling. Not performance. I get it, though it is alien re: the way we are molded to think and consider investing in Fund A vs. Fund B. Jeez. Thank you.
Investors usually exit poorly performed funds. in order to raise cash for exiting investors, managers of the open end funds have to sell securities in a declining market. so they realize multi-year gains and sting the remaining investors with the cap gain taxes on top of the poor performance.
Thanks to The Shadow. ("The SHADOW knows...") And to all the others who have added to the list here. My question is about the TRP est. numbers--- particularly about PRESX Europe and PRSVX Small-cap Value. Can those estimates really be trusted, after a pretty stinky year, so far? If so, how do we account for the discrepancy?
PRESX YTD is down -10.72%, but with an over 2% rise, just on Friday last. And yet: a larger pay-out (.35 cents/share) is estimated--- bigger than last year's.
PRSVX is down YTD by -7.74%. But a pay-out of $2.63 is estimated. How on earth.......???????????
The T. Rowe Price Small Cap Value qualified dividend percentage (as well as the qualified div percentage for other funds) look fishy to me. My understanding is that short term gains are not qualified - and so they can't be passed through by the fund as qualified dividends. But T. Rowe Price seems to be saying that this can happen.
I'd like to think I'm wrong, and (some) short term gains will be treated as qualified dividends. I've asked this of T. Rowe price in a note I just sent:
This question concerns year end distribution estimates.
My understanding is that short term capital gains are distributed by a fund as ordinary dividends and are not qualified.
For example, Dreyfus writes: "A mutual fund may flow through to its shareholders the qualified dividends it receives from its investment in equity securities. Dividends paid by the fund from interest income received and short-term capital gains will not qualify for the lower tax rates." https://public.dreyfus.com/accounts-services/tax-center/cap-gains-faqs.html
The T. Rowe Price instructions for how to apply the qualified dividend estimate is to multiply the percentage given by the sum of the income dividends and the short term cap gains dividends (i.e. the ordinary dividends) for the fund.
For Small Cap Value Fund, the figures are: 100% qualified, $0.27 income, $0.03 short term gains. How can 100% of the ordinary income dividends ($0.30) be qualified, when 10% of those dividends are short term gains? It seems you are saying that short term gains may be qualified dividends.
Is there some rule that permits (under certain conditions) short term capital gains to be passed through as qualified dividends? Or is the estimated percentage of qualified dividends overly optimistic for this fund?
Investors usually exit poorly performed funds. in order to raise cash for exiting investors, managers of the open end funds have to sell securities in a declining market. so they realize multi-year gains and sting the remaining investors with the cap gain taxes on top of the poor performance.
If your shares are still under water (e.g. if you bought them in the past year), you can sell them on the record date and buy them back on the ex-date.
You won't get to recognize your capital loss now (you'll have a wash sale, which will defer the loss), but you will avoid receiving the taxable distribution. This is a painless way of avoiding the paper gain while still staying invested (except for one day).
Realize that you'll be another one of those sellers dumping the cap gains on the remaining investors.
Comments
http://www.tweedy.com/resources/library_docs/general/2014 Estimated Distributions 8-31-14.pdf
https://www.putnam.com/literature/pdf/EO183.pdf
Janus Funds
https://ww3.janus.com/SiteObjects\published/FFFFFFFFA8347B540106A689CB6E5086/6A67B6EDC7721332F91A5B876C820459/file/Janus Funds Preliminary Distribution Estimates 2014.pdf
AMG Funds (file is a PDF) (Yacktman, SouthernSun, etc...)
https://investor.amgfunds.com/income_cap_gain_distributions
Thrivent Funds
https://www.thrivent.com/mythrivent/tax_resources/mutual_fund_tax_resources_guides/capital_gains_distribution.html
Principal Funds
https://www.principalfunds.com/investor/aboutus/news/article-08312014-capital-gains-estimates.htm
or
http://www.principalfunds.com/investor/docs/tax/MM3682-23.pdf
http://www.primecapmanagement.com/prices_and_performance/distribution_information.html
Russell Investments
http://www.russell.com/us/documents/syndication/Fund_Information/Tax_Information/2014_estimated_cap_gains_ric_004660376.pdf
http://www.cipvt.com/pdf/Champlain Estimated Yr End Distributions 08.31.14.pdf
Dimensional Funds
http://us.dimensional.com/media/301272/Website_PDF_Distributions_2014.pdf
http://www.nuveen.com/Home/Documents/Viewer.aspx?fileId=49964
https://www.mfs.com/wps/portal/mfs/us-investor/client-accounts/tax-center?clearPortletSession=true#?displayDcrPath=templatedata/internet/file/data/backlot/mfs_cg_fly
http://www.roycefunds.com/news/2014/10/open-end-funds-2014-year-end-distributions-estimates
https://www.americanfunds.com/resources/tax/capital-gains/index.html
Aquila Funds
http://aquilafunds.com/wp-content/uploads/2013/12/CapGainEst-9-15-2014.pdf
Diamond Hill Funds
http://www.diamond-hill.com/wp-content/uploads/DHF-year-to-date-capital-gains-as-of-9-30-14.pdf
SunAmerica Funds
https://www.safunds.com/pdf/Tax-Center/Cap-Gains-Estimate/asset_upload_file222_7170.pdf
Sentinel Investments
https://www.sentinelinvestments.com/pdf/capgainsdist-est2014.pdf
http://www.calamos.com/~/media/documents/tax-center/calamos-2014-capital-gains-estimates
Cohen and Steers Funds
https://www.cohenandsteers.com/assets/content/tax_documents/2014_Distributions_Estimate_August_31_2014.pdf
http://individual.troweprice.com/public/Retail/Planning-&-Research/Tax-Planning/Dividend-Distributions/2014-Preliminary-Year-End-Distributions
http://www.federatedinvestors.com/FII/mutualfunds/details/taxInformation.do?fundshareid=5801&year=2014
Northern Trust Funds
https://www.northerntrust.com/documents/white-papers/mutual-funds/individual/2014_prelim_cap_gain_est.pdf
aberdeen-asset.us/doc.nsf/Lit/ContentUSOpenAsiaBondInstitutional2014DividendandCapGainsestimates20140831
Aegis Funds
aegisfunds.com/pdfs/2014_Estimated_Distributions.pdf
PRESX YTD is down -10.72%, but with an over 2% rise, just on Friday last.
And yet: a larger pay-out (.35 cents/share) is estimated--- bigger than last year's.
PRSVX is down YTD by -7.74%. But a pay-out of $2.63 is estimated.
How on earth.......???????????
These gains are based only of the gains and losses the fund incurred when selling a security that was in the fund.
This distribution has nothing to do with the YTD or any other investor performance, although a fund that has lost money is likely to have more shares redeemed by shareholders. This could force the fund to sell some assets to pay the shareholders getting out. Some funds try to manage the distributions to minimize taxable income passed to the remaining shareholders, and some don't.
Dave
http://www.doublelinefunds.com/pdf/2014_DL_Funds_Capital_Gains.pdf
http://www.hardingloevnerfunds.com/fileadmin/pdf/HLF/distributions-093014.pdf
Davis Funds
http://davisfunds.com/estimated_capital_gains
American Century Funds
https://www.americancentury.com/content/americancentury/direct/en/investment-planning/tax-center/estimated-distributions.html
Scout Investments
http://scoutinv.com/resources/documents/literature/2014 Year-end Distribution Estimates.pdf
Transamerica Funds
https://www.transamerica.com/Images/Capital-Gain-Distributions-Actual_tcm73-37718.pdf
Henderson Global Funds
https://www.henderson.com/uspa/Document/15806/2014-hgf-annual-distribution-estimates
Lord Abbett Funds
https://www.lordabbett.com/content/lordabbett/en/resources/tax-center/capital-gain-distribution.html#la_Estimated_Capital_Gains
http://www.quakerfunds.com/performance/tax/2014distributions
https://www.ivyfunds.com/sites/default/files/Ivy_Fund_2014_Capital_Gain_Distribution_Estimates.pdf
Waddell & Reed Funds
http://www.waddell.com/NetCommon/MutualFunds/pdf/cap_gain_estimates_wra.pdf
AllianceBernstein Funds
https://www.alliancebernstein.com/abcom/Segment_Homepages/Investments/US/Resources/Content/PDFs/tax_center/2014EstCapGainsDist.pdf?uuid=e7f088cc-554b-11e4-9444-95c2d42715d2
Oppenheimer Funds
https://www.oppenheimerfunds.com/doc/2014_Capital_Gains_Estimates_and_Distribution_Calendar.pdf
https://www.columbiamanagement.com/content/columbia/pdf/2014_YE_CAP_GAIN_ESTIMATES_930.PDF
I'd like to think I'm wrong, and (some) short term gains will be treated as qualified dividends. I've asked this of T. Rowe price in a note I just sent:
You won't get to recognize your capital loss now (you'll have a wash sale, which will defer the loss), but you will avoid receiving the taxable distribution. This is a painless way of avoiding the paper gain while still staying invested (except for one day).
Realize that you'll be another one of those sellers dumping the cap gains on the remaining investors.
http://clipperfund.com/estimated_capital_gains
Deutsche Funds
https://fundsus.deutscheawm.com/EN/docs/products/Estimated_Capital_Gain_Distributions_Sept_30_2014.pdf
Blackrock
http://www.blackrock.com/investing/literature/tax-information/equity-year-end-estimates.pdf