The Vanguard funds listed below earned taxable income and/or realized capital gains for their fiscal years ended December 31, 2012 or January 31, 2013, that were greater than the amounts distributed in December 2012. The remaining taxable income or gains will be distributed in March 2013 as "supplemental" income dividends or capital gains distributions.
Note: These supplemental fund distributions will be reported on 2013 tax forms. Vanguard will not generate updated tax forms for 2012. The gains reported here are taxable for the year during which they are declared.
---
According to tables in the page the declaration date (record date) is either 3/18 or 3/27.

Rats. I had a postie get throttled.
I believe folks should take profits based upon their ability to sleep. Rebalancing and reallocation all play a role, but as Bob just said, when you hit a a double or triple, bleeding down some of the gains is prudent. For example, with a double, you've doubled your money in that you're up over 100%. Why not take your original investment out and continue to let the profits ride. It's like playing with hour money. Good stuff.
peace,
rono

Our philosophy is that ANY time is a good time to capture profits. That doesn't mean you should grab every thousand in capital gains. But rather we would look at a holding and evaluate 1) what was the total amount invested, 2) what is the gain, 3) how quickly has the gain occurred, and 4) consider any tax consequences. The final decision is "Where do I put the dollars from the sale?" Consider either undervalued sectors or whether your target allocations are out of line.
It's more than just waiting until your allocations are out of line, since individual holdings in the same class can vary wildly in their performances. Our process is not to sell out of anything, just capture the gain back to the amount invested.

Hi Charles,
Thanks for your continued comments and commentary on the board. Again, good comments here again by you. And, so that you know, I went through both events as an investor ... the 1987 event along with the big 2008 crisis. By keeping my head I surived both chalking them up to learning experiences. Some say let your winners run and perhaps for them this is ok ... but, for me through the years I have seen too much of my unrealized gains get vaporized in sudden and swift market pull backs. Now, I have a plan to harvest some of my gains in steps along the way.
Have a great day ... and, thanks again for your continued input.
Good Investing,
Skeeter

Hello,
Not saying this concept should be followed … but, here is what I have been doing since the S&P 500 Index reached 1425.
Since my risk tolerance for equities ranges from 40% to 60% within my portfolio I start selling equities down when they are close to making new 52 week highs thus reducing and controlling my allocation to them. Conversely when they are towards 52 week lows I’ll start building my allocation to them while staying within my allocation range of 40% to 60% which was determined by a risk tolerance analysis. I am striving to move towards the low range when equities are at 52 week highs and to move towards the high range when equities are towards their 52 week low valuation. In short words, buy low ... sell high ... while being mindful of my allocation range to equities. In 2009 and 2010 I was more towards the 60% range and since then I have been in a control sell down mode along the way even though I have made some special buys from time to time when I felt good value could be had.
Since the S&P 500 reached 1425 … I have been selling about a sum equal to one percent of my equities at each 25 point step mark of 1450, 1475, 1500, 1525 & most recently at 1550.
A little math, each step ranges about 1.7% to 1.6% between them so this allows for some equity asset growth along the way. In short words equities have grown by about 8.8% form the 1425 step to the 1550 step … and, I have taken a sum equal to about 5% of this to my pocket while letting the other 3.8% ride. So equities have still grown while I have been in my sell down process and they currently account for about 46% of the portfolio (by Xray analysis).
I’d much rather book some of my profit in a market uptrend rather than trying to make it all in a market pullback when there is a lot of selling activity occurring by others. If I decide to sell in a market down draft it would be more for capital preservation move while being mindful to where my equities are bubbling within my allocation range just as I am doing during this bull market upward run.
If I have not right sized my portfolio's equity allocation by the time a good market down draft presents itself I'd be doing so pretty quickly in getting towards the low range of my equity allocation. At my age of 65 capital presevation is important as well as the prospects of growing the portfolio over time.
Not saying this is perfect … But, it is what I am currently doing and it draws from the lessons I have learned through the years from not only from my late father but Mr. Market as well.
So with this ... I wish all good investing and good fortune untill we meet again. I am going to go silent for a while and just sit back and just watch the board. My golf league will soon start play; and, I need to spend some time in getting my golf game in shape.
One of my late childhood friends was a PGA pro golf tour caddy ... Harry Caudell. Now it is time to see if I can put to use some of the things that Harry brought to my game as well as the late Clayton Heafner who gave me my first golf lesson at the age of six and one of my city's favorite sons who represented the USA many years ago with his winning Ryder Cup play. For those that would like to expand their history knowledge in golf I have linked some information about Clayton below.
http://en.wikipedia.org/wiki/Clayton_Heafner
So, with me, it is now off to the pratice tee that I go ... And we shall see ... "How good it can be to be on the tee with Harry C!"
Good Investing ...
Skeeter

Reply to @Daves: Hi Dave,
Typically Mutual Funds are not up my alley as much as individual stocks. Sorry. VYM as an ETF would be my closest strategy to give you the worlds best companies, pays a 3% yield with a tiny expense ratio, low risk, no worry fund. On individual stocks, please remember that when the market crashes, that's when the big gains are made.
The dividends build and reinvest during the crash cycle, and when the market recovers that's when your stocks just go absolutely "Crazy".
As dumb and counter intuitive as it seems, don't be afraid of down markets. You almost look forward to them. That's where you hit the home runs with world class stocks that pay dividends. And the only time you worry about world class stocks is when they cut the dividend. Which frankly, seldom happens in my experience of 50 years.
Forget my earlier Walmart example, here's an even better example. We purchased PM, (Phillip Morris) 20 years ago. PM has gone up continually since then, then split into Altria and then split into Kraft and Kraft split into Kraft and MDLZ. So the investor received for free, three additional companies, which have all been terrific. That's fairly difficult with a mutual fund but not uncommon with individual holdings.
Trust this might shed some light on having a few stocks in your portfolio.
Best Regards,
Steve

Below is a list of the funds I can select from in my 401k. I have had all my monies in the Pimco bond fund which has been great but realize it may not be such a good idea nowadays. Knowing I am 60 and plan on retiring in 6 years, can you recommend a blend of the funds below knowing I want to be fairly conservative. There are also Fidelity blended funds (2015, 2020 etc.) but they don't look like such good performers.
I also have rollover IRA in Pimco PTTRX but have been thinking of putting it in the TRowePrice 2020 plan as it looks like a pretty good fund and will save me a lot of work.
Thanks in advance!
AF FUNDAMNTL INVS R4
MAINSTAY LG CAP GR I
MFS VALUE R4
VANGUARD INST INDEX
Mid-Cap
MSIF MID CAP GRTH I
RDGWTH MID CAP VAL I
SPTN EXT MKT IDX ADV
Small Cap
DREY/BC SM CAP VAL I
PRU/J SMALL CO Z
VANG SM CAP IDX SIG
International
FID DIVERSIFD INTL K
HARBOR INTL INST
OPP DEVELOPING MKT Y
SPTN INTL INDEX ADV
Income
PIM TOTAL RT INST

Dreyfus must think highly of Mr. Fitpatrick as well as he is a subadvisor to this fund along with others listed.
Art
Dreyfus Select Managers Small Cap Val A (DMVAX)
Walthausen & Co., LLC
Thompson, Siegel & Walmsley LLC
Iridian Asset Management LLC
Lombardia Capital Partners, LLC
Kayne Anderson Rudnick Inv Mgmt., LLC
Vulcan Value Partners, LLC
Neuberger Berman Management LLC

Reply to @Art:
VVPSX is actually interesting to me. Thanks for bringing that up. I am actually considering it as an alternative to ARIVX which I recently sold down to a token.
I like the fund has a very reasonable P/E of 14 at the moment. Very decent valuation.
I like its 3 year up/down capture ratio, lower std. dev, low beta, high alpha, sharpe and sortino.
The fund has only 28 holdings. It is a concentrated portfolio and significantly so for a small cap fund but it seems like manager caps the exposure to any single issue to 5%.
ER=1.50% is a bit on the high side for a domestic fund. But right now, I checked M* Fees tab for this fund and see that ER has been capped to 1.25% until August 2013 and assuming that they renew ER waiver after that, 1.25% is acceptable for an actively managed US SmallCap fund.
Regarding the track record of Manager, M* says: "Prior to founding Vulcan in 2007, Mr. Fitzpatrick was a principal and portfolio manager at Southeastern Asset Management from 1990 to 2007." That is good that he has been managing money for a while.
Here is the fund site: http://www.vulcanvaluepartners.com
Here is a quote from web site:
"C.T. Fitzpatrick founded Vulcan Value Partners in 2007 to manage his personal capital. Since inception, all four strategies have peer rankings in the top 1% of value managers in their respective categories."
The about, philosophy and letters sections of the web site provide good amount of information.
Here is David's profile of the fund.
http://www.mutualfundobserver.com/2011/04/vulcan-value-partners-small-cap-fund-vvpsx/
For some reason I did not pay enough attention to it back then. Maybe I found it too expensive and too new and passed over it without much thought.

Some exposure to private equity is possible to get in other ways, so this is not of particular interest (to me, at least.) Oaktree has some exposure to private equity and I would be more comfortable investing in Oaktree (OAK) than Blackstone or Carlyle.
I don't own any, but the London market has a number of private equity funds (such as Princess Private Equity), some of which are seen in the ALPS/Red Rocks Listed Private Equity mutual fund (LPFCX).
Additionally, I just have little interest in devoting that much to private equity, given the often highly volatile nature of private equity investments.
Carlyle dropping their minimums to $50K in order to "widen their customer base" makes me curious if that was more out of need than anything else.
Additionally, you have things like GSV Capital, which was the hottest thing when everyone wanted to invest in Twitter, Facebook (pre-IPO) and other private equity. That didn't turn out that well:
http://finance.yahoo.com/echarts?s=GSVC+Interactive#symbol=GSVC;range=2y

don't know if it's too late. I don't want to sponsor this but look at this, very attractive offer:
sorry if this is a commercial but just want to pass 'em along for those interested
You are receiving this message as an update to your recent request for information on the Southern Star Operating LLC Energy Capital Bond offering. Please be advised that our 1 Year Bonds (below) will be discontinued and no longer available for purchase after close of business March 29, 2013*. Until then, the Bonds are offered at a 10% discount to face value and in denominations of $10,000 each as follows.
Our 1-Year Bonds (Series 2013-A):
May be purchased with a minimum of $10,000 (1 Bond Minimum);
Offered at 90% of Face Value;
Accrue interest at 6.5% per annum;
Annualized Yield to Maturity: 18.33%
Pay no quarterly interest payments until maturity; and
Mature on December 31, 2013.
Bonds are 100% secured by oil and gas assets pledged as collateral. As we acquire additional oil and gas assets utilizing Bond proceeds, these too are pledged as security for the Bonds. The Bonds are further secured by corporate guarantees from the owners of the assets and the underlying oil and gas lease holder.
Approved for IRA/401k accounts. Please see attached documents and call or email me to subscribe.
* Company reserves the right to discontinue Bonds prior to March 29.
Sincerely,
Don
Don Howard
Southern Star Resources, LLC
4692 North 300 West, Suite 210
Provo, Utah 84604
888.826.4834 Toll-Free
801.877.3154 Direct
801.877.3164 Fax

Heigh ho.
I talk pretty regularly to fund folks - managers, media reps, executives. They occasionally say interesting things which might be off-the-record. In that case, I always try to check on what I'm allowed to attribute to them in public. Some folks made a comment about capacity and I asked what I could say in public. Here's their reply:
“Effectively managing capacity of our strategies is one of the core tenets at Huber Capital Management, and we believe it is important in both small and large cap. Our small cap strategy has a capacity of approximately $1 billion in assets and our large cap/equity income strategy has a capacity of between $10 - $15 billion. As of 2/22/13, small cap strategy assets were over $810 mm and large cap/equity income strategy assets were over $1 billion. We are committed to closing our strategies in such a way as to maintain our ability to effectuate our process on behalf of investors who have been with us the longest.”
For what it's worth,
David

As an older investor, I've never commented on this excellent board, but offer just one humble comment regarding bond exposure. MikeM had an excellent / very astute, comment . "Why any bonds?". The following comes from a very personal experience and mirrors what all my great mentors offered as life lessons to me along the way.
My father was a police office who proudly purchased a $5000 Walmart bond in 1958 or 59.
This was all the money Mom and Pop had to invest. Mom, myself and my sister marveled at Pop's gutsy move. Instead of passbook savings Pop plowed into Wall Street and was an Investor.
He redeemed the coupon seven years later and Pop collected $579 + $5000. Brilliant.
My uncle John in Dallas coincidentally purchased $3000 in Walmart stock and in total collected $13,000,240, some 25 years later. That was my first lesson on bonds, and one I never forgot.
Uncle John quietly bought me my first car in college and Pop struggled to send me $5.00 a week spending money. I appreciated all they did immensely.
When in a bond buying conundrum as many are these days. One consideration might be to simply purchase the underlying engine (stock) vs. the engines exhaust fumes (i.e. bonds).
Over time your rewards will be incredible. Bonds are certainly OK, but consider this option.
Consider these world class names & you'll never, ever wish to churn, sell, wonder about, or fret over. Just buy them, sit on them, and do NOTHING EVER! Then receive checks and checks and checks.
If you wish to buy a group of stocks of the worlds greatest companies, you'll have enormous satisfaction as well as rich gains. Not all will be winners, that can't happen, but most will win for you year after year. Just remember Do Nothing! You don't have to do anything, because hundreds of thousands of people go to work each day at these enterprises and do the work for you.
Consider:
Pfizer, ATT, Unilever, Proctor and Gamble, Union Pacific Rail, Travelers Insurance, Kimberly
Clark, Kraft Foods, Kinder Morgan, Reynolds America, ABB, JP Morgan, Wells Fargo, Vodafone,
Phillip Morris, Altria, Lyondellbasell Industries, ABB, and pick a few you like as Walmart, Home Depot. And be done.
Throw in a few MLP's like MMP and VNR, a foreign Fund Stock and Bond if you must, from Mathews and a VYM from Vanguard. And you're 90% on the road to wealth.
It isn't that hard.
Try for a 3% yield and 3% growth. You'll receive far more than that. However be modest in
your goals. And remember... Do Nothing Else.

Madison, WI is a nice option. Winters are ... not great (although I think better than they used to be a couple of decades ago - thanks to global warming, the Midwest now truly is Canada's Florida), but there's some really beautiful areas nearby and Wisconsin is (I think) a good state.
If you have kids, the Wisconsin Dells are about 45 minutes away, which is the Waterpark Capital of the World - it's essentially a town crossed with an amusement park. Arcades, minigolf, everything. And when I say "everything", that includes an upside-down White House.
Upside Down White House:
http://en.wikipedia.org/wiki/File:Wisconsin_Dells_-_Top_Secret.jpg
http://en.wikipedia.org/wiki/Wisconsin_Dells,_Wisconsin
A lot of nice natural areas nearby, including Devil's Lake State Park:
http://en.wikipedia.org/wiki/Devil's_Lake_State_Park_(Wisconsin)
Austin, which investor mentioned, is also supposed to be terrific.

I'll limit my comments to your bond sleeve. You appear to be fairly conservative in investing, so consider these ideas with that assumption in mind.
I'd reconsider going all but entirely to cash, as it looks like you may do. None of the funds I mention below have actually lost money year-to-date, in this recent rate-rise; the managers have the latitude to change the asset mix, and the dividends have generally made up for any capital loss.
First, I'd get rid of most of the Treasury-heavy funds and move into more diversified bond funds run by some of the very best bond managers.
You apparently have access to Pimco, and that's the fund family I trust the most for bonds in this everything's-sky-high environment; I'd look at PIGIX, PIMIX, and PDIIX as possibilities, and consider switching your PTTDX over to the ETF BOND (same manager, more nimble with a much lower asset level he has to manage).
Next, I'd consider adding one of the mostly-mortgage funds DBLTX and TGLMX (from DoubleLine and TCW, respectively), for relatively safe, steady income.
Finally, you might look at OSTIX, which is a mostly-bond fund that is doing well during this current rise in T-rates, & though somewhat stock-correlated, would likely not lose very much in a down stock market (it lost only 5% in 2008).
Good luck out there ...

Click on the 5Yr return column and and research the top 1-15 funds, especially how they "conserved and preserved" capital in 2008!
http://news.morningstar.com/fund-category-returns/conservative-allocation/$FOCA$CA.aspx To me ,and I don't own it but probably will at age 74,BERIX is a possibility.Just about everything you might buy at the moment is like today's Dow,at or near an all time high except commodities,and I wouldn't go there! Scott posted a good list and I know he is a fan of Steve Romick at FPACX, a fund I've owned and probably will continue to own, and add to, even at 90,which my father will turn this summer.Some good comments in the past week on this board about RPHYX and protection of capital,but as stated ,that fund was not in existence in 2008.
RiverPark Short Term High Yield Fund (RPHYX) – July 2011, updated October 2012

Have been reading this board for some time and would like to get some advice from the knowledgeable people here.
In 2008-09 I did not get out of the market in time and lost half my IRA, all equity funds. Did not want to sell with such big losses and decided to wait it out. Last year my portfolio had recovered and even added a little. So, last August I sold all but 2 of my equity funds and bought bond funds instead for a more age appropriate allocation; I am in the low seventies. Now my portfolio consists of 13% OAKBX, 18% PRWCX, 20% cash and 49% bond funds, with emphasis on Treasuries of various duration. Based on what I read on this board, heard on TV and read in yearly reports, this was a bad idea. Also yesterday my bond funds were hit hard. I am ready to sell them all but don’t know where to put the money. Preservation of capital is my highest priority.
Found the discussion about FPA New Income fund on this board the fund looks attractive to me. Although they will drop the front and deferred load the fund will have a 2% redemption fee. Besides that I don’t want to put half or more of my IRA into one fund. Are there funds of high dividend paying companies? Any better suggestions?
My IRA is with Scottrade.
Thank you in advance!

Howdy Charles,
First, thank you for all of your efforts with data and charts.
I'm arse high deep in a project(s) and have had too really filter my time allotment to "other" areas of life; although I must continue to read through MFO posts and monitor news/data relative to our investments to stay in the investments thinking loop.
As many here at MFO are aware, there are more methods available to perform techinical measurements than at least I have the time and/or apptitude to study and learn. My observations (limited study) of the technical areas always bring me back to thinking/study relationships with reading books about any given subject. If I select 10 authors on a given subject, it is likely that 1 author will write and offer the text/data in such a fashion that really hits my "sweet spot" for understanding. Not unlike folks who many of us may encounter who are brilliant in a given field; and may be teachers/writers, but who do not have the ability to properly pass along their knowledge and/or way of viewing or thinking about the subject matter.
'Course there are all of the other added circumstances that relate to investing, too.
1. one knowing and understanding their own limitations.
a. I know and understand when I have hit a wall of perception to grasp a particular concept. I have discovered this numerous times, especially studying methods used in technical areas of investing. I discover and read about a method to find that apparently I do not have the brain power to fully grasp the particular methodology.
2. liberal "arts" knowledge. This is a tough area to define, as it is different for everyone. Generally accepted I suppose, aside from one's own area of skill(s); is what do you think you know and understand about everything else in the world. Any knowledge should be of value at some point in the future, which starts with the very next day of investing.
3. fundamental aspects of investing. Well, there exist pure fundamentals here and there; but the current culture of this area has become and remains a most perverted area since December of 2008. Currently, the main perversion modifiers are central bank actions and machine trades. The revised and new normal would include both of these.
4. one's emotion and passion towards the preservation of their money. Emotional investing sure may get in the way of clear thinking, especially when blending with the passion side.
5. the machines, the competition. The machine trades ( reportedly about 70% of market(s) activity) are a most serious consideration, too. There is not a clear and concise way to deal with this aspect. One must also consider that there is little love lose among the big houses who battle and fight in this machine area to beat the other guy for bragging rights. Individual investors may well, at times; be standing on the sidelines wondering when do they get their turn in the musical chairs.
6. talking heads and credibility. This area includes all talking heads, be they screamers on the television channels, internet blogs or the figure heads of central banks and states, et al (including me!). First, they make their case for this or that. The tough part of this for an individual investor is too attempt to understand the motivation of the person; as much of the talk becomes aspects of marketing an idea without giving away the secrets and unknown data available to that person or persons. Too much of the time we do not and never will have the real truths behind actions.
7. the individual. One's habits are also a very powerful part of investing. Habits can be protective and positive. Habits may also be or place road blocks into one's pathway of change for the better. I offer that one's habits may be the most powerful force involved with investing; and one of the most challenging areas with which to adjust and/or change.
8. It is about the money, eh? If this house was sitting upon a $5 million portfolio, our direction of investment travel would be different. If we threw (invested) a large portion of this money, knowing that 20% of the value may go bye-bye; we would still happily survive on the remaining $4 million. 'Course this is not our position here, nor our mindset. This is the area of what one has today, how much to invest going forward (during the working years) and how much risk/reward to put in place within various investment sectors. Our house knew from day one that there would not be any provided health plan if retiring prior to age 65, and that the available pensions would be very modest. We understood that we had to do "other things" to provide for our monetary futures via common sense household budgets and investing. Thirty five years later the plan is functioning as expected.
I've wandered every direction with this, sideways related to technical analysis.
I have no conflict with Flack's method or other's methods that have been noted over the years. Attempting to mix all of the above personal considerations finds me leaning today towards more influence from the technical side. But, the technical must still be and have influence from the above factors. A 10 month or 200 day SMA is of benefit, IMO; but likely must be tempered and measured from shorter time frames, too. Many so inclined in this area start with 10, 50, 100 and then 200 day averages to attempt to find a continued trend in a given area. Relative strength indicators (RSI's at 21, 14 and 7 day periods) are also part of this; although oversold and overbought indicators can remain in place longer than one would "guess" .
I do not believe that long SMA's would have been of any value during the short term crash in Oct., 1987. This short period was a strange bird event. This linked chart FCNTX, March 2007-March 2009 is for one of our holdings during part of this period. If there is a period with which to "fiddle" with for outcomes (using tickers of your choice), this would be my choice. Some of this period found very large swings; as well as the majority of the "pros" still noting buy points and that all was well; which lends the best of techinical indicators and "talk" for one's decision making. I chose FCNTX, as at the time; this fund remained the "best" of our bunch for "holding" gains. The other 11 equity funds we held at the time were not doing as well, except PTTRX (10% of the portfolio). Our portfolio obtained its full value on Halloween Day, 2007. It was beat and ripped every whichway for the next 9 months. June 15 of 2008 found 87% of the equity portfolio sold and monies moved to either MM or stable value funds within various accts. Small amounts of FCNTX and VPMCX remained and were ridden through the "train wreck" to be sold in mid-2009, with the monies placed into HY bond funds.
Technicals and many of the above noted factors all played into this "luck"; if to call it that. My father had been diagnosed with terminal cancer early in 2008 and passed away the day Lehman Bros. crashed and burned. I was obviously very consumed by my father's status; and the technical triggers "again" (June shorter term, 50 day; other factors) tripped our house's sale of eqiuity positions. You may note that the 200 day on the chart looks backward relative to the 50 & 100 day; and would have eventually set a trigger point.
FCNTX, a few reference points:

Dec 31, 2007-Mar 17, 2008 -11%
March 17, 2008-May 12, 2008 +11%
May 12, 2008-June 16, 2008 -4.3%
June 16, 2008-Sept 15, 2008 -8.8%
Sept 15, 2008-Oct 16, 2008 -25.6%
Oct 16, 2008-Mar 2, 2009 -17%

I will note too, that I watch CEF and GDX for reference to the precious metals. Using many technical looks, especially GDX has been beat to death. So, is this a deep value play today; or is more value coming? Not unlike the "value" that continued through much of 2008 and became a real value on March 6, 2009.
An aside from a few days ago: I saw that the French market moved +2.4% on one day. I don't think this has anything to do with French economic fundamentals, but with big, hot money making a buck. Europe still has its economic butt in a thin sling.
A vast amount of presentations regarding many technical aspects/training await you at "YouTube". Any number of suitable search wording will find many areas of study.
Lastly, I submit that investing one's own money to sustain a positive forward movement via limiting losses and the value of long term compounding resulting from capital preservation, is one of the most challenging areas one may encounter in a lifetime.
Thank you again for your time and efforts here, at MFO. I must be away; as the "to-do" awaits me, and hopefully you were able to tolerate and understand my jibber-jabber.
Regards,
Catch

http://www.sec.gov/Archives/edgar/data/1015986/000072888913000405/developmkts497.htm
supplement amends the Prospectus and Statement of Additional Information (“SAI”) of Oppenheimer Developing Markets Fund (the “Fund”) dated December 28, 2012.
The following information is added to the sections titled “More About Your Account” beginning on page 11 of the Prospectus and “How to Buy Shares” beginning on page 56 of the SAI:
Effective as of the close of the New York Stock Exchange (NYSE) on April 12, 2013 (the "Closing Date"), the Fund will no longer accept purchase orders from new investors and existing Fund shareholders will no longer be able to purchase new shares or exchange shares of other funds into the Fund, subject to the following exceptions:
· Existing shareholders can continue to purchase shares through dividend and capital gain reinvestments.
· Existing shareholders in broker/dealer wrap-fee programs can continue to purchase shares and exchange into the Fund. Existing broker/dealer wrap-fee programs can add new participants. The Fund will not be available to new broker/dealer wrap-fee platforms.
· Existing shareholders in the following types of retirement plans can continue to purchase shares and exchange into the Fund: defined contribution investment only (DCIO), 401(k) (including “Single K”), 403(b) custodial plans, pension and profit sharing plans, defined benefit plans (including “Single DB Plus”), SIMPLE IRAs and SEP IRAs. New participants in such plans that currently offer the Fund as an investment option can elect to purchase new shares of the Fund. However, the Fund will be closed to new retirement plans. New retirement plans that are authorized prior to the Closing Date will have until July 15, 2013 to fund the account.
· Existing shareholders that have an investment allocation to the Fund through an OppenheimerFunds Portfolio Builder account prior to the Closing Date can continue to purchase shares and exchange into the Fund.
· Existing firms in RIA/bank trust wrap-fee programs that hold shares of the Fund prior to the Closing Date can continue to purchase or exchange shares subject to a $100,000 minimum investment at the firm level. RIA/bank trust platforms cannot add new firms.
· Existing shareholders in private bank platforms can continue to make purchases and exchange into the Fund. Private bank platforms can add new participants, but participants who seek to open new accounts are subject to a $100,000 initial minimum investment. The Fund will not be available to private banks not already invested in the Fund.
· Existing 529 Plans that currently include the Fund within one or more of their investment options can continue to purchase shares and exchange into the Fund. The Fund will not be available to new plans or existing plans that do not currently invest in the Fund.
· Funds-of-funds affiliated with the Fund’s investment adviser and non-affiliated funds-of-funds managed by other firms can invest in the Fund.
· The Fund reserves the right, in its discretion, to accept purchases and exchanges from institutional investors which may include, among others, corporations, endowments, foundations and insurance companies.
Existing shareholders as of the Closing Date who later sell all of their shares of the Fund will not be permitted to establish new accounts or reinvest in the Fund.
Present or former officers, directors, trustees and employees (and their eligible family members) of the Fund, the Fund’s investment adviser and its affiliates, its parent company and the subsidiaries of its parent company will not be permitted to purchase additional shares of the Fund after the Closing Date unless such purchase is through an exception listed above.
March 6, 2013 PS0785.032

They answered (if I understood them correctly) that they invested in small cap stocks long time ago in their managed accounts, then they invested in emerging markets, and now - in large caps, so they do it by choice. Interestingly, even though their turnover is relatively low, they did make two large long term capital gain distributions in 2011 and 2012.