There are some documents in the SEC's Edgar database that look like a draft of the prospectus. Link here:
http://www.sec.gov/Archives/edgar/data/915802/000119312511311116/d254427d485apos.htm
Looks like the fund will have Investor and Institutional fund clases with a expense ratios of 1.6% and 1.45%, respectively.
There was also more details on the strategy of the fund (posted bellow). Looks interesting...
"Principal Investment Strategies of the Fund
Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its total net assets in dividend-paying common stocks, preferred stocks, convertible securities and debt obligations of foreign companies.
The Fund may invest a significant amount of its net assets (50% to 80% under normal market conditions, measured at the time of purchase) in the securities of companies domiciled in developing countries. The Fund’s investment adviser, Seafarer Capital Partners, LLC (“Seafarer” or the “Adviser”), considers that most Central and South American, African, East and South Asian, and Eastern European nations are developing countries. Currently, these nations include, but are not limited to Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, South Africa, South Korea, Sri Lanka, Taiwan, Thailand, Turkey and Vietnam.
Seafarer identifies developing countries based on its own analysis and measure of industrialization, economic growth, per capita income, and other factors; it may also consider classifications produced by the World Bank, the International Finance Corporation, the United Nations, and private financial services firms such as FTSE and MSCI.
The Fund may also invest a significant amount of its net assets (20% to 50% under normal market conditions, measured at the time of purchase) in the securities of companies domiciled in selected foreign developed nations, which in the Adviser’s opinion have significant economic and financial linkages to developing countries. Currently, these nations include Australia, Hong Kong, Ireland, Israel, Japan, New Zealand, the United Kingdom and Singapore.
The Adviser determines a company’s location based on a number of factors. A company is generally regarded by the Adviser as being located in a particular country if the company: (i) is organized under the laws of, maintains its principal place of business in, or has, as its principal trading market for the company’s securities, the particular country; (ii) derives 50% or more of its total revenue or profit from either goods or services produced or sales made in the particular country; or (iii) has more than 50% or more of its assets in the particular country.
Exposure to non-U.S. companies through the Fund’s investments in exchange-traded funds (“ETFs”), including ETFs organized under U.S. law, will be included in the Fund’s percentage of total net assets invested in non-U.S. securities.
The Fund may typically invest in convertible securities and debt obligations of any quality or duration. The Fund may generally invest in companies of any size or capitalization, including smaller companies.
The Fund attempts to offer investors a relatively stable means of participating in a portion of developing countries’ growth prospects, while providing some downside protection, in comparison to a portfolio that invests purely in the common stocks of developing countries. The strategy of owning convertible bonds and dividend-paying equities is intended to help the Fund meet its investment objective while reducing the volatility of the portfolio’s returns."

Reply to @chip: Well, there you go.... one of the reasons I love this site - THANK YOU! A wealth of information in the Commentary - including the exact answers I was looking for, by amazing coincidence. Re The Street... if I had known it was that loud, obnoxious guy on CNN that I always instantly switch channels away from, I would have discarded his opinion immediately (why does he have to yell?). And, with the low opinion of Zacks, looks like the US News site won't be as helpful as I was hoping. I love the idea of accumulating ratings from different sources (or just giving total ratings with breakdowns like the old MaxFunds did - but not if the ratings they include are not ones I would pay any attention to. This whole extensive section showing results from M*, Kiplinger, SmartMoney, etc.'s recommendations vs. results very interesting - I really love these type of analysis.
I also loved the update to stock/bond portfolio allocation percentage differences in returns. One of my favorite links recommended here is the Merriman chart - all these type reinforce my comfortableness with a very conservative portfolio since I don't need the extra gains to have to take the extra risks.
I always look at the 2-4 funds David briefly mentions worth taking a look at - and I especially like your full reviews (i.e., RNDLX, RPHYX, etc.) and would love to see more of those. THANK YOU SO MUCH, DAVID, for this great site!
P.S. I keep forgetting about the MFO Home Page and Commentaries. Couldn't tabs for these be placed at the top of these discussions? Would also maybe remind some viewers to donate when they can. Thank you, Anna, for such a nice design job on the Home page... very simple and easy to read! And THANK YOU ACCIPITER for Falcoln's Eye and the new Navigator, GREAT TOOLS! (Note: I tried entering ETF in Navigator, but nothing happened after enter)
P.P.S. There was a great picture yesterday on the Home page that isn't there now. Really cute child and appealing looking man. Who are they?

JG does a risk-balancing act with DBLTX: he has GNMAs, which did fine during the meltdown, balanced against riskier private mortgages - very little in subprime, mostly Alt-A and prime, bought at bargain prices. The beaten-down private mortgages are where the yield comes from.
He varies the mix according to outlook; recently he's had the lowest % in riskier assets since the crash, according to his recent webcast. So you might expect him to go further into gov't mortgages if things start to unwind. The catch (not referring to Mark!) is that it could incur some capital losses for a while, with the yield offsetting those losses, and if you hold it in a taxable account, you could end up paying tax on more $ than you've made in total return.
He does say TR works better in a flat- to up-market for risk assets, while his core fund (DBLFX etc.) will likely do better in a risk-off situation.

Reply to @bee:
As Scott (and PIMCO) wrote, what you're seeing are just the quarterly (income) dividends.
The annual capital gains were distributed Dec 7 (Dec 6 record date). It is generally capital gains distributions that reflect selling. I leave it to others to judge whether these were big, small, normal or unusual.

best bet for 2012
http://www.onwallstreet.com/ows_issues/2011_12/best-bets-for-2012-2676014-1.html?ET=onwallstreet:e5236:2131761a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=OWS_Daily__122711
yes you guessed it - EM, energy, tech could be major players
rbc wealth financial weekly commentary
Market Week: December 27, 2011
The Markets
In-the-black Friday: Buoyed by good economic data and congressional reconciliation over extension of the payroll tax cut, the Standard & Poor's 500 headed into the Christmas weekend with a gift for investors--its return to positive territory for the year. That left only four trading days in 2011 for the Nasdaq and Russell 2000 to try to catch up as the Dow continued to dominate 2011. The Nasdaq was only 1.3% away from breaking even for the year, but the Russell 2000 was still almost 5% from doing the same. And despite a relatively benign week, the Global Dow would need to gain more than twice as much in four days as it did during the entire first quarter to have a positive year.
Market/Index 2010 Close Prior Week As of 12/23 Week Change YTD Change
DJIA 11577.51 11866.39 12294.00 3.60% 6.19%
Nasdaq 2652.87 2555.33 2618.64 2.48% -1.29%
S&P 500 1257.64 1219.66 1265.33 3.74% .61%
Russell 2000 783.65 722.05 747.98 3.59% -4.55%
Global Dow 2087.44 1751.60 1803.20 2.95% -13.62%
Fed. Funds .25% .25% .25% 0 bps 0 bps
10-year Treasuries 3.30% 1.86% 2.03% 17 bps 127 bps
Last Week's Headlines
Housing starts shot up 9.3% in November, driven largely by construction of multifamily units, while building permits (an indicator of future construction) were up 5.7%. The Commerce Department said that housing starts were up 24.3% compared to last November.
The U.S. economy grew more slowly during the third quarter than previously estimated by the Commerce Department. The final 1.8% growth rate represented a downward revision from the 2.5% and 2% of the first two estimates, but was still higher than Q2's 1.3%. Corporate profits rose at a slower pace than in Q2; they were up $32.5 billion compared to $61.2 billion in the second quarter, while after-tax profits were up $41.6 billion.
New home sales rose 1.6% in November; that's 9.8% ahead of the same time last year, according to the Commerce Department. Meanwhile, the National Association of Realtors® said home resales were up 4%, which put them 12.2% above last November.
There were reassuring signs out of Europe as a successful auction of short-term Spanish sovereign debt cut the yield on three- and six-month bills by more than half. Also, the European Central Bank allowed 523 European banks to borrow a total of €489 billion in three-year loans to refinance debt.
The Bureau of Labor Statistics said 43 states had lower unemployment rates in November, while three states (Wisconsin, Minnesota, and Colorado) saw unemployment rise and four others remained the same. The West continued to have the highest regional unemployment rate (9.9%) while the Northeast had the lowest (7.9%).
American incomes were up 0.1% in November, according to the Commerce Department. However, the extra money promptly went out the door, as consumer spending also was up 0.1%.
The Federal Reserve Board proposed new regulations designed to help prevent a repeat of the 2008 financial crisis. The rules, which would apply to banks with more than $50 billion in assets and other systemically important financial companies, would require annual stress tests, prevent the largest banks from investing more than 10% of their capital in another systemically important bank, limit debt-to-equity ratios and credit exposure to a single company, and increase capital requirements in some cases.
The Supreme Court set a three-day session March 26-28 to hear arguments in the 26-state legal challenge to the Patient Protection and Affordable Care Act (the health-care reform legislation passed in 2010).
The Conference Board's index of leading economic indicators was up 0.5% in November. Seven of the index's ten indicators showed improvement, led by interest rate spreads and housing permits.
Durable goods orders were up 3.8% in November. However, the Commerce Department said if orders for defense and transportation-related equipment such as aircraft parts are excluded, orders actually fell 1.2%.
Congress gave taxpayers at least a temporary reprieve from higher taxes by approving a two-month extension of a payroll tax cut that had been scheduled to expire January 1.
Eye on the Week Ahead
The holiday-shortened week is the last opportunity for institutional investors to window-dress their portfolios before leaving a tumultuous year behind.
Key dates and data releases: home prices, consumer confidence (12/27); pending home sales (12/29).

Your accountant (and I) were oversimplifying a bit. In years when you recognize short term gains, it may matter whether the losses you recognize from some of your investments are short term or long term.
Short term losses can offset the short term gains (which as you note are taxed at a higher rate, so this saves you more money). Long term losses would only be used to offset the long term gains. So there can be a difference between long term and short term losses, as far as taxes are concerned. (Again, this all assumes you have both long term and short term gains that year.)
For example:
Security 1: sold for $2K short term gain
Fund 2: distributes $2K capital (long term) gains
Fund 3: sold for $3K short term loss
The $3K loss is applied first to the short term gain (wiping it out); the remaining $1K in losses is applied to offsetting the $2K long term gain. That leaves a $1K long term gain. At 15% tax, your tax is $150.
If, on the other hand, Fund 3 were sold for a $3K long term loss, then that loss would be applied first to the long term gain (wiping it out); the remaining $1K in losses is applied to offsetting the $2K short term gain. That leaves a $1K short term gain. At 25%, your tax is $250.
So there can be a difference between a short term loss and a long term loss.
Please keep in mind that it is quite likely some of your other funds have (or will have) capital gains distributions (like Fund 2 above), even if they lost money this year. Your losses on the sales you're proposing would go first to reduce those gains, and only if there were any excess losses remaining, would they be applied against ordinary income (up to $3K in losses).

Thanks for the comment msf. I phoned my accountant, and apparently there isn't any difference between short and long term losses, as far as taxes are concerned. (Short and long term gains are another story as all of you well know.) One is allowed to declare up to $3000 in losses each year. So as Rono suggested I will sell these funds and buy similar funds right away. The loss is just around $3000 so it should work out.

I don't give a rat's _ss about his privare life. What I do care about is his overall performance of DBLTX. I will stick with DBLTX in my non-retirement account and keep DFLNX in my Roth. Even with the market's volitility, DBLTX has maintained a more or less steady NAV. I would certainly buy DBLTX for its dividend yield, not for its potential capital appreciation.

PART 2
Screening criterion for funds:
1. No-load, ER less than or equal to category average, been in existence for at least 5 years.
2. No losses in 3, 5 or 10 yr (if available) rolling periods (amazing how many asset classes or funds drop out here)
3. Manager has been around for at least the category average
4. Minimum initial purchase not more than $3000 (i.e., minimum not more than $60k portfolio)
5. Best 3 month performance must be better than worst 3 month performance over its lifetime (amazing how many funds you lose with this criterion)
6. Best volatility-adjusted performance (3-yr and 5-yr) in class, not necessarily the best returns.
7. Volatility of each fund on its own must not exceed 10% of total stock market index, total bond index or balanced index as appropriate.
8. Lowest volatility to break a tie all else remaining the same.
9. No bias towards active or passive funds as long as the above criterion are satisfied
10. Allocation percentages based entirely on relative volatility-adjusted returns (3-yr and 5-yr), no ad hoc allocation decisions. Individual fund notes:
FVALX, INTLX: These Forester funds have demonstrated the ability to limit losses by going to cash when conditions so indicate and they do so without worrying about whether they will fully participate in the recovery. Hence they fit the goals of this portfolio well. Forester was so successful with this simple strategy that FVALX became the only equity fund to have positive (albeit close to zero) returns in 2008.
Unfortunately, this brings in people who look at the rankings, see this fund at the top in 2008 and invest and get disappointed when the fund lags in a bull market.
This fund is chosen for the very strategy (that was incidentally vindicated in 2008) with the full knowledge that it will not necessarily be anywhere near the top in bull markets or even beat the index.
Alternative to FVALX is Amana Income AMANX which does not provide as much downside protection but has done well using a very conservative approach in value investing and keeping the volatility low but it will be slightly more volatile than FVALX. Another slightly higher volatile alternative is Yacktman fund (YACKX)
Alternative to INTLX is Sextant International SSIFX (coincidentally managed by the manager of AMANX) for similar reasons.
AMAGX: A very well managed Large Cap growth fund with a long history of good performance. The downside protection is also reasonable within its class even though there does not appear to be any capital protection strategies in place.
QRSVX: Not a well known fund but is one of the very few funds that is widely available without a transaction fee, has at least a 5 year history and has managed to limit downside in the bear market in the small cap category. The volatility is also kept low.
A better known substitute is Royce Special Equity (RYSEX) if available without a transaction fee. Newer Intrepid Small Cap (ICMAX) has done very well although its short history may be a concern as well as Pinnacle Value (PVFIX) if available without a transaction fee. Both ICMAX and PVFIX are low volatility funds and have capital protection as a goal of the fund to fit the goals of this portfolio well.
MAPIX: The only selection without a 5 year history but comes with a very strong pedigree from Matthews Asia that specializes in Asian funds. This fund has extremely low volatility, even lower than most domestic equities and has managed to deliver very good total returns with a combination of stocks, convertibles and preferred shares.
Alternatives would be either Matthews Asia Pacific (MPACX) at higher volatility with good downside protection or Matthews Asian Growth and Income (MACSX) at lower volatility but can potentially lose more money in bear markets.
BPLEX: An alternative investment fund that tries to get good returns in both bull and bear markets. A long-short fund that can be mistaken for another performance chasing choice because of its recent performance. But this would be a good choice even if its performance in 2009 was just average or even below average.
Looking under the hood shows this fund to be quite different from other long-short funds that try to use both long and short depending on the stock valuations. This fund seems to switch between a primarily long fund (but with short positions to hedge) with good stock selection or a primarily short fund (with long positions to hedge) depending on the macro market conditions thus minimizing individual stock market timing risks.
This is not different in strategy from Forester's philosophy except that its uses shorting rather than just go to cash and uses small caps rather than large caps.
So it does very well in longer bear or bull market years and lags during transitions but without losing much money. Unfortunately, none of the alternatives for this fund come anywhere close to it in performance as they primarily seem to depend on picking the right stocks to go long or short across all conditions rather than acting like a good long fund or a good hedged fund depending on macro conditions. It is a unique standout.
ARBFX: Another alternative investment fund which depends on arbitraging mergers and acquisitions by buying a company that is being acquired and often shorting the company acquiring. The risks for such funds come only if the M&A does not go through. The earlier you get on as soon as an M&A is announced, the riskier. This fund takes very little risks by waiting to get on and arbitraging just the last few months before an M&A. This keeps the volatility very low and the gains low as well.
An alternative is the similar Merger fund (MERFX) which has a disadvantage because of its size and so may not be able to move quickly in and out.
HSTRX: Hussman's conservative allocation fund is managed in a risk-managed fashion where the portfolio is continually and pro-actively positioned to address the current risk evaluation of the market. Unlike his strategic growth fund, this fund does not take any significant bets on equities and so any incorrect decisions in his strategy does not have as much of a downside impact unlike the other fund. This has allowed HSTRX to show very consistent and impressive performance over a long period of time with very little volatility.
MGIDX: Intermediate duration mortgage securities fund that manages to keep volatility low with good performance and uses shorting/options to achieve this. The ability to short or use options will make this fund able to provide downside protection and manage credit and interest risks, a good idea when mortgage rates are likely to rise in the future.
Alternative is PTMDX - PIMCO Mortgage-Backed Securities D which shorts even more aggressively.
PGNDX: A GNMA fund that manages risk via shorting while preserving the upside of a GNMA fund. Good due to the same reasons as MGIDX above.
Alternatives are non-shorting GNMA funds such as USGNX from USAA, VFIIX from Vanguard or BGNMX from American Century which may have more losses if the mortgage rates were to rise rapidly.
PTTDX: An intermediate investment grade fund that also manages risk via shorting and useful in an expected interest rate rising environment in the future. Low volatility.
Alternatives are non-shorting funds with low volatility THOPX Thompson Plumb Bond or CPTNX American Century Government Bond Inv WEFIX: A fund with the ability to move between short and intermediate durations based on market conditions and hence able to take advantage of the conditions better than a strictly short term fund. Does not use shorting.
Alternatives are USSBX from USAA, WEFIX Weitz Short-Intermediate Income, VFISX Vanguard Short-Term Treasury, PLDDX PIMCO Low Duration D. The last one from PIMCO does use shorting.

Howdy glampig/Mark,
This is "Fundmentals" MakeMore/LoseLess MMLL write from Nov/Dec 2009:
Two parts are required, as the text body exceeds the limits of this web site.
Regards,
Catch
PART 1
Posted by: Fundmentals
Date: November/December 2009
Subject line: Model portfolio design
Body of post:
I am sure many of you have come across the situation of a friend or a family member clueless about investing ask you to help them with a stash of money. The real-life requirements are usually "simple":
1. "Want your help to make some money. I can lose money all by myself"
2. "I can put it in the market for 5 years. Can leave it there longer if it is making money but not if it is losing money"
3. "Don't ask me to do anything more than once a year"
The following portfolio is designed specifically for people that are not
(a)expecting to beat the market
(b)don't want the portfolio to go down much (likely to panic and sell at the bottom if they went down 10% or more)
(c) would like some decent gains - more than what they can get with money market funds, CDs or even just bond funds without which they will not take the risk of investing at all and
(d) don't want to fiddle with it more than once a year.
The Portfolio
Domestic Equity:
5% Forester Value (FVALX) - Large Value
5% Amana Trust Growth (AMAGX) - Large Growth
5% Queens Road Small Cap Value (QRSVX) - Small Value
International/Global equity:
10% Forester Discovery (INTLX) - World Allocation
10% Matthews Asia Dividend (MAPIX) - Diversified Asia/Pacific
Alternate investments:
10% Robeco Long/Short Eq Inv (BPLEX) - Long/short equity
10% Arbitrage Fund (ARBFX) - Merger/arbitrage
15% Hussman Total Return (HSTRX) - Conservative allocation
Bonds
7.5% Managers Intermediate Govt (MGIDX) - Mortgage securities/Govt
7.5% PIMCO Total Return D (PTTDX) - Intermediate Investment Grade Bond
7.5% Weitz Short-Interm Income (WEFIX) - Short-Intermediate Term Investment Grade Bond
7.5% PIMCO GNMA D (PGNDX) - GNMA
Backtested performance
If portfolio invested on 1/1/2008, results as of 11/13/2009:
Total return: +15.05%;
2008 Performance: -4.79%
2009 YTD: 20.84%
Portfolio X-Ray:
Stocks 52.3%; Bonds 38.1%; Cash 9.6%
Stocks US 56.00%; International 44.00%
US equities
Large cap 27.4%; Mid cap 22.8%; Small Cap 49.8%
US equities
Value 36.9%; Blend 53.0%; Growth 10.1%
International equities
Europe 24.1%; Pacific 38.5%; Canada 18.9%; Emerging Markets 18.5%
Bonds
Taxable 78.70%; Uncategorized 21.30%
Credit quality High 78.7%; Uncategorized 21.30%
Duration Medium 20.2% Low 58.5% Uncategorized 21.3%
Costs: Portfolio average 1.72%
Portfolio construction notes:
The portfolio is constructed to solve a basic flaw in traditional portfolio construction. Diversification using high volatility equity funds (even index funds with market volatility) results in deep losses during bear markets as most such equities become correlated and go down together.
Just depending on bond allocation to reduce losses requires primarily allocation to Treasuries as it is the only type of asset that can be depended on to show negative correlation with equities in bear markets. But unlike in the past, Treasuries starting with the current situation of low interest rates cannot be expected to provide much gains going forward so the portfolio may turn out to be too conservative or too aggressive based on what happens in the market regardless of how much is allocated to Treasuries.
As a solution, portfolio picks only funds designed with a strategy to reduce/minimize losses during long bear markets and has some capital protection goals in place. The overall volatility is reduced by depending on each fund to reduce its own volatility rather than depend on lack of correlation to reduce the volatility.
Note that this is not the same thing as picking funds with the highest returns in either bear or bull markets or both. Nor are the returns attributable to some fantastic market timing in picking which stocks to buy and when to sell.
In fact, most of these funds will likely not consistently appear in the top 10% of their class except occasionally. But all of them will have shown the ability to limit losses by reacting to long-drawn down market conditions and make decent gains in long-drawn up market conditions.
In other words, the only market timing they will show will be in recognizing long bear markets as in recognizing the difference between 2008 and 2009, not what happens month to month. None of them try to time tops and bottoms.
Methodology
Portfolio Requirements:
1. Capital protection and lack of volatility extremely important. No long periods of losses. No "wait for 10-20 years or more" excuse for losses.
2. Asymmetric behavior - as much of the upside as possible, as little of the downside as possible
3. Simple portfolio with high quality no-load funds widely available in the main brokerages
4. Only annual tune-ups
5. Total return more important than income
6. No assumption of bull/bear markets for the portfolio as a whole, no forecasted assumptions of economy or any other indicators, doom/gloom predictions, etc.
Concrete requirements:
1. Not more than 12 funds.
2. No single fund with less than 5% allocation or more than 15% allocation
3. Portfolio must be diversified but not necessary to cover all asset/fund classes. Only asset classes that have shown consistent returns without long loss periods and small drawdowns. Riskier assets only within risk-managed funds.
4. No assumptions of correlation or lack of correlation between asset classes going forward but no gross overlaps between funds. Some overlap is fine.

There can be tax advantages and also tax disadvantages, depending upon your particular situation and what you expect of tax rates in the future. And that doesn't even touch the (timing) risk you are taking by going to cash for 30 days. Market could go up (it often does Dec/Jan), or it could go down while you're on the sidelines.
As to tax implications - it appears it would be a short term loss. (There is an obscure rule about fund shares held less than six months that can turn short term losses into long term losses; that doesn't apply here as you've held the shares more than six months, but under a year.)
The best situation would be if you had short term gains that this short term loss would offset. Short term gains are taxed as ordinary income, so offsetting them has the most value.
If you don't have short term gains to offset, then these losses could be used to offset long term gains. That's not as valuable, because long term gains are taxed at a much lower rate (15% or less). If you expect long term gain tax rates to go up (say, to 20%), and you'll be selling in a few years, it might make sense to retain the higher cost basis (by not selling), and take a smaller gain in the future (so you'd be saving yourself 20% in the future, vs. saving yourself 15% now). Depends on your crystal ball.
If you don't have any capital gains to offset (neither long nor short), then up to $3,000 of losses can be used to offset ordinary income. In this situation, short term loss is used toward that $3,000 max; if that's less than $3,000, long term losses are also used toward that $3,000 max. In this situation, you're not getting any special benefit from the losses being short term, because long term losses could just as easily be used to offset the $3K of ordinary income.
Here are a few quick examples:
Ordinary income: $80K
Short term losses: $5K
Long term gain: $7K
In this situation, the short term losses are applied to the long term gains, leaving you with a net $2K in long term gain, plus the full $80K in ordinary income to be taxed.
---
Ordinary income: $80K
Short term losses: $5K
Long term gain: $1K
In this situation, the first $1K of short term losses is applied against the long term gain (leaving you no net long term gain to be taxed); the next $3K of short term gain is used to offset the ordinary income (leaving you $77K of ordinary income to be taxed). The final $1K of short term losses is carried over to next year's tax return.
---
Ordinary income: $80K
Short term losses: $5K
Long term losses: $3K
In this situation, the first $3K of short term losses is used to offset the ordinary income (leaving you $77K of ordinary income to be taxed). The remaining $2K of short term losses are carried over to next year, as are the $3K in long term losses.
---
Ordinary income: $80K
Short term losses: $1K
Long term losses $6K
In this situation, first the short term losses are used to offset the ordinary income. Since that's under $3K of losses, you can use another $2K (for a total of $3K) from long term losses to offset the ordinary income. That leaves you with $77K of ordinary income, no short term losses, and $4K of long term losses carried over to next year's return.
---
Ordinary income: $80K
Short term losses: $1K
Long term losses: $1K
In this situation, all the losses combined are less than $3K, so they're all used to offset the ordinary income. That brings the ordinary income down to $78K, and there are no losses left for next year.

Rono, a question: I bought a couple of international funds in April of this year. Sextant international has a 11% loss and Matthew Growth and Income has a 17% loss. If I were to sell these funds now, would that be considered a short term capital loss, and if so would there be any tax advantage to selling these funds? I would buy them back after 30 days. Thanks.

http://online.wsj.com/article/SB10001424052970204791104577108470491087782.html
occidental tourists get another shot at matthew asia funds
http://www.investmentnews.com/article/20111220/FREE/111229987
Nicholas Fund Has Built Stakes In Fortinet, Aaron'
http://news.investors.com/Article/595226/201112191758/nicholas-fund-bought-fortinet-and-solarwinds.htm?src=3MC595226
most stock funds have posted losses
http://www.suntimes.com/business/9546622-420/most-stock-funds-have-posted-losses.html
alpha hunger bandon capital
http://allaboutalpha.com/blog/2011/12/19/alpha-hunter-bandon-capital-alpha-for-the-small-investor/
cheapest and most expensive etfs
http://etfdb.com/2011/the-top-10-cheapest-and-most-expensive-etfs/

http://www.sec.gov/Archives/edgar/data/826732/000119312511347036/d269846d497.htm
Calamos Growth and Income Fund and Calamos Global Growth and Income Fund
Effective on the close of business January 20, 2012 (the “Closing Date”), Calamos Growth and Income Fund and Calamos Global Growth and Income Fund (each a “Fund”) is closed to new investors. Current investors in each Fund as of the Closing Date may continue to invest in their respective Fund, as well as reinvest any dividends or capital gains distributions. However, once an account is closed, additional investments in a Fund will not be accepted.
Each Fund has limited sales of its shares because Calamos Advisors, the Fund’s adviser, believes continued sales, without restriction, may adversely affect the Fund’s ability to achieve its investment objective. Sales of Fund shares to new investors will generally be discontinued as of close of business on the Closing Date, and financial intermediaries may not open new accounts with each Fund or add new investors to existing omnibus accounts after that time. You may be required to demonstrate eligibility to purchase shares of a Fund before your investment is accepted. If you are a current Fund shareholder and close an existing Fund account, you will not be able to make subsequent investments in the Fund. Each Fund may resume unrestricted sales of its shares at some future date, but neither Fund presently has an intention to do so.
Additional purchases of shares of each Fund will be permitted in the following instances:
(i) Acceptance of reinvestment of dividends and capital gain distributions on Fund shares.
(ii) Existing shareholders that have a position in the Fund may continue to add additional shares to their existing accounts.
(iii) Existing shareholders that have a position in each Fund may exchange shares of other funds in the Calamos Family of Funds for shares of each Fund.
(iv) Discretionary investment advisers may continue to invest in each Fund through an existing account at a financial institution and/or intermediary on behalf of clients who are current Fund shareholders.
(v) With Fund approval, all or a portion of the shares held in a closed Fund account may be reallocated to a different form of ownership.
(vi) In the case of certain mergers or reorganizations, retirement plans may be able to add the closed Funds as an investment option and sponsors of certain wrap programs with existing accounts in a Fund would be able to continue to invest in the Fund on behalf of new customers.
(vii) New and additional investments made through platform-level asset allocation models within mutual fund wrap and fee-based programs.
(viii) Direct clients of Calamos Advisors, or any affiliate, may open new accounts in each Fund.
(ix) Existing and new participants in employer-sponsored retirement plans, including employees of Calamos Advisors LLC, each Fund’s investment adviser, and any of its affiliates, and qualified defined contribution retirement plans, such as a 401(k) plan, profit sharing plan, 403(b) plan or 457 plan, that offer the closed Funds as an investment option as of the Closing Date may direct contributions to the Fund through their plan, regardless of whether the participant invested in the Fund prior to its closing.
(x) Upon prior approval, employees of Calamos Advisors and its affiliates may open new accounts in the closed Funds; Trustees of the Calamos Funds and directors of Calamos Asset Management, Inc. may also open new accounts in the closed Funds.
MFSPT3 12/11
--------------------------------------------------------------------------------
Each Fund reserves the right to modify the extent to which sales of shares are limited and may, in its sole discretion, permit purchases of shares where, in the judgment of management, such purchases do not have a detrimental effect on the portfolio management of the Fund or its Shareholders. Notwithstanding the forgoing, each Fund continues to reserve the right to reject any order for the purchase of shares in whole or in part for any reason, and to suspend the sale of shares to the public in response to conditions in the securities markets or otherwise.
Please retain this supplement for future reference.
2

"Ah, the game is in play. EuroZone banks apparently have been notified to raise capital in order to increase their money reserves. But just what they are supposed to sell, and to whom; to raise reservses remains the question. "
Did you notice Gold and Silver has been rather volatile recently. I guess they are now selling their gold reserves to raise cash and when multiple big players start selling Gold gets hit.

Howdy,
Again, a thank you to all who post the links and also start and participate in the many fine commentaries woven into the message threads.
For those who don't know; I ramble away about this and that, at least once each week.
NOTE: For those who visit MFO, this portfolio is designed for retirement, capital preservation and to stay ahead of inflation creep; if and when it returns. This is not a buy and hold portfolio, and is subject to change on any given day; based upon perceptions of market directions. All assets in this portfolio are in tax-sheltered accounts; and any fund distributions are reinvested in the funds. Gains or losses are computed from actual account values.
While looking around.....Triple Dog Dare Ya ! Ah, the ultimate challenge words brought to life again with the movie, "Christmas Story". The phrase is one from my childhood period; as well as are many of the "stories" within the movie. One may suppose this phrase could also be a challenge statement that is self-directed towards one's investments, too.
This house is pretty much tired from the continued challenges for the past two years coming from the EuroZone. Our bond portfolio, overall; has offered support to positive returns for the past two years, as the equity and equity related HY bond sectors have been getting head slaps. The EU challenge will continue, as there remains legal structures in place which preclude a fix (temporary); as is available here in the U.S. The Euro Central Bank can not monetary support the numerous, independent country banks. Methods are being reviewed to become creative and use a "by-pass" to help resolve the situation; as with some Euro countries providing monies directly to the IMF, which in turn could loan the money back to other Euro countries that need the support. Ah, the game is in play. EuroZone banks apparently have been notified to raise capital in order to increase their money reserves. But just what they are supposed to sell, and to whom; to raise reservses remains the question. One may also suspect that lending/loans (revenus generation) would be only to the most highly qualified; which continues to spell the words, "tight money supply". The Basel III accord, which sets new standards for bank reserves will also come into play in 2013; if my recall is correct. Looks like a continued tough road ahead for Europe.
Between the EuroZone and a spellbound/get elected in 2012 for our country; I remain a bit skeptical as to where the economic growth will emerge in 2012; and continue to find strong headwinds for the old investment dollars.
I Triple Dog Dare You !
I have retained the following links for those who may choose to do their own holdings comparison against the fund types noted.
This 1st link to Bloomberg is for their list of balanced funds; although I don't always agree with the placement of fund styles in their categories.
http://www.bloomberg.com/apps/data?Sector=888&pid=invest_mutualfunds&ListBy=YTD&Term=1
These next two links are for conservative and moderate fund leaders YTD, per MSN.
http://moneycentral.msn.com/investor/partsub/funds/topfundresults.asp?Symbol=$HF&Category=CA
http://moneycentral.msn.com/investor/partsub/funds/topfundresults.asp?Category=MA&Type=&symbol=$HF
Such are the numerous battles with investments attempting to capture a decent return and minimize the risk.
We live and invest in interesting times, eh?
Hey, I probably forgot something; and hopefully the words make some sense.
Comments and questions always welcomed.
Good fortune to you, yours and the investments.
Take care,
Catch
SELLs/BUYs THIS PAST WEEK:
NONE
It appears, that without a most wonderful equity rally before year's end, that we won't obtain a full 5% return for the year. That may cover inflation and taxes going forward; but at the very least allows the magic of "compounding" going forward, versus working the catchup game from a negative position. As with others, this house finds many year end distributions among our fund holdings over the past two weeks. A reflection upon the links above; we attempt to establish a "benchmark" for our portfolio to help us "see" how our funds are performing. Aside from viewing many funds within the balanced/flexible funds rankings (the above links), a quick and dirty group of 3 funds we watch for benchmarking are the following:
***Note: these YTD's per M*
VWINX ....YTD = + 8%
PRPFX ....YTD = + 1.7%
SIRRX .....YTD = +2.4% (appears to be sitting upon cash)
None of these 3 are twins to our holdings, but we do watch these as a type of rough guage. Ironically, if we had 1/3 of our total portfolio in each of these funds, the average YTD would be similar to our current YTD. Perhaps we should do this very investment with these 3. A "set it and forget it" model. I have not pushed these 3 through the M* asset allocation, but plan to do this, as time allows; to find the end mix.
Portfolio Thoughts:
Our holdings had a -.17 % move this past week. And yes, we are satisfied with our risk adjusted returns YTD. If the portfolio can pull a +10 to 12% for the year; you will not hear any whining from this house. (This sentence was from an April write; and I/we suppose a +5% for the year may now look good, too !)
I expect some rough waters, changing winds and opposing currents; causing the most serious attention being given to a firm hand upon the rudder control. (April report text)
The immediate below % of holdings are only determined by a "fund" name, NO M* profile this week
CASH = 0%
Mixed bond funds = 91.9%
Equity funds = 8.1%
-Investment grade bond funds 26.8%
-Diversified bond funds 19.8%
-HY/HI bond funds 23.2%
-Total bond funds 17.8%
-Foreign EM/debt bond funds 4.3%
-U.S./Int'l equity/speciality funds 8.1%
This is our current list: (NOTE: I have added a speciality grouping below for a few of fund types)
---High Yield/High Income Bond funds
FAGIX Fid Capital & Income
SPHIX Fid High Income
FHIIX Fed High Income
DIHYX TransAmerica HY
---Total Bond funds
FTBFX Fid Total
PTTRX Pimco Total
---Investment Grade Bonds
APOIX Amer. Cent. TIPS Bond
DGCIX Delaware Corp. Bd
FBNDX Fid Invest Grade
FINPX Fidelity TIPS Bond
OPBYX Oppenheimer Core Bond
---Global/Diversified Bonds
FSICX Fid Strategic Income
FNMIX Fid New Markets
DPFFX Delaware Diversified
TEGBX Templeton Global (load waived)
LSBDX Loomis Sayles
---Speciality Funds (sectors or mixed allocation)
FCVSX Fidelity Convertible Securities (bond/equity mix)
FRIFX Fidelity Real Estate Income (bond/equity mix)
FFGCX Fidelity Global Commodity
FDLSX Fidelity Select Leisure
FSAGX Fidelity Select Precious Metals
RNCOX RiverNorth Core Opportunity (bond/equity)
---Equity-Domestic/Foreign
FDVLX Fidelity Value
FSLVX Fidelity Lg. Cap Value
FLPSX Fidelity Low Price Stock
MACSX Matthews Asia Growth-Income

IMHO, all sturm und drang signifying little. Your dividend fund pays you last as well - since you have to your own costs first (here, trading costs). You're only getting net.
And that's all this whole thread at M* is saying (aside from what a company's dividend represents) - that mutual funds have costs and you get net.
Funds garner cash - from dividends, from interest, from realized net capital gains. That cash, less the expenses incurred in acquiring said cash (such as trading commissions, office expenses, salaries, etc.) is distributed to shareholders. A primary difference between investment companies (mutual funds) and corporations with respect to dividends is that funds are required to distribute substantially all of their net profits; corporations typically retain some profits.
Mutual funds are a model of transparency regarding dividends in comparison with the underlying companies that can do almost anything they want, and bury data legally (see Enron). cf. Dodge v. Ford for the exception that proves the rule - that in exceptional circumstances, coroporations can be compelled to distribute dividends.

Total capital gains = long term gains + short term gains.
Note that short term capital gains in mutual funds are treated as (nonqualified) ordinary income.
On your 1099 all you'll see is long term gain distributions and income distributions (which include short term gains); the income distributions are broken down into qualified and nonqualified.
Unlike stocks, where you can balance short term gains against short term losses, with fund distributions, you never see the short term gains broken out. So you cannot balance them out against capital losses.

@msf: Well, I appreciated it - thanx!! Have a much better handle now on the workings.
But I look at some of the funds I have held forever, & some I haven't, & look at how wildly my income fluctuated over the past 8-9 years (remember that bullc**p about you will defer taxes on your IRA until after age 60 when your tax bracket will be lower -- haha -- only I had a better job & income AFTER I hit 60 -- and 70, plus not to even mention medicare surcharges kicking in just as I "retired" from the second job etc etc). The only conclusion I can reach is that trying to guess what your income & taxes will look like, and most of all, what the capital gains taxes may look like even a couple of years ahead is strictly a gambling game. I have a pile of these forms sitting on the table and maybe my election "could" make a difference in some cases, but I honestly just don't think it is worth a lot of effort to try to outguess the future. The only thing certain is that we will all be paying more taxes that we would have guessed 20 years ago. And the future will be different from what we think.....

Holy cow. THAT was thorough. Thank you! I get it. I cannot help but to think that the gummint ought to simplify all of this by making the equitable selection among all the various options and dictate that ALL of us will be paying taxes THIS way, not THAT way; or, permit my wonderful professional tax adviser to simply choose the option that best suits my circumstances. JEEZ.
Anyhow, I do believe that I'll be paying zero taxes on cap. gains going forward, given my bracket.