I have learnt this the hard way, from "clm" and "crf"(cornerstone invest.) the trick here is they call it the "distributions" which is all inclusive of div, interest, cap gain, return of principal, and cash. the cornerstone value fund each year decides on "stated managed distribution" of , say, 12% steady for the entire next year. The 12% will first be fulfilled with the div, interest, cap gain, generated from the assets. All the shortfall will be filled from selling the capital assets and the cash, which goes to reduce the nav. The lesser the true income, the greater the depletion. Thus year after year, the nav and the market price keeps going lower, but the stated managed distribution remains the same @ 12% in this situation, the new investor who gets attracted by the 12% figure, unwittingly joins the ride downhill.