Not only PHK. I just received mail from Nuveen informing me that 84.8% of my last payout was Return of Capital (symbol JLA). When they announced the payout they did not indicate the source, but at the bottom of the screen they had this note. 'Each quarter’s distributions are expected to be paid from some or all of the following sources: net investment income (regular interest and dividends), realized capital gains, and unrealized gains, or, in certain cases, a return of principal (non-taxable distributions)
Many, myself included, have been saying it was coming; and note that this would not take into account the last $74M of ARPS redemption concluded on 3/31; i.e. more to come, but hey, I'm out and watching all the arguing (longs vs shorts) from the sidelines (read "from some more stable funds")
Nice of them to tell investors after the fact. That info- whether any of the dividend was paid from anything other than investment income- should have been made available to investors at the time the distribution was announced.
Just what the skeptics of this fund have suspected all along - that PIMCO was doing a return of capital in order to maintain the .121875 dividend. Sure enough, 1.86 cents of the div is from depleting the funds capital - brilliant Pimco, and thanks for being so honest and transparent about it. Why don't they just reduce the div to .10 which will be covered in it's entirety by dividend income? PHK investors can easily live with that.