For the benefit of investors in FAX, I phoned Equitlink today at 800-522-5465 & spoke with somebody in "Investor Relations."
I was told this afternoon that we as investors misunderstand the "RETURN OF CAPITAL." I was informed that 4 1/2 cents per share is the correct amount to figure for the return of capital. By the time the year is over, there may not be any return of capital. FAX won't know the exact amount until year end.
Profit29man here's a few news items from the fund: ""The Fund estimates that distributions year to date, including the distribution paid on September 15, 2000, are made up of 61% net investment income, 1% realized capital gains, and 38% return of paid-in capital""
from June: ""The Fund estimates that distributions year to date, including the distribution paid on June 16, 2000, are made up of 67% net investment income, 2% realized capital gains, and 31% return of paid-in capital""
That seems pretty clear. And the IR person thinks by year-end there may be no ROC? That doesn't sound like a very responsible thing for an IR person to say.
And ROC is misunderstood by us? uh? With all the funny games that go on in CEF fund's accounting I'm in shock someone would say that. Funny things they do like NOT putting the preferred stock dividend in the expenses of the fund. By paying out ROC to preferred holders and inflating the Net Investment Income % to S/H's? Sounds like a case of too many Fosters at lunch.
FLIPPER, I agree that this is what the fund has told investors. However, I wish you would phone EQUITILINK at 1-800-522-5465. Simply talk to any of the INVESTOR RELATIONS personnel & see what they tell you. I just happened to pick a lady. I don't know any of them. I can only tell you that the one I chose said that investors are misinformed. THANKS!
This is based upon the many articles I have read from the Australian sites reguarding the AUD recovery to the US$. 1. It is likely to take to the mid November area after the US elections. 2. They say the real present value of the AUD is about .63 cents to the US$ 3. By November, it is expected that interest rates will have been increased in Europe and Australia while the US is unchanged. 4. The US economy is weakening and profit projections are being lowered. A nice US stock market correction would reduce the luster of pouring money into the US. Is this hope or projectipon? ? 5. Whatever affect the Olympics will have on the Australian economy should by then be felt. 6. I don't see any .80 or .90 cents projections for the AUD. In fact I don't even see .70 being projected. 7. Will FAX tax loss selling run head in to this projected favorable period? ? ? BW
As I understand "return of capital" is return of our investment. What we want is A RETURN "ON" our investment. In other words, dividends on the income from our invested capital. Am I missing something?
My definition of "return of capital" is simply part of the ORIGINAL money invested in FAX returned to common shareholders as part of the dividend. When you speak of return, I believe you are referring to the YIELD. This is simply derived by taking the present 54 cent a year dividend and dividing it by 4 3/16 which in this case is 12.9%.