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PIMCO Total Return Instl Message Board

  • twp9290 twp9290 Aug 24, 2012 10:49 AM Flag

    Capital Gain Guesstimate

    Does anyone have a clue what we can expect for a capital gain distribution? I am trying to figure out what Santa can bring down the chimney.

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    • I would guess between $.45 and $.55 based purely on the past 2 years performmance. The NAV has dipped close to the 50 dma (daily moving average) after the distribution.

    • If the year-end capital gain distribution is deducted one-for-one from the Net Asset Value, please explain to me why this is important to you? For me, this is a non-issue.

      • 2 Replies to garyg474
      • This question continually comes up on this board and the folks who ask the question just don't seem to get it. Say one owns 4,000,000 shares of PTTRX (the are a few of us out there) at 11.00 or $44,000,000 and we get a cap gain distribution of .50. The cap gain distribution as of Dec 10 or whatever day the cap gain occurs in early December amounts to $2,000,000 in cap gains distributed to pre cap gain owners of PTTRX at the reduced NAV of 10.50 or an additional 190476.1904761905 PTTRX shares added to the 4,000,000 one owned pre cap gain distribution for a total of 4,190,476.19047619 shares. Come December 31 when the regular distribution is made I will earn an increase in the dividend distribution of $5,714.29 for just the 3 weeks transpiring since the cap gain distribution early in December. One can really appreciate the cap gain when there is a substantial money invested in PTTRX. Then the NAV of post cap gain reduced valuation consistently has climbed through the next 6 months or so back or above the NAV pre cap gain distribution from the prior year. So far as I'm concerned PTTRX is the gift that keeps on giving.

        This is such a no brainer I fail to understand why you don't understand the benefit of the cap gain. Even if you only held $400,000 it is enough to buy someone a nice Holiday gift - No?

      • so are you saying that you would rather receive "nothing" since it's off-set from NAV???

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