Capital Gain Short-Term
Capital Gain Return of Capital Dividend
12/12/2012 11.36 0.1137 0.1548 0.0000 0.0000 0.2685
I don't understand posts like this one. It's like any undersanding of what effect a cap gain distribution in this fund has on investors has completely gone over thier head. It's really so simple. I could go into the analogy of a pedigreed dog that then has a litter. Instead of having 1 valuable dog you now have the litter you can sell or hold onto that you got for essentially nothing. Now you can sell the litter, part of the litter or hold the entire litter.
As a TOTAL RETURN fund you are completely missing the investment objectives of the fund namely it TOTALLY RETURNS all profits and interest to shareholders unlike most other investments. Just because your PTTRX NAV dropped; the amount of monies you hold on deposit remain the same except for the increase in dividends on your original investment added to the additional shares you now own as a result of the cap gain dividend. So the amount of interest earned on the extra cap gain shares during the period for the month of Dec 12 - 31 will probably pay the taxes on your cap gain distribution unless you hold PTTRX in a tax deferred account. Then those extra shares will keep paying out extra dividends for the life of your holding in the equity. Overthe years it will likely more than double your holdings. So what is your beef with this plan?
Most NAV posts on the internet do not take into account cap gain distributions but just show the distribution as the loss of since they cannot account for the extra shares distributed in thier charting software. As a result you are simply shown a drop in NAV without an explanation that you recieved shares in kind equal to the drop in NAV.
For a fair comparison you need to go back and add all the cap gain distributions and assoociated dividends to the date you first purchased PTTRX to better understand the diference in your cost basis vs the net gain over the years in additional stock shares distributed as cap gains and associated dividends. If you take the time to do the accounting you will be pleasantly surprised in what a diference it makes to your total accumulated appreciation in PTTRX over the years.