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Fido's Sept. 2018 C.G. distribution estimates & payable dates (only Sept) for a few funds
These are not very early estimates of the annual distributions, but of Sept. distributions. Some Fidelity funds typically distribute gains in Sept and again in December.
It seems that in addition to HAINX, we have a couple more examples of what can happen when a new manager (even from the same management company) takes over a fund and turns its portfolio upside down. (I thought Fidelity was trying to get away from that.)
FDGFX - 14.75% distribution - M* writes "Gordon Scott officially took over in January 2018"
FCPVX - 18.82% distribution - M* writes: "The fund has undergone two manager transitions in recent years."
Yes, they were not intended to be year-end distribution estimates, but as a notice to shareholders of mid-year distributions. My guess is a possible indication of funds (and of other funds) making earlier than normal announcements of distributions to lessen the blow of year-end announcements.
@MFO Members: TheShadow maintains a simple list of links to capital gains information, which can be found on our discussion forum. Lets let him do his thing, and not randomly link fund distributions all over the place. As a resource The Shadow uses Mark Wilson's cap gains valet which will be available in October. Regards, Ted http://www.capgainsvalet.com/
Actually, I use Google as my search tool to find MFs making distributions. The reason I posted it was as a notice to shareholders as well as prevent any sudden heart attacks when the price declines (donuts) to those investors.
@The Shadow: What I'd like to see is for you to be the only one with the ability to link funds capital gains to the message board. Members would report distributions by sending them to your inbox and your would put them in fund company alphabetical order. Regards, Ted
Unfortunately, I would be inundated with emails which would in essence be another full-time job besides my current full-time job. Since this is a public board, I'd like to see readers/posters contribute to the Board for the betterment of everyone.
I could envision funds making early distributions to avoid a spate a selling. I dare say that even most experienced long-term investors are not thinking about year-end distributions on Labor Day, thereby giving an opening to less-than-scrupulous fund companies (but I'm a cynic).
While funds do make distributions either quarterly of semi-annually, you conveyed my point that this year will probably see significant distributions due the stock market gains of the last couple of years as well as what @msf pointed out above, new portfolio management has resulted in the cleaning-house of many long/short term holdings resulting in significant realizations of stock gains.
Generally speaking, funds are allowed to make only one capital gains distribution per year, plus "fix up" distributions for residual amounts that they didn't get in the first distribution.
Funds would risk incurring serious tax "penalties" by making their single cap gains distribution before the end of October (that's just the way the regs work). They are not allowed to use the "fix up" distributions to make major corrections.
I don't know exactly how the Fidelity funds manage it, but several routinely make two primary cap gains distributions per year - in Sept and Dec. Surely there are some FLPSX aficionados here who are familiar with this annual distribution schedule? From its prospectus: "The fund normally pays dividends and capital gain distributions in September and December."
For comparison, here's HAINX's prospectus verbiage:
Each Fund declares and pays any dividends from net investment income and capital gains at least annually in December. Each Fund may also pay dividends and capital gain distributions at other times if necessary to avoid federal income or excise tax.
If any fund suddenly, without warning or announcement, were to make a distribution outside of what its prospectus stated (other than a "fix up" distribution), I could envision it immediately receiving a spate of lawsuits.
Comments
It seems that in addition to HAINX, we have a couple more examples of what can happen when a new manager (even from the same management company) takes over a fund and turns its portfolio upside down. (I thought Fidelity was trying to get away from that.)
FDGFX - 14.75% distribution - M* writes "Gordon Scott officially took over in January 2018"
FCPVX - 18.82% distribution - M* writes: "The fund has undergone two manager transitions in recent years."
Regards,
Ted
http://www.capgainsvalet.com/
Actually, I use Google as my search tool to find MFs making distributions. The reason I posted it was as a notice to shareholders as well as prevent any sudden heart attacks when the price declines (donuts) to those investors.
Regards,
Ted
Unfortunately, I would be inundated with emails which would in essence be another full-time job besides my current full-time job. Since this is a public board, I'd like to see readers/posters contribute to the Board for the betterment of everyone.
Last year's post, worked pretty well!
While funds do make distributions either quarterly of semi-annually, you conveyed my point that this year will probably see significant distributions due the stock market gains of the last couple of years as well as what @msf pointed out above, new portfolio management has resulted in the cleaning-house of many long/short term holdings resulting in significant realizations of stock gains.
https://www.columbiathreadneedleus.com/content/columbia/pdf/2018-YE-CAPITAL-GAIN-DISTRIBUTIONS.PDF
Funds would risk incurring serious tax "penalties" by making their single cap gains distribution before the end of October (that's just the way the regs work). They are not allowed to use the "fix up" distributions to make major corrections.
I don't know exactly how the Fidelity funds manage it, but several routinely make two primary cap gains distributions per year - in Sept and Dec. Surely there are some FLPSX aficionados here who are familiar with this annual distribution schedule? From its prospectus: "The fund normally pays dividends and capital gain distributions in September and December."
For comparison, here's HAINX's prospectus verbiage: If any fund suddenly, without warning or announcement, were to make a distribution outside of what its prospectus stated (other than a "fix up" distribution), I could envision it immediately receiving a spate of lawsuits.
Here's the clearest writing I can find on the rules covering fund distributions. This really is relatively clear, it's just that the rules are not simple.
http://www.klgates.com/files/Upload/DC_IM_14_014_Dividends_Distributions.PDF