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Don't believe --- Bruce Fund

A new article at https://www.fa-mag.com/news/you-re-facing-a-big-tax-bill-if-you-hold-these-mutual-funds-72481.html, which claims the data is from Bloomberg and Morningstar, alleges that the Bruce fund had a 58.70% capital gains distribution in 2022 ---- in fact it was $58.70

Comments

  • beebee
    edited March 2023
    From @NumbersGal linked article:
    Bruce Fund (BRUFX)
    Inception date: 3/20/1968
    Capital gain in 2022: 58.7%
    This fund invests in domestic stocks and bonds, along with zero-coupon government bonds. It currently has about $505 million in assets, and its price declined 20% last year. With a current NAV of $520, an investor with 10 shares worth would have a capital gains bill of about $3,100 to then pay taxes on.
    Per M*:

    BRUFX had a loss of (8.76%) while the Category average was a loss of (14.96%).

    NAV can be impacted by distributions. BRUFX distributed both LT gains and a dividend but $3100 on 10 shares? This article seems a bit off. More Like $1000 on 10 shares. Maybe the author is a ChatGPT 'bot?

    Interestingly, the last time BRUFX had an NAV of $520 (aside from the COVID hiccup) was 2/4/2019. Yesterday its NAV was $520, but had you owed the fund over that time period you would have gained almost 35%. I personally own this fund in an HSA so I pay no taxes on these gains.

    image

    BRUFX, long term, has been berry berry good to me.

    image
  • Call Bruce representatives to verify the question. Distribution info should be readily available. I presume that is for 2023 tax filing?
  • I hold Bruce, too, in wife's T-IRA.
    WSJ website reports for 2022:
    Income distrib. $13.09
    CG. $58.66

    Thanks for the heads-up.
    Yes, over the longer-term, Bruce has served us very well.
  • That OP article link has the same error for other funds mentioned - it mistakenly shows them as % when those are per share $amounts.
  • Yeah... "cut and paste" has gotten me into trouble before too.
  • yogibearbull is exactly right - and the 'financial' writer made the same mistake consistently. And what was the editor doing? Surely a 'distribution' of "58.7%" should have led someone do to some fact checking.
  • If The San Francisco Chronicle is typical, there are no editors anymore.
  • Old_Joe said:

    If The San Francisco Chronicle is typical, there are no editors anymore.

    Stinky and no good.

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