RF, Nope, they are just doing their fluff marketing turn. It used to be that all payouts were either dividends or capital gains. Then the funds discovered that owners didn't like their payouts going up or down. So, they started paying some of it out of capital, or, in other words, giving you some of your own money back as a treat.
With open end mutual funds, this process is 100% fluff. However, with a fund like TGG, which sells at a double digit discount, it is a bit better than that. Since the fund sells actual assets, not discounted fund shares, it can pay out $1 for dollar, not 88 cents per dollar, which is how the fund is valued. I wouldn't mind a return of ALL the capital, devoid of discount, though that his extremely unlikely. |
