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Strategies & Market Trends : Range Bound & Undervalued Quality Stocks

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To: JakeStraw who wrote (4259)	4/9/2001 1:07:15 PM
From: BWAC	Read Replies (2) of 5499

Jake, You seen anything like this before? I put this on another thread but nobody responded. --------------------- What I want to know is, has anybody else seen this sort of thing below before. I haven't at least in my mutual fund dealings. Nor could I find similar footnotes in past reports for this fund family. Pick a tech stock in a Growth and Income style fund. Here are some examples from this particular family: GX, American Tower, CNXT, Triquint, Lattice, Adobe, Network Assoc. And a bunch more adding up to $123 Million or 10% of fund assets. Anyway these stocks are marked with a footnote symbol #. "All or a portion of this security IS ON LOAN" In the footnote schedule ## also appears. "Represents investment of CASH COLLATERAL RECEIVED for LOAN OF SECURITIES" Referencing back to the detail of holdings ## is affixed to a Short Term Investment- Mutual Fund Shares in Navigator Prime Portfolio. (which I cannot find anything about on the net. Anybody?) Referencing to the Statement of Assets and Liabilies, I see a liability "Payable for Securities on Loan" in the exact amount of the assets in the Navigator Prime Portfolio. What the hell is this? Somebody tell me that this Growth and Income fund hasn't loaned shares in tech stocks out to some hedge fund that is shorting them and paying back the prime interest rate? Sure appears to me they have loaned shares out for cash and will return the cash (less some interest) when the shares are returned. Almost like the fund is working against its own shareholders interest by making the shares available to be borrowed. The interest received from the money market sure as hell won't make up for the loss of market value in the stock loaned out? No way in hell it could. Actually looking further this whole setup is prevalent in every fund within the Evergreen Fund Family.

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