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Strategies & Market Trends : Value Investing

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To: Bridge Player who wrote (26216)3/5/2007 2:17:44 AM
From: a128  Read Replies (1) of 78673
 
A "managed distribution" is not dependent on cap gains or dividends.

My hope...from a dividend reinvestment & dollar cost averaging viewpoint is that they implement a 10% distribution paid monthly.

The fund automatically reinvests unless shareholders specifically asks for the cash.

FF has shown annualized total returns to NAV of 21.66% for the 5 year period,16.13% for the 10 year period and 19.48% since inception. (via ETFCONNECT)

Predictable income comes as soon as they announce the managed distribution policy. Then its value is as much a present value of future distributions as it is on its performance.

I guess my point is that I bought this for my IRA and I expect to reinvest any & all distributions and I hope that they can show a total return anywhere in the 12-19% annually range going forward over the next 10 years or so. And if 10% gets reinvested along the way, thats fine with me. (More shares at lower prices, less at higher prices)

The reason I expect high distributions is they have said...TWICE now that they WANTED to implement a managed distribution policy. The SEC is becoming more favorable to it of late.

Also, considering how old the fund is, I expect they have plenty of long term gains yet to be "taken".
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