Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
PCRIX No March Dividend?
Old 04-04-2006, 05:17 AM   #1
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,778
PCRIX No March Dividend?

No March dividend for PCRIX? I've been slow to DCA into this fund since their anouncement regarding IRS compliance. Last I remember they have until June '06 to comply.

Anybody else feel funny about this?



__________________

__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: PCRIX No March Dividend?
Old 04-04-2006, 06:48 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: PCRIX No March Dividend?

Yeah, I didn't see one either. I note that the fund was down ~5% for the first quarter and December had a huge distribution, so maybe they didn't have taxable income to distribute. I'd imagine you could call them and ask if you are really curious.

FWIW, I think the IRS thing is a non-issue. I wish there were something cheaper than PCRIX, but its better than any of the alternatives currently available.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-04-2006, 07:46 AM   #3
Full time employment: Posting here.
 
Join Date: Oct 2002
Posts: 717
Re: PCRIX No March Dividend?

Can someone bring me up to speed on pcrix - what was the result of the IRS ruling? I'm having no luck searching. I currently do not own it, but with the recent drop may be interested.
__________________
Random Reinforcement is Highly Addictive.
riskadverse is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-04-2006, 07:49 AM   #4
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 213
Re: PCRIX No March Dividend?

Quote:
Originally Posted by brewer12345
I wish there were something cheaper than PCRIX, but its better than any of the alternatives currently available.
Isn't Ishares supposed to be coming out with a commodity ETF based on GSCI soon?
__________________
mikew is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-04-2006, 07:52 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: PCRIX No March Dividend?

Pimco was using basket futures swaps collateralized with TIPS to replicate the DJ-AIG index. *The IRS told them that the derivatives they were using to replicate the index were not kosher per the tax code and therefore theey had to stop doing what they were doing or they would lose the special tax status that mutual funds have. *I believe Pimco appealed this stupid ruling. *In the meantime, they started rolling the portfolio over into structured notes, which is what QRAAX uses. *Structured notes are basically a bond issued by a trust that holds whatever it is you want exposure to (in this case, TIPS plus basket commodity swaps). *The bonds then pay interest equal to the return of the underlying investments.

Its a shell game and the switch to the notes doesn't change the economics except to add a bit more expense (like 10 BP). *Not a big deal, IMO, but I would love to find something cheaper.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-04-2006, 09:54 AM   #6
Recycles dryer sheets
SC's Avatar
 
Join Date: Feb 2006
Posts: 212
Re: PCRIX No March Dividend?

Quote:
Quote:
I wish there were something cheaper than PCRIX, but its better than any of the alternatives currently available.
Isn't Ishares supposed to be coming out with a commodity ETF based on GSCI soon?
Yes, both Barclays (Ishares) and Deutsche Bank have registered with the SEC to begin selling commodity ETFs.

According to this article:
http://www.fa-mag.com/news.php?id_content=4&idNews=341
the Ishares commodity ETF will have an expense ratio of 0.75%. PCRIX has an ER of 0.74%.

Seeing how Vanguard tends to lag in introducing new classes - they still have no international bond funds, for example - it might be a while before anything cheaper is available...

SC
__________________
SC is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-04-2006, 09:59 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: PCRIX No March Dividend?

Quote from the article on the Barclay's offering:

"Many consider the ETF to be an important portfolio-diversifying product. But, with more than 75% of its dollar weighting in some form or oil or gas, it's pretty safe to say it's a major energy play."

So its not going to be anywhere near as diversified as PCRIX.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-04-2006, 10:12 AM   #8
Recycles dryer sheets
SC's Avatar
 
Join Date: Feb 2006
Posts: 212
Re: PCRIX No March Dividend?

Good point. So not only is the Ishares ETF about the same price and has no track record, but it's more of an energy play than a general commodities fund. I've got plenty of energy exposure in my core index holdings, so it looks like PCRIX is still the commodities fund to use.
__________________
SC is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-04-2006, 05:25 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,318
Re: PCRIX No March Dividend?

Yeah,
Imperfect, and throwing off far too much taxable income in recent years (the reason I had to recharacterize (undo) my Roth Conversion this year) but its the best we've got at this point for diversification into that asset class. Checked their website and quarterly statement, and there is no divvy on any of the PCRIX family. I say be grateful for small things -- the taxes on these distributions are no fun. I guess they got enough cleared out in December?
__________________
ER for 10 years; living off 4.3% of savings (and a few book royalties ;-)
ESRBob is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-05-2006, 05:50 AM   #10
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,778
Re: PCRIX No March Dividend?

Thanks for the input. PCRIX did disgorge a big dividend in December. I like the diversified approach. A plain oil & gas play panders to those who fear prices at the pump. The index weightings Pimco uses are shown on the link below.

Time to top off the tanks....gas for the truck, coffee for me and unfortunately for PCRIX, no sugar.



http://www.pimco.com/LeftNav/Product...oach_03_04.htm
__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-30-2006, 06:41 PM   #11
Dryer sheet wannabe
 
Join Date: Jan 2006
Posts: 10
Re: PCRIX No March Dividend?

Sorry for jumping into this so late...

For those that like ETFs, DBC may be a good choice. Tracks DBLCI, which is less heavily weighted toward energy than GSCI (which will tracked by the proposed iShares ETF).

For an intro, see http://www.capitallinkforum.com/cef/...es/01_rich.pdf
__________________
pms163 is offline   Reply With Quote
Re: PCRIX No March Dividend?
Old 04-30-2006, 08:01 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: PCRIX No March Dividend?

Quote:
Originally Posted by pms163
Sorry for jumping into this so late...

For those that like ETFs, DBC may be a good choice.* Tracks DBLCI, which is less heavily weighted toward energy than GSCI (which will tracked by the proposed iShares ETF).

For an intro, see http://www.capitallinkforum.com/cef/...es/01_rich.pdf
DBC is expensive and is over 50% energy, IIRC. Not real diversified, as it only holds 5 commodities as I recall. Still not the equal of PCRIX, IMO.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
DBC
Old 04-30-2006, 09:08 PM   #13
Dryer sheet wannabe
 
Join Date: Jan 2006
Posts: 10
DBC

You're pretty much right. DBLCI uses 6 futures: light sweet crude 35%, heating oil 20%, gold 10%, aluminum 12.5%, corn 11.25% and wheat 11.25%. Supposedly these reflect actual market ratios (using two representative commodities from each major commodity sector).

The initial prospectus listed estimated expenses of 1.9%, but I read that they are now projecting 1.3%. And I expect the expense ratio to decrease once iShares competition comes into play! DBLCI should perhaps be less expensive to track than GSCI because the former uses only 6 heavily traded (liquid) commodities.

But we shall see...

__________________

__________________
pms163 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
No displayed dividend reinvestment in 401(k) a FIRE and Money 17 03-19-2007 10:12 PM
New dividend ETFs - int'l too. ats5g FIRE and Money 0 04-22-2006 07:32 PM
Question on Dividend Stocks or Funds modhatter FIRE and Money 43 10-03-2005 10:11 AM
Understanding dividend distributions from VBMFX? soupcxan FIRE and Money 3 02-08-2005 08:26 PM

 

 
All times are GMT -6. The time now is 09:22 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.