commodity futures fund drops

[tightasadrum]

For those holding Pimco's PCRIX, does anyone have a clue why the fund was down over 12% last night? I've never seen it move that much before in any direction.

 

[REWahoo]

Tis the season - dividends and cap gains?

 

[MichaelB]

For those holding Pimco's PCRIX, does anyone have a clue why the fund was down over 12% last night? I've never seen it move that much before in any direction.

PCRIX paid $0.839 distribution yesterday.

 

[utrecht]

It had a distribution. If you own it, you have a lot more shares today than you did yesterday (but they are worth less).

 

[tightasadrum]

After running the numbers it looks like it's down slightly,but normal variation I'm used to seeing. Thanks. I'll reinstall my heart where it normally resides now.

 

[73ss454]

When I looked at PCRIX in prior months/years they paid the dividends in Jan.. Why would they hit the share price in Dec.?

 

[tightasadrum]

Uh...because things are going so well they decided to pay it early Nah.

 

[REWahoo]

Don't know about the past, but this year dividends were definitely distributed in Dec:

http://investments.pimco.com/ShareholderCommunications/External%20Documents/Quarterly%20-%20All%20Classes%20Dividend%20Rates%20-%20PIMCO%20Funds.pdf

 

[MichaelB]

AFAIR Dec 28 (or the closest weekday) has always been the date for PIMCO distributions. They occasionally pay an additional distribution in January.

 

[HFWR]

I get dividends quarterly from PCRIX.

 

[Spanky]

Is it still worthwhile holding PCRIX?

 

[tightasadrum]

Is it still worthwhile holding PCRIX?

I purchase PCRIX to have an investment that wasn't so correlated to equities. That hasn't worked out as well as I had hoped, but we'll see. The dividends purchase a lot of new shares though.

Could you elaborate? Why the question? Because the NAV is down?

 

[eytonxav]

Is it still worthwhile holding PCRIX?

If we see economic growth and inflation takes off, I would say yes.

 

[John Galt III]

Does PCRIX always issue the same sort of dividend? I got into PCRIX a couple years ago because I noticed it had "real" dividends, not the "more shares at a lower price, no net increase in money" type of dividends. In March 2011 it had a nice "real" dividend. But then I noticed in June, 2011 the dividend went back to the "more shares, no net increase in money" formula.

 

[MichaelB]

Does PCRIX always issue the same sort of dividend? I got into PCRIX a couple years ago because I noticed it had "real" dividends, not the "more shares at a lower price, no net increase in money" type of dividends. In March 2011 it had a nice "real" dividend. But then I noticed in June, 2011 the dividend went back to the "more shares, no net increase in money" formula.

PIMCO funds, like most others, will pay dividends in cash or reinvest them in shares. The choice is yours and you need to let your broker or custodian know which you prefer. Fidelity and Vanguard allow you to define this online without assistance (unless requested).

 

[Spanky]

I purchase PCRIX to have an investment that wasn't so correlated to equities. That hasn't worked out as well as I had hoped, but we'll see. The dividends purchase a lot of new shares though.

Could you elaborate? Why the question? Because the NAV is down?

I have held on to this fund for almost 6 years. The annualized return is pretty dismal - about 2.34%, albeit not bad compared to that of the S&P 500. I plan to hold on to it since its correlation to equities is supposed to be low.