PCRIX

[Vincenzo Corleone]

Does anyone know why PCRIX is down over 12% today?

I'm not panicing - just curious.

 

[Danny]

Does anyone know why PCRIX is down over 12% today?

I'm not panicing - just curious.

It could well be ex-dividend time. Current value of shares lose the dividend's value. Hopefully you'll eventually see the dividend show up in your account! That being said, in addition the shares could have lost or gained a bit today. Otherwise, if not ex-dividend time it would be kind of a bummer really...

 

[unclemick]

PCRIX Aren't they awaiting an IRS ruling or something like that. Don't recall the details. Thought I read something over at Raddr's website a while back.

 

[Vincenzo Corleone]

Hi Unclemick,

Thanks for mentioning that. I hadn't heard. I did go over to Raddr's site and did some reading. From what I have been able to learn thus far, it doesn't appear to be a huge deal as PIMCO will be able to adapt:

Morningstar Fund Times: PIMCO Says It Can Adapt to Rule, D O Bardy, 12-22-05

A week after the IRS ruled that mutual funds can't use commodity swaps, PIMCO says it will be able to maintain its strategy using other securities.

Portfolio manager John Brynjolfsson says PIMCO Commodity Real Return Plus PCRDX can maintain its dual exposure to commodity prices and inflation-protected securities by using structured notes instead of swaps.

He said the impact on returns of the ruling would be modest...

 

[Danny]

PCRIX paid $2.07 dividend yesterday.