European Stars And Stripes (Newspaper) - February 8, 1987, Darmstadt, Hesse A boo 20 the stars and stripes sunday february 8,1987 investor s guide by Wiljam Doyle q. 1 own shares of High in come Bond Mutual fund and am confused by the Al thai the fund nude no capital Gim last year. Can you explain Haw Cap it pin arc paid b this Type of Hartwi Funta. Regardless of its Type a Mutual fun makes capital gain distributions from the net prof tit realizes on its portfolio transactions Selling securities at higher Price than in paid for those securities. Doyle As the word imply a High in come Bond Mutual fund Aims to produce High dividends for it shareholders it does that by in veiling in Bond paying High inter est. The fund collects that interest and after deducting in operating expenses passes that Money along to fund shareholders As dividends. A Mutual fun has a portfolio meaning that it changes its investments by Selling some assets and buying others. If those sales result in a net profit the fund has capital gains to distribute to shareholders. However it is not unusual for fund to have no net profit or even to record a toss from ill portfolio transactions Over a year s Lime. Sometimes that s the result of poor investment management. Other times it s a owe of fun management deciding not to sell portfolio securities at a profit just to produce capital gains distributions. Many limes it s better toehold a Security than to sell ii. With a High income Bond Mutual fund the suspicion pops up that the fund might have los Money on its portfolio trans actions last year. High interest Bonds arc Low rated and have picked up the junk Bond Nick name. Junk Bond prices underperformed the Market last year a junk Bond defaults increased. When you get your annual share Holder report from thai fund Check the size of the net realized loss on investments in the statement of changes in net that will Tell you How much the fund lost on its portfolio , study the report s letter to shareholders for an explanation of that loss. O. On the advice of my broker in u the Utility stocks on which had a Good profit last year before the a an capital gains vent up As i result i have 55,000. Which need to invest for income my broker recommends an in come Mutual Hod. The commission on a 555,000 Purchase would be 4.75 percent which i Tod rather hefty. The broker Nyi it would take less than � year to aet that Back in dividends. Dors that ring True to Yout a. If the fund performs in the future As it has in the Post the Bro Ker s statement will be True. Wil thai 4.75 percent commission bite off the lop your �55,000 would buys 52,387.50 Worth of fund shares. After the fund paid you $2,6 2.50in dividends and or the value of the shares Rose $2.612.50, you would Beeves big Deal it would make More sense to in Vest your Money in a no Load in come Mutual fund where yourj5 5.000 will buy Worth of shares. Financial news Confidence in Economy boosts Market for fifth straight week by Ellen freil1ch ii but Lent writer new York up the Slock mar Ket scored it fifth consecutive weekly gain last week As stable interest Rales an growing optimism about the Economy spurred a Broad Advance that easily accommodated occasional profit taking. The Dow Jones Industrial average which has advanced each week since the Start of 1987, jumped 28.83 Points for again this year offt Points the Dow set three new highs Fin Ishing at a record 2201.49 thursday its first close above 2200. Barry Beilin president of Shearson Lehman equity management said the Dow had very Little trouble moving through 2200. Given the Market s up Ward momentum the round number did not pose a psychological Barrier he said. The Dow climbed monday retreated moderately tuesday and advanced wednesday and thursday. On Friday it fell 14.62 Points As investors look prof its in Blue Chip issues. Bui advances outnumbered declines every Day of the week. Among the 2,187 issues traded on the new York Stock Exchange i,si1 advanced Only 49fi lost ground. The american Slock Exchange Index set a new High every Day. Nas Day also advanced steadily. Broad Market gauges also reached new highs during the week hitting peaks on Stock pulse of Una led Putli Firta rational Slock Orv Fri wet on mow att ecu Flo vat if Nyee cd poin act ii by Velum at item e4it i f a no 4.117.700 49 s 2,2,gc2.0 ,79,7l an i.w6.000 a i.kit.100 ii 1,749,200 j4� i.g7.400 39% 1.623.0 135 1jso,i�0 17 1a43.soo 29 821 id 1.15 21.0 5.0 38 1 0 7.3 069 10 4.3 322 00 3,1 3.bo 10.0 1.0 7si 17,0 34 1 70 17.0 1.0 Slock Ulun on motor Tir Nwe Wal Tiki cd try Cha of kill cloth in earns to is a $1691 140 24 122 6k 414 29.0 0.7 s.28 Leo 13 7� Iso b.21 9.0 4,9 1.0 441 19.0 3.4491 a 85 j 6k 111 4ft Tilv. 3v 116 3ft 647. 2srn 111, is n 67v, � 2� 158350 37 to fund prices from Page 19 att i we and Aricue of h Kvak cd Sun eng 0. Us Mun no mul 3pl con of gab 6ol sol h Solo 5ub1 it Toliu by sol. 10114 he jm7w9i 7,31 7.?2 him Emmr Row is 14. 17 isw1im 17ud.m Lukl l1i�ho_ 21 11 he inc Ota Betti Tom Sun Nous a t and Bur a Lulu Iso a of cart hisuib4rhrak com cd 1u4iuo iu1 11bs in 111013h137ii1x h 78 h l 1499n.l 7 � m Binelli b4i x Mun 1iu12m id 03 m 31 Siht. 13 49 Al. B 14 41 l 136 b4 to Wrid cd Isio of � we Tim lab Al i 14 10t4l. By Louism Yotoko 101611 12nuiia l?6a 13b4u9t17u in .3i1ivl. 2b 20 n l70 a 71 s3 thursday before slipping Friday. Standard & poor s 500-Slock Index climbed s.96 to end the week at 280.04, Down from thursday High of 281.16.the new York Stock Exchange Compo site Index jumped 3.82 to close at159.93, Down from in record of 160.36. Also hit thursday. The reason Stampede advances pro Duce Only limited Pun backs is that Trad in stay Cau Sioui worrying about Pult backs said Newton Zinder technical analyst m . Hulton. This keeps buy ing Power on the sidelines which then gets dragged when Stocki teem to refuse to decline Zinder said a firm Bond Market helped fuel the Market s Advance last week. Stable Bond prices in the face of growing bullish Ness toward the Economy is the Best of All possible worlds for Equi ties said Zinder. On the trading floor at to was the most Active n use listed i Suc falling it to 23% on volume of More than 22 Mil lion shares. The government monday asked the Federal judge presiding Over the breakup of the Bell system to lift almost at restrictions on the seven regional Bell Telephone companies. General Melon followed rising 1 to76 i. General motors Stock trimmed a Sharp gain after pm said fourth Quarter earnings fell to 97 cents a share from $3.8$ a share in the year ago period. On elect to dbl it Tel Wang Ltd Amu Cwm to Holt a cml b Velum Uon mar a Emu mag 0,g the Voi cow Eim f � tid w7.m 49h j046 hid 073.mo 4 071 Toan too ass 613,500 i3 i 021 u,0bjo.eoo id 316.200 37h 1.33 21.0 334,000 a Buoo nil Cio Dro c 331.000 my 179 1 0 0.1�e.w Laboid Ullwin Crois a a undo end Faa cum Chi a Eijiu be Vul 33 3k i i _ i 240 9d 03 2jo 4.9 35 12vi slip a pral Fnnnk be to in Imph tact Una 1 Mort i Isis in 0 so 650 j.i4 140 1 6 2. 14.0 21 of cum twp oar cd noun us in u6a pm Utju Korup com p can cd 7u 7.71 3$ 17 my 1i3bnl�oofl.h l mv2h1. 7 a no a no he 1&29ml. 4ioni. Iob he 14hl of a s7nlin l my a a him fund in a or a Lua oin q pc an l. H l. Ii h l. 11 Ulni. It i 1 v 12 69 i Friday. Shearson Lehman Auto analyst Michael Luckey recommended Selling the was third climbing 7 to 135%. Slock investors thought Wen Likely to Benefit from an economic upturn improved. Digital equipment jumped 7ttto is2vi and prime computer Rose 2% 10 23 issues advanced. National semiconductor jumped h to Ukandu advanced Micro devices climbed 4vi to 22vi, both in Active trading. Texas instruments climbed 17 to Ijeh. In the chemical group Imperial chemical jumped 6 to 82 i and Union Carbide resettle 26 industries jumped & to 59. It said fourth Quarter earnings jumped to$1.78 a share from 76 cents in the Yew ago issues were prominent gainers. Texaco climbed 1 to 38h. Mobil Rose 2 tto 46 and Phillip Petroleum climbed Ivi to m. In the Oil service and equipment group Schlumberger Rose 3 to Viva. Carter Wallace extended its Advance climbing 12v4 amid optimism about prospects for the company s Condo sales. It advanced 14 a a week earlier. . Robins jumped 3 i to 24 a. The company got a bid from american Home products Rose 12v4 to 85 i. A group Ted by audio video affiliates inc. Sweetened Iti tender offer for the company from $75 to Iso a number of shares changing hands on the new York Stock Exchange during the week totalled 1,038,555,040, com pared with 893,576,280 a week earlier and with 745,842,060 shares traded Dur ing the same week a year Dow transportation Index Rose 47.12 to a record 924.18. The Utility Index added 1.55 to 226.16. Composite volume totaled1,214.482,700 shares compared with 1,053,884,610 a week Rote in Active trading on the american Stock american Slock Exchange Index jumped 16,26 to end the week at 316.73,a record. Gainers outpaced losers 560 219 among the 918 issues traded. Vol ume was 79,703,300 shares compared with 64,413,790 Lasi week and57,300,885 daring the same week a year led the amex actives unchanged at 4. Wang laboratories dais followed rising 2 to 15%. 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