European Stars And Stripes (Newspaper) - May 31, 1987, Darmstadt, Hesse Page 20 the stars and stripes sunday. May 31,1987 investors guide by Bill Doyle o. Someone told me he invested$5,000 in a Mutual fund on dec. Is and the fond credited his account with $1,412.79 capital gain distribution on dec. 23. Is la rally possible a hate $1,422.79 capital Gilm on i �5,000 in vestment fair Only tight Days a. Sure. Larger capital gain distributions have been received by some Mutual fund investors for Shorter periods. And other Mutual fund investors have received smaller capital gains distributions for longer Peri ods. A Mutual fund raises Money by Selling its Jiaras to the Public and Doyle uses that Money to invest in a diversified list of securities which it then holds in its investment port Folio. The value of the fund s shares rises or Falls in line with the value of its investment portfolio. From Lime to time the fund s managers make decisions to sell securities from the investment portfolio sometimes at a profit but sometimes at a loss. Assuming the fund portfolio transactions Over a year s Lime re sult in a Nel profit thai Money is distributed to fund shareholders at year end in proportion to the num Ber of shares owned. A capital gains distribution is declared by the fund s Board of directors payable to shareholders of record on a Dale the Board . Thai record Date is about the same Lime each year. Q. Is there Federal income us on Mutual fund capital gains distributions if so How is it figured a. Indeed there is a tax. It applies whether you Lake your capita gains distributions by Check or re invest Ihm to Purchase additional shares. For 1986, Only 40 percent Folh Long term portion of a capital gains distribution a fund s net profit from the Sale of portfolio securities held for More than six months was taxable. The Short term portion of a capital gains distribution was taxable at the same rate As Ordinary income. For 1987, the entire amount of a capital gains distribution is lax Able at Ordinary income rates but no higher than 28 percent. Most Mutual fund dividends of course have been and remain tax Abie at Ordinary income rates. The exceptions Are tax free funds hold ing municipal Bonds. A 1 invested in a Mutual fund shortly before capita gains distribution and a dividend was declared. Then the value of each of my shares dropped by an amount equal to the combined total of the capita gains distribution and the dividend. I reinvested both and received More shares. So the glue of my invest ment was just about unchanged. It did drop i Little but 1 Learned Bat was caused by a decline in the mar Ket value of the fund s investment portfolio. However because 1 had to pay tax on the capital gains distribution and the dividend i actually was out Money. Would 1 not have been belter off waiting and invest ing in the fund ire the distribution and dividend were paid a. Yes. It s always belter to hold off investing in a Mulla fund for exactly the reason you mention. Business news Dow Jones gains 48.27 Points in Holiday shortened week new York up the Slock mar Ket spent a shortened week consolidating gains scored just before and after the me Morial Day Holiday with three subsequent sessions marked principally by uninspired directionless trading. The Dow Jones Industrial average gained 48.17 Points for the week to close Al 2291.57, the Market came Back with a Roar after the monday Holiday up cycling 55 Points tuesday in its third biggest Point gain Ever. The Market closed mixed on wednes Day but resumed its Rise thursday Stag ing a 20-Point comeback in the last half hour of an otherwise lacklustre session to close with a modes gain. Front taking on Friday knocked he Dow Down nearly 20 Points. Gainers Oul numbered losers 1,361 551 among the 2,145 issues traded. Broad Market indexes gained. Stan to 290.id and the new York Slock Exchange composite inc gained 4.43 to 16j.i&. Traders and analysts suggested color less trading was to be expected Iven the Market s Csc Over the Days just beforehand after the Holiday weekend the Market spent the week consolidating tuesday s gains and it has Given a really excellent account of itself said Martin Krouner manager of listed Trad ing at Jefferies & co. We be run into some resistance around 2310 to 2320 on the Dow but prior to that we were consolidating an outstanding gain Krouner said. He said he expects the Market o work its Way through the resistance this week. Alan Ackerman senior vice president with the Herzfeld & Stem division of Gruntal & co., said participants began the week feeling the snark Al was Over sold. We had a Good move on tuesday As the week came to a close however the caution that had generally characterized the Market in recent weeks re asserted itself Ackerman said. We re essentially treading water tie said adding thai investors Are waiting lose the outcome of the economic Summit of Western leaders in june. I think selectivity will be important Over the next several weeks and the Dol Lar will be the key Ackerman said. On inc by Board Harcourt Brace to Vanovich was the most Active nose listed Issue soaring 11% to 55 a. Harcourt aboard tuesday rejected a $44-a-share takeover bid by British publishing mag Nate Robert Maxwell and approved a re capitalization plan expected to add $2 billion to its debt. Maxwell withdrew his bid on wednesday. Alic gis Parent of United airlines Hertz and two major hotel chains was second on the most Active list jumping Dard & poor s 500-Siock Index Rose 7.94 kehj3bb8bbbohi bar full and Prui in Tipul c 19j7 fid r. Mir a Stich div vol to sol Camp a old a i est i hic him is 4 178110 07dim de 3.718,800 2v, 250 90 91 of Xii i.t73.000 37 0580 68 a Clad i.w5.mo 21. Shi57 13 q 05fotlorw 1 491 300 19v, 002210 23 Lith in j.4d4.idd 50 Bob 80 2&flpmk 1.39. 100 19 133 Pepsico 1.m1.10q 35 175200 9 Slocki Ciusa digs earns be ml1, 0 Alli pub 1 s9". 1 a. 1 93 31 0 digital enl 157 2v, 750 j1jj fund prices from Page 19 T T � fill. In 1 1 14 re l c 6 by " 9r in if in n i i Vituj r a r a of 4l my 5tntin#lg/oup run 1? i n l us it 13 u u Kojl it to la do j l can St ?fi9l h1 a Miff fund i ,i to. H a Cir tip in n m. M i ii n if in n l Shearid i fund duv1 fit r-lf.3 i i i l i is 7? my 50 0 3 l m. I i 3 Jujj i6 c Uig j it a m. An of 6 03 h l ,-.niii ? ? 7 m l Annie jul a 1 j of i Al i i d cd Boi of our Job a d n l up 33 i i -41 of a 10 &9 of l cil muh h w 1 i ? i h7 s out l in s. Fly a ? l cd air so 1dw he him i 17 i 13 s thu Lily fund Hlili ,9 11 a 11 m id Alt Al 46 a ii i ini.jir4l o in. 3jj i 7i Hon ij30nl r 7 Ufi & 00 i Iii Ili f Al of Fol let 4fundt of Paf l both pm Ingroup i plot f 6 by n a pc rat a it Ori tip o r 13 a n i cwt la -1 1 w Pplk c 1 6 ?6 k l in Cush 1 j 9? 13 la sign fun fit met 71 7 by tiny a i. 3jw. The 77 b if pc i i i Jug a Iii i t it 67 fwu to 15 j,1 0 1 my the 6 a f i-1 is gig 7 m & i Mil lit 7 n 14 i i int -3 Jim no to Al Isi Tim Ion lire Orit too by nil g 32. Tit. Oris the 647 t 79 a fat up 1 to 7 m t 2b ttys 1, if tire 1 j j diclably/1 he said. Amm car Xinh mail a film Fly volum Elock ditch cum earns spar 2s 1". 144 190 Amof cobia z1 a 1% Psi t is i to i d is 3� 0 in 4. 1 -. Notimo 4. 1 a 171 a 0 09 be prom to Btu Nib ratio you kid St Jet Lam tech Eft Mongi lit Oil 7 Rev non. Lutfiu Fik c it 1? 10 ? by we lil 16 is 1h 1 1 int fit a 9 Al in Muir 1 a i Elf 171 us 0.1 1? 95 3 19 t in iwo croup i my Wir 1 m re l f Diw 10 to 1 63 i i i i liven b i a is or. If ? Jit 1h 1 Ittig to i ? i a & 1lbaml-uidilp" 9j Flat i j v n l Hio of 1 1 a i?fl-1 ii a t i i in Ujj d 3 id 53 urfa to i 1 1jnl Slit Fol run rat 1 a i t 10 m n l 5.v in 3t to l u \c1. I 9 b j n t of i m a j l i ddt4l inf blunts l in till 1 9fhnl Uli a Fott Refl 1 t to is to n l i Sis Jurj j.1 b6 Irp i .1i j9 n l Fla Drouin fund 1 hid in 10 j3 n l it Iii id 6" h i. In or 1 9 in & is Din q4j it Gnu w 50 n l Sun rot fund i 36 Al n l in Eli ",7inl 1-e iffy 95 by k l it Pui s b n l us Gamt 5 i-1 n l or Mun m16nl r bl1 6 6i i Lin in n 1. Uni Fik Mirml icel 6 -19 n l gig Ltd p3 4 site 1 75 h l or com 12 61 re l a m n f b i n l Iii b m l un.,71 Al j4m. Mull of 1b30ui Sill Mil egg 73 w Urt Ford Ursill sch pm of Arnii Ali a is b 3j to Gin a r Foj l a huh in 13 &2 n 76 Zittin 1.7nl inn c h Al 96 in a 19 1i& ?0 m Mun do b i g 66 a Fijux 1 9 u3jd a Muff hot of i 7? Tinc is Ihl n cd it 71$ 801 t n r a i a ctn i 6 50 7 10 Temple Ian group go Lei 12 a Istl our run l9fe?�ljj a Jiuji 77 Al 16 u to 16 1 Unstad 5rv car or n 10 u 1 1 3d get cd &1 n l an investor group said on tuesday thai ii had acquired 13 percent of Ahe gis s shares and would seek control of the company s Board in order to sell off one or More of us subsidiaries. On thursday Alregis announced it had approved a re capitalization plan that would include a i6q-q-$hare payment to stockholders. Texas utilities was third adding it to greyhound gained 1 it to 43v. It said wednesday in will Purchase Carbon Pirie Scott & co s in flight catering and air port terminal concessions businesses for $390 million. Carson Fine whose Shire holders will receive a $30 payout and a share in a new company jumped 9vi to 50%. Spectra physics shot up Tjw to 36vi.ihe company which makes laser equip ment for medical scientific and Industrial Imra received an unsolicited $32-a- share takeover bid from privately held Ciba Geigey on tuesday. At to gained it to 25vi, general elec tric was unchanged at 52, and us fell to 30. Navi tar a unchanged at 8 i. It Iii 9 9b Al l que re 1 co u i Neon 10 ?5 l him f 1 1 9j it l a i i 1? n l 1cf u of Majl us t.4 -11 t4 hit Chi by no Uri if 7re id Ftp Tell Usa group us 1 i 3 3j n l Drw i he f4 a ii pm in 94 n l Lund no h Uili in 1 d 1 1 n l tic by -50 f4 main pm 1& 3il h l 1-e la go h li0 jul m on Ivr i 9cow4. A it 4 n Tenn in 9 3 4 l Viljo fund i. Of pm i 13 n 1 a Jil a 16 n i Phil i Al 93 Lam inc a Vrh f ibb it Vii Jit a n we my i by f4 h. In. Y m fun Mir 6? Volt to 61 n la 9j m l As g in to 21 16 in by Vlf id 1 1 1 0 of Eitor Hupf c 7 44 it l Cip up 1id2h re l m the j29qnl a no it wans Rab 974c. To it bal Ivich u an Ayi 1 i m i jul Ludmir t j Al 4 l Iril Inu 1 t -1 l 1 g q7 eth turn g 1? n u Vivio to is a t6 to v a Irun 1 1 i a 30 i l Tiki ?j4�t eur 1& jul Etoll a 3? v will o 11 Ilinor ii 23 in Al Fred 7 1 j ? j1 in sli3h apply h d 1 a 11 k he T fill mulch d
