BIG PROBLEM UNEXPLAINED- Financial help needed

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17 years ago 12/09/2006 4:15pm EST

I own about 2000 shares of a mutual fund, FDETX and need some help. It feel about 7% yesterday while the rest of the market was up, as was the dollar, and the portfolio of the FDETX that is reported on Morningstar did not show a 7% drop among the holdings of the fund, yet it still reported it as down 7%. I can't get any answers on this question and googling it is not being very helpful either. this doesn't make any sense to me as Fidelity is the largest Fund company in the world. Anyone with professional financial experience can you please help explain this? thank you in advance.

17 years ago 12/09/2006 4:17pm EST

re: b4ufk

17 years ago 12/09/2006 4:20pm EST

re: b4ufk

Maybe it paid an annual dividend which would've caused a downward adjustment in the price without any change in the assets.

17 years ago 12/09/2006 4:28pm EST

re: Blowing Rock Master

99% of the dividend in this fund is reinvested. and usually the dividend is paid the last week of the year.

I was thinking they may have had some corporate bonds that totally got screwed because of the falling dollar in recent weeks. Although I'm not sure. 10% of the fund is in cash, and I would be extremely upset to find that they were lazy and put a large part of this into one type of bond that got screwed.

The dividend is usually not counted in the share price as this would be an addition, not a subtraction. the actual asset value gains only 3% TOPS of dividends in a year and 1% of that goes to overhead.

It makes no sense. that why I asked for professionals, if there are any on this board.

17 years ago 12/09/2006 4:34pm EST

re: b4ufk

your fund probably paid out capital gains for the year. your gains are probably re-invested, meaning you now own more shares, but each is worth less money, because there are now more outstanding shares. your total value is most likely the same as it was before this distribution.

17 years ago 12/09/2006 4:37pm EST

re: b4ufk

17 years ago 12/09/2006 4:39pm EST

re: stanley morgan

stanley morgan wrote:
your fund probably paid out capital gains for the year. your gains are probably re-invested, meaning you now own more shares, but each is worth less money, because there are now more outstanding shares. your total value is most likely the same as it was before this distribution.

THis is exactly what happened!! CHeck the total value and you will see that you not only own more shares but that the value did not change much!

17 years ago 12/09/2006 4:42pm EST

re: b4ufk

thanks guys. It would be nice if they told us these things, but they don't.

any reason why they would pay taxes now, given that the year isn't over yet?

17 years ago 12/09/2006 5:00pm EST

re: b4ufk

The fund paid a dividend and capital gain of $.91. Based on the previous days price it was about 6.8%. If your money was reinvested, you have more shares at a lower price, if not you will either have a check coming or cash in your account.

17 years ago 12/09/2006 6:50pm EST

re: b4ufk

b4ufk wrote:
thanks guys. It would be nice if they told us these things, but they don't.
any reason why they would pay taxes now, given that the year isn't over yet?

"they would pay taxes now" not sure what you mean by this ??

I am guessing you mean that "YOU" will have to pay taxes? Assuming this is a non-IRA type account you will not have to pay taxes on this until april of next year. You will be recieving a 1099 by late Jan telling you exactly what dividends and capital gains you earned in 2006.

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BIG PROBLEM UNEXPLAINED- Financial help needed

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