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Posted by nonick on June 16, 2009, 5:15 am
Hi,
I've been looking into moving some dollars into Pimco Total Return
Admin ( mutual fund) via my 401K with Wells Fargo. The Wells Fargo
website has good numbers for PIMCO Admin : 6 percent or so, per
year, per quarter, etc.
But when I chart it (PTRAX) , the value of the fund, ever since
2002, just bouncres around between 10 and 11. What am I
missing ? Shouldn't the value be going up 6 percent per year, if
the WF website says it is getting 6 percent per year ???
If I buy into PTRAX, will not the value of my holdings vary up and
down, directly with the value in the chart every day ??? According
to the chart, it's been hovering between 10 and 11 ever since 2002,
bouncing up and down.
Will the fund be paying MY particular account dividends
approximating 6 percent, , that are not reflected in the share
price ??
Synopsis : the share price is going nowhere, so how can they claim
decent returns on the investment???
Thanks
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Posted by on June 16, 2009, 8:15 am
> But when I chart it (PTRAX) , the value of the fund, ever since
> 2002, just bouncres around between 10 and 11. What am I
> missing ? Shouldn't the value be going up 6 percent per year, if
> the WF website says it is getting 6 percent per year ???
Are you charting the *price*? That's not the total return for
any fund, or even almost any stock. You need to track price
plus any payouts (dividends, distributions, etc). Some sources
of data will give you an "adjusted price" which reflects those
distributions and a chart of that would work right.
> Will the fund be paying MY particular account dividends
> approximating 6 percent, , that are not reflected in the share
> price ??
That depends - do you have distributions automatically
reinvested in the fund? (Most folks do most of the time,
especially in retirement accounts like 401ks where one may
not even have a choice about that). If so, then no, the
value of that fund holding in your account reflects those
distributions being reinvested. If not, then you should
be accumulating cash somewhere.
> Synopsis : the share price is going nowhere, so how can they claim
> decent returns on the investment???
Synopsis: you're probably not looking at what you think you are.
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
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Posted by Froggie on June 16, 2009, 9:44 am
> Hi,
>
> I've been looking into moving some dollars into Pimco Total Return
> Admin ( mutual fund) via my 401K with Wells Fargo. The Wells Fargo
> website has good numbers for PIMCO Admin : 6 percent or so, per
> year, per quarter, etc.
>
> But when I chart it (PTRAX) , the value of the fund, ever since
> 2002, just bouncres around between 10 and 11. What am I
> missing ? Shouldn't the value be going up 6 percent per year, if
> the WF website says it is getting 6 percent per year ???
>
> If I buy into PTRAX, will not the value of my holdings vary up and
> down, directly with the value in the chart every day ??? According
> to the chart, it's been hovering between 10 and 11 ever since 2002,
> bouncing up and down.
>
>
> Will the fund be paying MY particular account dividends
> approximating 6 percent, , that are not reflected in the share
> price ??
>
> Synopsis : the share price is going nowhere, so how can they claim
> decent returns on the investment???
>
>
>
> Thanks
The stated returns are total returns and assume reinvestment of
distributions.
When you reinvest the distributions you buy more shares. This fund makes
monthly distributions so each month your share balance will be higher that
it was the month before.
http://www.mfea.com/GettingStarted/LearningTopics/Basics/Compounding.asp
======================================= MODERATOR'S COMMENT:
Please trim the post to which you respond. "Trim" means that except for some
brief material to provide context for your remarks, the previous post is
deleted. Thank you.
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Posted by HW \"Skip\" Weldon on June 16, 2009, 12:13 pm
> But when I chart it (PTRAX) , the value of the fund, ever since
>2002, just bouncres around between 10 and 11. What am I
>missing ? Shouldn't the value be going up 6 percent per year, if
>the WF website says it is getting 6 percent per year ???
In Bread's response he mentioned the difference between a bond fund's
"yield" and "total return". Before you go any further with investing
in a bond fund (like PTRAX) it is imperative that you understand the
difference. Suggest you Google those terms, and post again if you
still have questions.
-HW "Skip" Weldon
Columbia, SC
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Posted by JoeSixPack on June 18, 2009, 5:06 am
>
> I've been looking into moving some dollars into Pimco Total Return
> Admin ( mutual fund) via my 401K with Wells Fargo. The Wells Fargo
> website has good numbers for PIMCO Admin : 6 percent or so, per
> year, per quarter, etc.
>
> But when I chart it (PTRAX) , the value of the fund, ever since
> 2002, just bouncres around between 10 and 11. What am I
> missing ? Shouldn't the value be going up 6 percent per year, if
> the WF website says it is getting 6 percent per year ???
>
> If I buy into PTRAX, will not the value of my holdings vary up and
> down, directly with the value in the chart every day ??? According
> to the chart, it's been hovering between 10 and 11 ever since 2002,
> bouncing up and down.
Just before a $ 6 dividend, a fund might be worth $106 per share, but once
it is ex-dividend, you would only pay $ 100 for it since you won't get the
dividend. If you reinvest the dividends, your dollar value in the fund
would increase because your 100 shares would now be 106 shares, but it would
increase due to additional shares, not because the price per share went up.
>
>
> Will the fund be paying MY particular account dividends
> approximating 6 percent, , that are not reflected in the share
> price ??
>
> Synopsis : the share price is going nowhere, so how can they claim
> decent returns on the investment???
>
>
>
> Thanks
>
======================================= MODERATOR'S COMMENT:
Please trim the post to which you respond. "Trim" means that except for some
brief material to provide context for your remarks, the previous post is
deleted. Thank you.
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