From: "HW \"Skip\" Weldon" 
Newsgroups: misc.invest.financial-plan
Subject: Re: How a closed end fund can give such high interest Rate?
Date: 29 May 2004 11:36:54 GMT
	iQBVAwUAQLh0xfl/I4+O31e5AQG4xQH/T8I74Pc5u1AZvKRBwSNQRQZvow4GY8yZ
	z01P1dTb8vLZTdVtd2aQjsP2tJ9IeGgRjTm43idAmE8xCjLZ1O86PQ==
	=de2N

On Wed, 26 May 2004 13:40:59 CST, "Ed"  wrote:

>Don't forget return of capital. Many funds will pay fixed 'dividends' even
>if part of the money is ROC.
>They claim a high yield but it's just your own money coming back to you.
>When you get ROC you must adjust your cost basis.

Other than reading the prospectus, how would an investor know that the
yield contained ROC?

(I am intrigued by this since I recently encountered a "cash fund" run
by a local manager who was touting a "tax-free" yield of 5%.  Since
assuming reasonable risk I know of no tax-free short-term bonds at 5%,
I am trying to figure out how he does it.)


-HW "Skip" Weldon
 Columbia, SC