Standish tax-efficient fund makes whopping distribution
From Wall Street Journal
Investors in the Standish Small Capitalization Tax-Sensitive Equity Fund might be excused for feeling a wee bit mislead. The “tax-efficient” fund is set to pay 14.3 percent of its assets as a distribution to shareholders. The fund is also in a difficult position of likely having investors who will notice since the fund has a $100,000 minimum deposit. The payment is the largest on record for a tax-efficient fund. The distribution is the result of the fund’s manager taking gains in technology and biotechnology stocks in the first part of the year. The company said it made the distribution in August rather than waiting until the end of the year so that the shareholders who owned the fund during the time the gains were made would be the ones taking the distribution. Many of those investors may leave the fund as manager Nicholas S. Battelle recently moved to the newly formed Lee Munder Capital Group.  

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