Good year for investors in tax-managed funds; Little capital gains exposure is a plus.(News)

Investment News, October, 2005

Byline: David Hoffman NEW YORK - Investors in tax-managed mutual funds finally can expect to reap a little extra reward this year, according to industry experts. The reason is that such funds limit exposure to capital gains distributions and the taxes paid on such distributions. That's not a bad feature, considering that the capital gains distributions many fund investors will see this year will be the largest since 2000, according to industry experts.

That year, big capital gains meant big tax bills. It is possible that capital gains might not be huge this year, said Tom Roseen, a senior research analyst in Denver with New York-based Lipper Inc., as fund investors have seen virtually no capital gains since 2000. Despite market gains...

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