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Subject:  Re: Dividend Distributions and 401K Date:  12/23/1999  8:42 PM
Author:  mphipps Number:  16822 of 90523

Hang up is this
Invesco, one of my 401k mutual funds, declared a distribution of around $3 per share.
Now is I held the shares in invest direct the amount of capital gains would be 27 shares time 3.
And the number of shares would increase. Next year no matter what the fund price if they declare a capital gains the share reinvested this year will contribute to the capital gains.
Under unitized shares I don't see the accounting that allows the reinvested shares from year to year being accounted for.
Why because you increase the share unit price. Its like not reinvested the capital gains. That money is not growing at the same rate as the other money reinvested into the fund.
Next year when investor delcared a per share distribution. What are you going to multiple by to add to my 401k account. Unitized increased the price not the number of shares.
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