topshelf

CEF Volume Trends May Portend Their Appreciation

I'm really glad I read this article and all the comments [ excellent "debate" guys ]. You all seem to be much more informed re:CEF's, so I have a comment and question, I hope someone can respond to.
This clip explains why I invested in CAF:
""""CEFs give you access to some asset classes and strategies that so far do not have an equivalent in ETFs.""""

Last year I was looking for an investment vehicle to get into the China A-Shares. I found CAF and no other choices. Fact is I didn't know if it was a CEF or ETF, I just wanted in.
What I'm puzzled about is the "Retained" Divi. What happens to this? Suppose someone sold, though they were Holders when that Divi/Earnings were made. I'm not selling, just curious.

I did receive $1.83 on Jan 16, but there is over $2 in "Retained" Earnings, after MS deducted the taxes...so what happens to this? Do I just wonder when they decide to pay this?

Here is some info:

EX-DATE RECORD DATE PAYABLE DATE -------- ----------- ------------ 07/09/08 07/11/08 07/15/08

The Morgan Stanley China A Share Fund, Inc. (the "Fund"), advised by Morgan Stanley Investment Management Inc., is a closed-end management investment company seeking to achieve capital growth through investments primarily in A-Shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges.

The Morgan Stanley China A Share Fund, Inc. (the "Fund"), advised by Morgan Stanley Investment Management Inc., is a closed-end management investment company seeking to achieve capital growth through investments primarily in A-Shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges.
============
[ i added the asterisks ]
The Fund has elected to retain a portion of its realized capital gains for the tax year ending December 31, 2008 ***because of issues relating to the Fund’s ability to repatriate funds from China***. The Fund will pay the required federal corporate income taxes on these gains.

Per share estimates of the Fund's retained capital gains and corresponding federal corporate income taxes paid are as follows:



Per Share

Capital Gain Retained
$ 2.1199
Federal Income Taxes Paid by Fund
$ (.7420 )
Net Capital Gain Retained
$ 1.3779

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On Jun 30 07:47 AM klarsolo wrote:

> The first argument can also be applied to ETFs to some degree. ETFs
> don't have a managed distribution policy, but when times get tough,
> the stocks inside the ETF will cut their distribution and that cut
> will be passed through.
>
> Regarding the second statement, if you're not forced to sell, you
> do not have to worry about a rising discount in bad times. You know
> that once things settle down you'll have a good chance of getting
> that extra-underperformance back.
>
> ****CEFs give you access to some asset classes and strategies that so far do not have an equivalent in ETFs*****. Sometimes you even get them
> at steep discounts. Instead of thinking in black and white terms
> ("CEF's are bad, ETF's are good"), be flexible.