Bear with me on this one as I do my best to explain. It was confusing to watch but in the end, it was a wash on paper.
On 12/13 I was holding 145.78 shares valued at $71.31 each, the total value $10,395.57
On 12/14 the per share value abruptly dropped to $62.58 per share, I had lost almost 14% overnight. The stocks that the fund holds did not drop and the market was doing fine that day. I had no idea why I had just lost almost $1300 from my “safe” retirement account.
I went to Yahoo! Finance and search for the symbol PRGFX. I navigated to the conversation tab and read what people were saying. I use this as a tool sometimes, just remember you don’t know who these people really are and what their real motivations are. Many people were already asking “What happened?” One person explained that the money would come back in the form of new shares within a few days. Given that the market is so highly regulated and the procedures can be confusing I decided to wait it out and see what happened.
Finally, on 12/18 I received 3 deposits into my IRA account as “cash” which were immediately used to purchase 3 lots of the mutual fund PRGFX at the low price from 12/14 of $62.58 (on 12/18 the fund was priced at $63.46). I received a total of 19.801 shares with a total value of $1,228.13, virtually the same amount that I “lost” back on 12/14. I was short about $40 still, my understanding is this is the fund manager’s fee. The transactions summary labeled these as dividend and noted they were capital gains reinvestment, sounds like a lot but it just a was paper shuffling, the amount of money I had stayed the same.
I did nothing to make this happen just sat back and watched it. So if you ever see one of your funds doing something strange try not to panic. The conversation tabs that Yahoo! or any other financial website might shed some light on what is going on. As always you’re welcome to reach out to me and I will be happy to do a little looking for you.
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