Net Worth Update

One of my mutual fund holdings, Columbia Strategic Investor Z (CSVFX), lost more than $2.60 in NAV on September 20th. At that time, I thought it must be due to income distributions. But I forgot to check my account from their website and didn’t take the distribution into consideration when calculating my September net worth.

Last night, the statement arrived and indeed the fund had a huge distribution on 20th of last month: $0.12 dividend, $0.13 short-term capital gain, and $2.51 long-term capital gain. While the distribution will definitely have an impact on my 2006 taxes, good news is that most of the distributions are from long-term capital gain and will be taxed at a maximum rate 15% instead of my income tax rate.

As a result of the distribution, I updated the September net worth and added about $900 to the taxable accounts.