Estimated 2022 Capital Gains and Dividends

Estimated 2022 Capital Gains and Dividends

November 10, 2022

To assist you with your year-end investment and tax planning strategies, the Mairs & Power Funds are providing preliminary estimates of capital gain and dividend distributions. The numbers are estimates only and are subject to change. Actual distribution may vary from these figures.

 

 Fund Name

 

Estimated 

Dividend per Share

Estimated 

Capital Gain per Share

% of Net Asset Value (NAV)

as of 10/31/2022

 Growth Fund  $0.50 - $0.55 $9.10 - $9.60 7.39% - 7.81%
 Balanced Fund  $0.50 - $0.55 $4.30 - $4.80  4.93% - 5.50%
 Small Cap Fund      $0.03 - $0.10  $1.50 - $1.80 5.41% - 6.72%

 

Record Date: December 14, 2022

Payable/Ex-Dividend/Reinvestment Date: December 15, 2022

Dividend and Capital Gain FAQ

 

Note About 2022 Capital Gains & Operational Tool to Benefit Shareholders 

We believe our long-term investment focus is the best way to make money for our clients. While our Funds have long-term records of tax efficiency and rank among the most tax efficient mutual funds, according to Morningstar, our capital gain amounts have been elevated the last couple years.

So, why are they elevated? It’s in the DNA of how we invest: concentrated and fully invested portfolios with low turnover designed for the long term. That has resulted in consistently good returns from underlying securities whose valuations have grown through the years. However, when it comes time to trim those holdings, whose valuation has successfully grown over time, it produces capital gains.

What are we doing about it? First, we plan to stick to our DNA, and will not change either our investment philosophy or our strategy. Rather, we will be utilizing an operational efficiency tool. This approach reduces cash drag on the portfolio, which means Fund managers can keep assets even more fully invested and spend more time focusing on strategic investment decisions. It also has the possibility of reducing trading costs and decreasing capital gain distributions over time.

Please reach out if you have questions about the estimated capital gain and dividend distributions and click here to learn more about our new operational tool.

 

Investing involves risk, including potential loss of principal.

Investing in the Funds is subject to investment risks, including, but not limited to, possible loss of the principal amount invested. These investment risks are explained in the Prospectus.

 

The Mairs & Power Balanced, Growth, and Small Cap Mutual Funds are offered by Prospectus only. The Funds are not available for sale to investors residing outside of the United States. See each individual Fund for more information. You should read the Prospectus carefully before you invest. A Prospectus is available online. You may also obtain a Fund Prospectus by calling Shareholder Services at 800-304-7404.

Diversification does not eliminate the risk of experiencing investment loss.

Morningstar data is the property of Morningstar, Inc., which is not affiliated with Mairs & Power, Inc.

Foreside Fund Services, LLC is the Distributor for the Mairs & Power Funds. Foreside Fund Services, LLC is not affiliated with Mairs & Power, Inc. Foreside Fund Services, LLC does not distribute the individually managed accounts.