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Contributor

There was a very noticeable drop in the various Managed portfolios yesterday.  This was totally unexplained by either USAA or by any movement in any of the markets.  What is going on?  Why did USAA not post an answer to the first questioner who raised this?


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UPDATE:

 

Many mutual funds (including the USAA Mutual Funds and other funds held in USAA Managed Accounts) pay their annual capital gains distributions in early December. Such distributions will be reinvested back into their respective mutual fund holdings. Although fund price adjustments will result from capital gains distributions, the underlying value of each mutual fund position will remain unchanged after the reinvestment process settles (usually one business day). The associated credits to your account will be reflected in your online activity and be reflected in your monthly account statement.

 

Be sure to review the pre-notification documents on usaa.com in Tax Center or by searching for Prenotification.

 

Here are the Direct links to two of the PDF documents:

Fund Distribution Form

PreNotification Document

 

 

 

 

 

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30 REPLIES

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Hi Granny D, this would be very concerning to see. I'm more than happy to forward your concerns to our subject matter experts for review.

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I concur. There's nothing in yesterday's market performance to explain a 20% decline in the fund.
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The drop came as a complete shock, especially when record highs were reached in yesterday's markets.  Has this anything to do with the change in companies responsible for our investments?  Not a happy camper today!

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I'd like to bump this.  Did anybody get any information on this?

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I think I understand this now.  They distributed end of the year capital gains .  It would be nice if someone from investments posted a more thorough explanation.  

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WHAT IS GOING ON WITH FUNDS SUCH AS USIFX AND USAWX?  YOU SEE A BIG DIVIDEND THEN THE SHARE PRICES GO DOWN SO MUCH THAT THE NET IS NO GAIN IN THE OVERALL VALUE OF THE MUTUAL FUND

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@VX20 we appreciate your post and will certainly have your concerns reviewed. 

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It is inexcusable to me to see a 20+% drop in value with no explanation. USAA has plenty of options to communicate about this but did not. Shameful.