Cornerstone Total Return Fund (CRF)

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"Cornerstone Funds' Payout Not What It Appears"

"The two closed-end funds inflate their yields by returning investors' original investments."

Aug 27, 2007

"What shareholders may not realize is that most of the distributions they are receiving represent a return of their principal investment, rather than investment income. More than 95% of the total distribution CRF paid between 2002 and 2006 was simply returning the original money that investors had put into the fund, what's known as return-on-capital, according to filings with the Securities and Exchange Commission. Excluding 2005, when yield came from net realized gain on investments, over 96% of CLM's yield was return-of-capital over the same period."

This is article is old but it is a must-read for those considering buying ultra-high yield funds including those from Cornerstone.

https://www.thestreet.com/story/10376362/1/cornerstone-funds-payout-not-what-it-appears.html