I received a snail mail this morning announcing that there will be a 2% dividend on the Prosperity Phil. Equity Fund of Sun Life of Canada on 27 June 2008. However, I am disturbed by a note in the letter:
On this date, the net asset value per share (NAVPS) is expected to decline accordingly; however, the impact will be offset by the increase in the number of your shares.
I have a feeling that I shouldn't be celebrating because this giving away of dividends may just be a strategy that will hopefully help the fund as its current NAVPS is 1.6531 compared to 1.8893 when I got my very few shares December last year (Economists please enlighten me). But at any rate, it seems that the fund managers are doing something about the declining asset value, and I think this is something that I should be glad about.
To date, my current loses in this investment is 12.5%. Hopefully the economy will be able to recover.
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