What causes capital gain distributions to be generated by an ICON Fund?
A. Capital gains can arise from ICON’s strict sell discipline and are the by-product of an investment discipline that results in holding industries we believe are underpriced for an extended period of time. When industries begin trading above our estimate of fair value, our methodology directs us to sell those overpriced industries, book any profits, and use the proceeds to rotate into underpriced industries. In our view, the potential for missing attractive buying opportunities far outweighs the cost of carrying unrealized long-term gains.
