PIM Putnam Master Intermediate Income Trust - PIM

[jbowyer]

If you would like to see some dirty share price manipulation, look no further than Putnam Master Intermediate Income Trust (symbol: PIM).

On days when PIM must pay its monthly distribution, the share price on the market jumps up hugely. The result—shareholders who have elected dividend reinvestment get screwed. Their monthly distribution buys a significantly lower number of shares at the higher price.

Then, after the distribution has been paid, PIM falls down to a much lower share price on the same day.

Examples:

September 30, 2008 close $5.39
October 1, 2008 open $5.89 (dividend reinvestment price)
October 1, 2008 close $5.10

October 31, 2008 close $4.90
November 3, 2008 open $5.40 (dividend reinvestment price)
November 3, 2008 close $4.81