Helmut,

CWGIX (second largest holding in my portfolio), had a three year average annual total return of 16.96%.  ADVDX had a three year average annual total return of 9.03%.

That is almost 8% a year difference.  Both are global go anywhere dividend investing funds so the difference can only be attributed to either better stock selection or strategy.  If it is better stock selection, the dividend capture strategy has not been able to not compensate for the nearly 24% difference over three years.  If it is the strategy (shuffling cash) itself is causing the drag, then what have you accomplished with dividend capture?

I respond much as you do to the disparity between the average annual return of the two funds you're discussing but I differ in the attribution of cause.  I would be looking at the build up of capital gains over the previous years by CWGIX and the subsequent recognition of these as the cause of the outperformance which totally fits the profile of  what is essentially a value fund and you're looking at the period when the asset class would be at the top half of the callan tables.  ADVDX has only been around 4 or 5 years and doesn't have years of accumulated positions that have now reached fair value and are being recognized.  How is their relative performance going to be during a different phase of the investment cycle?  I don't know.

When I look at the comparison of returns at smartmoney.com, I see the disparity mainly occurring during this year as ADVDX seems to have taken a downturn.  I did not do any concentrated DD on these two funds so I don't know.

Roberta