First it is oak"B"x, balanced fund and has about 39% bond and 5% cash according to M*. Many recommend bond funds be held in IRA instead of in taxable, maybe except when one is in withdrawal stage. It had rather high T/O of 81%. As Mase said, very many funds (even those known as tax efficient) gave rather sizeable distribution in 2007. I don't own this fund (since it is closed) but many wants to have this fund in their IRA accounts. IMHO. KM

Let's keep one thing in mind:  You only pay taxes if you make money.  YTD, OAKBX is one of the few funds that is making money. If you want to save on taxes, there's a lot of funds that won't make you worry about it.

 OAKBX is my largest holding (and growing larger); I hold it in 457, Roth, and regular accounts.  The time may come when I regret it, but it hasn't come yet.

  If you're looking for a tax loss, OAKBX is bad, bad, bad.  Otherwise, if you're paying taxes on OAKBX's cap gains and dividends in a (according to Warren Buffett) recession, you ought to be grateful that you get to pay those taxes. 

Actually that is not true.  Funds can have very large distributions in years where the fund is actually down.  When a fund has outflows, the managers are forced to sell positions that may be up in value after years of holding the position.  They have to do so in order to meet redemptions.  So, even if the fund is down for the year, the manager is selling positions at a gain from years of appreciation.  Look at ARTKX last year.  Fund was flat and paid out about 8% distribution.  Also, let's not forget that when a fund closes, it naturally becomes far less tax efficient for the outflow reasons that I mentioned above.  For a fund that is still open, the gains become spread out over a larger asset base and therefore lead to smaller distributions.  BRAGX and BRAIX are a great example of that.  Both have turnover over 100% and BRAIX was actually up more last year.  BRAGX paid out almost 18% while BRAIX paid out less than 3%?  Why?  BRAGX is closed and BRAIX is still open and was taking in new assets over the course of the year.