Those not-so-nasty CAPITAL GAINS.

The article gives investment advice concerning fund distributions. The script goes like this: Funds must pay out essentially all of the past year's net realized gains. For example, T. Rowe Price New Asia expects to make a distribution amounting to 13% of net asset value per share. However, payouts boost the tax basis if one reinvest the distributions. For example, if one have $10,000 in a fund and it pays out a $1,000 capital-gains distribution, the new tax basis is $11,000 if one reinvest.