Vanguard Mutual Fund conversion to Admiral Shares


G

George

Vanguard occasionally converts a mutual fund to an Admiral share when the
accumulated value exceeds $100,000. How should this be handled in Money
2006? For example, if I own X shares of VFINX with a market value of 100,000
and a basis of 50,000, and then Vanguard converts all X shares to the
Admiral equivalent VFIAX, how should I reflect that in Money and retain my
basis? Do I Add Shares, Buy, Transfer In, etc.? Similarly, how should I deal
with the VFINX that went away - a Remove Shares, Transfer Out, Sell
(strongly doubt), etc.?
Thanks!
 
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C

Cal Learner-- MVP

Vanguard occasionally converts a mutual fund to an Admiral share when the
accumulated value exceeds $100,000. How should this be handled in Money
2006? For example, if I own X shares of VFINX with a market value of 100,000
and a basis of 50,000, and then Vanguard converts all X shares to the
Admiral equivalent VFIAX, how should I reflect that in Money and retain my
basis? Do I Add Shares, Buy, Transfer In, etc.? Similarly, how should I deal
with the VFINX that went away - a Remove Shares, Transfer Out, Sell
(strongly doubt), etc.?
Handling a Mutual Fund Reorg or conversion from B to A shares:


If your mutual fund is involved in a tax-free event where all of
your regular shares are being converted to Admiral shares for that
particular fund:

1. Do an appropriate split of the fund. You will need to input
the split ratio as a ratio of integers (1 ... 65535). Post the
ratio you want to achieve ( or before and after share quantities).

2. In the investment details, change the symbol.

3. Change the investment name.

4. Add a brief comment to the investment to explain the change.
 
L

L Cramer

In similar circumstances, I've simply changed the name, symbol, and adjusted
the number of shares. That way you keep the history and keep it simple.
 
C

Cal Learner-- MVP

In similar circumstances, I've simply changed the name, symbol, and adjusted
the number of shares. That way you keep the history and keep it simple.
By "adjusted the number of shares" I am guessing that you mean
AddShares. That is not good for analysis of performance, and it is
not so good at maintaining the basis. To then sell using anything
other than single-category basis information would not work.

Entering a split is easy. Money handles the gory details to adjust
the lot information accurately.

In a tax-deferred account you may not need basis information. But
even then the better performance information may be useful.
 
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L

L Cramer

I am guessing that you mean AddShares. That is not good for analysis of
performance, and it is not so good at maintaining the basis.
Good point. In my case, and in the one above, the share/price difference is
quite small. At 100K it's 704.77 vs. 704.67 shares. Still, if accuracy is
important, your way is the right way.
 

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