How to handle Vanguard mutual fund migration/conversion/exchange ? (edit)

DenDudley
DenDudley Member

How do I enter a transaction in my investing? Vanguard exchanged one fund for another in my account. What is that called in the pull-down list of transactions. On the Vanguard page it has 2 entries: "Plan initiated transfer out" and "Plan initiated transfer in." The number of shares changed, the total value did not.

Best Answer

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited March 17 Answer ✓

    If your cost basis changes after a Mutual fund Conversion, chances are you had "Use average cost" selected on the Security Details for the old fund. Find the old fund at Tools > Security List and click on the fund name to open the Security Detail view. Click on Edit Details and un-check Use Average Cost if it is checked.

    Then you should delete the transactions that were created by the conversion (probably one Removed and three Added in your case) and re-enter the conversion.

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Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭

    We need a little more detail here.

    Was this a "Share class conversion", i.e. XXX Fund Investor shares exchanged for XXX Fund Institutional shares, or was the replacement an entirely different security?

    Is this a taxable account, or an IRA or 401(k) type account?

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  • Ps56k2
    Ps56k2 SuperUser ✭✭✭✭✭

    what are the 2 fund symbols ?

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  • DenDudley
    DenDudley Member

    Vanguard PRIMECAP Investor shares were replaced by an equal cash value of PRIMECAP Admiral shares. This is a 403B account, and I am retired.

    When I entered this as a "mutual fund conversion" (one of the options in the drop-down list), I end up with it appearing as a HUGE cost basis increase, 3x the original cost basis.

  • Ps56k2
    Ps56k2 SuperUser ✭✭✭✭✭
    edited March 16

    yeah - Vanguard Investor vs Admiral -
    a lot of Vanguard funds are getting migrated to their Admiral shares… and the Investor fund is totally Closed.

    https://investor.vanguard.com/investment-products/mutual-funds/profile/vpmcx

    QWin - R54.16 - Win10

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited March 17 Answer ✓

    If your cost basis changes after a Mutual fund Conversion, chances are you had "Use average cost" selected on the Security Details for the old fund. Find the old fund at Tools > Security List and click on the fund name to open the Security Detail view. Click on Edit Details and un-check Use Average Cost if it is checked.

    Then you should delete the transactions that were created by the conversion (probably one Removed and three Added in your case) and re-enter the conversion.

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  • DenDudley
    DenDudley Member

    Thank you, Jim! It worked!