Incorrect asset class

Snorkle

I do not pay much attention to the investment tab but was curious after reading another post on the problems with asset rebalancing. When I looked at what Quicken thought my portfolio looked like I was struck by the fact that it did not show any international bond holdings. I have shares in the Vanguard International Bond fund (VTABX) which is basically 100% international (global/world) bonds. I have Quicken set up to download asset allocations and mostly it seems like that results in reasonable allocations but in this case Qucken thinks the fund has 77% domestic bonds. Makes we suspicious of how accurately Quicken portrays holdings in mutual funds.

q_lurker

That's how it shows for me also as I temporarily add it to a file.

That data inherently comes from Vanguard possibly via Morningstar and/or other third party data suppliers. It can be out of date at times.

From the Vanguard site I find this info:

Your skepticism is obviously warranted. You may want to manually update the information reporting as some 90% - 100% Global bonds and removing the Download asset class selection.

I suggest you also use the Report a problem selection under the Help menu.

Jim_Harman

This may be because VTABX is US dollar hedged. Depending on how the quote provider counts the hedging derivatives, that might make it look like the fund is mainly invested in US securities.

I have over-ridden Quicken's downloaded asset allocation for this and other funds.

Snorkle

Thanks for the comments. I had wondered about the dollar hedged aspect. Morningstar categorizes it as global bond- us dollar hedged. Maybe I will leave it in Quicken as global bond for a while and then turn the automatic download back on to see what it picks up.

Jim_Harman

I think this fund belongs in Quicken's Global Bond asset class, but the dollar hedging means it will often perform differently than unhedged funds, which are sensitive to exchange rate fluctuations.

If you hold a mixture of hedged and unhedged funds, you might want to make a custom asset class for the hedged holdings.