Converting Vanguard Investor Shares to Admiral Shares.

[aviator]

Hi Mark,

I currently own a mutual fund at Vanguard that is in the Investor Share category (i.e., higher expense ratios than Admiral Shares). Soon, I will have enough money invested in this fund to automatically bump it into the Admiral Share category.

The Admiral fund has a different symbol, fund number and, of course, description.

What's the best way to convert this in FM? I'm thinking I can just change the properties of the Investor fund to the Admiral fund, and everything will be consistent with how Vanguard will track the new fund -- cost basis, transaction history, etc.

Would appreciate your thoughts.

Thanks.

[ed4588]

Aviator,
This is an incomplete answer to your question, but it may be important. Some (not all) of the Vanguard Admiral funds have a different share price from the equivalent Investor funds. As a result, conversion from investor to Admiral results in a change in the number of shares owned. I think that such a conversion is best handled by treating the conversion as a stock split and then changing the fund identifiers.

Hope this helps.

Ed

[aviator]

Thanks, Ed, it does help.

[Mark]

Hi Aviator,

As Ed mentioned, one valid way to deal with it is just recording a split and a name change. Another option is to use the Transfer Between wizard. This will record a single Transfer Out in the investor shares, and one Transfer In into the admiral shares for each open lot you have. This maintains the cost basis information. With this method you will end up with 2 investments, but the investor shares will now have 0 shares. Either way will work fine.