Re: Vanguard bond fund liquidation

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In Reply to: Re: Vanguard bond fund liquidation posted by Bill Davison on April 05, 2005 at 11:21:59:

: Never mind - deleted then re-entered all transactions for this fund and the problem went away. Still seems strange that FM kept overriding the 'distribution per share' value I was typing in, but after re-entering the txns I'm not able to recreate the problem.

:
: : Hi -

: : How's the best way to handle this transaction:

: : In the middle of the month, I transferred all shares out of a Vanguard bond fund. Vanguard records the sale as 2 transactions, both with the same date:
: : #1 - sell all shares
: : #2 - issue an unreinvested dividend for the partial month

: : For #2, I tried going into FM and entering an unreinvested dividend, but I get a message saying FM can't calculate distributions per share since I owned 0 shares on that date. FM prompts me to enter my own value for 'distribution per share'. However, no matter what I enter, FM changes it to an absurdly high value: 24,101,294,880,849.92

: : Suggestions?

: : Thanks
: : Bill

Hi Bill,

Thanks for the message. I believe you were running into an internal rounding error in Fund Manager. If you own 0 shares for a distribution date, it will give you that message about entering the distributions per share manually. Otherwise, FM automatically calculates the distribution per share based on the value and the number of shares you own. It sounds like you actually still owned some very small fractional number of shares after your redemption. FM should handle this better, and I'll look into that. In case you haven't seen this, it is worth reading on how to help prevent rounding errors on your recorded transactions:

http://www.fundmanagersoftware.com/help/avoidroundingerrors.html

Thanks,
Mark
--
Mark Beiley
Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003

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