Fund Manager
PORTFOLIO MANAGEMENT SOFTWARE
Contact Us

Vanguard Money Market (Settlement Fund)

Questions about updating prices or transactions in Fund Manager

Postby Cole » Tue Mar 21, 2017 7:05 pm

Hi Mark,

I'm having issues with Vanguard's new Money market account (settlement fund) and reconciliation. Since the new system was put in place the amount of cash is always incorrect. I've attached a picture.

Has anyone else mentioned this? Do you have any suggestions as to reconcile so the amount of cash in the account is accurate?

I only have this problem with brokerage accounts, for traditional IRA, roth ira, and taxable accounts used for purchasing ETF's, individual stocks etc.

For non-brokerage accounts such as or 401k/403b accounts for accounts that don't require a brokerage account to only purchase Vanguard mutual funds the problem doesn't occur.

Any suggestions?

Thanks, Cole
Vanguard Federal Money Market for brokerage accounts.PNG
Vanguard Federal Money Market for brokerage accounts.PNG (4.99 KiB) Viewed 2629 times
Cole
 
Posts: 23
Joined: Wed Nov 27, 2013 1:44 pm

Postby Mark » Wed Mar 22, 2017 10:29 am

Hi Cole,

Vanguard is a bit unique in their handling of sweep transactions in their brokerage accounts. When retrieving transactions, the sweep transactions are explicitly listed. For example, if you get a dividend in some stock, you will get 2 transactions retrieved:

Dividend in Stock for $X
Buy of Money Market for $X

If you've assigned the money market as your default cash account, this will result in a duplicate deposit of that $X into the money market.

There are 2 options to deal with this:

1) Set your default cash account to "<none>" for this account. You do this in the properties of the sub-portfolio. Since Vanguard is already reporting these sweep transactions, in general you don't need a default cash account assigned. This way FM won't automatically record a corresponding entry for you automatically. There are a couple negative points with this approach though. Any "Investment Banking" transactions won't be imported, as you don't have a default cash account. This can be things like ADR fees. Also, dividends in your money market that are reinvested show up as distributed. Vanguard reports dividends reinvested in your money market as reinvested, but for 0 shares, so FM treats this like it was distributed, unless it is a default cash account.

2) Set your default cash account to the new money market. You will have to un-check any "sweep" type transactions from importing in the "Preview Importing Transactions" dialog. You can either do it during the import, or go in afterwards, and delete the duplicates.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11253
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ


Return to Prices and Transactions

Who is online

Users browsing this forum: No registered users and 12 guests

FundManagerSoftware.com | Search | Site Map | About Us | Privacy Policy
Copyright © 1993-2024 Beiley Software, Inc. All rights reserved.
cron