PortfolioCenter 5.5 makes it easier to manage bifurcated average cost positions. On the Matching Method tab of the portfolio details, you’ll find a new Bifurcation Handling check box. By default, this box is checked and set to bifurcate lots acquired before January 1, 2012.
What does this mean to you?
- If you never used average cost accounting for mutual funds:
you can ignore this whole issue. You may leave the bifurcation handling box checked. It won’t affect your data one way or the other.
- If you used average cost accounting for mutual fund positions prior to 01/01/2012 and want to permanently switch to FIFO:
you should complete the steps in Best Practices and verify your matching method is set to FIFO. Hopefully you already did this in January. If so, you are done. You may leave the bifurcated box checked. It will not affect your data.
- If you used average cost accounting for mutual funds positions prior to 01/01/2012 and want to continue using average cost: