Cost Basis Methods

View Cost Basis

1. Log In with your User Name and Password.
2. On the Account Summary page, select the fund name to expand information about the fund.¹

¹Cost basis information only appears for eligible funds.

Modify Cost Basis Method

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2. Select My Profile.
3. Select the Cost Basis link² and make your changes.

²If the link does not appear, you do not have eligible accounts.

Cost Basis Accounting Methods

Average Cost
A method of calculating the adjusted cost basis in which the investor uses an average of the cost of the shares held in the account at the time of redemption. It assumes the investor is redeeming the first shares purchased before any others (see First In, First Out)

First In First Out (FIFO)
A method of calculating cost basis in which the shares first acquired are the first to be redeemed.

Last In First Out (LIFO)
A method of calculating cost basis in which the shares last acquired are the first to be redeemed.

High Cost
A method of calculating cost basis in which the highest cost shares are the first to be redeemed.

Low Cost
A method of calculating cost basis in which the lowest cost shares are the first to be redeemed.

Loss Gain Utilization (LGUT)
A method of calculating cost basis in which the shares that would result in a loss are the first to be redeemed. For lots that would result in a loss, short-term lots will be redeemed ahead of long-term lots. Due to favorable long-term capital gains rates, long-term gain lots are given priority over short-term gains to reduce taxes assessed.

Specific Lot
A method of calculating cost basis in which the investor indicates the purchase lot(s)©or the actual shares by quantity and date purchased©that he or she would like to redeem.