View dividend and capital gains distribution estimates for Vanguard Managed Payout Fund.
How to invest

Updated distribution estimates for Vanguard Managed Allocation Fund

6 minute read
  •  
December 16, 2020
How to invest
Understanding investment types
Article
Page
Investment Products
Taxes
Dividends
Capital gains
Tax forms

If you own shares of Vanguard Managed Allocation Fund in a taxable account, these dividend and capital gains distribution estimates may help you with 2020 tax preparations.

Keep in mind that the fund’s actual distributions might differ from the figures shown here. These estimates are updated to reflect projected year-end distributions for the underlying funds in which the Managed Allocation Fund invests, but they don’t reflect any changes in the fund’s commodity investments since the mid-December distribution. Commodity-investment changes could affect the breakdown of the fund’s year-to-date distributions as well as the need for, and amount of, any additional distributions. Purchases and redemptions in the Managed Allocation Fund may also affect final distribution figures.

In late January 2021, you can view the final ordinary income, long-term capital gains, and return-of-capital distribution amounts for the fund in the secure My Accounts area of vanguard.com. This information will also be reported on Form 1099-DIV, which you’ll receive in early 2021.

Estimated breakdown of 2020 monthly distributions

The percentage estimates in this table are for the monthly distribution payments received through the May 15, 2020, distribution. They’re broken into categories compatible with tax-reporting requirements, as opposed to the percentage breakdown you see on monthly statements, which is based on financial-reporting requirements.

The estimates include projections of income dividends and capital gains distributions expected to be received through the end of 2020 from the funds and holdings in which the Managed Allocation Fund invests. They don’t include any gains or losses in commodity investments since the May 15, 2020, distribution.

VPGDX

Managed Allocation Fund

Ordinary income 90%
Long-term capital gains 0%
Return of capital 10%

Estimated per-share amounts of additional distributions

These estimates are for additional distributions the Managed Allocation Fund is expected to make from net income and/or long-term capital gains. These distributions are usually reinvested automatically in shares of the Managed Allocation Fund.

VPGDX

Managed Allocation Fund

Declaration date/Record date 12/29/2020
Payable date 12/31/2020
Ordinary income $0.00
Long-term capital gains $0.75
Return of capital $0.08

Most Viewed

Vanguard Core-Plus Bond Fund launches
Vanguard Core-Plus Bond Fund features the diversification of bond funds with the potential for higher yields through proven expert management.
Ready to invest? See how to open an account
Start with this step-by-step guide to opening a personal investment account, such as a general investing brokerage account or an IRA.
Inflation, diversification, and the 60/40 portfolio
Vanguard finds it will take a lot more inflation than we expect to affect diversification in a balanced portfolio.
Potential U.S. debt default: Why to stay the course
A U.S. debt default, unlike a government shutdown, would be unprecedented. Here’s why we don’t think it will occur.
Inflation beyond the current spike
Could inflation at rates we’ve seen in 2021 persist in 2022 and beyond? It’s not our base case.
Fueling the FIRE movement: Updating the 4% rule for early retirees
With updates based on Vanguard’s principles of investing success, the 4% rule can help FIRE investors achieve success in retirement.

All investing is subject to risk, including the possible loss of money you invest.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit Vanguard fund performance.

Prior to May 21, 2020, Vanguard Managed Allocation Fund was known as Vanguard Managed Payout Fund and mandated monthly cash distributions. Distributions shown for periods before May 21, 2020, reflect monthly distributions, while periods after May 21, 2020, reflect annual distributions.

Vanguard Managed Allocation Fund isn’t guaranteed to achieve its investment objectives and is subject to loss. In addition, some of its distributions may be treated in part as a return of capital. The dollar amount of the fund’s monthly cash distributions could go up or down substantially from one year to the next and over time. It’s also possible for the fund to suffer substantial investment losses and simultaneously experience additional asset reductions as a result of its distributions to shareholders under its managed-distribution policy. An investment in the fund could lose money over short, intermediate, or even long periods of time because the fund allocates its assets worldwide across different asset classes and investments with specific risk and return characteristics. Diversification doesn’t ensure a profit or protect against a loss. The fund is proportionately subject to the risks associated with its underlying funds, which may invest in stocks (including stocks issued by REITs), bonds, cash, inflation-linked investments, commodity-linked investments, long/short market neutral investments, and leveraged absolute return investments.

The Managed Allocation Fund may not be appropriate for all investors. For example, depending on the time horizon, retirement income needs, and tax bracket, an investment in the fund might not be appropriate for younger investors not currently in retirement, for investors under age 59½, who may hold the fund in an IRA or other tax-advantaged account, or for participants in employer-sponsored plans. Investors who hold the fund within a tax-advantaged retirement account should consult their tax advisors to discuss tax consequences that could result if payments are distributed from their account prior to age 59½ or if they plan to use the fund, in whole or in part, to meet their required minimum distribution (RMD) obligations. Distributions from the fund are unlikely to precisely match an investor’s IRA RMD obligations. In addition, use of the fund may be restricted in employer-sponsored plans by the terms of the governing plan documents and/or at the discretion of the plan administrator. Review the information carefully with your financial advisor before deciding whether the fund is right for you.

Before investing, consider the Managed Allocation Fund’s investment objectives, strategies, risks, fees and expenses. Contact Vanguard for a prospectus containing this information. Read it carefully.