Adding Splits & Bonus Issues

When a stock split or consolidation happens, portfolio positions will need adjusted accordingly as otherwise your portfolio valuation will be out of whack. In the same way, a bonus issue (sometimes called a scrip issue) is identical in outcome to a share split - the investor receives additional shares, but the share price is reduced accordingly so that the value is identical in your portfolio.

We provide some simple tools to help you do this on the portfolio holdings page.

Firstly find the stock in question after the split has happened - it's best to double check the regulatory announcement from the company to find the exact split details.

Worked example

Pittards Group consolidated its shares in January 2014, the company released an announcement saying:

The Company has convened a General Meeting for the purpose of approving the proposed consolidation which will be effected by a 1 for 50 issue of new ordinary shares. The General Meeting has been convened for 15 January 2014 and, if the resolution is approved, trading in the consolidated shares should begin with effect from 16 January 2014, the next business day following the GM.

This highlights that for every 50 Pittards shares in your portfolio, you would receive 1 new share on the 16th January. On this date, if you did not adjust for this, your portfolio would show a big increase in value.

Adjusting for splits and consolidations

Dealing with splits and consolidations in Folios is simple. Open your portfolio and find the edit button on the portfolio holding in question:

You will then see the following popup where you can adjust your position. "For every X shares of the old XXX holding, receive XX of the new”.

Click update and the number of shares held AND purchase price of all transactions will be adjusted to the new baseline.