Mutual fund exchange with Cash in lieu RRS feed

  • Question

  • A mutual fund I own merged with others to form a new fund.  My 3280 shares of the old fund became 3391 shares of the new fund PLUS 12.33 paid in Cash to me.  Any reasonable way to treat this situation in Money Sunset?  Also what else should I do (change name, symbol)  to make this transfer in Money?  Note that if I dispose of any of the new fund I will be relying on the Broker to provide me with the correct basis, that is, I won't be relying on Money for income tax calculations, but I would like to have an accurate value for my records.  
    • Edited by bobjbkln Tuesday, April 9, 2013 7:01 PM
    Tuesday, April 9, 2013 6:59 PM

All replies

  • Usually mutual funds are accounted for in fractional shares. I suspect this may be an exchange-traded fund, which is a mutual fund, but it is best treated as a stock in Money.

    The most accurate way, if this is a tax-free event other than the CIL, would be to do an preprogrammed split with Money generating a Sell for the fractional share. Then rename the fund and change the symbol. 1. If you are downloading quotes, from the broker, perhaps via PocketSense, there is one more trick you will have to know about: say so.

    Now you would not want to do a 3391:3280 split. Instead you would want to either get the official split ratio (best), know how many fractional shares there were, or at least estimate what percent of a share the $12.33 represented. You could compute the estimate based on the values of the shares.

    2. Post the ratio/info that you came up with, and I would be glad to provide the appropriate split ratio to use.

    Tuesday, April 9, 2013 7:08 PM
  • Yes you are right that it is a stock (ETF).  I totally forgot this.  Based on the closest date I had a price for (5 days before the exchange) , the cash equals 0.8059 shares.  I did not download the prices (via hleOfxQuotes) simply because it did not work for this fund.  I would try it again with the new fund.
    Tuesday, April 9, 2013 8:03 PM
  • Split the shares 34523 shares for every 33385 shares. When Money asks if you want to keep the fractional shares, say you do not. Money will generate a Sell with the same date as the split. When it asks about the share price, just roughly estimate.

    Then go back to the Sell that Money creates, and edit it. Blank the Price, and change the Total to $12.33. Money will recompute the price per share.

    Tuesday, April 9, 2013 8:11 PM
  • Cal,

    Things are slowly coming back to me.  Even though this was an ETF,  I set it up as a mutual fund because it reinvested all dividends and therefore purchased fractional shares.  I followed your instructions for the split but Money did not ask whether I wanted to keep the fractional shares and therefore did not generate the sell transaction.  So I removed the split and manually sold the fractional share for $12.33.  Then I recreated the split according to your instructions and things are close enough so that I guess I can fudge it to reconcile with a "remove shares" transaction.  I will wait for my next month's statement to do this however as my current brokerage statement is quite strange.  Even though I was credited $12.33, my asset listing shows that I still own 0.5792 share of the defunct fund worth $8.66.  I have no idea what this means.  Perhaps they will work it out by the next statement.

    Again thanks for all your help.

    Wednesday, April 10, 2013 3:20 AM
  • MutualFund might be the best for this. However if you want to at some point, Money 2007 lets you change a security from MF to stock if the transactions are available to both.
    Wednesday, April 10, 2013 3:45 AM
  • I can't change it to a stock because it has reinvest capital gains transactions which are not permitted for stocks in Money.  However, this causes another problem when I try to download price quotes via hleOfxQuotes.   Using the symbol for the new fund, Money asks me what investment I want to connect it to.  When I state that it is an existing investment, it gives me a choice that does not include the fund.  If I select that it is a new investment, and put in the symbol when requested, I'm told that there is already an investment with that symbol.  Is there a way out of this?  With my old fund, I did not use hleOfxQuotes.  I just updated the price every month along with the dividend reinvest transaction.  Not a big deal if I have to continue doing this.
    Thursday, April 11, 2013 3:40 PM
  • I suggest that you put your broker's name into the search box at microsoftmoneyoffline.wordpress.com to see if you can get OFX statements from your broker via PocketSense. The OFX statements generally include the latest closing price and date.

    Thursday, April 11, 2013 5:22 PM