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How to enter a fund conversion? RRS feed

  • Question

  • Hello,

    My broker has announced that, due to a change of legislation in the UK, a couple of my funds will be "converted" to a different accounting structure. This means that although the value of my holding will be unchanged, the number and value of units will change. How can I best enter this into the portfolio in MS Money?

    I can't simply sell and buy back, because this will alter all the capital gains records.

    Friday, June 6, 2014 5:49 AM

All replies

  • I suggest using the split shares feature. 
    Friday, June 6, 2014 7:39 AM
  • Since the MS stock price servers were disabled, changing the stock symbol (within your ***.mny file) is not now important.

    Teabag 

    Saturday, June 7, 2014 6:11 AM
  • Thanks everybody - yes I had forgotten about the split feature.
    Saturday, June 7, 2014 7:57 AM
  • Stock symbols are still important if you want to use Dan Gaier's Money Add-on program MSMoneyQuotes.exe which re-enables automatic stock price updates in most versions of MS Money from 2005 on. See here: http://gaiersoftware.com/Money.

    I have no affiliation with Dan apart from being a satisfied user of his program.

    Saturday, June 7, 2014 9:33 AM
  • I used the share split for my clean class conversions in April this year.

    However, there is a further problem with dividends and tax reclaims on bond funds.

    Say you have an income fund that was originally called UK Income A Fund.

    This was converted to the new clean share class called UK Income R Fund.

    You do the share split and rename your original fund name and everything looks

    fine in the history of the holding and the portfolio manager view (mine did).

    I then got some dividend and tax reclaims at the end of May. These were paid out

    from the original holding. Records from my broker now show small amounts in

    the UK Income A Fund. The broker states that these will be converted to the clean

    share class at some point in the future. However, it's going to be tricky to get those

    small amounts "converted" in MS Money terms without triggering a sell/buy event.

    Currently, I have recorded these dividends/tax reclaims in their original holding name

    (to truly reflect what has happened) and am still pondering the best way to proceed.

    One thing I have always done is create my ISA funds as a fund type of "other" rather

    than Managed Fund. This means they can easily be excluded from the Capital Gains report,

    so a sell/buy for me would not be too bad.

    Tuesday, June 10, 2014 2:34 PM
  • The dividends received are cash in hand - they cannot be units in the original fund, because it no longer exists.

    Not true I'm afraid. All of the current funds have both their existing share classes and the new clean share class.

    In the real world, my online broker account already shows units have been bought in the old share class funds from dividend/tax reclaims.

    The broker clearly stated in April, before the conversion, that this would happen and that they would be converted at a later date.

    This is all fine and if you're purely using paper records or manually doing things in say excel there is no problem.

    It's only when you try and replicate in MS Money what's happening in the REAL world that there is a problem.

    Tuesday, June 10, 2014 6:51 PM
  • That was what I was planning to do, as I couldn't think of anything better. 

    It's not ideal but at least it will keep the figures correct, including the income amounts

    and the total return etc.

    Furthermore, the Memo field is useful to make a note of this type of thing.

    Wednesday, June 11, 2014 10:03 AM
  • My experience [in UK and using Money 8.0.14.1015] is that (text inserted in) the Memo field can be exceptionally useful ~ when reports are customised to look for particular text. For example, to distinguish between a dividend actually received and the associated tax credit ~ and/or to distinguish between securities held within a tax efficient wrapper (PEP, ISA, NISA) and those held outside a wrapper ~ and/or to distinguish securities held in my name from securities held in my wife's name and to aggregate both.

    Teabag

    Friday, July 11, 2014 5:03 PM
  • The split must be entered as a ratio of integers 1... 65535. http://umpmfaq.info/ has a split calculator, or just post the ratio that you are trying to achieve and I can run my non-web version.
    Saturday, July 12, 2014 11:25 PM
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