entering a transaction on a merger of mutual funds

Unknown

I own some mutual funds and just received a confirmation where one mutual fund is merged into a different fund. How do I categorize this transaction when entering this transaction

Unknown

Hi Joe,

I'm sorry if this has caused any confusion or inconvenience. To help us provide the most appropriate response, please let us know which Quicken product (QWin or QMac) and what version (2016, 2017, etc.) you are using. Also, are you using the US version of Quicken or Quicken Canada?

Thanks,
Dave

Karen

Dave, I have the same issue. Using QWin, 2015, US version. Can you help?

Tom Young

There are many ways of doing this.

Probably the easiest way of doing this is a "Corporate Acquisition Stock for stock (Stock for stock)" transaction.  You enter the name of the old mutual fund as the "Company acquired" and the name of the new mutual fund as the "Acquiring company".  You then enter the number of shares of the "new" company for each share of the "old company" tendered.

Karen

Tom Young said:

There are many ways of doing this.

Probably the easiest way of doing this is a "Corporate Acquisition Stock for stock (Stock for stock)" transaction.  You enter the name of the old mutual fund as the "Company acquired" and the name of the new mutual fund as the "Acquiring company".  You then enter the number of shares of the "new" company for each share of the "old company" tendered.

I don't see a Corporate Acquisition (Stock for stock) transaction in the Enter Transaction > Action drop down box. Can you thoroughly explain the process?

q_lurker

Tom Young said:

There are many ways of doing this.

Probably the easiest way of doing this is a "Corporate Acquisition Stock for stock (Stock for stock)" transaction.  You enter the name of the old mutual fund as the "Company acquired" and the name of the new mutual fund as the "Acquiring company".  You then enter the number of shares of the "new" company for each share of the "old company" tendered.

Is the account a Single Mutual Fund account?  See the Edit Account details.  

If yes, then toggle the Yes/No option for SMF to No.  Then you should get the Corporate Acquisition option.  

Lyn Buddenhagen

Tom Young said:

There are many ways of doing this.

Probably the easiest way of doing this is a "Corporate Acquisition Stock for stock (Stock for stock)" transaction.  You enter the name of the old mutual fund as the "Company acquired" and the name of the new mutual fund as the "Acquiring company".  You then enter the number of shares of the "new" company for each share of the "old company" tendered.

I'm using QM2017, version 4.4.3 and when I manually create a new investment transaction, I don't see a "corporate acquisition" option either - the closest it gets is return of capital. ??

Unknown

Tom Young said:

There are many ways of doing this.

Probably the easiest way of doing this is a "Corporate Acquisition Stock for stock (Stock for stock)" transaction.  You enter the name of the old mutual fund as the "Company acquired" and the name of the new mutual fund as the "Acquiring company".  You then enter the number of shares of the "new" company for each share of the "old company" tendered.

What is the difference between Corporate Acquisition and Mutual Fund Conversion? I too have two mutual funds that merged. One fund merged into a fund I do not own. The second mutual fund merged into a fund I already own. I have Quicken Premier 2016 US version. Thanks for any suggestions and help.

q_lurker

Tom Young said:

There are many ways of doing this.

Probably the easiest way of doing this is a "Corporate Acquisition Stock for stock (Stock for stock)" transaction.  You enter the name of the old mutual fund as the "Company acquired" and the name of the new mutual fund as the "Acquiring company".  You then enter the number of shares of the "new" company for each share of the "old company" tendered.

@Joy:  By intended end result - no difference, but ...

• There have been some issues with MF Conversion not getting some of the transfer data correct (cost basis if I recall correctly).  I do not know if that has been resolved and the problem may have only been in a few reports.
• The MF Conversion only applies in the account where it is entered.  The Corporate Acquisition gets applied to all 'acquired' holdings in all accounts.  This may then require deletion of some transactions in other accounts where the conversion was not intended.
• The MF conversion offers an easier interface asking for the total shares 'received' in the conversion.  The Corp Acq asks for the share ratio which may not be as exact a conversion.  That may then require an adjustment on the resulting Add Shares transaction.  

.  

Unknown

Tom Young said:

There are many ways of doing this.

Probably the easiest way of doing this is a "Corporate Acquisition Stock for stock (Stock for stock)" transaction.  You enter the name of the old mutual fund as the "Company acquired" and the name of the new mutual fund as the "Acquiring company".  You then enter the number of shares of the "new" company for each share of the "old company" tendered.

I have QWin Premier 2016 USA Version 25.1.11.5....
I've tried entering a mutual fund merger as both a Corporate Acquisition and the Mutual Fund Conversion. Neither has worked since the program has gone back to the original purchase and dividends dates and recomputes with a dollar amount that makes absolutely no sense. In fact the Corporate Acquisition has taken an approximate $11,000 account and now says it worth over $9Million. (Don't I wish)
Guess I'm going to have to use the Sell and Buy method which isn't going to give me accurate Cost Basis Value.

q_lurker

Tom Young said:

There are many ways of doing this.

Probably the easiest way of doing this is a "Corporate Acquisition Stock for stock (Stock for stock)" transaction.  You enter the name of the old mutual fund as the "Company acquired" and the name of the new mutual fund as the "Acquiring company".  You then enter the number of shares of the "new" company for each share of the "old company" tendered.

@Sharon:  The Corporate Acquisition approach should work in QW2016.  I suggest restoring a backup and trying again.  Make sure you have the share ratio as close as possible and that the price is correct.  

If it is a 1:1 share ratio, you can also take the approach of effectively renaming the security.  Tied with that is unchecking the Matched with Online security box.  With your next download, you would then rematch the 'new' online security to the 'new' Quicken security.