QWP 2018 Growth of $10,000 chart incorrect after shares removed/added

Dave493

Vanquard recharacterized some of my holdings to Admiral shares. I used the "Mutual Fund Conversion" transaction to process this. It first removed all affected  old shares, then created a new "Shares Added" entry for each lot while maintaining the cost basis. All of the "Shares Added" show the same transaction date (today) and the Date acquired field shows the original purchase date for the lot.

The problem is that the "Growth of $10,000" plot is now incorrect. It basically shows a step change of many thousand dollars on the date the shares were converted. A mouse over of the chart displays nonsensensical values for the Growth and the Cummulative net addition. The "Portfolio vs. Cost Basis " bar graph looks ok as do the calculated rates of return.

Somehow the transaction history is being mangled for the growth chart,, 

Did I perform the conversion incorrectly? I am using Quicken Windows Premier 2018.

Unknown

I just noticed a similar issue. I also had a conversion in Vanguard, but is was not a large amount. I do notice that the cumulative additions shown when I mouse over the point went from about $48,000 to about $19,000,000 from the first of December to the end of December. This is obviously an error. But it doesn't show up in any other report that I can find. By coincidence, this is also about the time that I upgraded to the new Quicken 2018 subscription.

Jim_Harman

1) Make sure that both the old and new share classes are included in the securities for the Growth of $10K at the top of the Investing Performance view.

2) Back up your data file, then click on the Removed transaction and look at the number in the second line under "Removed". Previous versions of Quicken would sometimes put a wild value here, when it should be the value of the security on the date removed, i.e   (# of shares removed) * (share price on the removal date". If the number is wrong, you can edit it to enter the correct value.

Hopefully one of these will fix your problem.

Unknown

Thank you! that was exactly the problem. There was a value of over $19,000,000 when it should have been closer to $50,000.

Jim_Harman

I'm glad that solved it. Do you know what version of Quicken you were running when you originally entered that transaction?

Unknown

I'm pretty sure I was already on the Q2018 Premier subscription. My records show that I upgraded about 3 weeks before the transaction.

Jim_Harman

Thanks Douglas. 

I thought that problem had been resolved but I tried a share class conversion in a test file and I see it is still present in QWin 2018 R10.10. 

When you enter the conversion, Quicken apparently sets the share price for the shares removed to the total value of the holding and thus calculates the value of the shares removed as something like (shares removed) * (total value of holding) rather than (shares removed) * (price per share). I don't think it does this all the time, it may happen only if it does not already have a share price for the old fund on the date of the conversion or something.

Thus when I entered a conversion of 100 shares of a fund at $10.00 per share to 110 shares at $9.0909, it entered a price of $999.999 in the price history for the old fund and valued the shares removed at $99,999.90 rather than $1000. 

Needless to say, this makes for some strange results in the Growth of $10,000 chart and the Investing Performance report. It also messes up the Avg. annual Return (%) columns in the Investing Portfolio views. To see the problem in the Growth of $10K, you have to set the date range to just the month where the conversion occurred, so that there is a data point for each day.

Hopefully someone at Quicken will see this and add it to the list of bugs that need to be resolved.

Unknown

That looks like exactly what happened.  Thanks for explaining it. It seems like I had to fix the same issue several years ago. I had just forgotten.

Quicken Sarah

Hello All,

Thank you for taking the time to share the details of this issue and a big thank you to @Jim Harman for providing the steps to find the incorrect value.  A ticket has been opened with Development to further investigate this behavior and create a solution.

There is not currently an eta on when a solution will be available, but this has been reported and we will be back to share updates as they are received.

Thank you,

Sarah

jebeling

Growth of 10,000 also handles splits incorrectly apparently it doesn't add the value of the split shares so if you had 100 shares of a 100 dollar security on jan 1 and had a 10 for 1 split to 1000 shares at 10 dollars each on june 1 and then on Dec 31 the per share price was still 10 dollars. Your account will still show 10,000 on Dec 31 but in the graph it will show 1000 and a loss of 90% Ughh, come on how has this not been caught before?

costakensington

I sold approx. $900 K to purchase a house in 2020. Now my Growth of $10,000 Chart over 5 years shows a major decrease in comparison to the S&P. However, 99 % of invested funds are in SPY (S&P ETA). Fidelity Performance charts accommodate "funds removed or added" in evaluating portfolio performance. Clearly, If I added $900 K...that shouldn't have put my performance above the S&P ?
Any solution for this in Quicken?

Jim_Harman

Quicken has made some improvements to the Growth of $10K calculation in current versions but IMO the calculation is still flawed when there are large deposits or withdrawals from an account. See this discussion
https://community.quicken.com/discussion/comment/20091670#Comment_20091670