Mutual fund conversion . Corp. acquisition create bizarre results

KDL Member ✭✭✭
edited January 2018 in Investing (Windows)
I'm running Quicken Premier 2017, R15, Build on a Windows 10 OS.
Last year Ameriprise, where I have several accounts with a few dozen mutual funds, forced at least 2 dozen share class conversions.  At the time they occurred, Quicken created a simple pair of Remove / Added transactions to account for the gross number of shares.  After those transactions, reinvested dividends were added to many of the funds through YE 2017.

Now I see that these transactions are causing incorrect average annual return figures in those accounts, so I read community posts on the correct way of handling them.  I tried to correct one such conversion using the Mutual Fund Conversion transaction.  I first deleted the Remove/Add pair of transactions.  Then I executed the MF Conv. transaction using correct # of shares and price on the new fund as of the conversion date.  When I did that, I saw the error noted in this post:  The removed fund's market value is calculated wrong, thus showing a huge return ($10 million instead of about $11,000) prior to it being reinvested in the new fund.  The new fund's value looks good and the AAR from the conversion date looks reasonable.  But the AAR on the account as whole that merges the old and new funds is way off. 

So I reverted to my backup and tried the Corp Acquisition Transaction.  This time, the value of the new fund has been inflated to about $10 million, instead of about $11,000.  I don't know if this is the same problem noted here: .  In my case, the inflation occurs because Quicken calculates the added shares for each reinvestment lot that preceded the conversion date at the wrong price.  The price should be about $12/share depending on the date.  In my case the prices are around $.0135 per per share. So the number of share is wildly inflated.

Because I have about 2 dozen of these conversions to fix, and many of them have monthly or quarterly reinvestment lots dating back 4-5 years, I need some fix that doesn't involve manually editing about a hundred erroneous Quicken transactions created by these methods.  Advice from the community would be welcome!


  • KDL
    KDL Member ✭✭✭
    edited January 2018
    I have figured out what's causing this problem and have developed a work-around, but it's not perfect.

    The problem is that Quicken is downloading from my financial institution (Ameriprise) a simple pair of Remove / Add transactions for converting the share classes, and Quicken is entering them with missing or incorrect information.  The pictures illustrate the problem with one such fund, Teton Westwood Mighty Mites.  I'm converting from share class A to share class I. 

    The "Remove" transaction takes out all existing shares of the fund, but it records the value of the transaction using the cost basis, not the market value.  The "Add" transaction adds the shares of the new fund, but it records the price as zero.  In the first picture, you see the Investment Performance report, and clearly the Annual Return for the combination isn't going to work.


    The $9407.76 is the cost basis, not the market value as one might expect.  And the "Add" transaction for the Class I shares is missing, because the price was set at zero.

    My workaround is to set the total value of the "Add" transaction to equal the cost basis value of the "Removed" transaction.  Quicken calculates a per-share price from that.  The next picture shows the result.

    Note that the number of shares removed and added are different because the market price of the funds is not equal. But the share counts downloaded from Ameriprise were correct.  I simply edited the total value in the "Add" transaction.

    Now here's the account-level view of the total return for this fund for the year:

    This makes sense.  And the cost basis of the total holding is preserved.

    There are disadvantages to this workaround. 
    First, I have lost the individual lots that were acquired prior to the conversion.  So if I ever wanted to sell using lot identification, I couldn't use Quicken to figure that out.  For me, that's not a problem.

    Second, the rate-of-return for the new fund, dating back to its acquisition date, cannot be calculated by itself.  I have to always include the old fund in any such calculation, although I can look at any period after the acquisition date as long as I have an accurate price for the beginning of the period, such as FY2018.
    So for now I'll use this workaround.  Still it would be nice if Quicken could fix the Mutual Fund Conversion transaction so that the lots were also preserved.
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