IRR reporting excessive gain

Bob@50

Quicken Home, Business & Rental 2019 for Windows version R16.14, Build 27.1.16.14

I used the Mutual Fund Conversion function in my investing account to track the conversion of a targeted fund to a new targeted fund (age-based).  As part of the transaction, the shares of the original fund were removed as 1 transaction and shares of the new fund were added using multiple transactions (on a transaction by transaction basis to match the original transaction purchases). 

When running an IRR report, a huge IRR is shown because of a problem in the calculation.  The removed shares are showing a value that is around $19 million when the actual value is around $18k, which is causing Quicken to report that the IRR is over 200,000%.  The price history for the original fund is accurate.  The value for the new shares is accurate.  The only problem appears to be the value assigned to the removed shares when using the mutual fund conversion function.

Sherlock

Jim_Harman

Bob@50

Thank you. That solves the problem. it would be helpful if in the dialog box you could verify the values before the transactions are entered. Wonder why quicken puts a wild number there? That seems like something they need to fix!

Jim_Harman

Bob said:

Thank you. That solves the problem. it would be helpful if in the dialog box you could verify the values before the transactions are entered. Wonder why quicken puts a wild number there? That seems like something they need to fix!

Absolutely it's a bug in the Mutual Fund Conversion calculations. Was your problem with the "mystery number", the share price, or both?

This has been discussed extensively elsewhere but so far there has been no action on Quicken's part other than acknowledging that it is a problem (QWIN-13807).

Bob@50

Bob said:

Thank you. That solves the problem. it would be helpful if in the dialog box you could verify the values before the transactions are entered. Wonder why quicken puts a wild number there? That seems like something they need to fix!

The mystery number was the issue.  I didn't realize they entered it in the register - when I went to the screen for the fund that holds the price history graph, volume information,etc., the transaction history at the top of that screen showed the correct amount even though the mystery number spot in the register did not. 

As an aside, the annual rate of return reports for 1 year, 3 year, and 5 year on the account holding the mutual fund (and thus for all my accounts combined) is still completely wrong - it still shows up as if the mystery number is still the crazy millions number.  So, according to the report, my annual rate of return on the account holding the fund is approximately 900%.  I wish!  Another bug in there they need to address.

I wish I had found the discussion elsewhere - the only thing I found before posting the question was a thread about a year old that discussed the price history being wrong but didn't mention the mystery number.  Appreciate your help.

Unknown

Jim_Harman

Bob said:

Thank you. That solves the problem. it would be helpful if in the dialog box you could verify the values before the transactions are entered. Wonder why quicken puts a wild number there? That seems like something they need to fix!

Which reports exactly are still wrong? It it the numbers in the "Av. Annual Return" columns in the Investing > Portfolio views, the Investing Performance report, or someplace else?

Remember that for time periods that include the conversion date, you must include both the old and new securities.

Jim_Harman

Bob@50

Bob said:

Thank you. That solves the problem. it would be helpful if in the dialog box you could verify the values before the transactions are entered. Wonder why quicken puts a wild number there? That seems like something they need to fix!

I followed the patch update QPW gave me below and that fixed the issue. Not sure why my one-step update failed to grab the patch. 

It was the Av. Annual Return report in the Investing > Performance view.  Each column in the report was incorrect (1 year, 3 year, and 5 year).

Jim_Harman

Bob said:

Thank you. That solves the problem. it would be helpful if in the dialog box you could verify the values before the transactions are entered. Wonder why quicken puts a wild number there? That seems like something they need to fix!

That is good news, especially that it fixed the problems for existing Remove transactions and not just newly entered share share class conversions.

Bob@50

Unknown

Jim_Harman

Unknown

Jim_Harman