How would I go about processing this fund merger in Quicken? 2012

This discussion was created from comments split from: Mutual Fund Conversion - Erroneous cost basis.


  • wlee
    wlee Member ✭✭
    Unsure if I should start a new thread or not. In my case, I am using Quicken 2012. I created one file for each Mutual Fund.

    I only use Quicken to track mutual funds that I have owned since early 1990's through monthly purchases, so a lot of transactions to deal with.

    Over the years, I sold some Fund A using specific lot identification (and not using Avg Cost).

    Two yrs ago, Mutual Fund Company XYZ decided to merge Fund A and Fund B, and retaining the same the Ticker Symbol for Fund B. The conversion is about every 1.20 Fund A shares becomes 1.00 Fund B shares.

    I have NOT updated any of the two funds since the merger but just sold a few shares of (the combined) Fund B.

    I now need to get ready to report capital gains and like some help entering the post-merger fund transactions in Quicken.

    Under Transactions, I do NOT find Mutual Fund Merger as an option - it must be a feature of a later version of Quicken?

    How would I go about processing this fund merger in Quicken ?

    Thanks in advance for any help with tax season approaching.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    "I created one file for each Mutual Fund."  That sounds like you have been using Single Mutual Fund accounts interpreting "file" as "account".  If that is the case, Mutual Fund conversion would not be an option.  I don't recall if that was an option back in 2012 or not.  Doesn't really matter.  

    What I would (try to) do:
    • For Fund A, change the setting for that account to not be Single Mutual Fund.  Edit Account details, change the Yes to No next to that option.
    • In Fund A transaction list, Enter Transactions.  Choose Mutual Fund Conversion if available.  Otherwise, use the Corporate Acquisition.  MF Conversion you enter the total number of B shares received for all of your A shares.  Corp Acq you enter the share ratio approx 1.2, be as precise as you can.
    • I would choose to edit all the Add Shares transactions created to all be at 3-decimal precision (nearest 0.001 shares) still making sure I got to the right total number of shares. I find that easier to track with the MF family data and my subsequent sales. 
    • After the conversion, you will probably want to do a Shares Transferred transaction moving all the now Fund B shares from what was the Fund A account to your Fund B account. 
    Having gotten all the shares into the one account, you should then be able to properly account for the Fund B shares sold this year.