Mutual Fund Changed Name of Itself

I own a mutual fund named Pimco Income Class D since 2016. In 2018 they changed changed the name to Pimco Income Class A. During the years I owned the fund, it distributed dividends every month or more often so there are over 140 transactions listed for the two funds. The problem I have is that when the name was changed, Schwab did so by removing the Class D share and replacing them with Class A so the basis in Quicken (for tax purposes) was lost. I have tried alternative ways to try and get the name changed (Class D to Class A) but the system won't allow me to do so as it says the Class A name already exists. The symbol has also changed from PONDX to PONAX.

So the issues are:

1. How to enter the basis for the new Class A shares? I can't just enter the price the day the exchange as done as the system will think I bought them and subtract the cost from the account balance
2. Failing #1, is there a way to change the name of the Class D shares to Class A shares? Any way I try the system says I can't do so as the name already exists.

Thanks much.

Best Answer

  • DJS1949
    DJS1949 Member
    Accepted Answer
    I believe I have answered my own question. I tried adding in a cost in the Add Security window and it does NOT deductthis from the accounts cash. Hence this does update the basis so it appears this work around will suffice. Thanks.

Answers

  • DJS1949
    DJS1949 Member
    Accepted Answer
    I believe I have answered my own question. I tried adding in a cost in the Add Security window and it does NOT deductthis from the accounts cash. Hence this does update the basis so it appears this work around will suffice. Thanks.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited April 13
    What you have done - a Removed of the old shares and an Added of the new ones with the basis in the Added set to the total basis of the removed shares - is close to the best way to handle this situation. 

    The issue however is that if this is a taxable account and you sell part of the holding, Quicken's capital gain calculation will not match the broker's because it thinks you have one big tax lot starting on the conversion date.

    The best method would be to back up your data file just in case, then delete the Removed and Added transactions. Click on Enter Transactions and select Mutual Fund Conversion, entering the requested information. This will create one Removed for the old shares and one Added for each tax lot of the new shares, thus preserving all of the cost basis data.
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