Mutual Fund Conversion

I am getting frustrated! I need to use the "Mutual Fund Conversion" tool (I think) and it seems to return erroneous numbers. I recently was informed a few of my investments have been through a conversion. I started utilizing the "Mutual Fund Conversion" from the "Enter Transactions" button. A few of the investments 'converted' fine - meaning the cost basis was preserved. But .... a couple other ones really gave me wildly inaccurate numbers. i.e., after the conversion, my account showed that my cost basis was nearly 140× the actual cost basis.

Why have a few of the funds converted correctly and a couple others give me this stupidly wild-high number??????? HELP!!!!

Comments

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Is the Use average cost option turned on for the problem funds and off for the others? If so this is a known but unresolved problem. 

    If you have not made any sales in the problem funds, you can back up your data file, turn off the Use average cost option, delete the Removed and Added transactions for  a problem fund, then re-enter the Mutual Fund Conversion.
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  • stevejrandik
    stevejrandik Member
    :s

    Thank you for the advice. I believe based on your response, I will just have to simply have to enter this conversion as a sale and re-enter as a purchase of the funds. When I update the account each quarter, I end up using the 'Remove Shares' function to get the account to 'balance' (due to the different fee schedules associated with each different fund) ((Guess I should have figured out a long time ago how to enter the actual fees ... ugh)).

    The holder of this particular account has what I call their own 'funds'; meaning there are no ticker symbols for Quicken to reference online. The funds listed have ticker symbols, however, the NAVs are way different. It has been this way ever since I started this retirement account. (John Hancock).

    For me, I guess I will 'sell', then re-'buy' these newly converted funds. I will just have to record elsewhere the actual cost basis.

    Again, thank you for the advice.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited April 20
    In a tax deferred account, the Sell/Buy approach is usually OK because you do not need to track capital gains or losses.

    There is a better way to handle the fees, let's have a separate discussion about that.
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  • stevejrandik
    stevejrandik Member
    Thank you for your comments and advice Mr. Harman.

    Since this particular account does NOT have any valid ticker symbols that Quicken can download, I simply enter the NAVs manually, it is quite simple.

    I think I have done an 'End-Around' to preserve my cost basis.

    I went to "Corporate Acquisition (Stock for Stock)" in the 'Enter Transactions' tab. I easily was able to calculate my New Shares to Old Shares Ratio, then entered the correct NAV of the 'new' acquisition'. I entered the appropriate information and all looks good now. For the information I wished to preserve, this worked out fine for me.

    I copied my QDF file, opened the copy and did my transactions in the copied file just in the event things would not turn out the way I expected.

    Again, thank you Mr. Harman. This is the first time I have used the "Quicken Community" to ask for assistance.

    Steve
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