Mutual fund conversion

jimbo85
jimbo85 Member ✭✭
edited January 13 in Investing (Windows)
I see the instructions and they make sense, but I've only got a partial conversion. That is, out of 1200+ shares, only 200+ are being converted.

It looks like I need a work around. Can I get some tips from those that have done it?

Best Answer

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited December 2021 Accepted Answer
    Is this a case where only some of the shares in one account are being converted (maybe the oldest shares)?  It may have to be handled manually.

    Are there a lot of lots to convert?

    Is this a Single Mutual Fund account?  (I hope not.  I'll assume not)

    My workaround for this would be:
    • Use a Shares Transferred between Accounts specifying only the lots being converted.
    • Specify the Transfer Account as the same account.  You are transferring from and to the same account.  This will generate the necessary Remove Shares and one Add Shares for each lot being converted in your account.
    • The generated Add Shares will have the correct Basis and Acquisition dates.  You will need to edit each transaction to change the Security to the 'newer' mutual fund and to change the share count for each transaction.  If your 200 shares converted to 205 shares, you would apply that ratio (205/200) to each of the shares in the Add Shares Transactions.  I would round the values keeping a consistent level of precision.  
    HTH 


     

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Are all the shares to be converted in account(s) by themselves? If so, the Mutual fund Conversion will handle those shares and leave any others alone.

    If not, please explain why you need to do a partial conversion in one account.
    QWin Premier subscription
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited December 2021 Accepted Answer
    Is this a case where only some of the shares in one account are being converted (maybe the oldest shares)?  It may have to be handled manually.

    Are there a lot of lots to convert?

    Is this a Single Mutual Fund account?  (I hope not.  I'll assume not)

    My workaround for this would be:
    • Use a Shares Transferred between Accounts specifying only the lots being converted.
    • Specify the Transfer Account as the same account.  You are transferring from and to the same account.  This will generate the necessary Remove Shares and one Add Shares for each lot being converted in your account.
    • The generated Add Shares will have the correct Basis and Acquisition dates.  You will need to edit each transaction to change the Security to the 'newer' mutual fund and to change the share count for each transaction.  If your 200 shares converted to 205 shares, you would apply that ratio (205/200) to each of the shares in the Add Shares Transactions.  I would round the values keeping a consistent level of precision.  
    HTH 


     
  • jimbo85
    jimbo85 Member ✭✭
    Invesco is only converting some of the B shares to A shares. They are all in one account.
  • jimbo85
    jimbo85 Member ✭✭
    > @Jim_Harman said:
    > Are all the shares to be converted in account(s) by themselves? If so, the Mutual fund Conversion will handle those shares and leave any others alone.
    >
    > If not, please explain why you need to do a partial conversion in one account.

    Jim,

    This account has three different securities. You'll have to ask Fidelity why they are just converting a bit less than 20% of the shares.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Perhaps I did not ask the question clearly. You have B shares of an Invesco mutual fund in one account, along with two other securities. Are all of the B shares of that fund in that account being converted to A shares, or just some of them?
    QWin Premier subscription
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