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Mutual Fund Conversion - bug with only one fund?

river-wear

I have several mutual fund conversions that occurred recently, going from the regular class to investor class version of the funds. I've successfully recorded the conversion for seven different funds. There is one more that I've tried twice and gotten the same result: it uses the same dollar amount for every single one of the 30+ acquisition transactions. That dollar amount is the entire cost basis for the fund. So the effect is that a dividend reinvestment that should be recorded as a couple hundred dollars is shown as >$50k. The cumulative effect is that a fund that has doubled in value in reality, is recorded at greater than a $1MM loss after the conversion.

How can only ONE ticker be processed wrong, when the other seven were handled accurately? For reference, the conversion is from PRSVX to PRVIX.

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Accepted answers

Jim_Harman

Check the account details for the problem fund to see if it is set to Use average cost.

There is a bug in the Mutual Fund Conversion such that if you have N tax lots and Use average cost is selected, the cost basis after the conversion is N times what it should be.

All comments

NotACPA

Perhaps is the one fund in a "Single Mutual Fund" type of account"? Or is it is a Brokerage type account?

Click TOOLS, Account List and click EDIT adjacent to your investment account.

What is next to the "Account Type" label?

Jim_Harman

river-wear

Jim_Harman, you are the winner! That was exactly the problem. It appears to be the only one that was set up to use average cost. I've fixed it and will try again. Thank you!

FYI, NotACPA, it's a brokerage account type.

NotACPA

Glad that you found the issue.

Jim_Harman

Please report this issue to Quicken using the Help > Report a Problem link.

And please cast your vote requesting that Quicken fix this here
https://community.quicken.com/discussion/7861196/fix-mutual-fund-conversion-so-cost-basis-is-correct-if-holding-is-set-to-use-average-cost#latest

river-wear

Reported. Amazing this bug has been around for at least 2.5 years and it's still broken.