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Brokerage mandated Mutual Fund conversion (edit)

RDuane

Weitz recently retired a fund. They automatically closed that fund (quoted at a specific price) and moved it to another fund with a new share price resulting in a new share amount valued at the same $$. How do I get Quicken to sinulate this process?

Hope I have the correct place to ask this question.

Thanks

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Accepted answers

Jim_Harman

Go to Tools > Security List and Click on the Hickory Fund name to open the Security Detail View.

Click on Edit Details and un-check the Use Average Cost box. This is to avoid a bug in the Mutual Fund Conversion that causes the cost basis error you are seeing.

Then go to the account where you hold the Hickory Fund and click on Enter Transactions.

Pick Mutual Fund Conversion and enter the requested information. Next to Shares of new, enter the number of shares of the new fund you received, 1071.696. The Help on this entry is incorrect.

This will enter one Removed transaction for the Hickory fund shares and one Added for each tax lot of the Partners Value Fund, preserving your original purchase dates and cost basis. It does not affect your original Hickory Fund transactions.

Please let us know how this goes.

Jim_Harman

It sounds like you may have held the Hickory fund in a Single Mutual Fund account, which can only hold one security.

If so, you should convert that account to a brokerage account before doing the conversion, by clicking on the gear icon at the top right of the account and selecting Edit Account Details. If the Single Mutual Fund box is set to Yes, you should select No. To avoid confusion, if the account is called Hickory Fund, you should rename it to something other than the name of the fund, because it can now hold multiple securities. You can do that on the Edit Account Details entry form. You could call the account Hickory/Partners Value or Weitz Funds or something.

I hope that answers your question, please post back if you need more info.

All comments

q_lurker

Is this considered a tax-free exchange? That is simplistically, are the two funds substantially the same investment? Weitz should be able to tell you that.

Yes = use Quicken's Mutual Fund Conversion (or Corporate Acquisition) macro-transaction.

No = Sell the old fund and buy the new fund. The Sell will generate Capital Gains income for you to pay 2023 income tax on.

RDuane

The answer is "yes"… However, I'm completly confused by the terms "Company acquired and Acquiring company which to me seem like the same. Find attached / below the Weitz transaction info. Perhaps someone can assist with which fund goes into which puka.

Well, gave it a try… didn't do too well, however I now have over $21,000,000 Quicken dollars in my account. Glad I backed up so I can overwrite this problem… again… not to mention all transactions stayed in the Hickory fund instead of being found in the Partners fund. Any thoughts?

NotACPA

The "company" refers to the fund … not Weitz

Jim_Harman

Go to Tools > Security List and Click on the Hickory Fund name to open the Security Detail View.

Click on Edit Details and un-check the Use Average Cost box. This is to avoid a bug in the Mutual Fund Conversion that causes the cost basis error you are seeing.

Then go to the account where you hold the Hickory Fund and click on Enter Transactions.

Pick Mutual Fund Conversion and enter the requested information. Next to Shares of new, enter the number of shares of the new fund you received, 1071.696. The Help on this entry is incorrect.

Please let us know how this goes.

RDuane

Jim… Sorry… tapped question answered "no" inadvertently. Followed instructions and worked reasonably well… shares owned are now a +.273xxx share.

Question(s): Do I now rename Hickory to Partners Value and adjust symbol as I still don't have an individual account for this now new fund.

Note as I'm not an accountant and only own a few stocks / funds and historically have always listed all properties, banks, stocks, funds, CD's, etc as individual accounts… as they generally were. As an aside, I've been fumbling through Q4Windows for +25 years.

Thanks for your assistance.

Jim_Harman

It sounds like you may have held the Hickory fund in a Single Mutual Fund account, which can only hold one security.

I hope that answers your question, please post back if you need more info.

RDuane

To Jim Harman… thanks for your answer. Do apologize for my tardiness in getting back to you. Just found your Quicken notification in SPAM. With a lot of hope and a little luck Quicken notifications will no longer be held in SPAM.