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why is account fee "reinvested"?

General questions about using Fund Manager that do not fit into any other forum.

Postby Bruce » Mon Feb 12, 2024 4:00 pm

I have a difficult time remembering that distribution / account fees ... cash leaving the account ... needs to be recorded as "reinvested". Plz explain the logic of that so I can get it committed to memory.

I just spent several hours reconciling a fairly complex managed account where the cash balance was off. FM's Transaction record (cash register / all transactions) and the statement agreed perfectly. I finally realized the discrepancy was exactly the account-maintenance fee. Clicked it to "reinvested" and everything is okay.
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Postby Mark » Mon Feb 12, 2024 5:05 pm

Hi Bruce,

I can understand this being confusing. The idea is you're redeeming shares of cash to pay for the fee, you're not mailing in a check.

Positive Reinvestment: More shares are bought with the distribution, you don't receive any money

Negative Reinvestment: Shares are sold to pay the distribution (fee), you don't send in any money
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