Exchange from one fund to another

[mechengr]

have an annuity that consists of several funds. Recently, the annuity managers changed fund managers for a certain fund category, resulting in investment in a different fund.

The"exchange" was not a taxable event, but the number of shares in the new fund is different from the number in the old fund. (Dollar value was constant).

How is the best way to handle this type of transaction in FM?

Richard
5/8/10

[Mark]

Hi Richard,

There are 2 good choices:

1) Simply record a "Split" transaction with a ratio of <new shares> for <old shares>. Rename the investment in the "Properties..." dialog.

2) Record a transfer out of the existing investment, create a new investment, and record a transfer in.

In #1 you will only have one investment, in #2 you will end up with 2. They are both equivalent in terms of performance and keeping track of your capital gain/loss.