Re: Single fund conversion to more than three different funds

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In Reply to: Re: Single fund conversion to more than three different funds posted by J.T. Amin on January 27, 2001 at 08:23:32:

: : : I had a mutual fund that was converted by my account manager to three different funds.

: : : My shares in the original fund were split in three and then invested in to three different mutual funds.

: : : How do I handle this in the fund manager? The fund manger allows you to split fund only once. If I start three new investments then I loose track of my cost basis. Is there a way to do this without loosing track of my initial fund?

: : : I will appreciate help in this.

: : : Thanks.

: : Did your account manager sell your shares in the first fund? You would want
: : to model it however it really happened. What is the cost basis for your
: : 3 new funds determined by?

: : Thanks,
: : Mark
: : --
: : Mark Beiley
: :
: : Fund Manager for Windows 3.1x/95/98/NT
: :
: :

: Mark,

: The account manager and the fund company did 'Exchange redemption' and 'exchange purchase'on the fund. The original shares were divided into three lots of shares and then the 'exchange redemption' and 'exchange purchase' was done.

: 'sell' and 'purchase' was not done.
:
: Thanks for your response.

: J.T. Amin

Hello,
You can handle it this way:

1) make 2 copies of the original investment using "File/Save Top Investment As...". You will now have 3 investment files with all the same data.

2) Go into each investment and record a "Return of Capital" distribution
for the $ amount put into the other 2 new investments. For example, if you
started with $1200, and each ended up with $400, the RofC dist. would be
for $800 in each new investment.

3) Record a split transaction to adjust the number of shares to the new
proper share balance. You can record a split at any ratio you need.

4) Change the name/symbol in "Investment Properties...".

Thanks,
Mark
--
Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

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