Re: Fixed Funds

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In Reply to: Re: Fixed Funds posted by Gary Trimmier on January 20, 2002 at 06:59:12:

: : : Mark - I have a Fixed Fund in which the share quanity does not vary. How would I record a Dividend distribution that is reinvested in the fund without increasing the amount of shares? My custodian records the distribution as reinvested buying x amount of shares, then does a reverse split only on the quanity of new shares in effect negating the increase in share count.
: : : Thanks again.

: : Hi Gary,
: : You can record it the same way in FM. A reverse split or 'recombination'
: : can be recorded by doing a split with a ratio less than 1.

: : Thanks,
: : Mark

: Mark - I agree, however the split dialog does not allow me to designate the number of shares to split. An example is I purchase 100 shares of a fund at $50.00 per share totaling $5,000.00 invested. I receive a dividend of $100.00 and reivest at $50.00 per share resulting in 102 total shares. However the fund is fixed at 100 shares. How would I get the share amount from 102 back to 100 shares and still reflect a new total of $5,100.00 invested?
: Thanks.
: : --
: : Mark Beiley
: :
: : Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP
: : /XP
: :

Hi Gary,
Splits apply to all the shares you own on the date of the split. In
the example you describe, you would record a 102 for 100 split. It will decrease the share balance to 100 and keep your value at $5,100. Your price in the future should be relatively higher, by a ratio of 102/100.

Thanks,
Mark
--
Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP
/XP

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