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Correct Actions for converting from a Money Market to an ETF

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kvanospam

27 Dec, 2019 10:18 PM

Hello,

Within an Investment Account, I used the BuyXfr and SellXfr actions to convert an asset from a MoneyMarket fund to an ETF. However, when I run my Investment Report it shows a loss for the MoneyMarket transaction (there should be no loss -- it was a dollar for dollar transaction).

Do I need to change my Action or my Transfer/Fee settings to have the report display the MM transactions as $0.00?

many thanks

1. 1 Posted by dwg on 27 Dec, 2019 10:42 PM

   

   I'm a fellow user.

   When Moneydance shows a gain or a loss it means there is a difference between the original purchase price of that investment and its sale price i.e. you received more or less for it than it originally cost, what the funds were used for is not significant. So it has nothing to do with the actual transfer between a MM fund and an EFT, it only relates to the MM investment.

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2. 2 Posted by kvanospam on 27 Dec, 2019 10:48 PM

   

   Thanks for the prompt response.

   Accounting is not my forte', so it's disconcerting to see a 3-digit, negative ROI displayed.

   My holdings are correct and I suppose that's the most important feature.

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3. 3 Posted by dwg on 27 Dec, 2019 10:58 PM

   

   I forgot to add.

   With a MM fund all transactions are normally done on a fixed price, usually 1.00 so that value of the investment is also the number of units held, it is basically an interest earning investment where the capital value does not change.

   On the other hand It would be unusual for an ETF to be at 1.00 per unit, the unit value would be constantly changing based on market forces.

   I do not see a problem with the transactions you have used but I suspect there is a problem in the values somewhere or even in some older transactions.

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4. System closed this discussion on 27 Mar, 2020 11:00 PM.