Mutual Fund share class conversion

sjperry's Avatar

sjperry

26 May, 2022 02:07 PM

My investment advisor has switched me to a different share class on one of my mutual funds. My statement shows a transaction that looks like:
5/22/22 Transfer out - Mutual Fund XYZ Class F - 1150 shares, price $0, amount $0
5/22/22 Transfer in - Mutual Fund XYZ Class G - 1225 shares, price $0, amount $0

There is no buy/sell, they are just swapping my 1150 shares of one class for 1225 shares of another. A previous post mentioned possibly doing a stock split, but as you can see it is not an even multiple e.g. 2:1.

So I tried to do this in MD using BuyXfr & SellXfr. I can enter $0 amount, but if I try to enter $0 price it snaps to $100 or $1000 and my portfolio value balloons to some very pleasant but highly fictitious number.

What is the correct way to record this type of transaction?

  1. 1 Posted by -Kevin N. on 26 May, 2022 02:30 PM

    -Kevin N.'s Avatar

    Hi sjperry,

    I suppose that there are two options that I can think of; neither of which is ideal...

    1) Sell all Class F shares at their current cost basis. Then Buy all Class G shares at the same cost.

    2) Enter a 1225 for 1150 stock split for the Class F shares. Then change the name of the security to reflect that they are now Class G shares.

    Remember safe computing 101 dictates that you make a backup of your data file before making any drastic changes. You could even try either option in a 'Test' data file just to see if the outcome is desirable or not.

    -Kevin N. (not a member of MD support)

  2. 2 Posted by sjperry on 03 Jun, 2022 11:51 PM

    sjperry's Avatar

    Thanks Kevin, I did option 2 and it worked fine.

  3. sjperry closed this discussion on 03 Jun, 2022 11:51 PM.

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