unofficial microsoft.public.money FAQ and A
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How to do things in Money: Investments

Q) How do I handle a mutual fund merger?

A) There are two methods that work. You can pick one depending on whether you previously held both of the funds involved in the merger or not.

The technique suggested by Cal Learner for the case where you didn't hold both funds previously:

- enter a split for the share ratio involved (you can use the NAVs at the exchange times 100)
- go into the Investment Details and change the name and symbol
- record the event in the investment comments.

If you previously held both funds, there is no solution without side effects. Kevin suggested what is probably the least bad solution:

- sell the retired fund for your exact cost basis
- buy the correct number of shares in the surviving fund for the total amount of the old cost basis. Let Money figure the share price.

The side effect of this is that it will create a one-time unrealized capital gain to match the entire gain you were carrying for the retired fund on the date you set for the transaction. This will likely cause inaccurate performance reporting and may propagate to things like long-term/short term capital gains reporting.

Please see this disclaimer if you are using Money 2005 or this comment if you are using Money 2006.

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