How To Deal With Change From Y Shares To Z

[Fortified]

Hi @ PP Forum

I need some help on how to deal with the following.

I hold a number of Invesco Mutual Funds (I am based in the UK) and they have decided to reduce their range of offerings. I mean by this that they offer a number of classes of shares in the same fund and that they have decided to remove Y shares and transfer them into Z shares in the same fund.

This results in a different price and different level of holdings in the Z shares.

What I want to know is how do I go about making these changes in Portfolio Performance?

Thank you for your help.

[Laura]

Hey @Fortified,

You can map changes in the weighting of individual asset classes within a fund using corresponding categories in PP.

Cheers, Laura

[Rafa]

Honestly, the described issue by @Fortified sounds like that Invesco reducing their offered investment vehicle and merging several into one. If so, it’s a simple sell (old investment vehicle) and buy (new investment vehicle) action.

[flywire]

@Rafa

If so, it’s a simple sell (old investment vehicle) and buy (new investment vehicle) action.

Maybe (click quote link for context):

@Laura

If the associated account is not to be held in Portfolio Performance, the offsetting entry is not required. In this case, it is advisable to make a delivery instead of a purchase. A delivery only increases the securities portfolio in the custody account without reducing the corresponding account.

[Rich28]

Hi, I also have been caught up in this conversion. I read with interest the various post (thanks guys), but i’m struggling how best to approach this.

Last year I purchased a holding in one of Invesco’s Y class funds, which when Invesco implemented the change earlier last month (3rd May I gather), had achieved a modest gain. As I continue to hold that position in what is now the Z class fund, I had felt there was a requirement for two transactions - one, an outbound delivery transaction relating to the discounted Y class fund; and an inbound transaction, relating to the replacement Z class.

I took into account the different prices and number of units, but I’m not completely satisfied with this. Oddly, the holding in the discounted Z fund now appears as a Realized Capital Gain in the Performance Calculation Report, and I can’t make sense of the value that has been attributed to this

[Rafa]

@Rich28

I took into account the different prices and number of units, but I’m not completely satisfied that this approach is right - the ‘carried over’ unrealised gain seems incorrect

Well, as far as only hypothetical questions was queried without any ISIN/values, we could only recommend a solution without that anyone has told so far the whole story. Until now, the understanding is that one security is replaced by another, which is a buy/sell respectively inbound/outbound delivery.

[Rich28]

Sorry, clearly had a Homer Simpson d’oh moment yesterday !! I now realise that both the outbound and inbound transactions need to reflect the book cost of my holding in the discounted Y class fund…