merger involving case

[dslewis99]

Hi

Am I right in assuming that Fund Manager cannot properly handle a merger that also involved a cash payout? I searched the forum, and all I could find was doing a merger as a reverse split. However, mergers often include cash payouts for the merged shares. See, for example, the recent KMP --> KMI merger which included a case payout of $9.55 per share for each share of KMP held.

TNX,
Scott

[Mark]

Hi Scott,

To record a cash payout from any sort of corporate action, use a Distribution. Do not check the "Reinvested" box, so the money is paid out. If the payout lowers your tax cost basis, use a "Return of Capital" distribution. Otherwise, you can choose any other distribution type, like "Other" to record the cash payout. This will be factored into performance figures, like ROI yield.

[dslewis99]

Thanks Mark. I'll give that a try.