Fund Manager doesn't Reinvest Dividends for Cash Account

[RandyRadar]

Mark,

All downloaded transations to Fund Manager re-invest properly except monthly dividends that come from, for example, a Fidelity Cash Reserves mutual fund. The transactions are there, but unless I manually reinvest them, monthly dividents don't get included in the bottom line balance of the protfolio. What am I missing?

[Mark]

Hi RandyRadar,

If you look at the downloaded transactions, are these coming down as 'distributed' instead of reinvested? I suspect so, and this is just how Fidelity is reporting them. If this is the case, I'm not sure of a good solution. The broker can report distributions as either reinvested or distributed when sending down your transactions, and apparently they are sending down the cash dividends as distributed.

Maybe we need an investment level option to override this, and force all retrieved distributions to be reinvested...

[RandyRadar]

Mark,

I had an idea. In checking the Investment Properties of the Cash Reserve Mutual Fund in FM, I am not retrieving the daily price. In the past, when I have checked the retrieve prices box, I get a much higher value than $1. That has skewed the value of that fund, so I stopped retrieving the daily value.

I noticed in the distribution window for the Cash Reserve dividends that there was 0 for the price. In effect, when I check the reivestment box, FM asked for a value. I insert $1 for the price, and then check the value box, then it reinvests manually.

It looks like it ties to my not retrieving daily Cash Reserves pricing. If I am correct, how do I get the proper $1 price from for example Yahoo?

[Mark]

Hi RandyRadar,

Not having updated prices will not affect whether a retrieved dividend is reinvested or distributed. Distributed distributions do show in the Data Register with a 0 for 'Price' and 'Shrs Reinv'. I think it is just that is how Fidelity is sending down these transactions.

[steveb]

Hi RandyRadar,

If you look at the downloaded transactions, are these coming down as 'distributed' instead of reinvested? I suspect so, and this is just how Fidelity is reporting them. If this is the case, I'm not sure of a good solution. The broker can report distributions as either reinvested or distributed when sending down your transactions, and apparently they are sending down the cash dividends as distributed.

Maybe we need an investment level option to override this, and force all retrieved distributions to be reinvested...

I agree with the need for an investment level option. All of mine come across from the various companies as distributions and buys. Fixing them manually is too much work. It would be good if there was a way to convert all distributions to reinvestments for an investment too.

[Mark]

Hi steveb,

Thanks for the feedback. As long as you have both the distribution and corresponding purchase of shares, this is equivalent to a single reinvestment. Your cost basis and performance will be the same.

[tommcg]

Hi, Mark. I too have a problem importing reinvested dividends where the broker QFX download has separate dividend and purchase transactions. I realize that having the two separate transactions in FM will produce same cost basis and performance values, but I really want it recorded properly as a reinvested dividend, because that is what it actually is, and it never hits the cash account. Currently I go back and fix these manually by checking the "reinvested" box on the distribution and then filling in the number of shares I saw in the purchase transaction, then delete the purchase transaction, but that is tedious.

Also, doesn't a purchase imply an OOP value whereas a reinvested distribution has a zero OOP value? I'm still a little confused about this.

So, is there any way FM can automatically combine an imported/downloaded distribution and purchase of the same dollar amount on the same date as a reinvested distribution? If not, would you please consider it a feature request?

Thx.

[Mark]

Hi tommcg,

This isn't an option today, but it would be a nice new feature. FM could scan and look for distributions and purchases for the same date/amount, and optionally combine those into a reinvestment. This is actually already on our "to-do" list, but hasn't made it in yet.

Whether you record a distribution + purchase or a reinvestment makes no difference for any performance calculations. For the OOP issue, the purchase cancels out the distribution. The distribution is a negative OOP contribution, and the purchase is a positive OOP contribution for the same amount, so it ends up not affecting your OOP cost, just the same as a reinvestment.

[tommcg]

Thanks for the OOP clarification, and I will eagerly await the import reinvested dividend combiner feature.

[frank2010]

Hi Mark

Did the import reinvested dividend combiner feature ever make it into FM?
Thanks

[Mark]

Hi frank2010,

Yes, it did. It is an option you'll see in the "Options" section of the retrieve transactions dialog.