| FAQ 874: Mapping Funds for a takeover plan |
If we have a takeover plan that is going to be mapping funds over, we first need to purchase the correct funds and then later we would do an allocation to the participants. It isn't a situation that I should have in the near future, but know it will come up and I thought I'd throw the question out there and do a little research on it first.
Not too difficult. What I would suggest is to set up the new funds and then also the old/existing funds in the plan. Enter the share prices for each fund as of the date of the actual asset transfer. Enter the existing balances for each participant by source by fund as an ending balance transaction (type 10). Then you can use the Fund Close Out utility to transfer (or map) each existing fund to its new, mapped counterpart (saving as transaction ,not outputting to transition). So you'll have beginning balances in the old funds, transfer out transactions from the old funds and transfer in transactions to the new funds.
From here, you can either retain the old funds to show the transfer, or you could delete them as they are not really needed. Statements would then just show the transfer in transactions.
One minor consequence: the Fund Close Out utility won't populate calculated amounts (i.e. actual share allocations). When it calculates positions for reconciliation, it will calculate shares based on dollars and price. The impact is that there may be some slight fractional share discrepancies on your initial reconciliation. You can let me know if that occurs and it can be rectified down the road.