Values of montly performance report jan-mar

[fundman247]

Hi Mark,
I wonder if you could shed some light on the difference between the monthly ROI figures that I have calculated in Excel vs what the monthly report in FM displays.

Only April seems to be the same. April to June in a separate post

In Excel I have used the end of the previous month as the starting price. If I use the 1st day of the month the figures still do not correspond with FM.

ZZZ-SNAP683-jan.jpg (30.22 KiB) Viewed 2568 times

ZZZ-SNAP684-feb.jpg (34.96 KiB) Viewed 2568 times

ZZZ-SNAP685-mar.jpg (35.74 KiB) Viewed 2568 times

[Mark]

Hi fundman247,

You can turn on yield logging in Fund Manager, so you can see the numbers used, the equation, etc. It will help you determine any differences between FM and your Excel calculations. You are correct to use the close on the day prior to the yield term starting date as your starting price. You might also verify that the dates are lining up exactly, and you'll see this in the yield log.

To turn on yield logging, see "Options / General Preferences... / Yields / Log Calculation Details for ROI Yields". Whenever a ROI yield calculation is performed the yield equation being solved will be logged to a file called "ROI_log.txt". This log file will be placed in the current user's AppData\Roaming\Fund Manager folder (usually a hidden folder).

[fundman247]

Thanks for the information.

It just struck me now that we are dealing with ROI so the ROI would thus look at the days in the month as well. Am I right with that assumption?
It would thus not be the difference in price divided by the last day of the previous month.

Regards.
fundman247

[Mark]

Hi fundman247,

ROI yields are time and money weighted. They are solving the true yield equation. If you have any transactions within the month, there will be an additional term in the equation for each transaction. This means you couldn't just look at the start/end prices. You can see the equation here:

https://www.fundmanagersoftware.com/hel ... s_roi.html

If you don't have any transactions within a month, then it boils down to just the start_value(1+i)^term = end_value. If you're not annualizing the yield, the term would just be 1 for a month long yield, so the rate 'i' ends up being:

(end - start)/start

If you're calculating a yield for Jan for example, the start is the value on the close of 12/31, and the end is the value on the close of Jan 31.

[fundman247]

Hi Mark,

The example used had no in or out flow over the period as it was just the index value and thus I thought the calc (end - start)/start would be used by FM as it is also what I used in my Excel calc.

I cannot view the ROI_LOG file as the folder is hidden.

Regards.
fundman247

[Mark]

Hi fundman247,

You can turn on the display of hidden files and folders. The exact menu location varies by version of Windows. For example, in Windows 7, if you open up Windows Explorer to view your files, select "Organize / Folder and search options / View / Show hidden files and folders". If you're using a different version of Windows, you can do a Google search for "how to display hidden files and folders in Windows <your version>".

In Windows 8 I believe this option is available on the toolbar. In Windows XP it was under the "Tools" menu I believe.