Interpolated prices

[flight]

hi Mark,

What is the best way to find/resolve interpolated prices?

thanks

[Mark]

Hi flight,

Are you looking in some report? Look at the date range of the report. If some investment is showing it is using an interpolated price, click on that in the report to open it up in the Data Register, under the "Prices" data type. Make sure you have a price recorded on the beginning and ending report date range. For example, if a Portfolio Performance report is set to 1/1/14 to 12/31/14, you need prices on 12/31/13 and 12/31/14.

[flight]

I am looking at the TWR reports. My accounts typically have an asterisk next to it for interpolated prices. Yet I am fairly sure the beginning and ending prices are there. When I lick on the report it doesn't really go anywhere.

[Mark]

Hi flight,

Look at the recorded price history for whatever investment is showing an interpolated price was used. You can view this in the Data Register under the Data Type of Prices. For example, if your report ends on Jan 9, 2015 and you are looking at a 1 year TWR, make sure you have a closing price recorded for Jan 9, 2014. In this case, the yield term is Jan 10, 2014 - Jan 9, 2015 inclusive. This means the beginning price is the close of Jan 9, 2014. The close on Jan 9 is used as the beginning price of Jan 10.

[flight]

what's the data register? and where do I find it?

When I run the portfolio value report at beginning and end, there are no interpolated prices. However, when I run the TWR, the asterisk appears.

[Mark]

Hi flight,

The Data Register is available by selecting "Edit / All Data...". You can also get to it by clicking on any investment line in a report.

What is the ending date and yield term of the TWR yield showing it being interpolated? What 2 dates did you run the Portfolio Value report for?

[flight]

I primarily use FM to track performance (using TWR) in individual accounts and across multiple accounts (such retirement and non-retirement). So i am simply trying to get performance for 2014. The dates in my TWR report are 1/1/14 to 12/31/14. And the dates I am using in the Portfolio Value report are 12/31/13 and 12/31/14.

There are no interpolated prices @ 12/31/14, but there are interpolated prices @ 12/31/13. My cash has an interpolated price (not sure why) and some investments which I own at year end 14, which i didnt own at year end 13.

[Mark]

Hi flight,

Are you using the "Time-Weighted Return" report? It sounds like you are maybe using a different report, like a Custom report with a TWR figure? The Time-Weighted Return report does not have a beginning date, it only has an ending date. There are a variety of different TWR yield terms, all ending on the same date in the Time-Weighted Return report. You can also get TWR in other reports, like a Custom report or an Investment Performance report.

If you are getting a 1 year TWR, ending on 12/31/14, then you would need prices recorded on 12/31/13, or you will see an interpolated price being used. Look in the Data Register under the Prices data type to see all your recorded pricing data. For help on using the Data Register, you might want to watch this tutorial:

https://www.fundmanagersoftware.com/tut ... video.html

[flight]

Hi Mark - just to clarify. If I buy a security @ 12/31/14, I will need to get the price @ 12/31/13 so I don't have anything interpolated?

[Mark]

Hi flight,

No, it doesn't matter when you bought when determining interpolation. If you are calculating a 1 year TWR ending 12/31/14, then you need a closing price recorded on 12/31/13.

See the pricing in your Data Register, under the "Prices" data type.

To read about interpolation range options in more detail, you can see the online help:

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

but the short answer is that you need to have a price recorded at the beginning and end of whatever yield term you're looking at.

[flight]

Still confused here.

So, if I do not own a security on 12/31/13, and then I subsequently buy that particular security at some point during the subsequent year (1/1/14-12/31/14), do I need the price at year end 2013 or do I not need a price? that is what I am trying to answer.

Sounds like you are saying YES, but confusing. For those of us less familiar, why would it be necessary because I don't see what it has to do with a return or IRR calculation - unless I am way off base.

[Mark]

If you are having FM calculate a 1 year yield, ending on 12/31/14, you need a price on 12/31/13. The 1 year yield in this example starts on 1/1/14 and ends on 12/31/14, so you need a price at the beginning and end of the yield term. We have been talking about TWR returns here (not ROI, which are different), and it doesn't matter if you own it for a TWR yield. TWR are not money weighted, they are only time weighted. If this is still confusing, you can just retrieve historical pricing back to 12/31/14, and that will resolve the interpolation flag. You can view all your recorded closing prices in the Data Register under the data type of "Prices".