Accuracy of the 3 month yeild

[cah1942]

It seems that the column 3 month yield is not accurate; an example, JPC shows a 3 month yield of -35.44%. When I go to Morningstar the 3 month performance is shown as -10.56%. Help me understand what I need to do to fix this. Chuck

[Mark]

Hi Chuck,

It depends on what type of yield you're looking at. The ROI yield factors in when you bought/sold, where the TWR does not. If you're looking at ROI, check your recorded transactions. Make sure they are recorded at the correct price.

Both yield types look at the recorded distributions, so check these.

Both also use the starting and ending price, so make sure you have correct prices recorded for the ending yield term date and beginning yield term date. For example, if you're calculating a 3 month yield ending today (Sept 6), you would make sure you have a closing price for Sept 6 and also June 6.

Also, check your "annualize" option under "Options / General Preferences... /Yields / Annualize Yields for Terms Less Than One Year". This option is off by default, but if you have it on, it will annualize your 3 month yield to a 1 year rate. For example, if you had a -10% return in 3 months, but you are annualizing, it will report a number near -40%.

Finally, if none of that resolves the issue, turn on yield logging in that same dialog, and look at the log file.

[cah1942]

Mark; thanks this was my problem, once I unchecked the box everything looked like it should

"Also, check your "annualize" option under "Options / General Preferences... /Yields / Annualize Yields for Terms Less Than One Year". This option is off by default, but if you have it on, it will annualize your 3 month yield to a 1 year rate."

Chuck