How to audit transfer in/transfer out

by **Mark** » Thu Dec 29, 2016 9:42 am

Hi flight,

Yes, I think you have summarized it correctly. The bottom line is you need to make the value out equal to the value in on that date. I personally dislike "option 1" as it is modifying the closing price to be artificial. I think "option 2" (using a distribution) more accurately reflects this situation. The third option is to use a split transaction, and rename your investment. Option 3 is the easiest actually, but you have to be careful to not re-retrieve historical prices before this date if the new shares existed.

For option 2, you wouldn't want the distribution to hit cash, as you're not really receiving cash.

by **flight** » Thu Dec 29, 2016 8:16 pm

Thanks Mark. comments and question (at the bottom)

I would add the twist is that in addition to the value out = value in for the transfers recorded, the prices in the FM price register, separate from booking the transaction, have to be aligned to correspond with the market values. One will reflect the actual market price and one an artificial price.

I don't understand the mechanics of # 2, so I have been putting that in the too hard bucket and not really considering.

Option # 3 is actually the easiest as you mentioned but strikes me as a bit weird because you have two independent publicly traded securities. Are you suggesting using the split transaction or spin transaction. I guess you would have to put detailed notes in the split "memo" field so you know what happened in the exchange offer.

by **Mark** » Thu Dec 29, 2016 9:01 pm

Hi flight,

Option #3 uses a "Split' transaction. For your example it would be a 103 for 99 split, and then change the name/symbol/CUSIP from GE to SYF. The closing price as of the split date would be recorded for SYF. The closing price for dates prior to the split date would be recorded for GE.

by **flight** » Sat Dec 31, 2016 7:56 am

Mark - I am continuing to review all of my transactions.

What do you make of this scenario? The BMV is $78,551, however, my ending market value on 9/30/09 is only $78,241, a difference of $310. There are no external transactions on 10/1/09

Cash Flow Period: 10/ 1/2009 - 10/31/2009 BMVi: 78551.983748 EMVi: 77174.549667 Yieldi: -1.75 Yield: -1.75
Annualizing... Calculation Span (years): 0.084932 Adjusted to Term (years): 0.084932 Annualizing Result: -1.75 -> -1.75
Result: Success
Yield Result = -1.75

I have a couple of instances like this....

thanks

by **flight** » Sat Dec 31, 2016 8:10 am

There is a transaction on 10/1, which has a market value of $310, precisely the difference I am investigating...

PUT ADP JAN 2011
Date Price Shares Total Fee Type Memo
10/1/09 1.550 -200.000 -300.49 9.51 Redemption

and the corresponding Cash entry.
Date Price Shares Total Fee Type Memo
10/1/09 1.000 300.490 300.49 0.00 Purchase Sold 200 PUT ADP JAN 2011 30.00

the market value of this investment on 10/1 is -$310.

by **Mark** » Sat Dec 31, 2016 11:29 am

Hi flight,

Where are you getting this:

my ending market value on 9/30/09 is only $78,241

Is that from a Portfolio Value report, or from your TWR log? The EMVi terms in the TWR equation are calculated to exclude the effects of transactions on the ending date, so you can get a performance for that period, without the effects of money moving in/out.

Are both your cash account and this investment being included in the item you're calculating here?

If you run an "Investment Transaction" report for this same portfolio covering this date and turn on the filter to only show portfolio external contributions/withdrawals, does anything show?

by **flight** » Sat Dec 31, 2016 11:54 am

yes, the ending market value pf $78,241 is from the Portfolio Value report.

the BMVi of $78,551 is from the TWR log.

Nothing shows when I put the external contributions/withdrawals filter on.

That is why I am perplexed. I have a few instances of this.

by **Mark** » Sat Dec 31, 2016 11:59 am

Hi flight,

Can you send me a test case, so I can see what you're seeing? You can copy/paste the smallest test case you have into a new portfolio file (*.mm4), and then create a backup (File / Backup...) of that. Email me this *.FMB backup file, along with instructions on how to re-create this case, and I'll take a look here. I can answer more specifically this way.

by **flight** » Sat Dec 31, 2016 12:04 pm

sure will do. where should I send again?

by **Mark** » Sat Dec 31, 2016 12:06 pm

I've just sent you an email, so you can reply to that...

by **flight** » Sat Dec 31, 2016 12:58 pm

and the new portfolio can be created through the New Portfolio Wizard?

by **Mark** » Sat Dec 31, 2016 1:02 pm

No. Select the sub-portfolio you want to share in the Portfolio Editor. Choose "Edit / Copy" and then "File / Close Portfolio". Now, use "Edit / Paste", and then "File / Save Portfolio As..." and give it a new filename. Back that up, and email it to me.

by **flight** » Sat Dec 31, 2016 2:39 pm

Mark - I never received an email, which I could reply to

by **Mark** » Sat Dec 31, 2016 3:04 pm

Hi flight,

I sent it to the email address you have registered on this forum. You can also just submit a quick email here:

https://www.fundmanagersoftware.com/email.html

and upon submitting it will send you an email confirmation you can reply to.

by **flight** » Sat Dec 31, 2016 3:51 pm

I replied to it but it looks like it didn't get delivered.

I got an email saying was rejected by email junk filter. It was also 9 MB file.

How to audit transfer in/transfer out

Who is online