3m Yield

[alan green]

Hi Mark,

on the opening screen I see the 3m yield for one of my investments at 15.29% and the 6 month is 24.46%.

I bought the investment on 5/28/20 for $25,000 and it is now worth $25,425. Please explain how the yields could be so high.

Alan

[Mark]

Hi alan green,

By "opening screen", do you mean Portfolio Editor? If so, the 3m yield is a term ending on the current date. So, what is the market value today, and what was it exactly 3 months ago? It doesn't matter what happened before this, or what you initially paid for it, if you bought it before 3 months ago. It is only analyzing a 3 month period, ending today. So, what is the value on 2/4/2021 and what is the value on 11/4/2020? That will determine your 3month yield. Any transactions within this period would also impact the yield.

[alan green]

Hi,

Yes, I was referring to the Portfolio Editor as the opening screen.

On 11/4 the value was $24,045 and today it's 25,425 and there were no transactions in between, so I don't see how that comes out to 15.29%

Alan

[Mark]

Hi Alan,

Something doesn't sound right. Are you sure you don't have any transactions in this date range? Did you use the Data Register and All Transactions to look? You can also turn on yield logging at "Options / General Preferences... / Yields / Log Calculation Details for ROI Yields". Close and re-open the Portfolio Editor, and then go look at the log file at "Help / Logs / ROI Yield Calculation". I put together a simple test using the same numbers you provided, and it shows a 3M ROI yield of 5.7%, and here is the snippet from the log file:

Code: Select all

***************************************
ROI Equation for investment "test": Yield Result (i) = 5.74

Dates: 11/5/2020 - 2/4/2021
Interpolation Range Settings: Enforce Maximum Interpolation Range = ON (5 Days), Allow Interpolation Prior To Earliest Recorded Data = OFF, Interpolation Type = Step, Only Report ROI Yields When Item is Owned for Entire Yield Term = ON
Including Accrued Interest: OFF
Including Account Fees: ON
Yield Period in Years: 0.252055
End_val + Dist(s) - Inv(s) - Beg_val = 0

25425.000000 - 24045.000000(1 + i)^1.000000 = 0

Can you send the same snippet for your investment?

[alan green]

File attached.

[Mark]

Hi Alan,

The log file attached didn't contain an investment with an ROI of 15.29%. Please display the investment in the Portfolio Editor after turning on the logging option. This will cause it to be calculated, and added to the log file. Afterwards, please just open up the log file, ensure you see the investment in question, and copy/paste the snippet for just the one investment in question into a forum post, as I did in my example. That way, I know which one to look at. The log file can get long.

[alan green]

see attached files. After selecting Log Calculation for ROI I closed the program.

[Mark]

Hi alan green,

I only see a screenshot of the log file, and the part captured doesn't show the investment calculation in question. Can you see the 15.27 value in the log file? For example, from my snippet that I posted it has a line like:

Code: Select all

ROI Equation for investment "test": Yield Result (i) = 5.74

You should see one for your investment "SP500 CLIRNS ISS BK..." that has a yield result of 15.27. Please just copy/paste that segment of the log file as text into a forum post. If this doesn't make sense, maybe just give me a call...