Tracking a portfolio as an investment

[rvles]

Hello
Since I have given my investments to an investment manager, I have stopped following individual stocks with Fund Manager. Instead I created one investment for all my stocks with one share and the price representing the total value of all the investments. I update the price with the most recent total value of all the investments on a regular basis. This allows me to track how my investments are doing without having to update each one individually each time there are dividends.
This has worked well until I decided to add an additional $5,000 to the account managed by my investment manager, which he will use to buy new shares. How do I record this in Fund Manager. If I make a purchase of 5,000 shares for $1 each, the share price becomes $1 and not the value of the portfolio.
Do you have any suggestions on how I should account for this new infusion of cash?
Thank you

[Mark]

Hi rvles,

I would suggest tracking it like cash, where you keep the share price fixed at 1, and the shares equal to the value. Whenever you want to update the market value, record a reinvested distribution at a price of 1 for the amount the market value has changed. (A distribution can be negative too if there was a loss.) This way, you get more/fewer shares without any out of pocket cost, and this will be represented in any performance calculations. When you add more money, just record a purchase for that many shares at a price of 1.

When you do it the way you were describing, you would have to buy ($5000 / closing price) shares, which is going to be an odd fractional share amount, less than 5,000, if your closing price on the date of purchase is more than 1. It works out best to use the above method, where you keep the share price fixed at 1.