Gain Due To Market Appreciation Versus Exchange Rate

 

For investments that are not in your default currency, Fund Manager can break out the portion of gains due to market appreciation versus exchange rate changes.  This calculation looks at the gain in both native (assigned) currency as well as the default currency and then separates out how much of the gain is due to each, such that:

 

Gain_Total = Gain_Market_Appreciation + Gain_Exchange_Rate

 

See the following Custom report fields to get these gain components:

And see these fields for the "Total" numbers:

The "Gain per share" figures are based off share prices, where the "Gain" figures are based off market values and your invested money.  The "between" fields are calculated for the date range of the report, where as the "inception" fields are between the first data point and the ending report date.  All "market appreciation" and "exchange rate" figures are always reported in the default currency (even if Exchange Rate Adjusted is off), and will always be labeled as such on the report.

 

The following equations are used to determine how much of the gain is due to market appreciation, and how much is due to exchange rate.  All variables ending in "_N" are in the Native (assigned) currency, and variables ending in "_D" are in the Default currency.  First, we calculate a percentage gained in the Native currency:

 

%Gain_N = (EndValue_N - StartValue_N) / StartValue_N

 

Next we apply this rate to the starting value in the Default currency, so we can determine how much of the gain in the Default currency was due to market appreciation:

 

Gain_Market_Appreciation_D = %Gain_N * StartValue_D

 

The remaining gain is attributed to the exchange rate:

 

Gain_Exchange_Rate_D = Gain_Total_D - Gain_Market_Appreciation_D

 

See Also

Currency Settings Dialog

Tutorial on Currency Setup

 


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