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Re: Treatment of cash deposit and withdrawal

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Posted by Mark on March 25, 2004 at 18:53:10:

In Reply to: Treatment of cash deposit and withdrawal posted by wan on March 25, 2004 at 09:32:11:

: Dear Engineer,

: I am using Fund Manager 6.7.336. How does Fund manager treat cash transaction on portfolio gain? I found out cash deposit has the effect of lower portfolio %gain-I if the portfolio has positive gain due to bigger denominator. However if I withdraw cash, there is no change in portfolio %gain-I.

: Cheers.

Hi Wan,

The cash account is included in all performance metric calculations as long
as it is an open investment in your portfolio. This is true for the %Gain-I
metric as well. The equation for %Gain-I is:

(end_value + distributed_distributions + redemptions - purchases)/purchases

where "purchases" is the beginning value, plus any money you put into your
investments. The cash account values are included in this calculation.

Thanks,
Mark
--
Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP

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