Re: Sum of "% of portfoilio" column not adding up to 100%

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In Reply to: Sum of "% of portfoilio" column not adding up to 100% posted by FV on January 06, 2005 at 12:16:50:

: Hello Mark,

: I am using personal version 7.0, but haven't registered it yet.

: While veiwing a sub-portfolio, in the portfolio editor, I noticed the "% of portfolio" column sum is not adding up to 100%.

: The sub-portfolio is made up of four cash investments. The following are the percentages of each of the four investments in the sub-portfolio: 50.90%, 20.32%, 19.41%, 11.62% which add up to 102.25%(not 100% which I would expect) However, in the pie chart graph, the percentages are correct. Equaling 100%.

: After playing around a bit, I found that if I update the price to the current date, (ie) today, the percentages are more in line. But my question is: is this correct? Why would a current price affect the % of the investment in the overall portfolio? I should add that the price is a constant 1 dollar. So the value of the investment does not change whether the price is updated today 1/6/05, as oppose to, 1 dollar on 1/5/1999.

: Thanks in advance,
: FV

Hi FV,

The data displayed in the Portfolio Editor is reported as of the default
ending date. This is defined as the latest date you have a price recorded
for that is on or before the current date. So, if your latest recorded price
was a while ago it would be calculating the percentages as of that date.
If you have all your prices up to date in all your investments everything
should be consistent. When FM calculates the percentage of portfolio it is
using the portfolio value on the same date that it calculates the investment's
value (that investment's default ending date). Maybe the better way to do
it is to use the same portfolio value for all investment's calculations. This
would probably be less confusing. I think I've talked myself into changing it
to work that way... Thanks for pointing this out.

Thanks,
Mark
--
Mark Beiley
Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003

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