Re: Performance Report

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Posted by Mark on April 26, 2007 at 18:10:26:

In Reply to: Performance Report posted by SPS on April 26, 2007 at 16:16:59:

: I'm little confused about 'Portfolio Performance' reports. I'll explain this with an example ..

: Here is a snapshot of the performance report related to one of my accounts:

: ------------------------------------------------------------------
: Inv. Name--Beg Value--Invested--Distrib--End value--Gain--%Gain-I
: ------------------------------------------------------------------
: Fund 1 | 0.00 | -119.94 | 0.00 | 0.00 | 119.94 | 4.00
: Fund 2 | 0.00 | -114.58 | -10.00 | 0.00 | 104.58 | 3.35
: Fund 3 | 0.00 | 4224.52 | 0.00 | 4378.56 | 154.04 | 3.65
: ------------------------------------------------------------------
: Account | 0.00 | 3990.00 | -10.00 | 4378.56 | 378.56 | 3.66
: ------------------------------------------------------------------

: I'm actually confused with last column (bottom-right) where it shows Account %Gain as 3.66%, which actually should be some where around 9.5%. Am I missing something here?

: Note: As you can observe from the above snapshot I have sold Funds 1 and 2 and I only have Fund 3 in this account. Also, at any point of time I had only one fund in this account -- meaning, I bought Fund 1 and sold it to buy Fund 2 and after a while sold Fund 2 to buy Fund 3.

: Thanks in advance,

: - SPS

Hi SPS,

How are you calculating the ~9.5%? You cannot directly calculate the %Gain-I from just the numbers shown in this report. Given that your 3 investments are all between 3 and 4 %, it seems reasonable that the whole account is 3.6%.

The %Gain-I is:

(End_Value + Redemptions + Distributed_Distributions - Purchases)/Purchases

where "Purchases" is the beginning value, plus any money added into the investment/account out of pocket (not including reinvestments).

If you'd like to delve more into the calculation, you can create a custom report with these fields:

Value (beginning)
Purchases (between)
Reinvested distributions (between)
Redemptions (between)
Distributed distributions (between)
Value (ending)
%Gain-I (between)

To get the "Purchases" from the %Gain-I equation you would add the beginning value, purchases, and subtract the reinvested distributions. The "Purchases" in this custom report field includes reinvestments, which aren't included in the %Gain-I's purchases field, which is why they need to be subtracted off. Also, if you paid any commissions this will cause a slight difference.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

Replies:

• Re: Performance Report SPS 19:41:34 04/26/07 (2)
  • Re: Performance Report Mark 21:09:42 04/26/07 (1)
    • Re: Performance Report SPS 21:19:26 04/26/07 (0)