Re: Costs

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Posted by Mark on May 31, 2006 at 10:47:58:

In Reply to: Costs posted by Richard Trilling on May 31, 2006 at 06:11:42:

: Mark,

: I’m having some problems of relating to your expressions and the way things are graphed and reported. Let me give you a specific example & perhaps you could comment. Perhaps you could explain. Let me give you an example.

: I purchased:

: 200 shares of X at 29.35 € (fee of 84.85 €). Total cost is 5,954.85 € or 29.77 €/share. This value is what the French call (PAM) and corresponds to:

: Graph: your cost line
: Report: OOP basis/s (end)

: I sell 133 shares (I have 67 left), the PAM does not change since all gains are calculated from its initial value.

: The green cost line now has changed however, stepping downward.

: I now buy 12 shares at 70.25 €/ s (with out any fee). The PAM has now changed since my average purchase price/share for the shares I know have is:

: [(67*29.77) + 12*70.25]/(67 + 12) = 35.91 €

: What graphic lines and report values show this?

Hi Richard,

The direct answer is that you can get this figure in the Custom report using the "OOP basis per share (current)" field, and in the graphs the cost line will plot this if you turn OFF "Graphs / Options / Historical Cost".

Fund Manager supports both a "current" and "historical" Out Of Pocket (OOP) cost basis. I think you are looking at the 'historical' version, but expecting the 'current' version. The 'current' version only looks at the cost basis of the shares you currently own. The 'historical' version looks at the cost basis since inception, so when you sold those 133 shares, the amount you sold them for affects the historical cost basis. The higher you sold them for, the lower your historical out of pocket cost basis would go. For a brief definition of out of pocket cost, please see:

http://www.fundmanagersoftware.com/help/def_oop.html

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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