Re: portfolio performance

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Posted by Mark on June 05, 2006 at 11:25:59:

In Reply to: Re: portfolio performance posted by steves on June 05, 2006 at 09:45:52:

: : : : when i use the portfolio performance feature, i am getting inconsistencies in the %Gain-I. for instance, my "invested value" is 100 and my "end value" is 200. My "gain" is correct at 100, however the "%Gain-I" gives a wrong value. please assist. thks

: : :
: : : Hi Steves,

: : : How are you determining the %Gain-I is wrong? It may just be calculating differnt than you expect? From within this report you can select "Help / Help on Report", and then the equation for %Gain-I will be available. This may clarify why the figure is being reported the way it is. Also, if you're looking for a different %Gain you might want to use a Custom report, and choose whatever %Gain you want.

: : : Thanks,
: : : Mark
: : : --
: : : Fund Manager - Portfolio Management Software

: : Hey Mark,

: : Thanks for reply. I understand the computation, however I find that it is correct for some investments and off in others. For example, these are the numbers I am getting for one investment (report date is from initial investment to current date):

: : Beg Value Invested Distrib End Value Gain %Gain-I
: : 0.00 10,982.17 0 11,067.72 85.55 .50(should be .79?)

: : Below is another example of a sub-portfolio total
: :
: : Beg Value Invested Distrib End Value Gain %Gain-I
: : 0.00 22,011.78 0.00 22143.69 131.91 .25 (shouldn't the %Gain-I be .59?)

: Mark, here it is again. The format did not turn-out correctly:

: Investment A- from inception to current date
: Beg Val: 0
: Invested: 10,982.17
: Dist: 0
: End Val: 11,067.72
: Gain: 85.55
: %Gain-I: .50 (shouldn't this be .79?)

:
: Investment B - total of on sub-portfolio
: Beg Val: 0
: Invested: 22,011.78
: Dist: 0
: End Val:22,143.69
: Gain: 131.91
: %Gain-I:.25 (shouldn't this be .59?)

Hi Steves,

You can't calculate %Gain-I just from the numbers displayed in this report. The formula is:

%Gain-I = (end + dist_dist + redemptions - purchases)/purchases

'purchases' is the starting value plus any money put into the investment. 'redemptions' is any money taken out. This report is showing 'Invested' which is the sum of money put in minus any money taken out.

As an example, let's say you started out with $1,000 and added $20,000, but also took out $5,000.

The report would show your beginning value of $1,000 and an 'Invested' column of $15,000. For purposes of the %Gain-I calculation your 'purchase' number would be $21,000, and your 'redemptions' would be $5,000. You would not be able to determine these purchase/redemption components by only looking at the beginning value and 'invested' columns.

To validate the calculations you could go add up the money taken out, and then you would be able to determine the purchases by addingthe redemptions from the 'invested' column.

As an aside... Overall, I believe %Gain numbers can often be misleading, since they are not time-weighted. Instead you are much better off looking at yield numbers, which are always time-weighted.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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