OOP Calculation

[Gally]

Are or should account fees be taken into this calculation?

I have a portfolio where the incoming transfer OOP has an account fee that does not increase the displayed OOP. a -2.8 account fee does not reduce the transfer in OOP value in the ditor display.

In another portfolio that has a single incoming transfer OOP with a current basis value of £792.31

There are only three three distributions of 1.72, 4.14 and 1.04 = 6.9 but the editor shows an OOP current basis of 787.13 .

Should this be an OOP current basis of the Transfer in of 792.31 - 6.9 dividends =£785.41 and not the £792.31 displayed.

Can you please add some clarity to aid my understanding

Many thanks

[Mark]

Hi Gally,

Account fees are just a type of distribution, which are usually negative. So, yes, account fees paid will adjust your OOP basis.

Are you recording your account fee as distributed or reinvested? If it is distributed, and the value is negative, this will increase your OOP cost basis. You paid money in externally to pay for a fee in this case.

If your account fee is reinvested and the value/shares are negative, this will reduce the number of shares you own. You sold some shares to pay for the fee. Since you own fewer shares, the cost basis will reflect the cost of these fewer shares.

If you still have questions on a particular investment, please email me a sample investment file, along with a date you're looking at, and the numbers you're seeing, and the number you expect. I can take a closer look.