Fund Manager
PORTFOLIO MANAGEMENT SOFTWARE
Contact Us

why is account fee "reinvested"?

General questions about using Fund Manager that do not fit into any other forum.

Postby Bruce » Mon Feb 12, 2024 4:00 pm

I have a difficult time remembering that distribution / account fees ... cash leaving the account ... needs to be recorded as "reinvested". Plz explain the logic of that so I can get it committed to memory.

I just spent several hours reconciling a fairly complex managed account where the cash balance was off. FM's Transaction record (cash register / all transactions) and the statement agreed perfectly. I finally realized the discrepancy was exactly the account-maintenance fee. Clicked it to "reinvested" and everything is okay.
Bruce
 
Posts: 39
Joined: Wed Dec 07, 2016 11:54 am

Postby Mark » Mon Feb 12, 2024 5:05 pm

Hi Bruce,

I can understand this being confusing. The idea is you're redeeming shares of cash to pay for the fee, you're not mailing in a check.

Positive Reinvestment: More shares are bought with the distribution, you don't receive any money

Negative Reinvestment: Shares are sold to pay the distribution (fee), you don't send in any money
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11218
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ


Return to General

Who is online

Users browsing this forum: No registered users and 2 guests

FundManagerSoftware.com | Search | Site Map | About Us | Privacy Policy
Copyright © 1993-2024 Beiley Software, Inc. All rights reserved.
cron