• Multicurrency Portfolio Structure Design's

[nebfinfm]

• Multicurrency Portfolio Structure Design's

Mark thank you for quick response to my question on Multicurrency. I designed multicurrency portfolio hierarchical structure and I will appreciate if you can review it and make your suggestions.

Although the investments are denominated in several currencies I would like to see the portfolio in 3 currencies CZK, EUR and USD.

Assets which can be automatically updated (stock, bonds, forex) are in the Auto-Updated Subportfolio, other assets which must be manually updated (bank accounts, real estate) are in Non-auto Updated Assets Subportfolio

If you provide your email address.I will send you the portfolio design in the hierarchical tree form

Thanx in advance

• Master Asset Portfolio (CZK USD EUR)

o Assets Non-Current
 Non-Auto Updated Assets

• Private loans
o Loan1 USD
o Loan2 CZK

• Real Estate
o RE1 CZK
o RE2 CHF
o RE3 USA

o Assets Current
 Auto-Update Assets
• CZ Portfolio1 (CZK EUR USD GBP AUD)
o Bond1 EUR
o Bond2 USD
o Bond3 AUD
o Bond4 GBP
o Equity1 EUR
o Equity2 USD

• GB Portfolio2 (GBP CHF EUR CAD)
o Equity1 CAD
o Equity2 CAD
o Qquity3 EUR

• US Portfolio3 (USD)
o Equity1 USD
o Equity2 USD

 Non-Auto Updated Assets
 Cash
• CZ Banks
o CZ Bank1 (CZK EUR USD CHF)
o CZ Bank2 (CZK EUR AUD GBP)

• GB Banks
o GB Bank1 (GBP CHF EUR USD)

• US Banks
o US Bank1 (USD)
o US Broker1 (USD)

[Mark]

Hi nebfinfm,

This looks fine to me. There really is no one right way to organize your accounts, it just depends on how you'd like to be able to group them when reporting. Reports and graphs can display at any sub-portfolio you choose.

Just a hint on using this forum for posting hierarchies... If you select the text, and press the "Code" button above, it will retain your spaces, so it makes indentations easier to read.

If you'd still like to email me something, fill out our "Email Us" contact form, and once you submit, you'll see a regular email address you can use. Click on "Contact Us" in the upper/right of this page.

[nebfinfm]

Mark, I just bought FM, it is a fine program. However I have more questions and/or suggestions to the multicurrency issue of one (1) only default currency system in multicurrency environment.

Initially I asked how to structure portfolio hierarchy with 3 brokerage account in 3 countries each denominated in local currency (USD CHF CZK). I would like to view the master portfolio and the 3 main sub-portfolios in any one of above currency.

You suggested to leave position 1 open and put the currencies in positions 2-4, then to adjust default (1) and switch the exchange rate setting too. I presume by "switching" you mean manually entering whatever is the current exchange rate. To complicate the issue more, my investments are currently in 6 currencies (USD CHF CZK AUD CAD and EUR) and in future might be even more.

Manually entering current exchange rates is very frustrating - is there another way to solve the problem? Here are some of my thoughts:

a) I have Excel spreadsheet which have an option to select default currency and the whole spreadsheet is instantly recalculated - wouldn’t be something similar possible to do with FM? I can imagine that in default currency position 1 will be an option asking you to select any of the following currencies as a default currency.
or
b) maybe by having three identical, portfolios, each having a different default currency? Then how to auto-update all three portfolios…..

Best regards Nebfinfm

[Mark]

Hi Nebfinfm,

If you want to view all your investments in more than 1 common currency it does get more complicated. You can do it, but you need to keep exchange rate investments for each exchange you'll need. Some examples may help. Let's say you have assigned USD to position 2, CHF to position 3, and CZK to position 4. Now, when you want to view everything in USD, you could put your currency settings like this:

USD -> Default = Constant = 1
CHF -> Default = Exchange rate investment of USDCHF=X
CZK -> Default = Exchange rate investment of USDCZK=X

Now, if you want to see everything in CHF, set your settings like this:

USD -> Default = Exchange rate investment of CHFUSD=X
CHF -> Default = Constant = 1
CZK -> Default = Exchange rate investment of CHFCZK=X

Keep in mind, all this extra work is because you said you wanted to be able to see everything in any one of these 3 currencies. Typically, you would leave your currency settings the same, and you can view everything in your 1 default currency, or everything in its native currency.

You don't have to manually enter an exchange rate. Set up exchange rate investments, and have their price update, just like all your other investments. If you haven't already watched this tutorial, please see:

http://www.fundmanagersoftware.com/tuto ... video.html