Account fees and performance calculations

[cheapsk8]

Hi Mark,

I am reconstructing data for some accounts back to Jan. 2010.

Some of this data I have to enter manually and I notice that with broker account fees (e.g. monthly fees) there doesn't seem to be an obvious way to record it such that it counts against performance of the portfolio.

If the client withdraws money, that is recorded as a redemption of cash and should be accounted for in the TWRR calcs so as to not affect the performance.

However, if the broker withdraws money due to fees, that is also recorded as a redemption of cash. Or, that is the way I am manually recording it. This redemption *should* count against performance though.

How do I accomplish what I am trying to do?

Thanks

[cheapsk8]

I think I have it.

Goto the Data Register for the Cash account and then goto Distributions/Account Fee or maybe make a user defined fee.

Correct?

[Mark]

Hi cheapsk8,

Correct, you would want to record this as a negative distribution of the type "Account Fee". It can be any type of distribution really, but these are usually under this type. If the user paid for the fee by sending in a separate check, it is not reinvested, but if they sold cash to pay for the account fee, mark it as reinvested, so you reduce the number of shares of cash. The value and shares are negative, and the price is 1 for an account fee.