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calculations from spinoffs

Questions on using, creating, or understanding data in Fund Manager reports.

Postby Mary Kennedy » Wed May 12, 2021 1:21 pm

Attached is a portion of a report that includes two companies that were spun off from other companies. Both are in red fonts, indicating losses. The first one, Viatris, seems correct to me. The original spinoff was about $865 and it is now about $680, for a loss of about 10%. The second one, RTX, is off and I can't figure out why. It was spun off from Siemens about 2 years ago for an original value of $9817 and is now worth $12364, for a gain of 25%. I can't figure out why FM is showing a loss here
Mary Kennedy
 
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Postby Mary Kennedy » Wed May 12, 2021 1:26 pm

Sorry--forgot the attachment
Attachments
spinoffs.jpg
spinoffs.jpg (82.13 KiB) Viewed 514 times
Mary Kennedy
 
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Postby Mark » Thu May 13, 2021 9:41 am

Hi Mary Kennedy,

If you go look at the Transfer In transactions in these spun-off investments, do you have a Market Value and OOP Cost recorded correctly?
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby Mary Kennedy » Thu May 13, 2021 2:38 pm

Hmmm. If I go to Investment data-->Transfer In, neither holding has any information, both forms are blank.

OTOH, If I use the "Edit all data" option to get the main data sheet, I see that the first entry for Viatris is listed as a transfer in with a price of 0, whereas is Raytheon is listed as a purchase with the correct number of shares and the correct original share price. And the last column, entitled "memo," says it was a spinoff.

Also I notice that FM puts the acquisition date as Jan 2020, which is when the spin-off occurred, but my broker lists the start date as Jan 2019, which was when the parent company was originally purchased.

Somehow as I delved into this the original error corrected itself, but I have would still appreciate any further guidance you can offer on what the heck just happened
Mary Kennedy
 
Posts: 96
Joined: Sat May 08, 2010 2:36 pm

Postby Mark » Thu May 13, 2021 4:17 pm

Hi Mary Kennedy,

If you go to "Investment Data / Transfer In", you are recording a new Transfer In transaction, not viewing your already recorded ones. For that, use the Data Register.

Transfer In transactions have 2 dates, one for the date the shares were transferred in, and the other for the original date acquired. When you use the spin-off wizard, both of these will be filled in, and the transfer date is the date of the spin-off, where the date acquired is the date you originally purchased these shares.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 9909
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby Mary Kennedy » Fri May 14, 2021 6:59 am

Great! Thanks, as always
Mary Kennedy
 
Posts: 96
Joined: Sat May 08, 2010 2:36 pm


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