Fund performance Yield

[captainvideo]

Why do the values for 1, 3, 5 and 10 years in the Fund Performance Yield report differ so greatly from the Performance Profiles I receive from the investment company? I can understand a few decimals off if the time frames are not exactly the same, but a 5 or 10 year return that is uses the same end date should be the same and not 1.5% different. The profiles are labled "Average Annual Total Returns" ending on a certain date.

[Mark]

Hi captainvideo,

The "Fund Performance" yields will be affected by the starting price, the ending price, and all the distribution/share amounts you have recorded. Please double check these, and once they are accurate the Fund Performance yields should be identical to the numbers reported by mutual fund companies for their performance.

For example, if you have a 1 year yield ending 5/12/2008, you would want to make sure the prices on 5/13/07 and 5/12/08 are recorded/accurate. Use the "Data Register" with the "Prices" data type selected to see your recorded data. Next, change the data type to "Distributions (all)" and verify that all the distributions between these dates (inclusive) have a correct dist/share amount.

[captainvideo]

I update prices every week and make sure all the dividends are posted whenever I get a summary from the company. My totals shares are accurate. Are there different ways to calculate "Average Annual Total Returns"? Their numbers are alway higher than Fund Manger ROI. Could they be calculating before fees are substracted?

[Mark]

Hi captainvideo,

Are you looking at "ROI" or "Fund Performance" yields? These are 2 different types of yields. ROI is on your invested dollars. Fund Performance is on the underlying intrinsic investment, and ignores when you bought/sold. The Fund Performance yields are the ones that will match those published by mutual fund companies when all of your data is recorded accurately.

If you are only updating weekly prices, this can be a source of error in the yields. Fund Manager may be interpolating a price for your beginning or ending yield date if you don't have a price recorded on that date. You can turn off the option to interpolate if you want to make sure you are getting the most accurate yields only. See "Options / Yield Interpolation Range...".

The number of shares you own does not matter for "Fund Performance" yields. These yields only look at the share price and dist/share values. Mutual fund companies normally include the effects of fees in their published returns.

[captainvideo]

My bad.... I said ROI and meant Performance Yield. What interpolation range would you recommed. I have a price for 3/31/98 and 3/31/08. FM gives me a 10 yr Performance Yield of 3.66. The company report says the Average Annual Total Return for 10 years is 4.89. If I don't set some interpolation, I don't get many values. What is going on and what interpolation value is reasonable to set? Thanks.

[Mark]

Hi captainvideo,

You can read all the gory details about interpolation options in the help:

http://www.fundmanagersoftware.com/help ... range.html

The defaults are usually pretty conservative:

Turn ON "Enable Max Interpolation" of 2 days
Turn OFF "Allow Interpolation Prior to Earliest Recorded Data"
Step interpolation

To get the same numbers as reported by the company report, please verify what they are using for the starting/ending prices, and also all of your recorded distributions.