IRR Report

[heinlein2302]

Hi,

I am using the trial version and I must say I am impressed with this software.

There is one report that I really need and can't seem to be able to generate:

I need a report that tells me the IRR of various investments that have ever been made.

So for example, if I bought Pfizer on May 22, 2007 $10 and sold it on May 26, 2008 at $11.07, I need a report that tells me purchase price, sale price, interim dividends and the overall IRR on that investment.

I can't select that exact date range for the report because I might have other investments in the portfolio that have different purchase and sale dates. I need a report that lists all investments and gives me the IRR of each.

When I see the Bar-Yield graph, I see the IRR that I am looking for in "gph" but I need this in a report along with the corresponding cash inflows and outflows during the term of the investment.

Here's roughly what I am looking for the report to give me:

Investment: Pfizer

Date Tran Qty Price Amount
05/22/2007 BUY 1 10 -10
26/05/2008 SELL 1 11.07 11.07
IRR 10.61%

Investment: General Electric

Date Tran Qty Price Amount
04/21/2008 BUY 15 35.64 -534.60
12/15/2008 DIST_D 1.5
06/14/2009 SELL 15 42.11 631.65
IRR 15.90%

Is it possible to get what I am looking for?

Thanks.

[Mark]

Hi heinlein2302,

You can get the IRR (we call it ROI yield) for any investment, symbol, asset type, investment goal, investment type, or sub-portfolio for any date range you want. You cannot get the ROI on a single "transaction set", unless it is the only set of transactions in an investment. To get the ROI yield for a given date range you can create a custom report with "ROI yield (between)" and set the date range to the period you want the ROI yield for. To get the same yield as the "gph" yield in your graph, set the report date range to the same time period as your bar chart graph. The "Portfolio Performance" report also shows the ROI yield in the last column, so you could use that report as well, again setting the date range to the time period you want the yield for.

To get the transaction details, you can use an "Investment Transaction" report. This report will list your transaction details like you've shown, but you'll have to get the ROI yield from another report, you can't get both on the same report.

[heinlein2302]

Thanks. Yes, I noticed that I can get all the information I need in different reports/graphs but I was hoping I could customize some report to get the output in the format I need. Guess not. Its not a deal breaker for me though.

Another related question:

If I have paid capital gains (or other tax/cost) related to an investment, what is the best way to record this, so that I can get post-tax ROI? Also, is it possible to import this for historical trades? I am in India so I can only use generic import but I don't see tax or other costs in the TRAN type. Would appreciate some guidance on this.

Thanks again.

[Mark]

Hello heinlein2302,

Generally, Fund Manager tracks all performance as pre-tax. You could incorporate the effects of tax by recording any tax payments as negative distributions. This will then result in the performance figures including the effects of any taxes you've paid.

[heinlein2302]

Hello again Mark,

Thanks for the quick responses. I tried recording taxes as negative distributions. Though I would have loved an explicit TRAN type called Tax, at least I can make a note in the memo, and obviously the yield gets adjusted to what I need, so this is a workaround I can live with.

Apart from these couple of minor glitches from my point of view (probably not relevant in the US else I am sure others would have flagged them), the software works very nicely.

I plan to go ahead and buy.

Best,
Heinlein

[Mark]

Hi Heinlein,

Okay, thanks for the feedback and your support. It is appreciated.

[heinlein2302]

Hi Mark,

One last (hopefully!) question:

In some countries, brokerage accounts are linked to a bank account that is automatically debited/credited whenever you make a trade. Since this is otherwise just a normal bank account, the bank periodically credits interest on any cash balances in the account. Similarly the bank/broker debits account maintenance charges (depository fee, debit card fee etc) periodically.

Secondly, some brokers give cash-back credits into the bank account (effectively rebates on commissions) for high volume clients. This periodically shows up as a credit in the linked bank account, and the amount varies depending on the trading volume during the immediately preceding period.

Neither of the above relates to any particular investment but to the portfolio's default cash account. What is the best way to account for these?

Best,
Heinlein

[Mark]

Hi Heinlein,

I assume you are using a default cash account in Fund Manager... If not, create a cash investment, and assign it under the 'Properties...' of your sub-portfolio to be the default cash account. This way, any transactions in this sub-portfolio that use/create cash will automatically go into or come out of the default cash account.

If you get interest credited, just record a reinvested interest income distribution in the cash account. All transactions in a cash account are done at a price of 1. The shares are set to equal the value.

For credited commission fees, you can record these as reinvested distributions in the cash account. You can pick whatever distribution "type" you want. For example, if you'd like to track them separately, you could use the "Other" distribution type. The type of distribution you pick really doesn't affect performance numbers, it is really just for categorizing on reports, etc.