Cash Transfer In/Out

[realbg]

Hello,

Portfolio Performance report does not calculate my transactions correctly and I would like to get your opinion. I transferred out some money from JPY Cash account and transferred in the amount in KRW Cash account.

All the information below is shown in my base currency adjusted for exchange rate.

Here is what my investment data registr shows:
<Investment: JPY>
Date_________Price________Share_______Total______Type
12/31/09____0.0841_____6,040,476____ 507,833____Purchase
01/14/10___ 0.0850____-5,500,000____-467,488____Transfer Out
<Investment: KRW>
Date________Price_________Share_______Total______Type
01/14/10____0.0069_____67,705,000___467,488____Transfer In

And, here is what the January 1-31 Report shows:
Invsmt______BegVal__ Ctrbt'n_____Wdrwl______EndVal_______Gain__ %Gain__Yield
JPY_______507,833______0____462,395_____46,452_____ 1,013____2.2____2.4
KRW___________ 0______0_________0____444,544____444,544____NA____NA
Cash3________xxx_______0________ 0________xxx_____-8,473___ -3.4___-3.4
Cash4________xxx_______0________ 0________xxx_________ 0____0.0____0.0
Cash5________xxx_______0________ 0________xxx_________ 0____0.0____0.0
------------------------------------------------------------------------------------------------
Cash
Total____3,123,509______0____462,395___3,099,162____438,047___16.5__-0.8


This brings me a few questions.

1) Why is "transfer out" is reported as Withdrawal but "transfer in" is not reported as contribution?

2) Gain and %Gain is wrong, because while 444,544 of cash in "KRW" investment is only transfer, it calculates it as Gain.

3) While "JPY" investment data registry shows transfer of -467,488, the report shows withdrawal of 462,395. What is the reason for the difference of 5,093?

4) I think %Gain is calculated as Gain/Beginning Balance. However, while 438,047 devided by 3,123,509 is 14%, the report calculates %Gain as 16.5%. So, what explains the 2.5% difference from?

5) Could you tell me what is the difference between %Gain and Yield?

Thank you.

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[Mark]

Hi realbg,

1) The contributions/withdrawals use the "OOP cost" of transfer in and out. Check to make sure your Transfer In OOP cost is recorded correctly. You can't see this in the Data Register, you must edit that transaction.

2) This is consistent with the idea that your Transfer In is recorded incorrectly. It looks like you have an OOP cost of $0 for your Transfer In. The Gain/%Gain numbers are calculated based off your OOP gain/loss, and if you added a bunch of shares at no OOP cost, then this will show a very high gain/%gain.

3) The transfer out had an OOP cost for those shares of 462,395, even though the market value was 467,488. FM calculates this OOP cost automatically based on the original cost of the shares you transferred out. The Data Register is only displaying the market value, if you edit that transfer out, you will see the OOP cost.

4) It is not only divided by the beginning value. It also has all the other cash flows in the denominator. %Gain is not time weighted. Press "Help / Help on Report..." from within this Portfolio Value report, and then click on the link for "percent gain" and you'll see the equation.

5) %Gain is non-time weighted, where ROI yield is both time and money weighted. If you click on that "Help / Help on Report..." menu command, there are links to both %Gain and ROI yield calculation help topics that explain this in much more detail.