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% gain difference in Price&Dist overlay vs gain

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

Postby fundman247 » Sun Feb 16, 2014 3:20 am

Hi Mark,

Could you please explain why there is such a big difference in the 2 graphs. The portfolio gain graph displays the gain correct and it is close top a new high and 35% up for the year.

If you look at the portfolio overlay graph in RED and the % displayed in the top left corner it indicates only 25% gain in the last year and not near the top.

One would expect the overlay value to reflect the actual value of the portfolio as can be seen in the portfolio value graph.

In this case no withdrawals have been made and only switches between funds.

Due to the lump sum being added one can understand that the % gain could be lower due to the increased value but I would think it should still show the portfolio close to a new high in value on the overlay graph as it does in the portfolio value graph.

Please help as I use the overlay value a lot to see my portfolio performance vs the 2 funds I use to switch.

Regards.
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Don't stay in bed....unless you can make money in bed - George Burns
However beautiful the strategy, you should occcasionally look at the results - Winston Churchill

Remeber and practise it!!!!!!
fundman247
 
Posts: 135
Joined: Mon Mar 29, 2010 11:34 am
Location: South Africa

Postby Mark » Sun Feb 16, 2014 5:41 pm

Hi fundman247,

Notice your Portfolio Gain graph is in "historical" mode. That means all gains, realized and unrealized are factored into the gain. What if you toggle it to "current" mode under "Graphs / Options / Historical Cost"?
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby fundman247 » Mon Feb 17, 2014 9:08 am

When I switch to current gain the portfolio gain drops to the lower level as per the pics I posted. It shows around the low end as per the beginning of Feb 2014.

The overlay stays round about the middle of the high as per the slide I loaded earlier and the value stays close to the new high formed on 10 Feb 2014.

Is my thinking correct that if the portfolio value is close to an all time high the historic gain should also be at a new high. The last buy (new money) in these 2 funds took place 3 weeks ago and the addition was very small in relation to the portfolio value. Both the funds that were added to are at a higher price than when they were bought.

Am I right that the historic gain should show at a new high if the value of the portfolio is at a new high and the overlay should also show a value at a new high just like the level of the value graph?

Regards.
Don't stay in bed....unless you can make money in bed - George Burns
However beautiful the strategy, you should occcasionally look at the results - Winston Churchill

Remeber and practise it!!!!!!
fundman247
 
Posts: 135
Joined: Mon Mar 29, 2010 11:34 am
Location: South Africa

Postby fundman247 » Mon Feb 17, 2014 9:35 am

Hi Mark,

I have picked up why the portfolio gain does not show close to a new high. The value graph adds the new buy of 3 weeks ago and puts the value on a new high.

The last buying of 3 weeks ago although higher now than it was when the buy was done the overall gain is now lower than it was on January 23.

The overlay graph does indeed show that the gain is lower than at January 23 which is in line with the historic gain graph.

That problem is solved but I still fail to see why the % gain for the last year differed on the 2 graphs. Today the 2 graphs indicate the same gain over 1 year as I expected. It was really this difference in gain that made me look closer as to why the 10% difference.

Regards.
Don't stay in bed....unless you can make money in bed - George Burns
However beautiful the strategy, you should occcasionally look at the results - Winston Churchill

Remeber and practise it!!!!!!
fundman247
 
Posts: 135
Joined: Mon Mar 29, 2010 11:34 am
Location: South Africa

Postby Mark » Mon Feb 17, 2014 10:53 am

Hi fundman247,

Glad you resolved some of the issues.

I still fail to see why the % gain for the last year differed on the 2 graphs


I didn't quite follow this. Which %gain and which graphs are you referring to?

The Portfolio Gain graph is plotting the difference between the Portfolio Value and your cost to obtain that value. If you add more money, the Value graph will go up, and you cost will also go up, so the Gain will stay the same. The Value and Gain graphs will only track each other when the value change is due to market gains/losses, and not because you added/removed money.

This Portfolio Gain graph can be in either "Historical" or "Current" mode. When in historical, any realized and unrealized gains/losses are included in the plotted gain. When in "Current" mode only unrealized gains/losses are included. You can read more details about how this graph works in the documentation for this graph type:

http://www.fundmanagersoftware.com/help ... tgain.html
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11253
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby fundman247 » Mon Feb 17, 2014 1:05 pm

If you look at the ROI over 1m,3m,6m,1y,2y and 3y at the top of the gain and value graph vs the % top left in the overlay graph.

The overlay showed 25% for 1 year yet the other 2 showed 35%.

Now a day later after Friday the 35% jumped back to 25.6% to be in line with the overlay.

With these investment being mutual funds none of them changed more than +/-1% from one day to the next or from Friday to today. The 35% figure jumped back to 25.6% and the 25.8% is now 26.1% after the increase in price today.

Due to the fact that I have about 5 portfolios of mutual funds they all give about the same % on the different graphs and this one in question was the only one that had such a big difference but seems like only on Friday. All 5 portfolios have a 1y gain of between 19 and 28%.

Lets leave it for now.

Regards.
Don't stay in bed....unless you can make money in bed - George Burns
However beautiful the strategy, you should occcasionally look at the results - Winston Churchill

Remeber and practise it!!!!!!
fundman247
 
Posts: 135
Joined: Mon Mar 29, 2010 11:34 am
Location: South Africa


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