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Performance of multi-currency portfolio

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

Postby pauyo » Tue Nov 03, 2020 11:00 am

Hi,

I have a portfolio that contains investments (equities) in five different currencies, one of these is the base currency for the portfolio. Is it possible with FM (or relevant) to view the performance of the portfolio disrgarding the effect of the relative movements of the currencies?

I am thinking that when showing the portfolio performance in my base currency, then potentially a big part of the (over/under) can be attributed to how my base currency has performed in comparason to the other currencies, and not the actual performance of my picks (in case of foreign investments). Correct?

Thinking along these lines I took a look at the portfolio graph from:
Graphs->Portfolio/Investment(s) Overlay (Prise + Distributions).
I notice that the graph looks very differently depending on if "View->Exchange rate adjusted" is selected or not. Does the graph show the true portfolio performace disregarding currency movements when "View->Exchange rate adjusted" is NOT selected, or is that just an irrelevant graph?

I hope I managed to explain the point.

Regards,
Paul
pauyo
 
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Postby Mark » Tue Nov 03, 2020 12:14 pm

Hi Paul,

By default, in most places when you turn off "Exchange Rate Adjusted", FM will not add or calculate by mixing currencies. This is kind of like adding apples/oranges. You can override this behavior with "Options / General Preferences... / Other / Allow Summing Values from Different Currencies". In that one graph you mentioned it will combine currencies in order to make that plot, even when that option is off.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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