Average Unrealised % Gain incorrect if exchange rate adj'ed

[Glenn2]

I have a multi-currency portfolio and am trying to get use to the fact that your software does not add different currencies together properly unless you select "Exchange Rate Adjusted". As a result sometime I have this flag on and sometimes not. What I have discovered however is that the "Average Unrealised % Gain" is not correct unless it is being represented in the original currency. I would have thought that toggling between exchange rate adjusted and not, would have no impact on the %gain but it does. When you select Exchaneg rate adjusted it does not adjust the "Average Basis" figure.

Is this a bug or am I not understanding what the "Exchange Rate Adjusted" feature is suppose to do?

[Mark]

Hi Glenn2,

Yes, it will change. If you have this option off, all native currency values are used. If you have it on, all values adjusted into your default currency are used. The conversion is controlled with your settings under "Options / Currency Settings...".

[Glenn2]

I do not think I understand your reply. Do you agree that the %gain should be the same whether it is the native currency or the default currency and therefore FM is incorrectly representing the figure?

[Mark]

Hi Glenn2,

No, I do not agree that the %gain should be the same in each case. In one case you are converting it to your default currency, and in the other you are calculating it in the native currency. The exchange rate can vary versus time, so the %gain will likely be different if you are calculating it all in native currency versus all in default currency.

The key is that the exchange rate varies for different dates.

[Glenn2]

Good point I had not considered that. Due to the exchange rate changing over time the %gain could be different when changing between native and default currency.

What I do not understand then is why the "Average Basis" figure is the same regardless of whether I am in native or default currency. The Value figure is changing as expected but why not the Average Basis?

[Mark]

Hi Glenn2,

Yes, the Average Basis should change when you toggle "View / Exchange Rate Adjusted", unless the exchange rate happens to be 1.0 on the date of your purchases?

[Glenn2]

That's it. My exchange rate on the purchase date is 1 which now explains everything. Thanks.

I have checked my exchange rate set-up and it follows your documentation exactly. My "current" rate is being updated correctly but it does not work for the historical update. I get a message "Could not update investment". I have tried all of the historical servers on the list but I get the same error message. Any suggestions?

[Mark]

Hi Glenn2,

Glad that explained things.

None of the quote servers offer "historical" exchange rate quotes. You can only get current quotes by retrieving. However, you can download/import historical exchange rates from OANDA. See:

http://www.fundmanagersoftware.com/faq_ ... wnload.php