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Quarterly management Fee

Questions about updating prices or transactions in Fund Manager

Postby hvanbeek » Thu Apr 28, 2016 7:29 pm

Since the beginning of this year (after January 3 )Quarterly management fees began to post as an Account Fee Reinvestment in the default Cash account with a negative amount. This decreased the value of the shares in the cash account from 1 to significantly less than 1.

Prior to this year, the quarterly management fee always showed as a redemption with a negative amount but the share value of the cash account shares remained 1.

What has changed. It does not seem correct.
hvanbeek
 
Posts: 7
Joined: Tue Feb 26, 2008 6:55 pm

Postby Mark » Thu Apr 28, 2016 7:40 pm

Hi hvanbeek,

A fee should be recorded as an account fee, not a redemption. The price of cash should always stay fixed at a price of 1. The management fee will reduce the number of shares you own, but not the share price of cash. For example, if you have $1,000 in cash, you should own 1,000 shares, at a price of $1. If you have a $100 account fee, this will reduce the number of shares you own to 900, but the price per share should remain fixed at $1. Take a look at your transactions/prices in the Data Register.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby hvanbeek » Fri Apr 29, 2016 6:51 pm

Mark, thanks for the reply. I agree with you entirely as to what it should be, and it does to a great extent. The transaction is recorded as an "account fee reinvestment" (not an "account fee) following auto retrieval from the broker. Changing that manually has no visible effect. The share value stays $1.00 in both the prices table and the prices graph. The reduction from $1.00 to, in this case, about $ 0.80 shows up in the price plus distribution graph. Am I missing something?
hvanbeek
 
Posts: 7
Joined: Tue Feb 26, 2008 6:55 pm

Postby Mark » Sat Apr 30, 2016 8:26 am

Hi hvanbeek,

An "Account Fee" is a type of distribution. It normally has a negative value. In this case it is "Reinvested", which means shares were redeemed to pay the fee. It would be normal to see the Price + Dist. graph for your cash account go down, given you have a negative distribution recorded in there. The Price + Dist. graph is plotting the share price plus any distributions/share. The Account Fee is a negative valued distribution, so the distribution/share will be negative, and the "Price + Dist." will go down.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11253
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby hvanbeek » Mon May 09, 2016 7:26 pm

Thanks Mark. That was a clear explanation. Sorry for the belated reply.
hvanbeek
 
Posts: 7
Joined: Tue Feb 26, 2008 6:55 pm


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