multi currency dividends

[investor]

we own a Canadian stock that pays dividends partially in U S $ and partially in Canadian $. Any suggestion on how to post so that the correct currency/balance is represented? Asset is set up with Canadian currency property. Thank you.

Chris

[Mark]

Hi Chris,

Fund Manager doesn't support multiple currencies within a single investment. I'd suggest recording 2 dividends, one for the Canadian $ and one for the US $. Convert the US $ into Canadian $ before recording, so both of your dividends are actually recorded in Canadian $. You can think of it as if both dividends were paid in Canadian $, but one was converted to US $, which you can do in your cash account(s). If you have 2 cash accounts, one for Canadian $ and one for US $, just make sure the associated monies flow into the appropriate cash account for the right amount.

[chakl]

Thank you

[Mark]

Hi Kevin,

Sorry for the delay in responding, I was on vacation...

I think I need a background tutorial on how FX works. Are you buying foreign currencies, and paying in US dollars? If so, a single sub-portfolio with a US cash account makes sense. Each FX would be assigned to the appropriate foreign currency, and you'd have the exchange rates set up under "Options / Currency Settings...". This assumes the FX investments are priced in the currency that you are investing in, and not US dollars.

[chakl]

Thank you.

[Mark]

Hi Kevin,

Excellent post, thanks for that. How about recording like this:

You have 3 investments, one for US cash, one for the foreign currency, and one for your foreign investment/future. The US cash is in USD, and both the foreign currency and foreign future are in the foreign currency, with an assigned exchange rate back to USD (your default currency).

Case 1: You borrow the foreign currency to buy the future. When you purchase the future, record a purchase in the future, and a sell in the foreign currency. You will then have a negative share balance in the foreign currency. When you close out the future, record a sell for the actual sell amount, and a purchase of the foreign currency. Also record either a buy/sell in the foreign currency to zero it out, and a corresponding sell/buy in the US cash account. If you pay interest on the borrowed currency, record this as a negative interest distribution in the foreign currency investment.

Case 2: You buy the foreign currency. Record a purchase of the foreign currency, and a sell of US cash. For the future investment, record a purchase, and then a sell of the foreign currency. Close it out by selling the future, and buying the foreign currency.

It seems this would prevent you from having to make that "adjustment" sell and re-purchase in the future investment, and more accurately mimics what really happens.