General questions about using Fund Manager that do not fit into any other forum.
by aviator » Fri May 21, 2010 4:57 am
Hi Mark, I'm looking to create a way to track and compare my amount invested. For example, if I give $100,000 to a brokerage firm to invest on my behalf, I'd like to see the current market value vs. what I've given them. Cost basis doesn't always work for this calculation because each time they sell (and possibly re-buy a stock, the cost basis changes).
At the account level (not at the individual security level), I'd like to enter how much money I've given them. What's the best way to do this?
Thanks in advance for your help.
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aviator
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by Mark » Fri May 21, 2010 8:51 am
Hi aviator,
You are describing the "historical" Out Of Pocket (OOP) cost. You can plot this on the "Graphs / Portfolio Cost - Value" graph. Make sure the cost mode is set to "Historical" and not "Current", under "Graphs / Options / Historical Cost". For more on this, see the online help for this graph here:
http://www.fundmanagersoftware.com/help ... tcost.html
You can also get this figure in a report by using a custom report with the field:
Out of pocket basis (inception)
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Mark
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by aviator » Fri May 21, 2010 10:06 am
Hi Mark,
Thanks for the info. I looked at the OOP fields, but I don't think they'll work for the following reasons:
1. I've done a massive Quicken import. Quite a few securities were imported with negative shares, for reasons unknown to me. Since the vast majority were inactive securities, I simply closed them in FM. I suspect by doing that I lost their OOP information, but I had no choice because there were so many and researching each one would be too time consuming. The OOP values currently in FM are all understated (at the account level), which I think can be attributed to the closed securities.
2. Help me understand how the OOP works with the following exampe: I buy 50 shares of Procter and Gamble (PG) for $5 a share. My OOP cost is $250. A week later, I sell all my shares for $6/share, I move the proceeds to the cash account with my broker, and I close PG in FM. My cash OOP is now increased by $300, and my PG OOP is zero. But I would prefer NOT to see the $50 gain in my OOP because it really does not represent original money given to the broker, it is merely a gain from the sale of the PG stock. Is there a way to for me to enter an OOP (or something similar) in some kind of field just for tracking purposes?
3. Getting back to the Quicken import, the data in Quicken was probably not the "cleanest" due to years of benign neglect. I think it's impossible to clean up that much data, so I'm looking for a quick and easy way to track how much money I've give to my broker to invest (which, BTW, I've tracked in Excel, so that information is readily available). My preference is to do it at the account level, not necessarily at the security level. I was thinking about setting up a dummy account that mirrors each of my real accounts. The dummy account would contain just one investment (probably cash since it always has a value of $1/share) and "my amount invested" would be entered there. But I'm not sure of the hierarchy and how I could use the dummy accounts for calculations. Thoughts?
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aviator
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by Mark » Fri May 21, 2010 11:23 am
Hi aviator,
2) Please keep in mind there is an investment's OOP, and the total sub-portfolio's OOP. When you spend $250 to buy PG, you are selling $250 of cash, so your OOP is basically moving from one investment to another, but the sub-portfolio's OOP doesn't change. When you sell PG for $300, your historical PG OOP is now -$50. The money went into Cash, so Cash's OOP increased by $300. The overall sub-portfolio's OOP didn't change, as PG OOP decreased by $300 and cash OOP increased by the same amount. In all of this, you haven't added/removed money to/from your sub-portfolio, so the overall sub-portfolio OOP did not change. The OOP is calculated for you, based on your recorded transactions, you can't "override" it, other than be editing your transactions. You can read about OOP here:
http://www.fundmanagersoftware.com/help/def_oop.html
Also, it is best to "hide" sold investments, instead of "closing" them. Closing them, removes them from Fund Manager, so they won't be included in any calculations, like historical performance, or your OOP calculations. See:
http://www.fundmanagersoftware.com/faq_hide_sold.php
3) Yes, you could do this. Just create a single investment, and record the amount you added OOP. Periodically, update the market value by recording a reinvested distribution. I'd suggest just keeping the share price fixed at $1. If you add/remove money, record an external buy/sell.
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Mark
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