Re: Yields

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In Reply to: Re: Yields posted by Mark on April 18, 1999 at 21:38:27:

: : : : : : : Dear Mark,

: : : : : : : what type of yield should I use in a custom Report to get the yield of an investment fund for which I had to pay the load percentage plus transfer fees ? All yield calculations I have tried so far calculate based on the NAV when buying. So for instance I have bought shares @ 69.85 for a total of 74.45, the current price is 70.25 but the yields shows plus 23.75 % I would like to calculate the yield from buying day until today. Any suggestions ?

: : : : : : : Best regards

: : : : : : : Peter

: : : : : : Hi Peter,
: : : : : : I didn't quite follow your example, but in
: : : : : : general you would use ROI yields. FP yields
: : : : : : only calculate the yield, based on the share
: : : : : : price/distributions. ROI yields include your
: : : : : : transactions. ROI yields do use your purchase/sell
: : : : : : price when incorporating your transactions, as
: : : : : : that is the price you paid. Another thing to note
: : : : : : is that all yields are annualized, so if you're
: : : : : : looking at a short time period, the yields may
: : : : : : seem bigger/smaller, due to extrapolation to a year.

: : : : : : Thanks,
: : : : : : Mark
: : : : : : --
: : : : : : Mark Beiley
: : : : : :
: : : : : : Fund Manager for Windows 3.1x/95/98/NT
: : : : : :
: : : : : :

: : : : : Hi Mark,

: : : : : my intent ist to take the total aquisition cost (i.e shareprice + load + fees) as a basis for yield annualized calculation. As lond as this gross price plus distributions is higher than the latest share price I would expect to get a negative yield. But this ist not the case in all combinations I have tried so far. The reason why I want to calculate the yield this way is that I like to take all cost into consideration which are associated with a particular investment at purchase time.

: : : : : Best regards,

: : : : : Peter

: : : : Sorry, I just noticed an error in my previous message. The second sentence should read: As long as this gross price is higher than the latest share price (including distributions, if any)I would expect to get a negative yield. If required for examination, I could send you a copy of the .dat file of the investment.

: : : : Peter

: : : Hi Peter,
: : : The ROI yields do just this, they include
: : : all of your costs, including commissions.
: : : The formula also includes distributions.
: : : Please see the formula used in the online help.
: : : I think ROI is just what you are looking for.

: : : Thanks,
: : : Mark
: : : --
: : : Mark Beiley
: : :
: : : Fund Manager for Windows 3.1x/95/98/NT
: : :
: : :

: : Hi Mark,

: : many thanks for your patient help but the problem persist. Before I decided to ask you I knew from the descriptions in the help files that it had to be ROI I was looking for. But only when I didn´t get the expected figures I was trying any other available field of the custum report.
: : My data are: price inception 3/10/99; purchase 3/15/99 at 74.45 euro; price an 3/16/99 70.09 euro;
: : Given this, one would expect to get a negative return on investment but the report (1/1/98 through 4/8/99) shows a positive ROI(end) of 19.25 percent. What could be the reason? Do you need further data for analysis?

: : Thanks, Peter

: Hi Peter,
: Can you e-mail me a copy of this investment
: file (*.dat). Please copy the report dates
: and fields in your e-mail, and I'll take a look.

: Thanks,
: Mark
: --
: Mark Beiley
:
: Fund Manager for Windows 3.1x/95/98/NT
:
:

Hi, Mark

I sent you the .dat file of the investment by separate email. My report settings are Jan 1, 1998 until the current date and I use the following fields: Inv incpt, OOP invested, Edn NAV, End shares, End value Dist dist (btw) Gain (btw) End %port ROI (1y) and ROI (end).

Peter

Replies:

• Re: Yields Mark 13:58:49 4/23/99 (0)