Re: Portfolio Performance Report/Dividends

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Posted by Mark on April 03, 2007 at 15:48:05:

In Reply to: Portfolio Performance Report/Dividends posted by Randy Katz on April 03, 2007 at 15:37:32:

: I appologize in advance, I am a rookie with this software

: 1.When I run 'Portfolio Performance' for the first period, my account goes from 300,000 to 306,513.55. The yield shown is 2.21, while I calculate it as a return of 2.17. Can you pelase explain why this is?

: 2. I am trying to calculate the return of the index fund SPY. Here is my scenario: Starting in November of 2005, I can input a starting value (I use $121.99). In December, a dividend is announced for holders of SPY as of 12/15/05. Thus, at December 31, shares of SPY are trading at 124.51, but if you have been holding the shares for over 2 weeks, you will get a $0.67 dividend in January. Is there a way for the software to recognize this .67 value at December 31, and yet not reinvest this dividend until January 31, when it will actually be received?

: I really appreciate the help, and I really like the software.

Hi Randy,

1) The Yield on this report is an "ROI" yield. This is a time and value weighted yield. It isn't just looking at the starting/ending balances. It is also looking at when you bought sold during this time period, and how much. For more on ROI yields, and how they're calculated, see:

http://www.fundmanagersoftware.com/help/yields_roi.html

2) There isn't anything special for this. You can of course record the dividend for any date you want, but it will only factor into yields/performance as of the date you record it for. For example, if you wanted, you could record a distributed distribution dated 12/31, and then record a purchase for the reinvested shares on 1/31.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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