Re: Performance Report

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Posted by Mark on June 03, 2007 at 17:46:04:

In Reply to: Performance Report posted by Gary Trimmier on June 03, 2007 at 13:13:23:

: Mark,
: I know you have been busy with the server problems, however I continue to ponder the same question in my mind concerning FM's performance report. In the past (Nov 12 & 14, 2005) we dicussed the possibility of FM categorizing withdrawals from the default cash account (in my case cash and tax distributions from my IRA Portfolio), as FM does for Account Fees. Although this feature has not been added, it brings up the questions concerning the calculations associated with the standard Performance Report.
: Lets start with the fact that my IRA and other Portfolio's investment's "Investment Goal" is 100% Income.
: The standard FM Performance Report, "gives you an insight into how well your invested money performed."
: Here is my question and what maybe is a disparity in the Performance Report:
: If the Beg Value is $100 with no additional contributions or distributions, and its end value is $50, FM calculates that the gain is a loss of $50.
: However, as in my case some of this investment's shares may have been redemed for cash to fund my income, between the beginning and ending of the reports date setting. Lets assume $100.
: Now the actual performance based on my goal of income is not a loss of $50, but a gain of $50.
: What I am wondering is if FM provided the capability to track and add to the investments value as determined by the investment goal what would my Portfolio's Performance be?
: Thanks,
: Gary T.

Hi Gary,

I think I understand what you're looking for, but I may not have followed the specific question here... If you started with $100, took a distribution of $100, and ended with $50, the gain field in this report would show + $50, not -$50. Gain is End + Distrib. - Invested - Beginning. The End would be $50, Invested would be -$100, and Beginning would be $100, so:

50 = 50 - (-100) - 100

I believe you are asking for a way to categorize deposits/withdrawals versus money going in/out of your cash account for purchases/redemptions of other investments?

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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