How is "gain" calculated in Portfolio view?


R

RichT

I can never work out how this is calculated for any of my investments.

For example, on 07/09/09 (ten days ago) I bought 4000 unit trusts at £1
each. They are worth 0.9984 today, so value £3993.60, which is the value
reported in the "Market Value" column. So I would expect in the Gain column
to read -£6.40. But the reported figure is -£67.73. How does Money arrive at
this figure?
 
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C

Cal Learner

I can never work out how this is calculated for any of my investments.

For example, on 07/09/09 (ten days ago) I bought 4000 unit trusts at £1
each. They are worth 0.9984 today, so value £3993.60, which is the value
reported in the "Market Value" column. So I would expect in the Gain column
to read -£6.40. But the reported figure is -£67.73. How does Money arrive at
this figure?
Check the Total for the Buy transaction. See if any commission was
recorded.
 
R

RichT

Cal Learner said:
In microsoft.public.uk.money, RichT wrote:
Check the Total for the Buy transaction. See if any commission was
recorded.
Negative - no commission.

I have subsequently noted that there is some data input into the calculation
that is updated from the internet - because later today the "gain" changed
to -?60.24
 
C

Cal Learner

Negative - no commission.

I have subsequently noted that there is some data input into the calculation
that is updated from the internet - because later today the "gain" changed
to -?60.24
Gain may be affected by prior holdings-- depending on version. And I
don't remember how Money 2005 handled that. See if there is a
difference if you un-tick ChangePortfolioView->ShowClosedPositions.
 
R

RichT

Cal Learner said:
Gain may be affected by prior holdings-- depending on version. And I
don't remember how Money 2005 handled that. See if there is a
difference if you un-tick ChangePortfolioView->ShowClosedPositions.
That did change some positions (why?) but not the one I gave in the above
example.
 
R

RichT

Cal Learner said:
In microsoft.public.uk.money, RichT wrote:
I have just noticed that the calculation is only accurate in investment
accounts which are denominated in my base currency.
 
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C

Cal Learner

That did change some positions (why?) but not the one I gave in the above
example.
The theory would be that if you are displaying closed positions,
those had a gain or loss that contributes to the gain or loss for
that particular security.
 
C

Cal Learner

I have just noticed that the calculation is only accurate in investment
accounts which are denominated in my base currency.
Good observation. Money is a little quirky when you have more than
one currency. It does not remember what the exchange rate was, so it
uses the current exchange rate.
 
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R

RichT

Good observation. Money is a little quirky when you have more than
one currency. It does not remember what the exchange rate was, so it
uses the current exchange rate.
Now that I can see what is going on, I like this behaviour. Money 2005 works
out the cost of a foreign investment in the base currency, stores this
figure, then works out gain/loss against this figure - using the current
exchange rate. This seems logical to me.
 

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