How is "gain" calculated in Portfolio view?

[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?

 

[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.

 

[RichT]

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

 

[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.

 

[RichT]

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.

 

[RichT]

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.

 

[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.

 

[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.

 

[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.