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Investment performance reports RRS feed

  • Question

  • So with the close of 2019 I was keen to find how my portfolio performed. However when selecting the performance report I was confused when I saw that the total return was around the 4% mar, yet the annualised return was up at 18%!

    So tonight I made a dummy portfolio and set an account with £1,000 on 01/01/19. A number of buys and sells throughout the imaginary 2019, culminating in an account balance of £2,000 on 31/12/19. 

    I expected the result to be a clear cut 100% gain, but no. The total return was apparently 40%, and the annualised gain 275%.

    How is MS money getting these figures? Is there any way to get a more realistic report? I have tried all reports in the portfolio manager without luck.

    Any help greatly received.

    Thanks 

     
    Tuesday, January 14, 2020 7:46 PM

All replies

  • Annualized means to compute what the return would have been for the year at that same rate of return.

    Imagine 360 days in a year for easy example. You buy something for £100 on Jan 1, and sell it £110 for 36 days later (1/10 of our year). That would seem to be a rate of return of  10% over that period, but annualizes to more than 10 * 10%.  Much more Actually more like an increase of 259% annualized due to compounding... In other words, you would have about  £359 after a year of gains at this rate.

    If you want to read about the math or spreadsheet functions that correspond to this, see IIR (internal rate of return) if I remember correctly.:

    I like the Portfolio for this, instead of reports. The TR columns are annualized except for  Total Return All (TR all). Another useful column is Gain. It does not take dividends into account. These are the columns that I usually have  set up in the Portfolio:



    Tuesday, January 14, 2020 9:36 PM
    Moderator
  • Thanks for your reply Cal.

    I guess the performance calculations are a nit more complex than I am understanding. I just don't understand when I make a dummy account and start the year with 1k, and end with 2k, the reported investment performance is 50%, when it is clearly 100%.

    Wednesday, January 15, 2020 7:55 AM
  • tristan,

    Please be aware that the software calculates the performance of the investments, not the account.  The account performance is then the average of it's investment(s) returns.

    You stated:

    "A number of buys and sells throughout the imaginary 2019" , and not knowing the details, perhaps the investment did gain 50%, and the rest of the gain in your account was simply purchase of more investments.

    To simplify, if you purchase one investment on 01/01/19, and it doubles by 31/12/19, then you would see your 100% gain.


    • Edited by ameridan Wednesday, January 15, 2020 4:59 PM
    Wednesday, January 15, 2020 4:46 PM
  • I guess the performance calculations are a nit more complex than I am understanding. I just don't understand when I make a dummy account and start the year with 1k, and end with 2k, the reported investment performance is 50%, when it is clearly 100%.

    How about exporting that dummy investment account as a loose QIF, calling the file, for example, test.qif. Rename the qif file as test.txt. Then open that file with Notepad. Copy the contents into a reply on this thread.

    Somebody will probably try, perhaps after some time,  to replicate your test. If the person is in the US, that person will need to adjust the dates to mm/dd/yyyy format from dd/mm/yyyy. Don't you worry about that.

    The QIF would not be expected to have an account number or other personal info.

    Thursday, January 16, 2020 12:52 AM
    Moderator
  • Thanks for that idea. Here is a test account. Starting 01/01/19 with £1,000, and ending the year with £2,000. Two investments each gain 50%, total gain is obviously 100%. However the reports show 50% rate of return, and 126% annualised. 

    !Type:Invst
    D01/01'2019
    T1,000.00
    NBuy
    YCompany 1
    I10
    Q100
    ^
    D30/06'2019
    T1,500.00
    NSell
    YCompany 1
    I15
    Q100
    LInvestment Income:Capital Gains
    ^
    D01/07'2019
    T1,000.00
    NBuy
    YCompany 2
    I10
    Q100
    ^
    D31/12'2019
    T1,500.00
    NSell
    YCompany 2
    I15
    Q100
    LInvestment Income:Capital Gains
    ^

    Monday, January 20, 2020 7:45 PM
  • I made a new file, imported the QIF as a recovered account. I let Money set up the account as a new account.

    Money Plus. Changed to Advanced reports. This is "Performance by investment account" report with the customized changing of dates and having no Subtotal.

    Any other report you would like to see?

    ===========The QIF converted to MM/DD/YYYY format===================

    !Type:Invst
    D01/01'2019
    T1,000.00
    NBuy
    YCompany 1
    I10
    Q100
    ^
    D06/30'2019
    T1,500.00
    NSell
    YCompany 1
    I15
    Q100
    LInvestment Income:Capital Gains
    ^
    D07/01'2019
    T1,000.00
    NBuy
    YCompany 2
    I10
    Q100
    ^
    D12/31'2019
    T1,500.00
    NSell
    YCompany 2
    I15
    Q100
    LInvestment Income:Capital Gains
    ^

    Monday, January 20, 2020 10:05 PM
    Moderator
  • All I am looking for is a report that shows the true gain in % in my portfolio value. That example starts the year with 1,000, and ends with 2,000.  That is a 100% gain, not 50%, or 126%.

    Thanks for your help.


    Tuesday, January 21, 2020 8:49 PM
  • All I am looking for is a report that shows the true gain in % in my portfolio value. That example starts the year with 1,000, and ends with 2,000.  That is a 100% gain, not 50%, or 126%.


    I see your point.
    Wednesday, January 22, 2020 5:34 AM
    Moderator