Total Returns in the "Advanced Portfolio" report
Derek Brader
brader at ieee.org
Sun Jan 11 16:41:11 CST 2004
Hi All,
When I create an "Advanced Portfolio" report (for a bunch of funds), the total
returns are not computed properly. Total Returns seem to be computed by
dividing the "gain" by ("money in" - "money out"). Since dividends are part
of "money in," only capital gains, but not dividends, are counted toward
total returns. The reported total returns are therefore lower than they
ought to be. Though I have not experienced it, I expect a similar problem
would arise from broker-type expenses deducted from investment accounts.
The note at the bottom of section 8.6 of the "Tutorial and Concepts Guide" [1]
seems to indicate a preferred naming convention for dividend income, but even
if I follow this convention the problem above persists. Must I follow a
similar convention for my investment accounts themselves? Are there other
configurations that I am overlooking?
This question was raised before [2]; but it went unanswered, it's a little way
back in the archive, and it is in reference to version 1.8.4. This previous
post also raises concern about the computation of returns when transferring
money between investment accounts. With a 401k portfolio, for example,
exchanging investment options within the portfolio should not alter the total
returns of the portfolio as a whole.
Is the problem with my setup, or with the report itself?
I'm running GnuCash version 1.8.8.
[1] http://www.gnucash.org/docs/v1.8/C/gnucash-guide/invest_dividends1.html
[2] http://lists.gnucash.org/pipermail/gnucash-user/2003-August/007796.html
Thanks,
~derek
P.S. I apologize if this is a repost, but I couldn't find the answer in the
archives.
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