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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