How to update Unit Values for investments

powert21669's Avatar

powert21669

13 Mar, 2016 12:11 AM

I have an IRA that contains a mutual fund with several stocks and bonds that I'm trying to track in Moneydance 2015. I get several statements throughout the year with changes in Unit Value and # of Units i own, but I don't know how to track this in Moneydance. The user manual isn't very helpful when it comes to tracking investments. How do I just manually update the Unit Values and # of Units on a quarterly basis?

  1. 1 Posted by Ben Spencer on 13 Mar, 2016 03:55 PM

    Ben Spencer's Avatar

    Create a security that represents a Unit. Give it a price of $1. This price will never change. Add the security to the investment account and then enter a buy transaction using that security for the number of units you hold. If the number of units goes up enter another buy if the number of units goes down enter a sell. In these transaction always use a share price of $1.

    Ben Spencer
    Infinite Kind Support

  2. 2 Posted by powert21669 on 13 Mar, 2016 09:24 PM

    powert21669's Avatar

    But the Unit Value of the security changes over time.  Ex. This last period, the # of Units didn't change, but the Unit Value went from $2.06 to $1.91, so the overall value decreased (sucks, I know!) even though I didn't sell any units.  Technically, the only time I "sell" Units is when I have to pay my annual fee.

          From: Ben Spencer <[email blocked]>
     To: [email blocked]
     Sent: Sunday, March 13, 2016 10:55 AM
     Subject: Re: How to update Unit Values for investments [Investments #831]
       
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  3. 3 Posted by Ben Spencer on 13 Mar, 2016 11:14 PM

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    By definition at security that changes in value is not a unit value security. If the value of the security is changing you can manually enter the new price. To so this go into the securities detail view of the investment account. Select the security and click "History", there enter the new price in the "Current Price" field and then click the "New" button.

    Ben Spencer
    Infinite Kind Support

  4. 4 Posted by powert21669 on 17 Mar, 2016 01:41 AM

    powert21669's Avatar

    I created a new Security and gave it a price of $1.  I then created a new Investment account with a starting balance of $18,397.70, because according to my latest statement this was the starting "Value" of my investment of 11,710.8479 "Units" at $1.570996 "Unit Value."  I added the Security to the Investment account, and created a Buy transaction for 11,710.8479 Shares.  Here's what I get:

       
       - If I make the PRICE $1 as instructed, then the AMOUNT auto-calculates to $11,710.85, and the CASH BALANCE is $6,686.85 - Way off, so I don't think this is correct.

       - If I make the AMOUNT $1, then the PRICE auto-calcs to $0.000085, and the CASH BALANCE is $18,396.70 - Off by exactly $1.00.

       - Finally, if I make the AMOUNT $1.57 (the actual Unit Value from the statement), then the PRICE autocalcs to $0.000134 and the BALANCE is $18,396.13 - Off by $1.57.

    Which of these methods is correct, and why doesn't the BALANCE equal the total Value on my statement?
    Thanks again.
    Ray

          From: Ben Spencer <[email blocked]>
     To: [email blocked]
     Sent: Sunday, March 13, 2016 10:55 AM
     Subject: Re: How to update Unit Values for investments [Investments #831]
       
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  5. 5 Posted by dwg on 17 Mar, 2016 08:33 AM

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    Ben,

    Mutuals, Mutual Funds, Unit Trust, Master Trusts, Investment Funds and probably a myrad of other names depending on what part of the world you live in work on the basis of you buy a number of units at a calculated price per unit or more commonly referred to Unit Price, but you sometimes see the term unit value. Looking at any transaction the most obvious difference between mutual funds and shares is that share transactions are typically for a whole number of shared whereas Unit trusts have fractional portions. The "Unit Value" or "Unit price" will change to reflect the change in value of the "security" which in this case is the value of the underlying fund.

    Ray,

    From my perspective the transaction should ideally be:

    Number of shares purchased: 11710.8479
    Price per share: 1.570996
    Total purchase price: 18387.70

    Now I do not expect that it will work out exactly - I expect some rounding to have been done, so I would make the number of units purchased correct as well as the total amount and allow the price per share to float a little in order to make it balance, as this is the least significant number in the long term.

  6. System closed this discussion on 16 Jun, 2016 08:40 AM.

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