13-07-2011, 08:09 PM
Hi all,
after reading some of d.o.g's previous post provided by fellow forummers, it drove me to do some NAV calculation to evaluate my own portfolio's performance.
How to calc a NAV for a "stock only" portfolio is pretty straight foward.
Information on that can be found here, in the document labeled "d.o.g. 2009 final.doc", I beleive it's pg 6.
I would like to however, clarify the calc of NAV for a "fund" type of portfolio, i.e. one that holds onto cash too.
example.
Principle : $10,000 ($1/unit)
NAV : $1
Units : 10,000
Portfolio End of Mth 1 (realized loss)
Buy ABC : $5,000 (No appreciation)
Transaction Cost : $27
Cash Left : $5,000 - $27 = $4,923 (49.73% not invested)
NAV : (5,000+4,923)/10,000 = $0.9923
Portfolio End of Mth 2 (realized gains)
Stock ABC : $5,000 (No appreciation)
Dividends : $250
Cash Left : $4,923 + $250 = $5,173 (51.73% not invested)
NAV : ($5,000+$5,173)/10,000 = $1.0173
Portfolio End of Mth 3 (unrealized gains)
Stock ABC : $5,100
Unrealized Gain : $100 from ABC
Cash Left : $5,173 unchanged (51.73% not invested)
NAV : ($5,100+$5,173)/10,000 = $1.0273
Portfolio End of Mth 4 (addition of units)
Stock ABC : $5,100
Unrealized Gain : $100 from ABC
Capital Injection of $1,000 == # of units increase by 1,000 (this is wrong)
Capital Injection of $1,000 == $1000/1.0273 = 973units (as corrected)
Cash Left = $5,173+$1,000 = $6,173 (56.12% not invested)
NAV : ($5,100+$6,173)/10,973 = $1.0273(Note to self : The NAV doesn't change due to capital injection!)
Is my NAV calc too simplified or fundamentally wrong?
I'm using just [(Market Value of Stocks)+Realized Gains(Loss)]/# of units.
Would like to hear from all Thanks in advance
after reading some of d.o.g's previous post provided by fellow forummers, it drove me to do some NAV calculation to evaluate my own portfolio's performance.
How to calc a NAV for a "stock only" portfolio is pretty straight foward.
Information on that can be found here, in the document labeled "d.o.g. 2009 final.doc", I beleive it's pg 6.
I would like to however, clarify the calc of NAV for a "fund" type of portfolio, i.e. one that holds onto cash too.
example.
Principle : $10,000 ($1/unit)
NAV : $1
Units : 10,000
Portfolio End of Mth 1 (realized loss)
Buy ABC : $5,000 (No appreciation)
Transaction Cost : $27
Cash Left : $5,000 - $27 = $4,923 (49.73% not invested)
NAV : (5,000+4,923)/10,000 = $0.9923
Portfolio End of Mth 2 (realized gains)
Stock ABC : $5,000 (No appreciation)
Dividends : $250
Cash Left : $4,923 + $250 = $5,173 (51.73% not invested)
NAV : ($5,000+$5,173)/10,000 = $1.0173
Portfolio End of Mth 3 (unrealized gains)
Stock ABC : $5,100
Unrealized Gain : $100 from ABC
Cash Left : $5,173 unchanged (51.73% not invested)
NAV : ($5,100+$5,173)/10,000 = $1.0273
Portfolio End of Mth 4 (addition of units)
Stock ABC : $5,100
Unrealized Gain : $100 from ABC
Capital Injection of $1,000 == # of units increase by 1,000 (this is wrong)
Capital Injection of $1,000 == $1000/1.0273 = 973units (as corrected)
Cash Left = $5,173+$1,000 = $6,173 (56.12% not invested)
NAV : ($5,100+$6,173)/10,973 = $1.0273(Note to self : The NAV doesn't change due to capital injection!)
Is my NAV calc too simplified or fundamentally wrong?
I'm using just [(Market Value of Stocks)+Realized Gains(Loss)]/# of units.
Would like to hear from all Thanks in advance