Unrealized gains for investments

1

Hi All,
New to Manager.
I am using Manager to help manage my SMSF.
Is there anyway I can add unrealized gains on investments into the summary?
For instance I have an investment worth 20k and have made 8k on it the past few years. I would like that 8k to be included in the assets.

2

Currently, unrealized gains on investments are not supported out of the box. The workaround is to simply make a journal entry to reflect that.

But there is going to be new way how investments are revaluated and it will support unrealized gains on P&L too.

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3

Added to the latest version (24.5.7)

If you are using Investments tab, Manager will calculate realized investment gains / losses.

See: https://www.manager.io/guides?investments

If you would like to show unrealized investment gains / losses on financial statements too, enable Investment Revaluations tab.

See: https://www.manager.io/guides?investment-revaluations

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4

@lubos It would be great to have also the option to set a currency for each investment (eg: for stock options).

5

You can set the currency when entering individual investment market prices.

But investments are not foreign currency accounts that are being revaluated based on exchange rates. They are accounts in base currency that are being revaluated based on investment market prices.

Those investment market prices can be entered in foreign currency though.

6

But usually, the market price reference is in a foreign currency. For example, an investment can gain value in its local currency but might appear to lose value due to a poor exchange rate on a given day. If we don’t track the investment in its original currency, it becomes very cumbersome to understand its true performance because we’re obscuring a crucial layer of information.

7

You can enter investment price in foreign currency.

I know what you mean. You want to know whether investment is losing value due to foreign currency getting stronger or due to investment itself getting weaker.

I was thinking about this before and came to conclusion that there is no such a thing.

Investment is not a foreign currency. Yes, investment can be traded on a market that is denominated in foreign currency. But investment can be traded at many markets across many currencies at the same time (dual listed companies, futures contracts, commodities, precious metals etc)

When foreign currency gets weaker, then the price of investment will grow to make up for forex loss. It’s equilibrium. The value of investment could be rising in foreign currency but relative to your home currency, it’s flat.

You just don’t look at it like… wow, what a great investment I made. It went up 100% in foreign currency. Too bad that foreign currency lost 50% of its value.

So the “true performance” is the performance relative to your currency.

That’s why performance of investments is always tracked in your base currency.

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8

Let’s make a quick example to illustrate the pain point better:

  • My base currency is CHF

  • I have an USD account with 100 USD

  • I buy a stock option and pay for that 100 USD from my USD account

  • It will account for a virtual investement value of 90 CHF, that’s fine

  • On Nasdaq and in all my bank statements this stock option is quoted in USD but I cannot use those figures directly for revaluation purpose because I have to manually convert it to CHF (blending in some exchange rate).

  • In order not to forget the mandatory currency conversion and also facilitate future reviews, I would likely be forced to add a custom field to store the exchange rate used.

So to summarize, everywhere BUT investment revaluations we can type in the amount in the same currency as the document source.

9

You can enter investment market price in foreign currency.

image

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10

Thanks, I did not realize I would need a screen in the settings for that.