Balacing a family fund portfolio?

I've set up a little portfolio that I invest for myself, and 2 of my family members.
We put in irregular amounts each month. How am I supposed to calculate the perfcormance for each amount if it is differing amounts? ie where do I calculate the performance from or the total fund amount if it keeps changing?

Example:
I invest £1000 in April and someone else invests £900 in April.
We both then add £500 in June and the other person puts in a further £150 in July.
At what stage do I look for percentage returns.
I could say in June the fund had made 10% and therefore that is 10% on the £1000 and also 10% on the £900.
Any money added in June has to be worked out on fund increases from June but the fund total is reset as there was an extra £500 added.
Then July complicates it further...

luckyd1976 said:

Shares and NAV

Then before you enter any new money(s) you reCalculate your NAV per share. Shares take care of the timing of new investments

£1000 in April
£900 in April. 1900 Shares valued at 1

Say in june acct was +10% or 1.10 per share
Take new money divided by the new share price

+£500 (+454 new shares) in June total acct 2354 Shares valued at 1.10

always recal acct balance divided by shares before adding new money

Click to expand...

Hi - Thanks
The 10% is the easy bit as I can work out the performance of the fund by dividing the current total by what was originally invested.
So let's say:
£1,000 and £1,000 for easiness
That's 2,000 shares at 1.0
After 2 months the fund is valued at £1,960 a decrease of 2% and current share price of 0.98.
Miss A buy £500 worth of shares at the price getting 510 shares. Total shares now 2510 valued at 0.98.

But then what do I do, I increase the fund value by £500 to £2460 (or 2510 shares x 0.98). Now, if the fund makes a good trade and the fund value next week goes up to £2610, how do I work out what the share price should be, is it simply 2610/2460 x 0.98 ?
= 1.038

SanMiguel said:

So let's say:
£1,000 and £1,000 for easiness
That's 2,000 shares at 1.0 account
After 2 months the fund is valued at £1,960 a decrease of 2% and current share price of 0.98.
Miss A buy £500 worth of shares at the price getting 510 shares. Total shares now 2510 valued at 0.98. But then what do I do, I increase the fund value by £500 to £2460 (or 2510 shares x 0.98).

Now, if the fund makes a good trade and the fund value next week goes up to £2610, how do I work out what the share price should be, is it simply 2610/2460 x 0.98 ?
= 1.038

Click to expand...

Total Account Balance divided by total share count

Account value 2610 divided by total shares of 2510 = 1.0398 each share

1.0398 each share for when you enter in new deposits.

luckyd1976 said:

Total Account Balance divided by total share count

Account value 2610 divided by total shares of 2510 = 1.0398 each share

1.0398 each share for when you enter in new deposits.

Click to expand...

Thanks, now if you were to take a performance fee, you would just work out what the share price was when they wanted x shares back or £x and take a percentage of that?

SanMiguel said:

Thanks, now if you were to take a performance fee, you would just work out what the share price was when they wanted x shares back or £x and take a percentage of that?

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yep you're on the right track now.

Just acct balance divided by shares before you move any money around.

Withdraws, deposits, fees, etc... Shares will keep it in focus for you.

luckyd1976 said:

yep you're on the right track now.

Just acct balance divided by shares before you move any money around.

Withdraws, deposits, fees, etc... Shares will keep it in focus for you.

Click to expand...

On a separate note actually how does a stock or ETF get round to having a discount to NAV?

SanMiguel said:

On a separate note actually how does a stock or ETF get round to having a discount to NAV?

Click to expand...

The hard assets are valued at x

But people (emotions) control the stock price of a company/etf
Say I have 2million shares of XYZ Closed-End Mutual fund ETF. I have a divorce settlement and I NEED TO SELL pronto. The selling pressure and or buying of stock is so different than the real hard assets they may hold.

Excellent thread, I always wondered how this was done.

luckyd1976 said:

The hard assets are valued at x

But people (emotions) control the stock price of a company/etf
Say I have 2million shares of XYZ Closed-End Mutual fund ETF. I have a divorce settlement and I NEED TO SELL pronto. The selling pressure and or buying of stock is so different than the real hard assets they may hold.

Click to expand...

Doesn't this mean that shares in a listed trust / fund could actually underperform their assets? I guess in the long run it should balance out.

On another note, let's say my imaginary fund above is 100% invested and one of the investors wants to withdraw their money. Would some of the assets have to be sold to pay this off or percentages of the assets? Most funds always have some cash lying about I imagine.

Closed end fund discount is a well-known and much-discussed subject in academic circles.

SanMiguel said:

Doesn't this mean that shares in a listed trust / fund could actually underperform their assets? I guess in the long run it should balance out.

On another note, let's say my imaginary fund above is 100% invested and one of the investors wants to withdraw their money. Would some of the assets have to be sold to pay this off or percentages of the assets? Most funds always have some cash lying about I imagine.

Click to expand...

Yep if they have cash lying around. The changes in selling for needed withdrawls are also the biggest things that effects the Discount/Premuims

Martinghoul said:

Closed end fund discount is a well-known and much-discussed subject in academic circles.

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There's probably better info out on investopedia/wiki on CLosed End Fund discount. Not Academia here. I remember an article that talked about the Discount and some to only invest new money into Discounted Funds.

SM,
But Shares for the traders accounts will keep the Deposits and withdraws in focus for you.