[Kmymoney-devel] Fwd: Feedback:Investment analysis is weak and bonds are not treated as they should

Alvaro Soliverez asoliverez at kde.org
Tue Feb 8 19:28:01 CET 2011


Improvements don't happen by magic.
I'm forwarding your mail to the developer's list, in case anyone is
interested in picking up this task.

Regards,
Alvaro

---------- Forwarded message ----------
From: diego <espostid at googlemail.com>
Date: Tue, Feb 8, 2011 at 3:23 PM
Subject: Re: [Kmymoney2-developer] Feedback:Investment analysis is
weak and bonds are not treated as they should
To: Alvaro Soliverez <asoliverez at kde.org>


Hi Alvaro,

I hope you are well,
Sorry I have been neglecting kmymoney for a long time now.
I have a few weeks off work so I just started to look at it again.
I am using version 4.5.0

Unfortunately the investment analysis is still very weak and I don't
see any improvement at all. I really would like to dump my microsoft
money but it's much better on the investment analysis. With kmymoney I
don't really know properly my financial position and performances once
I booked the trades.

For example:
I simulated buying 5,000 shares of Cineworld plc (price updates nicely
from yahoo) 198p in november and now the price is 220.
I simulated buying 10,000 £ Ziggo bonds at 103 (1.03) and price now is 103.
First of all in the report there is still a lack of information same
as I highlighted a few months ago:

a good report
on investment performances between T0 and T1 should have : Security/
Position at T0 (in quantity)/ Price at T0/Value at T0/ Position at T1
(quantity)/Price at T1/ Value at T1, Profit/Loss (in money)/Profit/loss in %
and maybe Annualized return but is not the most important thing

But most importantly I run a report with "all dates" and is showing me
a 3% loss on the Ziggo bonds (should be flat) and a 49.9% loss on the
Cineworld shares (should be 11% gain!).

I think if the report included the calculations (in £) would be easier
to understand and spot problems.

Also bonds are not really managed properly as I highlighted a few months ago:
   Bonds are not handled properly : a bond should have a nominal value
(say 1,000) and a coupon (say 10% paid annually ) when is set up and
Kmymoney is not even considering it. Prices then should be in % of nominal
and bonds every day should accrue the coupon that should show up as interest
when analysing the performance. For example I buy  $10,000 of  AT&T 2015 5%
at 101 the day it pays a coupon so no accrued on the bill. After six month
if the price is 101 the bond should have a “profit” of 250$ and in
percentage +2.47%.  As it stands now for my bond trading I had to book a buy
of 10,000 at £1.01 and in the performance analysis there is accrual and no
interest showing up. I also booked a sale at a higher price and return on
investment is ZERO.


Please let me know what you think

Ciao

Diego





On 27/07/10 00:55, Alvaro Soliverez wrote:

Hello Diego,
We'd be very glad to get help on this.
We are on our final run to a stable release, after that we will start
working on new features (eg. 3 weeks from now).

First of all, I'd recommend you subscribe to our main developer
mailing list, kmymoney-devel at kde.org, and you should be running the
latest version, 3.98.1. Running the latest snapshot from SVN is a
plus.

You can find more detailed info on http://techbase.kde.org/Projects/KMyMoney

If you survive through all this and you are still willing, we can
start working on issue 2). That one is easier and it will give you a
good introduction to the beast.

Looking forward to hearing from you again!

Regards,
Alvaro
KMyMoney development team


On Mon, Jul 26, 2010 at 6:09 PM, Diego Degli Esposti
<desposti at lineone.net> wrote:

Hello there,

First of all congratulation for Kmymoney, I spent time on it and looks
powerful and quick.

I am trying to replace MSMoney as a software that helps me with my personal
finances and although I find Kmymoney well done and with a good potential I
don’t think it can be used to replace MSMoney if the user wants to have a
proper idea of how the stocks and bonds investments are doing over time.

I work in finance and I am happy to help if needed , I have this idea of a
great financial software displaying also the type of risk a portfolio runs
(Equity, Government Bonds. Corporate bonds, Illiquid and cash) but maybe
first will be enough to have a good report that gives a nice screenshot of
how the investments are doing.The main problems I found (and I also checked
Acemoney and Moneydance briefly  but they also lack proper analysis) :

1)      Bonds are not handled properly : a bond should have a nominal value
(say 1,000) and a coupon (say 10% paid annually ) when is set up and
Kmymoney is not even considering it. Prices then should be in % of nominal
and bonds every day should accrue the coupon that should show up as interest
when analysing the performance. For example I buy  $10,000 of  AT&T 2015 5%
at 101 the day it pays a coupon so no accrued on the bill. After six month
if the price is 101 the bond should have a “profit” of 250$ and in
percentage +2.47%.  As it stands now for my bond trading I had to book a buy
of 10,000 at £1.01 and in the performance analysis there is accrual and no
interest showing up. I also booked a sale at a higher price and return on
investment is ZERO.

2)      Investment reports and analysis in general : I think a good report
on investment performances between T0 and T1 should have : Security/
Position at T0 (in quantity)/ Price at T0/Value at T0/ Position at T1
(quantity)/Price at T1/ Value at T1, Profit/Loss (in money)/Profit/loss in %
and maybe Annualized return but is not the most important thing.  I
simulated a purchase of100 Cineworld stocks at 1.52 and selling them at
1.66. When I run the report I have: buys 152, sells -166, annualized total
return 3462% and return on investment ZERO!!. Annualized return maybe is
correct but is not important but the main point here is that return on
investment cannot be zero. There should be a profit in £ (or $) and in %.
Also the display of buy 152 and -166 on the report is not great , we should
see that we buy 100 stocks at 1.52 and sell 100 stocks at 1.66. Much cleaner
and we have an idea of what’s going on in the account.

As I said I am very happy to help develop it.

Here I see another guy that has to disinstall kmymoney after trying for more
or less the same reasons:

https://answers.launchpad.net/ubuntu/+source/kmymoney2/+question/91946



Please let me know

Thanks

Diego Degli Esposti

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