Hi! I posted a message related with this matter before finding this topic, which I think is more appropiate. I also need to track a portfolio consisting only on mutual funds sold in Spain and I am doing some tests using the Delivery outbound/inbound to record every transaction (mutual funds buys, sells and transfers between funds), instead of using the Buy/Sell, to avoid the need of recording deposits/removals of cash which I find cumbersome. From a performance measurement perspective (time weighted return / money weighted return), is there any difference if I record these transactions using Delivery instead of Buy/Sell?
I also have performed some mutual funds transfers, which are non taxable in Spain as was previously said. For this, I recorded an outbound for the source fund and an inbound for the same money on the destination fund. On the performance calculation I see that the sold fund shares are counted as “realized capital gains” which are added to the “capital gains” to calculate the “Delta” for the period.
If I would calculate the MWR in Excel using the XIRR formula, I would also record an outbound for the source fund and an inbound for the destination, as the shares are technically sold and bought on the market (and the capital gains from the source fund are inherited on the destination fund), and the money is not invested for a few days until the money reaches the destination fund and its shares are bought. So I understand that theoretically, the performance should be correctly calculated with this method, but I don’t know well the calculations this application does and how this “realized capital gains” may affect the measurements. I’m not interested in tracking any taxes so for me there’s no problem if I see incorrect “realized capital gains” from a taxable point of view. The only important thing is the TWR/MWR is correctly calculated by the app.
What are your thoughts on this?
Many thanks!