IRR net of management fees

Quicken 2006 Premier, Windows XP/SP2

I have an account holding multiple equities, managed by a money manager that charges a quarterly management fee. I'd like to know what the performance of this account (IRR) is net of his fees. I'd thought this would be simple, but after searching, researching and experimenting (with a test account), I'm dazed and confused. [I think] I understand IRR but I can't seem to make Quicken do what I want.

From researching and experimenting it looks like the IRR of an account

is a function of the IRR of the underlying securities and the only transactions that impact the account IRR are investment transactions. If I enter the quarterly management fee as a cash transaction, there is no impact on account IRR.

Is there a way to see the account performance (IRR) net of management fees?

TIA

/d

Reply to
kirk
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Temporary subtract the annual fees from the interest, etc., received for the same time period.

Reply to
sharx35

Thanks, That works ... for sure it reduces the IRR. But is there an easier way? I'll have to do this each quarter for every quarter, then undo it to get the true IRR for the security I "adjusted".

/d

Reply to
kirk

Just tried an experiment. I set up a "dummy" security called "Management Fees", in place of Withdraw for the actual amount of the management fee, I entered a Buy for 0 shares of security "Management Fee" @ $0 with a commission equal to the actual management fee. That provides the same IRR as temporarily reducing the dividends from a security. It also doesn't show up in positions held, since there were

0 shares bought. Is this an OK workaround or am I likely to get burned on something else that I just haven't considered???

/d

Reply to
kirk

Kirk, If you are not seeing an impact from the cash balance, then check the securities tab of the report and be sure "No security (includes cash) is checked. I think that should work.

Bob L.

Reply to
Bob L.

If the management fees are charged to the account, Quicken will report the return net of fees.

If you are paying the management fees separately, the simple method to get the return net of fees, is to subtract the fee from the gross. If Quicken reports you made 10% in the account, and the fee is 1%, your net return is 9%.

Reply to
Fred Smith

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