Dear fellow analysts, what would be the right way of showing dividends received for a Multi-currency portfolio given that it is valued monthly. e.g. Cash Movement Report in GBP for 30/09 - 31/10/2009 Portfolio Value as at 30/09/2009 - GBP 100 000 … Dividends Received during Month = GBP ??? … Portfolio value as at 31/10/2009 - GBP 110 000 Given dividends received of USD 1000 as at 15/10/2009 would I translate dividends received as at forex rate as 15/10 or as at 31/10/ Thank you
this can go a couple of different ways. 1) Convert from USD to GBP on receipt ('sup custody spot trade), then FX trade will be recognized rate. Then you have caaaaaaash in GBP. 2) Daily valuation of portfolio, divs stay in USD. Value like any USD position. convert local to base at WM. Repeat daily. 3) Monthly valuation, dividends chilling in USD: Convert as of 30/10/09 (remembering 31/10 was a weekend). peep Carl Bacon’s book if you’re looking for a more juicy description.