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_ PFROI Manual Contents 1.0 PFROI Overview 2.0 Distribution 3.0 Caution 4.0 Create Working Copy 5.0 Exploring PFROI 5.1 Loading PFROI 5.2 PFROI Main Menu 5.3 Configure System 5.4 Loading Portfolio Data 5.5 Account Records 5.6 Editing Portfolio Records 5.6.1 Transaction Edits 5.6.2 Tax Rate Edits 5.6.3 Position Edits 5.6.4 Adding/Deleting Valuations 5.6.5 Valuation Graphics 5.7 Sorting Records 5.8 Printing Records 5.9 Symbol Mask 5.10 Autotax 5.11 Performance (ROI) 5.12 Reports 5.13 Saving Updates 6.0 Using PFROI 6.1 Return on Investment 6.2 Defining the Portfolio 6.3 Deposit/Withdrawal Rules 6.4 Starting the Portfolio 6.5 Transactions 6.5.1 Update Frequency 6.5.2 Transaction Codes 6.5.3 Security Symbols 6.5.4 Tax Lot Number 6.5.5 Transaction Charges 6.5.6 Manual Tax Input 6.6 Tax Rates 6.7 Valuations 6.8 Special Situations 6.8.1 IRA's/Keogh Accounts 6.8.2 Mutual Funds 6.8.3 Stock Options (Puts & Calls) 6.8.4 Employee Stock Options 6.8.5 Gifts/Inheritance 6.8.6 Wash & Short Sale Tax Rules 6.8.7 Exchanges of Securities 6.8.8 Money Market Funds 6.8.9 Zero Coupon Bonds 6.8.10 Premium Amortization 6.8.11 Split Shares After Sale 6.8.12 Depreciable Assets 7.0 Update/Order Information 8.0 Purchase Terms & Limited Warranty Appendix Copyright (C) 1985, 1987, Techserve, inc. All Rights Reserved. _ 1.0 PFROI Overview PFROI is the result of an effort to measure portfolio performance in order to effectively set and meet long range investment goals. The classical performance measure for single investments in industry is "return on investment" or "ROI". Determining ROI for a portfolio of investments, however, is non-trivial. Complicating factors include fluctuating dividend and interest payments, non-uniform security growth rates, as well as the periodic addition and/or withdrawal of portfolio funds. Taxes further complicate the issue. It is no surprise that many portfolio software packages either don't address ROI or don't compute it correctly. PFROI has solved this problem, however, and computes both portfolio and individual security ROI before and after taxes. (The CAPTOOL version of PFROI even computes ROI on groups of portfolios). PFROI additionally is a complete portfolio manager, handling all usual portfolio transactions as well as most investment types. PFROI permits daily portfolio valuations and provides securities' cost bases for monitoring of unrealized capital gains. PFROI's tax features also make it an excellent tax planning and preparation tool. We hope you find your use of PFROI pleasant and profitable. 2-3 - 2.0 Distribution Full function versions of PFROI, designated as "shareware", are distributed on electronic bulletin boards and by computer clubs. This keeps marketing costs low, permitting considerable cost savings to users. It also permits potential users to "try before buying". PFROI however is not "free" or "public domain" software. To enable the benefits offered by shareware, users are expected to support products they find useful by making a registration payment or by purchasing a registered disk. PFROI is no different in this regard. Use of PFROI shareware beyond trial evaluation obligates the user to purchase a licensed registered disk from Techserve, inc. Registered disks contain the latest version of PFROI including some features excluded from the shareware version for compactness. Use of unregis- tered PFROI for more than just trial evaluation purposes is considered a violation of its copyright. Users may alternatively wish to purchase a regis- tered "CAPTOOL" disk, manual and license. CAPTOOL incorporates PFROI and provides additional features such as batch processing, price downloading from Dow Jones and Compuserve, and our STOCKPRO and BONDPRO analyses modules. CAPTOOL is more extensively described in a "READ-ME.TXT" file accompanying this program. Investment professionals may also wish to inquire about our PFPRO institutional grade professional client and portfolio manager. PFPRO performs portfolio management similar to PFROI and CAPTOOL but handles sub-accounts (cash, margin & others), includes a trade module and generates 1099 reports as well as providing other features such as trade allocation. Unless otherwise specifically prohibited, you are encouraged to pass unaltered "shareware" or "demo" designated copies of PFROI or CAPTOOL on to others for evaluation. Any charges, however, must be limited to cost of media, handling, and or communi- cations (Users: payment of such charges to shareware distributors is not registration and does not support shareware development ... you must still register if you use beyond trial stage. Distributors who are found to charge excessively for shareware distribu- tion may be specifically prohibited from distribu- tion). Lastly if you have suggestions for improve- ment, let us know so we can consider them for incorporation in future versions. 2-4 _ 3.0 Caution Although we think PFROI will be useful for investors, and we do our best to minimize bugs, we cannot underwrite everyone's investment risk. Thus you use and rely upon the results of PFROI at your own risk. We suggest that you satisfy yourself with test examples before committing to using and relying upon the program on a regular basis. 4.0 Create Working Copy Your PFROI disk should contain the following files: PFROI.COM PFROI main prog. file PFROI.000 PFROI overlay file. PFROI.HLP Help files. PFRUTIL.CHN Utility code, accessed thru PFROI (not with shareware, V3.x only) DEMOPF Demo portfolio data file. ACCOUNTS.STD Accounts file. PFROI disks will also contain this manual and updates in file(s) ending in ".DOC". Copy all but the ".DOC" files to your hard disk or to a working disk that you've formatted with the "/S" option (i.e. A>format b:/s) to put DOS boot files on the disk. If using a hard disk, be sure to put all the working files in the same directory. Consult your DOS manual if unfamiliar with file copy procedures. 5.0 Exploring PFROI The best way to become familiar with the mechanics of operating PFROI is to go through all the menus and display screens and "push all the buttons". This section leads you through this process. 5.1 Loading PFROI Insert the working disk created in Section 4.0 into drive A (start PC with DOS first). Then type: "PFROI" (without quotes), followed by a carriage return. Hit the "ESC" key to proceed to the main PFROI menu from the license registration order form. If you wish to first print the form, instead hit the "P" key and then the "Enter" key when the "LPT1" prompt appears at the bottom of the screen. This form does not appear on loading licensed versions. (CAUTION: Do not run PFROI with other software resident in memory!) 2-5 _ 5.2 PFROI Main Menu The PFROI main menu appears as follows: L) Load Portfolio A) Accounts T) Transactions X) Tax Rates V) Valuations C) Configure Sys. P) Performance S) Save Updates R) Reports Q) Quit Pfroi > _ The bottom line should state "Shareware, please copy and share" (Licensed versions will be personalized with your name, city, and state). If not, try a different color scheme (see "color setups" below). 5.3 Configure System First hit the "C" key to review system configuration options. The configuration menu appears as follows: 1) Color Setups 2) Printer Specs. 3) System Speed (Mhz) : 4.77 4) System Sound : On 5) Monochrome HiVideo : Off 6) MonoGraphics Card : Off 7) Block Cursor : Off 8) Set User Id (V3.x only) 9) PFROI Defaults P) Purchase Info. U) Pfroi Utilities (V3.x only) S) Save Configs. Configuration selections operate as follows: 1) Color Setups - Allows you to configure display colors if you have a color display. To use, first select the attribute (e.g. "A" for Data foreground) then use table to specify the color. Be careful to select contrasting foreground and background colors so that all parts of displays are visible. 2-6 _ 5.3 Configure System (cont'd) 2) Printer Specs - Produces following display: ID Cpi Lines Pause Setup Codes ---------- ----- ----- ----- ----------- 1) LPT1 10 66 No 2) LPT2 10 66 No 3) LPT3 10 66 No 4) Disk 10 66 5) Graphics Setup Codes : (code icons here) 6) Graphics IPL Setup : (code icons here) 7) IPL Reset Codes : (code icons here) 8) Graphics Width (640/720) : 640 Select (1..8) : Fields for selections 1 to 4 operate as follows: Cpi - Characters per inch. If Cpi > 12 a full description fields are printed on reports. Lines - Lines per page. Used for report paging. Pause - Normally "No". Use "Yes" for sheet feed. Setup Codes - Setup codes are transmitted to printer prior to any non-graphics output in order to set print characteristics. Selections 5 thru 8 are for graphics output. As-shipped default codes are for Panasonic (P1091) or Epson compatible graphics printers and may or may not work for your printer. To print graphics you must have a CGA card or Hercules card and a printer with bit image capability. Graphics Setup Codes - Sets printer for double density bit image graphics operation. Set up for CGA as-shipped. Key in "Esc, L, Alt-208, Alt-2" for full width Hercules graphics. Graphics IPL Setup - Sets up printer inch-per- line for graphics operation. IPL Reset Codes - Resets printer inch per line for text operation subsequent to graphics. Graphics Width - Specifies width of graphics to be printed. Use 640 for CGA, 720 for Hercules. Setup codes may be keyed in directly as key- strokes (e.g. Ctrl-O for ASCII 15) or may be keyed in by depressing Alt key while keying in ASCII value from number key pad. See your printer manual for proper codes for your printer. 2-7 _ 5.3 Configure System (cont'd) 3) System speed (Mhz) - Sets system speed for operations requiring timed delays such as error message displays and CAPTOOL communications. Default is 4.77 Mhz. 4) System Sound - Used for transaction input errors. 5) Monochrome HiVideo - Sets video to high intensity for monochrome systems. 6) MonoGraphics Card - Set "On" to enable graphics for systems containing a combined monochrome and graphics display (may not work on some systems). 7) Block Cursor - Sets block cursor for LCD displays 8) Set User ID - (Licensed version only) 9) PFROI Defaults - Used for specifying miscel- laneous program defaults as follows: 0) Amt Dcmls (0..4) : 2 1) Index: Symbol Descrip. 1) SP500B S&P 500 2) DJ 30 3) NASDAQ 2) Beta Index : S&P 500 3) Beta Calc : Off 4) Def. Val. Base : First 5) Tax Adjustment : On 6) Top Margin : 0 7) Client Rpt Spec : TAGDIPS 8) Date Format : Mo/Dy/Yr C) Currency Symbol : $ D) Decimal Pt. Type : . > These defaults operate as follows: 0) Amt Decimal - Sets alternative decimal place for "amount" displays. 1) Index - These are the three symbols and descriptions used in the portfolio position display. If using CAPTOOL, the symbol must be compatible with the price retrieval service you are using. 2) Beta Index - The default index used in computing portfolio/security beta during ROI computations. 2-8 _ 5.3 Configure System - PFROI Defaults (cont'd) 3) Beta Calc - Enables the beta computation during ROI computations. ROI computation is faster in "Off" position. 4) Def. Val. Base - Sets the default base date for valuations. May be "First" or "Last". 5) Tax Adjustment - Enables insertion of year- end tax adjustment transaction during calcu- lation of estimated taxes. 6) Top Margin - Sets top margin on client statements to provide space for letterheads. 7) Client Rpt. Spec. - Specifies reports to be included in client statement. Letters in spec correspond to selections in report menu. 8) Date Format - Toggles between American & international (dy-mo-yr) format. C) Currency Symbol - For alternate currencies D) Decimal Pt. Type - Toggles between '.' and ',' decimal types. P) Selecting "Purchase Info." from the main menu displays PFROI's update order form. If your printer is on, the form will print when you hit the "P" key. U) Pfroi Utilities - (Licensed version only) Provides utility to convert pre-version 2.2 portfolio files to current format. Also provides utility to merge portfolio files and convert prospect lists from other formats to CAPTOOL format. S) Save Configs. - Saves configurations so you do not have to reconfigure each time the program is started. Hit "Esc" to exit the Configuration menu to the main menu. In general, unless you are in the middle of an operation, "Esc" returns you to the previous screen. 2-9 _ 5.4 Loading Portfolio Data PFROI stores the data you provide on your portfolio in a "portfolio file" on disk. Use the "Load Portfolio" selection on the main menu to create a new portfolio file, or to load an existing portfolio file. A maximum string of 30 characters is accepted as input in the following format : Portfolio file : d:\path\filename The drive ("d:" = drive designation) and path may be omitted if the file is in the current directory. (See your DOS manual for use of paths.). The filename may contain up to eight characters plus a three character extension separated by "." (e.g. "MYSTOCKS.XYZ"). For this exercise, select "Load Portfolio" and load the demo portfolio file for practice edits in section 5.6 (<CR> = enter key) : Portfolio file : DEMOPF <CR> 5.5 Account Records An alternative way of loading a portfolio is to specify a portfolio from "account" records main- tained in an independent file named "ACCOUNTS.STD". These records may be accessed by selecting "Accounts". Account records are displayed as follows: Account Name Phone Number Portfolio File Account Number Tax ID Num. ==================== ============ ============== ============== ============ John D. Demo 111-1111 DEMOPF 1234-5678 666-44-8888 * Jane Z. Other 222-2222 OTHERPF 1234-5635 898-33-4321 T. J. Senior\Acme Equipment Co.\423 Lincoln St.\Peoria, IL 61322 <Mr. Senior> Records may be edited by moving the cursor with the cursor control keys (arrow keys) and entering infor- mation. Use the "Home" or "End" keys to initiate editing of a field with existing data. The Account Name, Number and Tax ID are used on CAPTOOL reports and the Phone Number for CAPTOOL autodialing. Moving the cursor to the account name field expands the field to accommodate up to 120 characters (with horizontal scrolling) as shown in the last record in the above example. The character "\" embedded in the account name initiates a new line when the account title is printed on CAPTOOL's "Statement" report or used for CAPTOOL memo merge or label generation. Angle brackets "<>" are used to specify the salutation for memo merge (CAPTOOL only). 2-10 _ 5.5 Account Records (cont'd) Account records may be saved, sorted or reloaded using "Alt+V", "Alt+S" and "Alt+R" commands respectively. The "Alt+N" command displays a "note" field in which any information may be entered. Toggling "Alt+N" a second time hides the note field, with an asterisk at the right margin to indicate an active note for the record. The "Alt+F" command prompts for a "key word" and finds the next record containing the "key word" or combination of key words. The "Alt+P" command prints account records and also generates labels (CAPTOOL only) and performs memo merge (CAPTOOL only). This command also prompts for "key words" which are used as "screens" in selecting records to print. Hitting the "carriage return" in lieu of specifying a key word means "print all records". Key word combina- tions and screens are discussed further in section 7 of the CAPTOOL manual. The "Alt+L" (Loadpf) command will load the portfolio indicated by the cursor, (provided it exists on disk) and return you to the main PFROI menu. ******************* IMPORTANT! ******************* Note that while running PFROI, the default drive and directory should generally be that containing the portfolio data and account files. If PFROI is on a separate disk from this data (e.g. PFROI on drive A, data on drive B), you should switch the default drive/directory to the data disk before starting PFROI and then start PFROI by specifying its drive in the run command (e.g. B>A:PFROI <CR>). 5.6 Editing Portfolio Records Portfolio files store portfolio data using the following four record types : Transaction Records Tax Rate Records Position Records Valuation Records PFROI has display screens for each of these record types from which the user may perform edits as described below. 2-11 _ 5.6.1 Transaction Edits Transaction records are the most complex portfolio record to edit. Select "Transactions" from the main menu to obtain the transaction editing screen which appears as follows: Transactions : DEMOPF Symbol : ALL*** Sign=On Esc Arws Pg ^Pg Ins Del ^Y Alt + Sort Print taX Rates Mask Dup saVe Help Mo/Dy/Yr TAC Symbol-L# Description Quantity Amount Est Tax == == == === ====== == ================== =========== ============ ======= 10/05/84 BUY XICO - 1 Xicor inc. 300 -3105.00 10/05/84 BUY SGAT - 1 Seagate Tech. 400 -2375.00 10/10/84 DPF - Deposit Chk #1073 5000.00 11/01/84 IN+ MMF - MMF interest 153.75 28 11/01/84 IN+ BRKR - Broker int. 17.81 3 : 12/19/84 SLL GCA - 3 GCA Corp. -200 6252.37 327 / / Notice that the second line on the screen provides a summary of edit and command keys. For more detail on these, hold down the "Alt" key and then hit the "H" (Help command) key (hit PgDn for more help). The edit keys are: H-Arws Previous/Next Field V-Arws Previous/Next Record PgUp Page Screen Up PgDn Page Screen Down ^PgUp To First Record (Ctrl PgUp) ^PgDn To Last Record (Ctrl PgDn) Ins Insert Record Del Delete Record Ctrl G Erase Field Ctrl Y Erase Field Ctrl Del Delete Record (no msg) Cursor Movement - The "H-Arws" and "V-Arws" refer to the horizontal and vertical arrows on the number keypad. Try moving the cursor around with these and with the "PgUp", "PgDn" keys. Toggle the "NumLock" key if nothing is happening. Insert Record - Next, try inserting a record with the "Ins" key. Note that the screen scrolled down to make room for the new record. Now, enter some data, moving the cursor to start with the first field: Mo/Dy/Yr - This field is really three fields. Key in a date. End each entry with the "carriage return" key. Use a two digit entry for the year. 2-12 _ 5.6.1 Transaction Edits (cont'd.) TAC (TransAction Code) - Before making an entry, note that the most commonly used code values are displayed at the bottom of the screen when the cursor moves into this field. A fuller description is obtained by using the "Alt+H" (help) command (PgDn for second help page) or by referring to section 6.5.2 of this manual. For this exercise enter "BUY" in this field. Symbol (Security Symbol) - This field uniquely identifies an asset in your portfolio. Typically, a security's trading symbol is used. For this exercise enter "ABC". L# (Tax Lot Number) - This field is used to match buy and sell transactions for determining capital gains cost basis. Enter a number (try "2"). Section 6.5.4 discusses lot number usage. Description - This field provides space for a security name and/or a short note for a more informative record. A purchase date and cost base may also be specified in this field for "RCV" transactions (see 6.5.2). Data already in this field may be edited by using the "Home" or "End" keys to initiate editing. Quantity - This field holds the number of shares involved in a transaction. Enter "100". Note that there is no decimal point. Occasionally, however, some transactions involve fractional shares. This field can accommodate a fractional entry up to four decimal places. Move the cursor back to the start of the field and make an entry with a fractional portion (e.g. "25.4321") to see what happens. Amount - This field contains the dollar amount of a transaction. Enter a value (e.g. 2515.75). Note that when you complete the entry, PFROI adds a negative sign. PFROI uses the transaction code to determine the sign on all Quantity and Amount entries to avoid user error. In this case the sign is negative because cash flows out of the portfolio when a security is bought. Automatic sign assign- ment may be disabled by toggling the "Alt+G" key combination to set the "siGn" setting "Off". 2-13 _ 5.6.1 Transaction Edit (cont'd.) Est. Tax - Note that this field was skipped, with the cursor moving on to the first field of the next record. This is because a "BUY" transaction is not an income generating transaction by itself. A tax amount may be entered in this field for income producing transactions. When this is done, an "m" appears in the right margin to indicate a "manual" tax entry. Ordinarily, however, the user leaves this field blank to be filled in later by PFROI when the "autotax" command is given. Delete Record - To delete a record, hit the "Del" key. Respond with "Y" to the "Are you sure?" prompt. Note that the screen scrolls up to fill over the deleted record unless it happened to be the last record, in which case the record is just cleared. Fill in some of the fields in the last record and then delete it to test out this feature. Ctrl-Y (Erase Field) - A value in any field of a record may be erased by using Ctrl-Y (^Y) or Ctrl-G. This command is primarily useful when you want to erase an entry, such as a "manual" tax entry. Esc - "Escaping" from a numeric field restores the original entry. This is handy to recover from entry errors. "No Data Required" - Not all transaction types require data in every field. PFROI will skip over fields not requiring input. To see this, move to the blank record at the end of the file and enter a "Deposit Funds" (enter "DPF" in TAC field) transaction. Note that the Symbol, L# and Quantity fields are skipped in entering data. Note also that a new blank last record is appended upon completion of data entry into the current last record. 5.6.2 Tax Rate Edits Access Tax Rate records by using the "Alt+R" (Rate) command from the transaction screen. Tax rate records will appear as follows: Mo/Dy/Yr Hld Prd CGRate MaxLoss TaxRate == == == ======= ====== ======= ======= 01/01/77 9 0.500 3000 0.25 01/01/79 12 0.400 3000 0.25 06/23/84 6 0.400 3000 0.25 01/01/87 999 1.000 3000 0.28 2-14 _ 5.6.2 Tax Rate Edits (Cont'd) Tax record fields are as follows: HldPrd - Minimum Holding Period (in months) for long term capital gains. CGRate - Fraction of long term capital gains subject to ordinary income tax. MaxLoss - Maximum loss deductible in any one year. TaxRate - User's Tax Rate (see section 6.6). In this example, a CGRate of 1.0 is used in 1987 to cause capital gains to be taxed at ordinary rates while a Hold Period of 999 (or higher) is used to cause all gains to be treated as short term for purpose of computing loss carryovers and reporting on the gains report. A CGRate of 1.0 also forces the current hold period requirement to be used in determining whether a gain is short or long term as opposed to using the hold requirement when the security was purchased. 5.6.3 Position Edits You must go through the "Valuation" display to get to the "Position" edit. Return to the main menu (Esc) and select "Valuations" to get the Valuations screen appearing as follows: Valuations : DEMOPF Base = 01/01/80 Esc Alt + Add Delete Review Print Base Grfx Help Mo/Dy/Yr Valuation Mo/Dy/Yr Valuation Mo/Dy/Yr Valuation Mo/Dy/Yr Valuation == == == ========= == == == ========= == == == ========= == == == ========= 01/02/80 3400 06/30/80 13300 12/31/80 16300 06/30/81 28650 12/31/81 32125 : 03/30/84 77030 06/30/84 77622 09/30/84 80873 12/31/84 82084 This screen cannot itself be edited but is a summary of underlying "Position" records for up to 64 different valuation dates. 2-15 _ 5.6.3 Position Edits (cont'd) To view the security positions and prices underlying a particular valuation, hit the Alt+R (for Review) key combination. You will be prompted for a valuation date. Input one of the dates shown on the Valuation screen to get the corresponding Position display which will appear similar to: 12/31/82 Position Esc Arws Pg ^Pg Alt + Tot Prn Dspl Help Bat dLnk T Symbol Description Position Mkt Price Valuation Cost Base Gains Val% = ====== =========== ========== ========= =========== ========= ====== === *CASH* 12483.24 12483.24 0 27% B ATT-C AT&T Bond-c 80 101.1250 8090.00 8000.00 90 17% B UST-3 US T-Bill-3 50 98.0000 4900.00 5000.00 -100 11% Type S/T 12990.00 13000.00 -10 28% S AMD Adv. Micro 600 25.1250 15075.00 8736.50 6338 33% S ABC Am. Broadca 100 57.6250 5762.50 3232.00 2530 12% Type S/T 20837.50 11968.50 8868 45% Gr. Total 46310.74 37451.74 8859 100% SP500B S&P 500 250.00 DJ 30 NASDAQ Five fields may be edited: the type ("T"), descrip- tion, price, valuation and beta fields. Market prices may be entered in fractional format (e.g. "11 5/8") and will automatically be converted to decimal format. Market prices greater than 9999 default to 2 decimal places. Prices greater than 999999 default to zero decimal places. Note also that the "Cost Base" and "Gain" fields allow you to easily compare current valuations with the amount you've invested. Try changing some of the prices to see the effect on the valuation field. Now try making an entry in the valuation field noticing how the price is changed. Use "Alt+T" to regenerate totals and percentages. 2-16 _ 5.6.3 Position Edits (cont'd) Toggling the "Alt+D" displays the "F/C Inc" and "Beta" fields in lieu of gains and percents (licensed version). Including annual per share dividend or interest rate in the Description field in the format "@$2.25" will compute annual income in the "F/C Inc" field. Moving the cursor to the beta field permits the entry of beta values obtained from Value Line, Standard & Poors, etc. so as to determine your average portfolio beta. In general, zero-risk assets such as cash and money-market funds should be assigned a beta value of zero. The Alt+T command will compute the average beta value. Note that the portfolio beta computed here will generally not be the same as the beta computed by PFROI during an ROI calculation. If you have CAPTOOL also try the "Alt+B" and "Alt+L" commands. These access CAPTOOL's Batch and DataLink modules discussed further in Sections 5 and 6 of the CAPTOOL Manual. Use "Esc" to return to the Valuation screen. Note that the valuation for that date has changed to reflect the prices you entered. 5.6.4 Deleting/Adding Valuations The Alt+D and Alt+A keys are used respectively to delete excess old valuations and add new valuations. Try deleting a valuation. Deleting the valuation also deletes the underlying position records. Deleting old valuations prevents a build-up of excess valuation and position records. Now try adding a valuation. First check the "Base Date" in the display header. This is the date from which the valuation will be started, and is normally set to the default base date (first transaction or last valuation) specified in the PFROI configuration defaults. To set another base date, use the "Alt+B" command. The base date must be set prior to any new valuation to be added with the "Alt+A" command. Following specification of the close date, after a delay for computation, the position screen will be displayed. Note that price fields are empty, unless you specified an existing valuation date, in which case existing prices are retained. Enter prices to complete position valuations. Escape to the valuation screen to see the valuation just added. 2-17 _ 5.6.5 Valuation Graphics Graphics portraying portfolio and security valuation versus investment may be generated using the "Alt+G" command from the PFROI valuation screen. Upon executing the command, you will be prompted for a symbol mask, with the mask "ALL***" the default. Retaining the "ALL***" mask (hit "enter" key) plots results for the entire portfolio. Specifying the ticker symbol for a particular security instead plots results for just that security. Following the symbol prompt, you will be prompted for an output device. This is to set up the printer, but does not cause output to occur until and unless the "Alt+P" command is given after graphics are plotted to the screen. If the printer is off or disconnected, a "Not Ready" message will be displayed, in which case you must hit any key to cause graphics to proceed to be displayed. Valuation plots may be generated on systems with either monochrome, Hercules, or color/graphics displays. Valuation plots, however, are more refined on systems with graphic (Hercules or CGA) displays. Printing of plots requires a graphics display plus a dot matrix printer which handles graphics. As shipped, default printer graphics setup codes are configured for a Panasonic P1091 printer, which is believed to be compatible with many other dot matrix printers. If necessary, however, printer graphics set-up codes be modified in the program "Configuration" section. 5.7 Sorting Records In the review in the previous section, we skipped some of the commands shown on the "Keys" display lines. The first of these is the "Sort" (Alt+S) command. The sort command sorts Transaction and Tax Rate records to ensure they are ordered by date, essential for proper program function. Go to the Transaction or Tax Rates screen to try the sort command. First insert a blank record or other out- of-sequence record. Examine the results. Note that incomplete records (if any) are sorted to the end of the file. 2-18 _ 5.7 Sorting Records (cont'd) Transactions should be sorted before doing valuations if entered out of date order. This can be done by executing the autotax command since PFROI automa- tically sorts records before this operation. After sorting check the end of the file for incomplete records. If found complete them and re-sort. In general it is a good idea to sort and examine your records if PFROI is giving unexpected results. 5.8 Printing Records All five record types (Account, Transactions, Tax Rates, Position/Price, Valuations) may be printed by invoking the Print (Alt+P) command from the record screen. For Transaction and Tax Rate records you are prompted for start and end dates. Try the print command for all record types. Note that you are prompted for an output device with "LPT1" given as a default. You may hit the "enter" key for this selection or key in the name of an alternate selection. Any selection other than LPT1, LPT2, LPT3 or CON will be treated as disk text file which may later be edited if desired using a text editor. Specifying "CON" (without quotes) for report output will send output to the screen instead of the printer. Display scrolling may be stopped with the Ctrl-S key and restarted with the Ctrl-Q key. The display will be double spaced for reports of width greater/equal to 80 characters. 2-19 _ 5.9 Symbol Mask The "Mask" command ("Alt+M") on the transaction edit screen allows you to isolate one security from the rest of the portfolio for review, editing and printing. The current setting of the symbol mask is indicated in the title line (top line) of the trans- action edit screen. With the mask set to "ALL***", all securities in a portfolio are displayed. Keying the "Alt+M" command sets the mask to the symbol of the current transaction and displays only trans- actions involving that security. Re-toggling "Alt+M" reinstates the Mask to "ALL***" and redisplays all transactions. 5.10 Autotax The "taX" command (Alt+X) from the transaction edit screen invokes the Autotax computation. To try this feature go to the Transaction edit screen with DEMOPF loaded. Move the cursor to any record dated 1982. Hit Alt+X. Wait for the records to be redisplayed. Observe ("page" if necessary) that there are now values in the "Est. Tax" fields of all transactions from 1982 down to the end of the portfolio for which you would expect a tax liability or credit. Note that some new records with the transaction codes "TAX", "SCO", and "LCO" may have also appeared. These records are a year-end capital gains tax adjustment and short and long term loss carryovers. The tax adjustment reconciles the taxes on Schedule D netted capital gains with the sum of estimated taxes on individual capital gains transactions so as to get correct after-tax ROI. 2-20 _ 5.11 Performance (ROI) Now you are ready to try the ROI computation. Select "Performance" from the main menu to get a screen appearing as follows: -------------------------------- ROI - DEMOPF ----------------------------- | | | Symbol Mask : ALL*** Pf Mask : DEMOPF | | Start Date : / / | | End Date : / / (Alt+H = Help) | | | Mo/Dy/Yr Valuation Mo/Dy/Yr Valuation Mo/Dy/Yr Valuation Mo/Dy/Yr Valuation == == == ========= == == == ========= == == == ========= == == == ========= 01/02/80 3400 06/30/80 13300 : 09/30/84 80873 12/31/84 82084 To perform an ROI on the entire portfolio "carriage return" through the Symbol setting so as to leave it set at "ALL***". If using CAPTOOL you will next be able to edit the "PFmask" setting. For this example leave PFmask unchanged ("carrige return" thru). Next specify start and end dates. If a non-valuation date is choosen for the start or end date an esti- mated interim value will be computed. Initially try using the first and last valuations. After entering the end date there will be some delay while the computer works. When calculations are complete, the ROI results are displayed. Note that sources of income are summarized (unrealized and realized capital gains are combined) and ROI is shown both before and after taxes. To generate an ROI on an individual security, set the symbol to that security's symbol before selecting ROI dates. If the security is one you no longer hold, note the buy (or short sell) date. This date can be used as the start date of the ROI. Likewise, the sell (or buy to cover) date of the security can be used as the end date of the ROI. If using CAPTOOL, editing PFmask using DOS "wild- card" characters "*" and "?" permits computation of combined ROI for groups of portfolios in the ACCOUNTS.STD file. For example, setting PFmask to "SMITH?.*" computes ROI for portfolios "SMITH1", "SMITH2", "SMITH3", etc., provided they exist in "ACCOUNTS.STD. Setting PFmask to "*.*" computes the combined ROI for all portfolios in ACCOUNTS.STD. 2-21 _ 5.11 Performance (cont'd) When the ROI summary is displayed, note the "Funds Added" and "Funds Removed" categories. For an ROI of the entire portfolio ("ALL***" Symbol Mask), "Funds Added" signifies deposit transactions, while "Funds Removed" signifies withdraw transactions or cashing of dividends. For an individual security ROI, "Funds Added" signifies buying into the security, while "Funds Removed" signifies selling out of the security, or cashing of dividends. 5.12 Reports Select "Reports" from the main menu to get the following sub-menu: G) Gains Report D) Dividends Report I) Interest Report M) Misc. Income O) Open Lots T) Transactions A) Account Position R) Relative Strength V) Valuation Plot P) Portfolio ROI * S) Security ROI's * C) Client Statement * > _ (* = CAPTOOL only) Try each selection. You will be prompted for setup information. For each exercise be sure to select a period containing applicable transactions so there is meaningful output. If you are using CAPTOOL you will be prompted for a portfolio mask. By responding with DOS wildcard characters (as described above for ROI calculations) you can generate reports for multiple portfolios. 5.13 Saving Updates The "Save" selection on the main menu saves portfolio changes to disk. You should "Save" occasionally to minimize data loss should your PC malfunction or lose power. Portfolios may also be saved using the "Alt+V" command from the Transaction and Tax Rate screens. 2-22 _