Why does my Money Market Fund show a loss?

I have investment in a Money Mkt Fund and all transtactions in this
fund (BUY, SELL and Re-Invest Dividends) are executed at $1.00. Though,
the Performance Reports and Portfolio page shows a Loss. I would think
that since all the buys and sells are at $1.00 they should not result
in any gain/loss and MS Money should simply add the Re-Invested
Dividend to give the gain. However, my balance in the fund matches with
the broker so, there should not be error in the entries. The issue is
only in the Gain/Loss and Period Return amounts.

Any thoughts?

Cal
Tue Nov 14 17:18:24 CST 2006

In microsoft.public.money, Jay wrote:

>I have investment in a Money Mkt Fund and all transtactions in this
>fund (BUY, SELL and Re-Invest Dividends) are executed at $1.00. Though,
>the Performance Reports and Portfolio page shows a Loss. I would think
>that since all the buys and sells are at $1.00 they should not result
>in any gain/loss and MS Money should simply add the Re-Invested
>Dividend to give the gain. However, my balance in the fund matches with
>the broker so, there should not be error in the entries. The issue is
>only in the Gain/Loss and Period Return amounts.
>
>Any thoughts?

I suspect that the MMF is in a currency other than the base
currency, and that the currency of the account with the MMF has
underperformed the base currency. I don't really understand the
multi-currency happenings, but that was the only thing I could think
of.

Jay
Tue Nov 14 23:55:05 CST 2006

Thanks! That is exactly what has happened - I was puzzled by this since
a long time but never thought of it.


Cal Learner-- MVP wrote:
> In microsoft.public.money, Jay wrote:
>
> >I have investment in a Money Mkt Fund and all transtactions in this
> >fund (BUY, SELL and Re-Invest Dividends) are executed at $1.00. Though,
> >the Performance Reports and Portfolio page shows a Loss. I would think
> >that since all the buys and sells are at $1.00 they should not result
> >in any gain/loss and MS Money should simply add the Re-Invested
> >Dividend to give the gain. However, my balance in the fund matches with
> >the broker so, there should not be error in the entries. The issue is
> >only in the Gain/Loss and Period Return amounts.
> >
> >Any thoughts?
>
> I suspect that the MMF is in a currency other than the base
> currency, and that the currency of the account with the MMF has
> underperformed the base currency. I don't really understand the
> multi-currency happenings, but that was the only thing I could think
> of.