If you check your account using our online service, you will notice that there are two figures. The Market Value and the Book Value. The market value is the current value of your account using the previous business day market close. It is the book value that is raising a lot of questions.
The confusion comes from the misunderstanding between Book Value and Net Invested. The Book Value figure that you will see on the Online FundEX statement is NOT your Net Invested. This figure includes distributions i.e. interest and dividends earned by the fund. Also, if you make a switch from one fund to another, the book value of the new fund will show, it does not carry over the old book value. The book value of each fund is calculated for tax purposes. But even for that, it is not totally accurate. It can also go down in value when we switch from one fund to another and / or a different company. So, the book value is not that relevant to most people.
The net invested is shown on each fund company statement and by us. YOU FIRST, unlike many advisors, tracks all money in and money out and reports it on your annual review statement in one consolidated statement. That is the report we give you at your annual meeting.
If you need your book value for tax purposes, we can get it for you from the fund company. We also use this figure extensively for your year-end tax planning review if you have a non-registered account.
To summarize, only the fund company net invested and ours is relevant and accurate. Please be sure to come for your annual review or set up a telephone meeting. The report is produced by our staff only once a year as it takes a few days for them to prepare it.
In looking at your account online, please be sure to remember that the book value is NOT your net invested.