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Read what local total return includes
A local price increase that excludes distributions is not interchangeable with a total return including them. If income is converted on another date, a single endpoint quote can omit that separate conversion schedule. State the assumed treatment before entering one local factor.
Use comparable endpoint prices
Both fields have the same domestic-per-foreign direction. Real buying and selling can use different bid/offer sides. A pair of convenient reference quotes does not establish the prices at which the investor could transact.
Keep each cost attached to its base
| Item | Required extra detail |
|---|---|
| Conversion spread | Transaction side and actual quote |
| Fee | Base, amount and charging date |
| Tax | Applicable treatment and paid amount |
| Hedge | Contract flows and settlement |
| External capital | Flow amounts and dates |
Use the decomposition for its defined role
The local, currency and interaction components reconcile the unhedged endpoint formula. They are not a complete attribution of investment skill or a recommendation to take currency risk. A final net outcome needs the additional real cash-flow records.