Subscription fee accounting

While I agree that the subscription fees should be included in the hypothetical performance chart, I do question the accounting treatment. For systems with monthly fees, I believe the charge should be applied each day pro-rata (e.g. $90/mo = $3/day).

There are three reasons:

1. This is how one would likely account for them in a real-life fund (accrued but unpaid fees)

2. Depending on the size of the fees, the single-day drop in monthly performance can appear to be a poor trading day when it really is just the monthly charge.

3. The timing of the charge is likely different for each subscriber depending on the date of their subscription, making a single charge date in the performance figures non-sensical.

Also, I believe the fee is billed by C2 at the end of the 30-day period whereas it appears to be accounted for at the beginning of the month in the system performance chart.

Thanks for your consideration and potential clarification of these issues.

That’s good feedback.

But… :slight_smile: … I don’t think this will change in the near term because it’s a pretty small issue (whether a monthly subscription charge appears as a single charge or a daily accrual is a minor issue; and in fact, C2’s representation of it as a single monthly charge does represent what happens to a customer’s capital; while an accrual does not). I suppose it’s a matter of taste, but - holding everything else equal - changing this would require a great deal of software re-engineering, for what I suspect is minimal benefit.

To address your final point: C2 charges a monthly subscription fee at the beginning of the month (after a trial period, if any), and that is also how the subscription fee charge is represented on the equity charts and monthly return figures.

By the way, I always appreciate member feedback and suggestions. C2 is still small and homey enough that we can talk about suggestions in an interactive way, with me and other team members describing reasons why we might (or might not) act on a suggestion, and how soon.

So please keep the ideas coming. This isn’t intended to close discussion about this or any other member’s suggestion; but I do want to be able to respond to suggestions when I actually have an opinion about them, so that you can know my thinking about why or why not a suggestion might be implemented, and how soon.