Every dividend that you receive, including any dividends that are reinvested, will be automatically recorded for in the dividends section of the share details page. To record a dividend reinvestment:

• Click the “Enter a new Trade’ tab on the share details page

• Record the additional shares you have received in the same way as you record the purchase of new shares

At present Sharesight only allows you to enter currently listed shares. If your share code is not recognised it is likely that either the company has had a name change or the company has been delisted or merged with another company.
You must enter shares under their current code. Sharesight tracks name changes to ensure that historic data under the old code is also made available under the new code.
If the company has merged with another company you should enter the shares under the new company code, however historic data under the previous share code will not be available. If you are entering an historic purchase you may need to delete or edit some of the dividend payments.

Share splits will be dealt with automatically. You will see the transactions Sharesight undertakes to do this appear in the appropriate share Details screen. In the unlikely event this does not happen you can enter the transaction manually by entering a share purchase at a purchase price of $0.0. For example if you own 3,000 shares and a 1.0:10.0 split occurs you record the purchase of 27,000 shares at a price of $0.0.

Share consolidations will be dealt with automatically. You will see the transactions Sharesight undertakes to do this appear in the appropriate share Details screen. In the unlikely event this does not happen you can enter the transaction manually by entering a share sale at a sale price of $0.0. For example if you own 10,000 shares and a 10.0:1.0 consolidation occurs you record the sale of 9,000 shares at a price of $0.0.

If a share is delisted you should record a sale for whatever compensation you received at the time it was delisted. If you did not receive any compensation following the delisting you should still record a sale at zero dollars to remove the share from your list of current holdings.
If you received shares in another company as part of the compensation, you should record the market value of the new shares issued as part of the sale price, and then record the new shares in Sharesight at their market value.

Our suggestion is that you record a sale against the old company to remove it from your list of current holdings and then record a purchase in the new company.
You should record the sale amount as the market value of the share in the new company that you have been issued with, and record the purchase in the new company at market value.

To get meaningful return information, you should enter shares at their market value.
If the ‘free’ shares were the result of another shareholding (eg. company X issues shareholders free shares in company Y) then you can record the market value of the new shares that you received as a non-taxable dividend under the company that issued you the free shares.

Bonus issues will be dealt with automatically. You will see the transactions Sharesight undertakes to do this appear in the appropriate share Details screen.
In the unlikely event this does not happen you can enter the transaction manually by entering a share purchase at a purchase price of $0.0. For example if you own 3,000 shares and a 1.0:2.0 bonus issue occurs you record the purchase of 1,000 shares at a price of $0.0. Be sure to select the ‘bonus’ option at the top of the form to ensure that Sharesight will accept a zero price trade.

Sharesight will do this for you automatically.

Yes. Dividend returns will only be calculated over the X year period over which Sharesight has data unless you enter the earlier information manually.

There are a couple of ways you can do this. There is no right answer!
A. Record a sale of the converted options @ $0, and a purchase of the equivalent shares at the exercise price.
B. Record a sale of the converted options @ the last traded price, and a purchase of the equivalent shares at the day’s closing price.
Choice A will attach the gains you have made to the share “holding” and will be included in your current portfolio return. Choice B will attach the gains to the option “holding” and will be included in your sold shares return.

No. When you completely sell out of a shareholding, full details including the return information are transferred to the Sold Shares report.

This will be an automatic adjustment to cater for a share split or amalgamation. You can edit or delete this transaction of you wish. If you hover the cursor over the notes icon, you can view some information about why the transaction was entered.

The Withholding tax figure is a default value based on a prescribed investor rate (PIR) of 33%. With PIE distributions the tax rate can vary between investors depending on their PIR’s. You should therefore edit the dividend accordingly to match your particular situation.
There is some more information on PIE distributions here: www.ird.govt.nz/toii/pie

Smartshares do not declare dividend announcement data as they have waiver from the NZX.
The reason they cannot announce dividends is that the dividend entitlements are based on the period that you have been in the fund. You receive a payment based on the entitlement date for the underlying constituent companies. If you buy into a fund shortly before the Ex date of the dividend payment then you may not be entitled to any dividend.
Dividends relating to Smartshares funds should be manually recorded into Sharesight from the information provided to you on your dividend statements.

A simple percentage return is calculated by simply dividing the total amount of gain by the original amount invested. The result can then be annualised by dividing it by the number of years held. For example a $1000 investment that returns $500 over 5 years equates to a 10% return per annum.
A compound return calculates the return on the basis that the gain is progressively added to the original investment over the period. This means the return is calculated on an increasing figure over the life of the investment. The following example illustrates how a $500 gain on a $1000 investment results in a different annualised returns under the simple and compounding interest methods.

Under a compounding interest rate formula, when you double the interest rate, you more than double the gain that you will receive. For example $1000 invested at 10% compounding daily for 5 years yields a total gain of $610.51. If the interest rate was increased to 20%, the total gain would be $1488.32 –more than double the return that you would get at a 10% rate.

It therefore follows that a dividend return of 10% plus a capital gain return of 10% does not equate to an overall return of 20% when you are dealing with compound interest rates. By nature, compound interest rates cannot be simply added together to give a valid total.

Simple method

Annualised percentage returns are calculated using the following formula:

Where:

R1 = Annualised percentage return (simple)

G = Total gain

V = Total purchase value

Y= Average years held (weighted by purchase value)

Compounding method

Annualised percentage gains calculated using the simple method are converted into daily compounding percentages using the following formulas:

Convert simple to annual compounding:

Where:

R2 = Annualised percentage return (compounded annually)

R1 = Annualised percentage return (simple)

Y= Average years held (weighted by purchase value)

Convert annual compounding to daily compounding:

Where:

R3 = Annualised percentage return (compounded daily)

R2 = Annualised percentage return (compounded annually)

Note 1: Sharesight does not attempt to ‘annualise’ returns that are held for less than 1 year, as this results in the extrapolation of short term fluctuations which can produce misleading results. All gains that are made over a period of less than 1 year are treated as if they are held for 1 year for the purposes of the formulas above. For example, if a share increases by 5% in the first week that you have owned it, Sharesight reports the return as 5% rather than reporting an annualised return of 260%. In other words, as we cannot predict what the share price will do, we assume that it will remain static rather than assuming that it will continue to increase at 5% per week for the rest of the year.

Note2: Sharesight calculates compounding returns on a daily basis, because this is how banks usually quote interest rates.