Tracking cash investments using Sharesight
Sharesight’s Custom Investments feature allows you to create and track cash and fixed interest securities.
On the portfolio you wish to add the cash or fixed interest item to, select ‘add holding’. Ensure you select ‘OTHER’ for Markets and tick the ‘Add New?’ field.
The steps to fill out the ‘add new holding’ information are described below.
Select ‘Fixed Interest’ from the ‘Description’ drop down menu:
Clicking the ‘Add a custom investment’ and selecting ‘Fixed Interest’ will open the following form:
The ‘instrument code’ will be seen as the ‘ticker’ for your new holding. It is an abbreviation of the full instrument name.
The ‘instrument name’ is the full name of your new holding.
We encourage you to set the ‘Description’ field to ‘Fixed Interest’ as this is the best option for CMAs, term deposits, cash, bank accounts, etc.
The ‘Country’ field determines the currency your security will be priced in and the currency of any yield payments
We encourage you to set the ‘Face Value per Unit’ to 1.
The ‘Maturity Date’ needs to be set after the ‘First Payment Date’ and after the ‘Traded On’ date.
The coupon rate defines your interest rate or yield.
The ‘First Payment Date’ needs to be set after the ‘Traded On’ date and before the ‘Maturity Date’.
Tick the ‘Automatically calculate income’ box if you wish Sharesight to calculate your interest via our standard calculation.
The ‘Payment Frequency’ refers to the frequency by which yield or cash distributions will be automatically paid out.
Choose to create a holding with an initial buy transaction or an opening balance. The opening balance option is most useful for these types of securities.You can record additional transactions later.
The ‘Traded On’ date needs to be set before or on the same day as your ‘First Payment Date’ and before the ‘Maturity Date’ of your holding.
By setting the ‘Quantity’ you multiply $1 (the value set for ‘Face Value per Unit’).
The ‘Price’ can be as $1.
The Brokerage amount can be left empty or can be filled if needed.
The Xero integration can be established by ticking the Xero box.
Click to save the holding or click on the ‘Save and add another holding’ if needed.
The last step would be to ensure the details for your new fixed interest item are correct. Should you need to make any changes you can do so by clicking into “Instrument Details”, which can be found on the specific holding page for your new security.
Once the new fixed interest item is created you can see a new line being added to your portfolio. The totals of the fixed interest item(s) is added to the total of your portfolio as you can see below.
Error 1: Face Value per Unit is set too high
The most common error is due to the Face Value per Unit being set too high. See the example below for an idea of how the Face Value per Unit influences the calculation of interest.
The solution: ensure the Face Value per Unit is set to $1 (as this is the most straightforward way of tracking cash. You can then set the quantity to match the balance of the account or security.
Error 2: The First Payment date is set before the Traded On date
The second most common error is when the ‘first payment’ date is set before the ‘traded on’ date. In this case, the first payment does not occur, which leads to missing interest payments in your account.
The solution: ensure there is correct sequencing for the dates required in order to create a fixed interest item. The maturity date needs to be set when the fixed interest ends. The first payment date should always be after the traded on date. For example, the 1st of January is the traded on date, then the first payment date must be either the 1st or the 2nd of January.
The interest is calculated as follows: the face value per unit x coupon rate x quantity.
Last modified on February 7, 2018 UTC