Calculation of Capital Gain

Can someone please explain how the capital gain shown on the page for an individual security is calculated? I was under the (obviously mistaken) impression that capital gain was simply the market price of a security minus its total cost.

Looking at my VAS.ASX holding as an example, the total cost is the $6,051.82 NZD I paid for 83 shares, whilst the market price for the 84 shares I currently hold (the 83 I purchased, plus one from a DRP) is $6,262.22 NZD. According to me, this results in a capital gain of $210.40, but the page shows a capital gain of $634.67.

What am I missing?
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  • Hi Rodney,

    Thanks for your question.

    As this is a foreign currency share in your portfolio and the returns are displayed in your local currency (NZD), there is both an exchange rate component and a capital gain component to the difference between the NZD cost price and the NZD current value. You should find that if you sum the capital gain and currency gain figures in Sharesight you arrive at the figure that you are expecting.

    Also note that you need to compare the cost of the 84 shares (including the DRP share) with the current value of the 84 shares. This is because the dividend value is included in the dividend gain component of the total return, so it is not double counted as a capital gain by excluding it from the purchase value.
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