Currency

Can you turn off the currency gain/loss formula?
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  • Hi Colin,

    It's not possible to disable the currency gain calculation.
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  • Hi Scott

    I would think Colin and my request could be satisfied if you allowed another option in Display In - that would be Local Currency or Invested Currency in the following dialog.



    Why this is important is simple. Within the Xero settings you allow for the transfer of data to Xero in the local currency because you want to manage the currency variation in Xero not in Sharesight. Typically because you have multiple bank accounts and likely in different currency. In this strategy you don't care as much about the base currency as you are likely invest or reinvest in the same currency. And as you already have the feature installed you have already recongised the requirement.

    As it stands when you report in Sharesight you can only report in the Base currency. While you have to have a base currency to get a portfolio total that is meaningful it is not the only requirement.. In this situation above you really don't want to report in the base currency but the various local currencies you invest in. A portfolio total makes little sense but the currency used in each portfolio does..

    Cheers

    Mike
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  • I’m anxious
    Hi this has been a week without comment from Sharesight. This is a real problem as more of my portfolio is headed to currency away from my base currency. I'm going to have to consider spreadsheet to manage this or seek an alternative solution. I'd appreciate an update thanks Mike
    • Hi Mike,

      Thanks for the suggestion and sorry for the delay in replying to you.

      This is not something that's on our roadmap or that we have had very much feedback about but of course we're always open to ideas.

      I do have a couple of initial reservations about this:


      1. For performance reporting I would argue that the currency movement is relevant even when trading from a foreign currency account. When you invest in a foreign shareholding you are of course also investing in foreign currency by default. Although you may buy the shareholding from an existing foreign currency investment (ie foreign cash) or choose to retain the proceeds of a sale in foreign currency (rather than convert back to your local currency), this is not relevant to the performance of the shareholding over it's period of ownership


      2. As you mentioned, you can't sum different currencies to arrive at a meaningful portfolio total, but is it that useful to report a return figure in a foreign currency? Doesn't that just mean more mental arithmetic to figure out what that gain figure actually translates to?


      For the Xero side of things then obviously if you have a foreign currency bank account you need foreign currency transactions to reconcile against it. As with Sharesight the transaction level recording is done in the source currency but for the higher level reporting I think it makes more sense to have everything in your local currency.

      Please let me know if you have any further thoughts on this or if I have misunderstood the requirement. I'm happy to reopen this topic as an idea topic to keep the conversation going. Please note that due to other priorities we're unlikely to have a solution in the immediate future.
    • Hi Scott

      Xero has its own set of problems as it will pay the invoice from either the base currency of the file or an account in the same currency as the invoice but it can't cross convert currency. So if your base currency is AUD and you have a USD account you can't directly convert to say Euro - you have to use a clearing account.

      But as for sharesight it comes to your basic approach to investing..

      If you are investing overseas for the short term then a base currency approach is fine. In fact you want it because you have both elements in play for you. But not all of us invest for the short term.

      If you are investing long term then the currency does not really play much of a part. In fact for the most part you want to judge the investment on traditional grounds so that the investment it self preforms in its own market and its own merit not just because the AUD rose or fell. You really want to be able to remove the currency from the picture to judge if the investment is performing.

      Right now the way you present your portfolio you provide no information about how the underlying investment is performing within its own market and this should regarded as a serious limitation of your product.

      In your approach as it stands I would have to create a portfolio for each currency that I wanted to control as a base currency and I'm not prepared to spend that kind of money. Nor should I have to this change is relatively simple one.

      I don't care if its a report or on the live portfolio screen. I just want to be able to remove the currency from the portfolio so I can see if the investment is performing within its own market

      Imagine you made an investment in AUD. The NZD was falling against the AUD so the investment looked like it was rising - but infact within the AUD market it was either flat or falling slightly - How in your system would you pick up this fact?

      I just saw the bottom of this article which said 25% of skaffold investors are considering overseas investment https://www.skaffold.com/blog/Skaffol... I think you will find this limitation of your a growing problem

      So what you are really telling me is that I have to look for an alternative solution to my problem.
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  • Hi,
    I would like to see the information in the local currency as well as the base currency. I use the information in local currecy to rebalance my portfolio as required and report my dividend income. As sharesight currently does not have this information I ensure that the broker website is updated with all transactions and I have an excel sheet for dividends as well as using sharesight.
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  • I’m sad
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    Hi
    I would love to see this thread resuscitated. I have just loaded my portfolio into ShareSight today and have come across this exact case, therefore i am going to have to find an alternative which is a pity as this site is great and just this one niggling and i feel obvious issue with currency calcs.

    Terry
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  • Hi Terry, If you find an alternative then please advise there are a bunch of us looking and in terms of metrics I've got 26 portfolios so you can add 26 votes to this issue at least from me.

    In terms of looking its like accounting there are a few packages at the bottom, not much in the middle or you have to pay through the nose at the top.

    Cheers Mike
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