Overview of Sharesight
Sharesight is an online investment portfolio tracking platform designed to help individual investors and financial professionals track the performance of stocks, exchange-traded funds (ETFs), and other investments across multiple markets and currencies. The platform offers tools for performance reporting, tax reporting, and dividend tracking. It is widely used in regions such as Australia, New Zealand, the United Kingdom, and parts of Europe and Asia.
Sharesight enables users to consolidate their holdings from various brokerage accounts into a single interface. The platform supports automatic data synchronization with several brokers and provides features like corporate action tracking, portfolio benchmarking, and custom reporting.
Company Background
Sharesight Limited is a private company incorporated in New Zealand. It was founded by father-son duo Tony and Scott Ryburn. The company’s development began with the goal of creating a comprehensive, easy-to-use portfolio tracking tool that addressed the complexities of tax and dividend reporting for individual investors.
Sharesight maintains its corporate headquarters in Wellington, New Zealand. It has grown significantly in terms of user base and functionality, attracting both retail investors and financial professionals. The company has also established a presence in Australia and other markets through partnerships and integrations.
Sharesight was acquired by MYOB, a business management platform provider based in Australia and New Zealand. MYOB itself is a well-established company focused on accounting, payroll, and business management solutions.
Regulatory Status
Sharesight is not a financial institution and does not offer financial advice, brokerage services, or fund management. Consequently, it is not regulated as a financial adviser or broker-dealer. However, it is important to distinguish that the platform is classified as a software-as-a-service (SaaS) provider. As a SaaS provider, Sharesight is not subject to the same licensing and regulatory requirements that apply to financial institutions or advisors.
Despite not being regulated as a financial services entity, Sharesight has implemented various compliance measures to safeguard user data and maintain operational integrity. It complies with New Zealand’s data privacy laws and is subject to the country’s commercial and corporate governance standards.
Security and Data Protection
Sharesight employs a range of security practices to protect user data. The platform uses Secure Sockets Layer (SSL) encryption for data transmission and stores user data in secure data centers located in Australia. These centers follow industry standards for data protection, including firewalls, intrusion detection systems, and access control protocols.
The company’s privacy policy outlines its approach to data collection, storage, and sharing. Sharesight states that user data is not sold to third parties and is only accessed internally for support and system maintenance purposes.
The platform also offers two-factor authentication (2FA) as an additional layer of account security, reducing the risk of unauthorized access.
Functionality and Features
Sharesight offers a variety of features aimed at simplifying investment tracking and portfolio analysis:
Performance Reporting
Sharesight calculates portfolio performance using several metrics, including time-weighted return (TWR) and money-weighted return (MWR). It incorporates dividends, capital gains, foreign exchange fluctuations, and fees to provide an accurate picture of investment performance.
Tax Reporting
One of Sharesight’s key functionalities is its support for tax reporting, especially in jurisdictions like Australia and New Zealand. The platform generates reports such as Capital Gains Tax (CGT), taxable income, and dividend income reports. These reports can be exported in formats compatible with local tax authority requirements.
Dividend Tracking
Sharesight automatically records dividends based on holdings and market data. It tracks dividend payment dates, amounts, and franking credits (where applicable), offering a consolidated view of income generated from investments.
Broker Integration
Sharesight supports integration with several brokerage platforms, allowing users to import trades directly into their portfolios. Supported brokers include major institutions in Australia, New Zealand, and other markets.
Corporate Actions
The platform handles corporate actions such as stock splits, mergers, and spin-offs. These actions are automatically processed where data is available, reducing the need for manual updates.
Multi-Currency Support
Sharesight supports investments across multiple currencies and provides foreign exchange conversion for reporting purposes. Users can view their portfolios in their preferred base currency.
Availability and Accessibility
Sharesight is available through a web-based interface and does not require software installation. It is accessible through standard web browsers on desktop and mobile devices. While the platform does not currently offer a native mobile application, its responsive design allows mobile access via browser.
The platform offers several subscription tiers, including a free plan with limited features and paid plans that include full access to advanced reporting and multi-portfolio support. The free plan is limited to a single portfolio and a restricted number of holdings, while paid plans support unlimited transactions and more detailed tax features.
Data Sources and Accuracy
Sharesight aggregates financial data from multiple sources, including exchange feeds, brokerage data, and financial news services. It strives to maintain data accuracy, especially in price tracking and dividend reporting. However, the company acknowledges that users may need to verify or manually adjust certain entries in specific situations, particularly with historical data or less commonly traded securities.
Users are provided tools to manually enter or edit trades and dividends when automated data is incomplete or unavailable. This flexibility allows the system to remain useful even when external data coverage is limited.
Partnerships and Integrations
Sharesight has formed integrations with various financial service providers, including accounting platforms and robo-advisors. Notably, it integrates with Xero, a cloud-based accounting software provider. This integration is particularly useful for accountants and financial advisors who manage investment portfolios on behalf of clients.
Sharesight also supports connections with platforms for tax reporting and financial analysis, providing users with a more comprehensive financial management ecosystem.
User Base and Geographic Reach
Sharesight serves users in multiple countries, although it has a particularly strong presence in Australia and New Zealand. Its features are tailored to accommodate tax reporting and investment conventions in these markets. The platform also supports global investors who hold international securities.
The company has expanded its user base by offering localized reporting features and support for international stock exchanges, including those in North America, Europe, and Asia.
Limitations
While Sharesight provides extensive functionality, it does have limitations:
- It does not offer real-time trading or execution capabilities.
- Some corporate actions may not be processed automatically and require manual adjustments.
- Certain markets and asset classes, such as unlisted managed funds or derivatives, may not be fully supported.
- The platform’s tax reporting features are optimized for specific jurisdictions and may be less effective in others.
Conclusion
Sharesight is a legitimate and established portfolio tracking platform that provides comprehensive tools for investors seeking detailed performance and tax reporting. While it is not regulated as a financial advisor or broker, it functions as a software platform and complies with relevant commercial and data protection standards.
The company maintains a stable corporate background, strong security protocols, and a range of features that support its legitimacy as a portfolio tracking solution. It offers integrations with major brokers and accounting platforms, enhancing its utility for both retail and professional users.
Sharesight’s focus on accuracy, transparency, and user control further supports its standing as a credible service in the financial technology sector.
