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Why don’t the numbers on my Sharesight FIF report match the Hatch FIF report?
Why don’t the numbers on my Sharesight FIF report match the Hatch FIF report?

​There are a few reasons why your FIF income may look different in Hatch and Sharesight.

Support avatar
Written by Support
Updated over a week ago

Sharesight makes it easier to keep track of shares you own across multiple investing platforms and/or brokers (including Hatch).

Your Hatch account has the most accurate info about all your investments with us - but there are some things you can do to align your Hatch and Sharesight data.

When you buy and sell shares, it impacts your money market fund (DAGXX) transactions

Your available balance in Hatch is stored in a money market fund (DAGXX) and counts towards your investment cost. If you have over $50,000 NZD invested overseas you may fall under the Foreign Investment Funds (FIF) tax rules.

Every time you buy or sell shares, your money moves in and out of the money market fund in the form of buy or sell orders. For example, when you buy shares in Company X, a sell order is created in the money market fund to pay for the Company X shares. When you sell shares, the money you receive is added to your available balance, which means there’s a buy order in the money market fund. This shows up as ‘Sweep activity’ in your Hatch monthly statements (sign in to see these).

Buying and selling shares in the same tax year can result in ‘quick sales’ transactions in the money market fund. Even if you’re buying and selling different investments, it can happen because every transaction causes the opposite transaction in the money market fund. These will need to be manually added into Sharesight to calculate your FIF income, but will be automatically included in your Hatch FIF report.

The money market fund (DAGXX) transactions need to be manually added to Sharesight

While Hatch’s FIF report includes all money market fund transactions, Sharesight only shows info about the shares you have bought and sold in companies and ETFs. Because it doesn’t include the money market fund, it won’t show the full picture. To get Hatch and Sharesight to match, you need to add your DAGXX transactions into Sharesight manually including your opening balance, buys, and sells.

Sharesight has a handy bulk transaction importer which can easily add all of your DAGXX transactions. All the data you’ll need will be available in your Hatch tax report after the tax year has finished in these two documents: buy & sell transactions and opening holdings.

After importing your transactions, Sharesight will automatically work out your DAGXX dividends - you’ll want to set these up as dividend reinvestments as DAGXX dividends are automatically reinvested (see more below).

Foreign exchange (FX) rates could be calculated differently

We use the European Central Bank (ECB) daily exchange rates to calculate the NZD values within your FIF calculations. Because foreign exchange (FX) can vary day-to-day and Sharesight may use a different exchange rate from us, you may see small differences between Hatch and Sharesight.

Delayed settlement can result in differences in transaction dates

When you buy and sell shares with Hatch, your available balance and portfolio change immediately, but the money and shares don’t actually change hands on the same day. Behind the scenes, it takes two full US trading days – this is called delayed settlement.

So for example, you could sell shares of Company X on a Tuesday and you don’t actually receive the money until Thursday - that’s two days later. This is why you can’t withdraw money until two days after you’ve sold shares, and it also means that the foreign exchange (FX) rate Sharesight uses for a transaction is calculated two days later. Exchange rates generally change a bit over two days.

With deposits, withdrawals or ‘corporate actions’ like dividends, the money is considered to have changed hands immediately, so you won’t see any differences caused by delayed settlement.

We treat dividends differently for the money market fund (DAGXX)

While your money is stored in the money market fund, you may receive a dividend. The dividends you receive from owning shares in companies and ETFs are usually paid as cash, the Money Market Fund pays them in units of DAGXX.

If you receive a dividend of $1, it equals 1 unit of DAGXX. To enter a DAGXX dividend in Sharesight, you’d enter a dividend payment and a buy of DAGXX. And like most shares in Hatch, DAGXX is an overseas investment and any dividend income you earn counts towards your Foreign Investment Fund (FIF) income.

FIF calculation method

Our coding of calculation methods and decisions we’ve made in processing your transactions could be different to those used by Sharesight. With any legislation, the words are up for interpretation. This doesn’t necessarily mean that a calculation is wrong or right, it's just the methods for calculating your overseas FIF income could be different.

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