How to allocate an investment across/to multiple pools for segregation?

Support Query

How do I allocate an asset/investment across multiple pools?

How do I allocate an investment on a per parcel basis to multiple pools?

Overview

To allocate an investment to multiple pools, you will need to:

1. Segregate the initial investment account to account for any unrealised capital gain accrued since the investment was held.
2. Create the investment accounts for each member's pool ensuring that:
   
   
   1. The correct security is attached. This is to continue the automatic daily revaluations performed by Simple Fund 360 (if applicable e.g. Listed Securities)
   2. The account code and name reflect the pool the asset will be allocated to
      
      

3. Allocate the pooled investments by completing a transaction to dispose of the original investment and acquire the investment accounts created in Step 2.

4. Assign the assets to their respective pools using the Segregation Dashboard

What to do in Simple Fund 360

Example

A fund has two members, John and Mary, and holds 17,700 BHP shares with 10,000 of those being purchased on 30/06/2016 and 7,700 on 05/07/2016.

The fund wishes to assign 10,000 of these shares to John's Pool and the balance to Mary's in the 2017 Financial Year.

Refer to the excerpt from the fund's Detailed Schedule of Fund Assets below:

1. Assign the investment to a pool using the Segregation Dashboard (this will ensure any unrealised capital gain accrued is correctly allocated to the appropriate members)
   

   From the Main Toolbar, go to Member.
   Select Segregation Dashboard from the list.

   Click on Edit Current Policy
   Select Create New Pool.
   
   You will be creating a pool for the original investment account before the account is split into multiple pools. This is to ensure that unrealised capital gains are correctly allocated to members. The following would be recorded for this example:

   Pool name	BHP Billiton Ltd
   Member Accounts	Select both John and Mary member accounts
   Allocation for each account	John: 56% (10,000/17,700) Mary: 44% (7,700/17,700)

   For more details on assigning members and assets to pools, please refer to the following article: 
   Create Segregation Policy for a fund in Simple Fund 360.
   
   Once the pool has been created, allocate the BHP account to the newly created pool. For more on allocating investments to segregation pools, see: 
   Allocate Investments to Segregation Pools
2. Create the investment accounts
   

   From the Main Toolbar, go to Accounting.
   Select Chart of accounts from the list.

   
   Click Add Account and select Investment 
   
   Ensure the following details appear in the New Investment Account screen:
   
   Account Class: Sub Account
   Securities: BHP.AX BHP Billiton Limited
   Investment Type: Shares in Listed Companies (Australian)
   Investment Code: 77600/BHP_John.AX
   Name: BHP Billiton Limited (John's Pool)
   
   
   
   Click Save
   
   Repeat the same for Mary's pool:
   
   
   
   

3. Disposal of original investment and acquisition of newly created investments
   The following journal will be recorded in Simple Fund 360:

   Account	Units	Debit ($)	Credit ($)
   77600/BHP_John.AX - BHP Billiton Ltd (John's Pool)	10,000	200,000
   77600/BHP_Mary.AX - BHP Billiton Ltd (Mary's Pool)	7,700	150,000
   77600/BHP.AX - BHP Billiton Ltd	10,000		200,000
   77600/BHP.AX - BHP Billiton Ltd	7,700		150,000

   Note that the disposals and acquisitions are at cost to avoid triggering any capital gains

    

   From the Main Toolbar, go to Accounting.
   Select Transaction list

    

   Click on New Transaction and select Journal

   

   
   Ensure that the following is entered in the New Transaction Screen:
   
   For the acquisition entries, click on  and ensure that the CGT dates are changed to reflect the purchase date of the original investment parcel.
   

   For the disposal entries, click on  and select the Disposal Method as Manual. Ensure that you dispose from the correct parcel:

    

4. Assign the assets to their respective pools using the Segregation Dashboard
   

   From the Main Toolbar, go to Member.
   Select Segregation Dashboard from the list.

   Click on Edit Current Policy
   
   The investment parcels will now be able to be assigned to their respective pools:
   
   For more details on assigning members and assets to pools, please refer to the following article: 
   Create Segregation Policy for a fund in Simple Fund 360