How to split a Managed Investment/Wrap account into its individual assets?

Support Query

How do I split an account from one line to each individual account code?
How do I split a Managed Investment into its underlying assets?
How do I split a Managed Investment into its individual assets where there is tax deferred amounts in the Managed Investment?

Overview

To split an underlying asset off its Managed Investment, you will need to record two journals:

1.  A disposal of the Managed Investment at cost to record the splitting off of the underlying investment
2. An acquisition of the underlying investments at cost recording their respective units

Both of these journals will use the 94910 Investment Movement Data Clearing account to balance the entries as these cannot be entered as a single journal.

Common situations where this is needed could include:

• You have a Managed Investment or some other aggregated collection of assets and you wish to create separate accounts to allow BGL's ASX Data Feed to automatically update asset prices
• You have a Managed Investment and you wish to reset the cost base of all or some of the underlying assets. Please refer to How to reset the cost base for Managed Investments? for more details

The following journals will be posted in Simple Fund 360:

1. Dispose of the Managed Investment/Wrap Account at cost:

   	DR	CR
   Investment Movement Data Clearing Account	$XXX,XXX
   Managed Investment / Wrap Account by 1 unit		$XXX,XXX

2. Acquire the underlying assets at cost:

   	DR	CR
   Underlying Asset 1 by 100 units	$XX,XXX
   Underlying Asset 2 by 300 units	$XX,XXX
   Underlying Asset 3 by 200 units	$XX,XXX
   Underlying Asset n by x units	$XX,XXX
   Investment Movement Data Clearing Account		$XXX,XXX

What to do in Simple Fund 360

1. Dispose of the Managed Investment/Wrap Account:

The cost base of the underlying asset will be credited against the Managed Investment's balance.

This can be seen below where we are disposing of the entire Managed Investment's balance of $150,000 and recording the appropriate balancing entry.

2. Acquisition of the underlying assets

This journal will record the underlying assets at cost.

For this example, it is assumed that the following underlying investments constitute the Managed Investment. All figures are at cost:

The following journal shows how to record this acquisition in Simple Fund 360. Ensure that the relevant CGT dates are entered in the Investment Purchase Details screen

Tax deferred amounts in Managed Investment

To split a Managed Investment that has tax-deferred amounts attached, you will need to do the following:

1. Reverse the tax-deferred amounts on the managed investment
2. Dispose of the managed investment and acquire the individual assets in the same transaction (same as above)
3. Record tax-deferred amounts for each of the acquired individual assets

1. Reverse tax-deferred amount on managed investment

   Account Name	Account Code	Units	DR($)	CR($)
   Distributions - Managed Investment	23800/ManagedInvestment	N/A		0
   Bank	60400/Bank	N/A	0

   Under More Details for the Distribution transaction:

   Record an AMIT Cost Base Net Increase Amount / Shortfall of the amount of tax-deferred attached to the managed investment.

2. Dispose of the managed investment and acquire the individual assets in the same transaction (same as above)
3. Record tax-deferred amounts for each of the acquired individual assets
   Please see the following articles for how to enter a tax deferred amounts for an asset: How to Enter a Distribution & Tax Statement
   
   

See Also

BGL Excel (XML) Import - Wrap Splitting