Subportfolios

[rsw]

Hi Mark
I have organised the master portfolio with two subportfolios. I wish to split an investment in the master portfolio by moving some shares into one sub, some into the other, and leave the remainder in the master. I have searched the help files and message board but can find nothing relevant. Can you suggest the best way to do this? Is it necessary to create "new" investments (each of the same stock, but with different holdings), or is there a neater way?
I am using Personal 11.1

Thanks
Ronald

[Mark]

Hi Ronald,

Yes, you would need to create new investments for each separate holding of the same investment. You can either do this with the New Investment dialog, or you can do it with the "Transfer Between Wizard".

Can I ask why are you splitting up an investment into 3 sub-portfolios? If it is all held in a single account, it is usually best to keep it in a single investment in a sub-portfolio that tracks that one account.

[rsw]

Hi Mark

Hmmm - good question. I need to read up on accounts, obviously. The reason is a bit complex - under local legislation, a superannuation portfolio that supports several members (say, three) must segregate pension phase assets from accumulation phase assets (one and two members, respectively). An investment can still be shared amongst all members, but dividends and interest must be apportioned according to each member's notional holding. Would you still recommend accounts, or would it be better to perform 'sales' and 'purchases' at the date of segregation? What I dislike about this solution is that capital gains reports would contain misleading information, since the 'sale' is internal to the portfolio. I would also like to avoid having to apportion dividends manually.

Regards
Ronald

[Mark]

Hi Ronald,

In general Fund Manager is not designed for tracking pooled investments, like a regular mutual fund, where multiple people pool their money, and each own a percentage of the fund.

If you use the "Transfer Between Wizard", Fund Manager will record a single transfer out, and as many transfer in transactions as necessary to preserve your cost basis information. No entries will show up on the Capital Gains report because you're using transfers, and not buys/sells.

[rsw]

That will solve the problem, Mark. Many thanks.

Ronald