thewealthworks Customer Support Portal

Overview

This guide applied to all entity types within Troika, with the exception of Estates (probate cases), where the operation of the client splitting screen works differently.

How to Split Investment Holdings

This option allows the investment holdings of a client and sub fund to be transferred to a new fund or existing fund on the same client, or to a completely different client. If the split is to a different client, that client must be created and configured first.

Within Wealth Management, and the Client tab, click on the menu option for Split Client.

By default all the investments of the client are listed. This can be restricted to a single fund by using the drop-down box at the top of the screen. For example:

Setting up the Ledger Split

The basis of the split can be set at the top of the screen.

If the ‘split x ways’ option is used, set the number of equal splits that the investments divide into.

The ‘Use Beneficiaries’ box will use the shares set up under beneficiary details found in the client details in the Wealth Management module. These are unit shares and don’t have to be equal.

If the funds are to be created in a different client, select that client from the drop down list next.

Next, enter the date on which the transfer is to take place (the transaction date). Checking the ‘Chargeable’ box will enable an investment price file to be selected as the basis for the transfer. If the event is at market value, but exempt for CGT, check this box but mark the ledger as exempt later on. Enter the transaction detail to describe the transactions.

Select the Account Out / In. This is the nominal account for bank side of the transaction on both the outgoing ledger (whose holding is being reduced) and the incoming ledger (where the holding is going to). If no nominal account is selected, the investment ledger default account codes will be used.

Select any transaction narratives to further describe the transactions (displayed as additional text on investment schedule reports).

Select the price file to be used, if relevant.

Selecting Investments to Split

Next select the investments that are to be split. This can be individually or a range.

Select an investment by clicking to the left of it on the arrow. The box will be highlighted.

If you want to select a range, hold down the shift key and select another investment. All the investments in between will become highlighted, as follows. Now use the down arrow button to move the selected shares into the split preview screen:

Initially the screen will set up as many new funds as it needs to perform the split. The new funds are not created until the actual ‘split’ is posted. You can amend the split ledger to an existing fund by using the drop down list, where the fund already exists.

If a new fund is not needed because the split has been allocated to an existing fund, the entry in the new funds box should be deleted. Click on the delete button in the ‘New Funds’ list to remove the fund that is not required.

An example of splits not being required would arise if a ninth share was to be allocated to a new client and the remainder left unchanged. Initially it would be set to split 9 ways. The investment is selected and moved to the lower part of the screen. Nine potential new funds would be listed. By deleting eight of the potential funds, any proposed split to those funds will also be deleted. The remaining fund may then be used for the split, or after allocating the splits to an existing fund that too can be deleted.

Inevitably splitting investments in this way will result in rounding differences. If the whole holding is to be allocated these must be corrected manually whilst the ‘Limit to Selected Ledger box’ is checked. You can over type the units, book value and market value to make amendments.

Once corrected the balances line will display zeros. Remember it may not be the displayed ledger that has the difference; all ledgers will need to be checked. A preview report can then be produced. The column marked ‘Ch.’ refers to the treatment for CGT. If left with a tick then the disposal is treated as a sale. If un-ticked it will be treated as an exempt disposal.

When the split is ready to be recorded select the Split button to proceed.

If the balances have not all been adjusted to zero the following will be displayed, for each holding involved:-

“NB Units total does not tally. If this is a rounding error, you should stop and adjust the split values for these rounding errors. Do you want to continue with the split?”

If in doubt, answer No and re-check the splits before responding Yes.

This article is confirmed to be applicable from Troika release 2.08.020.