This article will guide you on how to create a separate asset pool to segregate investment assets to specific member accounts.

Asset pool structures can only be set for financial year boundaries i.e. start date will always be 1 July and end date will be 30 June. Each structure will apply to the fund until a change in structure is processed or end date entered.

Segregated funds will initially show a single structure beginning on the start or on the system date. The end date will be continuing until a new Asset Pool Structure is added. 

If you would like to segregate a fund that was previously unsegregated you will be required to first add a new Asset Pool Structure.

We will guide you through the following steps:

1. Add Asset Pool Structure
2. Add Assets to your Asset Pool
3. Create the pool/s
4. Adding member accounts to the pool
5. Assign Investment Accounts to a new pool
6. Linking a Feed to an Asset Pool
7. Updating Fund Policies
8. Processing Transactions for a Segregated Asset Fund

Add Asset Pool Structure

Navigate to Fund Level > Investments > Maintain Asset Pools

1. Click+ Add button. This will open the Add Asset Pool Structure screen as shown below.
2. Enter Structure Name, Enter Start Date.
3. Click Save to create the pool structure.
   
   

The new Asset Pool Structure has now been created. You can now set up the segregation of the fund by following below steps.

Add Assets to your Asset Pool

Please ensure that Add Asset Pool Structure has been completed before Adding your assets to your Asset Pool.

Navigate to Fund Level > Investments > Maintain Asset Pools

Create the pool/s

1. Click on +Add.
2. The Add Asset Pool will open up. Enter the asset pool name in the box as shown above.
3. Click Save.
   
   

Adding member accounts to the pool

Prior to adding accounts to a new pool, all the member accounts will form part of the Default pool.

1. Click on the Member Accounts tab.
2. Click the arrow next to Default Pool (to expand the listing of accounts that are currently assigned to the Default Pool)
3. Tick any box adjacent to the relevant pension accounts you wish to select
4. Click Move Selected
   
   
5. Select the relevant pool name (In this case, it is Richie's Pension).Click Move. The selected structure will now show Richie's Pension pool as having member accounts assigned to it
   
   
   

You can only segregate assets to specific member accounts (Accumulation or Pension), not to Members.

Assign Investment Accounts to a new pool

1. Click on the Holding Accounts tab.
2. Click the arrow to the left of account name Default Pool (This will expand the listing of accounts that are currently assigned to the Default Pool.
3. Tick the boxes adjacent to the relevant investment accounts you wish to move
4. Click Move Selected and this will open the below screen. 
   
   
5. Select the relevant pool name (In this case, it is Richie's Pension).
6. Click Move (The selected structure will now show Richie's Pension pool as having holding accounts assigned to it)
   
   

Linking a Feed to an Asset Pool

If there are automated Stockbroking or Wrap feeds that are feeding data into an asset pool then you need to link it to the new pool.

In this example, Richie's Pension has a linked Commsec Adviser Services account which means that any new investments created via the Commsec Adviser Services feed will be automatically assigned to this pool.

1. Click on the Holding References tab.
2. Click the arrow to the left of account name Default Pool to expand the listing of Holding References that are currently assigned to the Default Pool (screenshot shown in step 2 above).
3. Tick the box adjacent to the relevant holding reference
4. Click Move Selected (This will open the below screen)
5. Select the relevant pool name (In this case, it is Richie's Pension).
6. Click Move. (The Selected Structure summary will now show Richie's Pension pool as having 1 holding reference assigned to it)
   
   
   

Updating Fund Policies

If a fund has segregation to a pension account or to the default pension pool, you should also update Fund Policies.

Navigate to Fund Level > Settings > Fund Defaults

1. Either create a new Fund Policy or amend the current active one by Clicking Edit/Delete 
   
   
2. Tick the "Assets Segregated for Pensions" box (As shown in below screenshot)
   
   

Further to this, if the fund has any expenses, you should also enter an applicable percentage in the Pension exempt % (fund expenses) field so to reduce the amount claimed as allowable deductions when calculating the tax for the fund.

Processing Transactions for a Segregated Asset Fund

The events/transactions processed for a segregated asset fund are exactly the same as they are for a non-segregated fund.

When a new Investment/Holding account is set up, you should select the Allocation tab select which member account the investment is to be segregated.

You can see the allocation of profit/loss and tax for each member account once the period update has been run. Users amend the calculations to adjust the allocation to each member account should the need arise.

You should also give due consideration to establishing a separate bank account for each Pool and ensure that all income relating to that pool is banked to that account. Similarly, expenses specific to the segregated pool should be paid from this account as well as a fair proportion of general fund expenses such as accounting fees. 

What's Next?

See FAQ: Segregation of Assets knowledge-based article to address scenario-based questions our Support Team have previously answered.