If you are reconciling individual accounts, you can establish an account as a revenue share parent to a fund or group of funds. This is another way to share gains and losses in your managed funds. Revenue share parent allows you to link an account to multiple investment pools for revenue share calculations. When you set a revenue share parent, the system will update all funds in the account with the selected investment asset.
For example, if you invest a group of funds with Schwab, the parent account is a pool of each Schwab investment. The account names and numbers listed below are taken from the image in step 2 below.
- 12007 Schwab - This is the parent account.
- 12009 Schwab Balanced Capital - This is currently a sub-account.
- 12010 Schwab Large Cap Growth - This is currently a sub-account.
- 12011 Schwab Small Cap Growth - This is currently a sub-account.
In this example, all the fund balances are held in the parent, 12007, and the asset balance is held by the Z_Cash Balancing fund in the child accounts, 12009, 12010, and 12011.
Rev Share Parent Account Setup
- Navigate to the Accounts page.
- Click the account Number.
- Click [set] in the Rev Share Parent field.
- Click the Name of an Investment Account.
- Review the funds and balances that will move to the revenue share parent account.
- You will see a list of all the funds that are housed in that account. The new account that they will be associated with is listed under Swap To.
- The system will ask if you wish to move these funds into the new asset account for the purposes of running the revenue share operation.
- In order to link an account to another account for revenue sharing purposes, the system "swaps" these balances to the parent account. This can also impact the investment or checking account for those funds.
- Click Yes, swap balances and make fund updates as needed.
The system will swap out the fund balances to the new account, and the account record will now reflect the change in the Rev Share Parent field.