Rear mirroring

Following the introduction of the flat-rate withholding tax in Germany at the end of 2008, large asset management mandates pursued the strategy of launching their own funds and adding them to their portfolios by the end of 2008. This means that the portfolios can also be reallocated within the funds in 2009 and later without incurring withholding tax. The subsequent sale of the fund units is also irrelevant for tax purposes due to the grandfathering.

In these cases, a holder's overall portfolio often consists of only a few funds that are of little significance. For more detailed reporting, the portfolio data of the funds must be recorded in the Infront Portfolio Manager. For this purpose, holders or portfolios are assigned to the corresponding funds as a "reference portfolio". The holders are of the customer type "Fund portfolio" and contain all transactions. In addition, a reference to the security object of the fund, which is held as a position in the customer custody accounts, is recorded. As before, the price material of the security object is binding as the valuation basis for a fund recorded in this way. As a rule, only percentage weightings of the individual items are determined on the basis of the owner data.

With the help of the fund breakdown report, the fund can be broken down into its individual items and a detailed statement of assets can be created.