The Select Holding Settings options determine the actions of a holding in relation to reports and reconciliation. These settings can be accessed under the Portfolio Management tab, Accounts page. Double click on an account to open that record. Click on the Holdings Summary page. Select a holding by placing a checkmark in the box next to it, then from the toolbar above the grid, select Action, Holding Settings.
Establish your holding settings through these options:
Click the Tax lot methods drop-down and select Average Cost, First In First Out (FIFO), Specified, Last In First Out (LIFO), High Cost, or Low Cost. This will dictate how tax lots are selected when they are removed from the account, as when a Sell or Deliver-out transaction takes place.
Click the Transactions drop-down and select Morningstar Default Transaction Settings or a custom setting.
Note: To create a custom transaction setting, go to the Home tab, Settings, Reports, Tax Lot Methods, Transactions, Management Fees. From the toolbar above the grid, click the New Setting drop-down menu and then New Transactions Setting.
Check the Unmanaged Asset box to flag the holding as an unmanaged asset. An unmanaged asset is an asset or account that the Advisor does not manage but the client wants it to be included on reports. Note: Selecting this option will exclude the holding from billing, it will not count toward total AUM, and will appear grayed out in the Holdings Summary grid.
Check the Exclude from Management Fees Calculation box to exclude the holding from the billable balance of the account.
Check the Exclude from Performance Calculation box to exclude the holding from the overall performance calculation for the portfolio on the Client Return Summary, Account Summary, and Performance Summary reports.
Check the Locked Holding box to exclude the holding from rebalancing via the Rebalance Accounts feature in Workspace.
The Exclude from Holding Reconciliation and Exclude from Taxlot Reconciliation options are non-editable fields from this screen. When the holding is excluded from reconciliation under the Positions or Lots blotters, the system automatically places a check in the corresponding box for that option. Likewise, if a holding is marked for inclusion, the checkmark for that option will be removed.
Click OK to save your changes and return to the Holdings Summary grid.