Amortization and Accretion Report

The purpose of the Fixed Income Amortization and Accretion Report is to see the gain or loss of fixed income securities over the remaining life of the bond instead of recognizing the gain or loss in the year of the bond’s redemption.  Prior to running this report, it is recommended that you run through the Amortization Wizard for those fixed income securities that you want to reflect amortization or accretion. 

To access this report, open a transactional account and from the top menu, click on Reports, Fixed Income, and then Amortization and Accretion.

Report Options

1. Click the drop-down menu and select Yes or No to include a Cover Page.

2. Set the As of Date for the report. The date can be typed into the field or use the drop-down calendar to select a date. This field defaults to the previous month-end.

3. Select Mask Account Number to limit the amount of an account number that is displayed on the report. This inserts a level of security when reports are e-mailed to clients or uploaded to the Web via the Client Web Portal.
   Click here to see how the masked account number will be represented (based on the number of characters in the account number).

   Number of Characters in Account Number	Masking Formula
   6 or less characters	All characters are presented as an asterisk (*)
   7 characters	Only character 3 is an asterisk (12*4567)
   8 characters or more	The account number shows the first two numbers and the last four numbers. All numbers in between are represented by an asterisk. Examples: 8 characters = 12**5678 15 characters = 12*********2345

    

4. If you choose to include a Cover Page, you can also use the option to Add disclosure to cover page. Click here for more information.

   Prior to selecting this option, the cover page disclosure must be set up under the Home tab, Settings page. Under the Portfolio Account System Settings, select Reports, Tax Lot Methods, Transactions, Management Fees settings. From the toolbar above the grid, select New Disclosure, and then New Cover Page Disclosure. Once the new disclosure is saved, you are returned to the Settings grid where you should now be able to see your disclosure listed.

   Once the disclosure has been created, you will need to associate the disclosure with a Report Setting from the Settings grid. Make sure this is the Report Setting that is then attached to the account (Profile/Settings, Account Settings, Reports). If your Account Settings reflect Use Client Default Setting, make sure the correct Report Setting is selected at the Client level.

5. When selected along with using a cover page, the Add blank 2nd page option inserts a blank page between the cover page and first page of the report.

Report Contents

Click here for a report sample.

The information below describes each column of the report.

Name - The first column of the report contains the name of the holding.

Purchase Date - The purchase date is pulled from the transaction record. Refer to the table below for the location on the respective transaction.

Face Value - The face value amount is calculated by multiplying the Par Value x Shares.

Unit Price - The price of the security as of the date you are running the Fixed Income Amortization and Accretion report.

Cost - The cost is calculated as Per Share Cost Basis x Shares - Commissions/Fees.

Month to Date - The amortization/accretion amount from the first day of the month (of the same month as the report as of date) to the report as of date. For example: if the report as of date was 4/15/2014, the month to date range would be 4/1/2014 thru 4/15/2014.

Year to Date– The amortization/accretion amount from January 1 (in the same year as the report as of date) to the report as of date. For example: if the report as of date was 4/15/2014, the year to date range would be 1/1/2014 thru 4/15/2014.

Total to Date– The amortization/accretion amount from the purchase date of the security to report as of date.

Remaining Balance - The remaining balance is the amount that still needs to be amortized/accreted. You will find the exact calculations for Buy and Deliver-in transactions below.

Buys are calculated as Face Value - Cost - total to date Amortization/Accretion + Commissions/Fees.

Deliver-ins are calculated as Face Value - (Price on Deliver-in [divided by] 100 x Par Value x Price Factor x Principal Factor(1) x Shares) - total to date Amortization/Accretion.  

Adjusted Cost - The adjusted cost is the original cost of the securities adjusted for amortization/accretion of any premium or discount as of the report date.

This column will look at any amortization transactions in the account, and depending on the Adjustment Type on the transaction (either amortization or accretion), the original cost will be increased or decreased accordingly by the amortization transactions.

If the Adjustment Type is amortization on the transaction, the adjusted cost would be: Original Cost - Amortization Amount.

If the Adjustment Type is accretion on the transaction, the adjusted cost would be: Original Cost + Accretion Amount.

See Also

Amortization and Accretion

Amortization Wizard