Segregating holdings using custodian accounts

You have the option to set up any number of custodian accounts within a transaction portfolio.

Custodian accounts can be used to segregate holdings in the same was as sub-holding keys (SHKs). Advantages of custodian accounts over SHKs may be:

• LUSID automatically establishes connections between custodian accounts and legal entities mastered in LUSID.

• Custodian accounts are simpler to manage (create, read, update and delete).

• Custodian accounts have their own tax lot accounting methods, so you can manage liquidation strategies at a more granular level.

• You can set up mechanisms to automatically assign transaction movements to different custodian accounts, so for example the purchased stock units of a Buy transaction to a HSBC-Stock custodian account, and the corresponding cash outlay to a HSBC-Cash account.

Consider the following structure:
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To get started, see how to create custodian accounts.