I’ve got a client that has an investment in a fund called CI Adams Street Global Private Markets Fund (class I) via their corporation investment account.
I’m doing their corporate accounting, and have the 2024 quarterly statements from their brokerage. I’ve looked through the statements many time - outside of a quarterly cash dividend, there is no activity for this fund.
However, the ACB per the brokerage statement is being changed every quarter and I cannot figure out why! Over the past year the ACB has increased by almost $7,000.
Anyone have any thoughts as to what might be going on? I do have some advisor information so I’ll call after the weekend, but I have never seen anything like this before. I could see there being one annual change if there was a return of capital, but that did not happen here as far as I can tell.
Thoughts anyone?
If you’ve had this client since the purchase of the investment, then you have the ACB. Reinvested income increases the ACB and return of capital decreases it. If it experienced $7,000 in reinvested dividends during the year, that would explain the change in ACB. While I’ve never seen that much annual income from one investment, it’s possible.
the issue is that typically reinvested distributions are on the brokerage statement…in this case there is nothing just a quarterly change in ACB…I did see that the client received a T3 showing income (very close to the difference), so it looks as though there were reinvested distributions, but for whatever reason they did not make it onto the quarterly statements, which I have never seen before
Right. Normal notation includes value and quantity with no amounts in the margin account column. Mine very rarely agree exactly. Sometimes, it’s the first & last entry of the year, where the January, 2024 entry on the margin statement refers to a December, 2023 income amount already reported on the 2023 T-slip. And, the first entry for January, 2025 has been reported on the 2024 T-slip. Sometimes, I think it’s done deliberately to play with the accountants.
“What’s the difference between a lawyer and an accountant?
The accountant knows he’s boring.”
Check to see if there is split, etc… sometimes, those would affect ACB