Linedata has partnered with NetWorth Services to offer Linedata Admin Edge clients access to NetBasis, NetWorth’s automated solution for the calculation and reporting to the IRS of the adjusted cost basis of sold mutual funds. 

NetBasis will automatically interface with Linedata Mshare transfer agency system, drawing on the data required to determine the adjusted cost basis for mutual funds. Linedata Mshare forms a key part of the Linedata Admin Edge platform, an end-to-end fund administration solution for third party administrators, mutual funds, hedge funds and liquid alternative funds.
 
The automation of these processes will enable Linedata Admin Edge users to work more efficiently, maintain compliance and optimise costs. NetBasis will calculate the adjusted cost basis for covered and uncovered mutual funds, using a default tax lot accounting method or the elected Cost Basis Method Election provided which includes FIFO, LIFO, Specific, LOFO, HIFO, Average Single Category, Average Double Category and LGUT. The cost basis reporting solution also adjusts mutual fund data for any corporate actions, including name changes, splits, mergers, dividends and capital gains reinvested, and tracks and reports on wash sales.
 
“We know that cost basis calculations are a challenge for our Linedata Admin Edge clients, and we have addressed that by providing an integrated solution, says John Hanna (pictured), Business Development Manager at Linedata. “Partnering with NetWorth has enabled us to do that quickly, cost-effectively and with the recognised experts in the field, so that our clients are getting access to the best system on the market, but with the chore of setting up and maintaining the interface managed by Linedata on their behalf.”
 
“Although well intended, the cost basis reporting requirements have created an industry cost structure that is both an unproductive burden on its core business as well as an elevated operating budget that is unsustainable over time,” says Nico Willis, CEO at NetWorth. “We believe that Linedata and NetWorth built an industry ‘Best of Breed” straight through processing solution that will promote bottom line cost efficiencies while meeting the necessary challenges of cost basis compliance reporting.”