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  1. #1
    Member Yossarian's Avatar
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    Default Broker recommendations please - large one off transaction

    Hi all
    I was looking for recommendations.
    My situation is that I have recently inherited a portfolio of NZ and AU holdings, both shares and bonds, in the order of $670k. I would like to sell these holdings in the near future.
    What is the most cost effective way of doing this? I have had a couple of quotes from full service brokers which are both 1% commission. Is there a way of disposing of these shares for less commission? I don't really want to pay $6700 for what seems a fairly simple job.
    I'm aware there are online brokers who offer much lower commissions however that may be complicated by two facts (1) the shares are still held in the name of the estate, rather than my name directly (can an estate open an online account?) and (2) I live in the UK. So I'm not sure if I'd be eligible for an online account.
    Any advice appreciated. I guess I can just ask for a better rate from the full service broker - does anyone know if they are prepared to negotiate?
    Many thanks
    Y

  2. #2
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    There is this option from Direct Brokerage which you could investigate

    https://www.directbroking.co.nz/Dire...neoffsell.aspx

    I have just realised they want 1.25% but still worth asking.
    Last edited by 777; 30-05-2019 at 08:48 PM.

  3. #3
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    Quote Originally Posted by Yossarian View Post
    Hi all
    I was looking for recommendations.
    My situation is that I have recently inherited a portfolio of NZ and AU holdings, both shares and bonds, in the order of $670k. I would like to sell these holdings in the near future.
    What is the most cost effective way of doing this? I have had a couple of quotes from full service brokers which are both 1% commission. Is there a way of disposing of these shares for less commission? I don't really want to pay $6700 for what seems a fairly simple job.
    I'm aware there are online brokers who offer much lower commissions however that may be complicated by two facts (1) the shares are still held in the name of the estate, rather than my name directly (can an estate open an online account?) and (2) I live in the UK. So I'm not sure if I'd be eligible for an online account.
    Any advice appreciated. I guess I can just ask for a better rate from the full service broker - does anyone know if they are prepared to negotiate?
    Many thanksY
    Try contacting Computershare in the first instance to see what you need to do.Most company shares are registered with them.They can sell shares for you as well
    https://www-au.computershare.com/Inv...bleforms?cc=NZ
    If you would like to sell shares you already hold, you can use Investor Trade, Computershare's online share sale facility for issuer sponsored securityholdings. The service is available to investors in companies where Computershare acts as share registrar.
    – Each batch order sale will entail a transaction fee of $15 plus $0.12 per share* sold. – Each market order sale will entail a transaction fee of $25 plus $0.12 per share* sold. – Fees are deducted from the proceeds derived from the sale.
    https://www-au.computershare.com/Inv...NZ&lang=en

  4. #4
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    Quote Originally Posted by kiora View Post
    Each batch order sale will entail a transaction fee of $15 plus $0.12 per share* sold. Each market order sale will entail a transaction fee of $25 plus $0.12 per share* sold. Fees are deducted from the proceeds derived from the sale.
    https://www-au.computershare.com/Inv...?cc=NZ&lang=en
    Wow that is usury, especially if you have shares that are valued at the lower end. So you sell say 10,000 PEB shares at 20 cents. Order value is $2,000. Fee's are $25 plus $1,200 or a total of $1,225. Seems rather bizarre and ludicrous.

    Crazy or have I read your post incorrectly?

  5. #5
    Member Yossarian's Avatar
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    Thanks for the replies. Yep I agree that pricing seems way off, unless you are selling Mainfreight shares or something...

  6. #6
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    Quote Originally Posted by Yossarian View Post
    Hi all
    I was looking for recommendations.
    My situation is that I have recently inherited a portfolio of NZ and AU holdings, both shares and bonds, in the order of $670k. I would like to sell these holdings in the near future.
    What is the most cost effective way of doing this? I have had a couple of quotes from full service brokers which are both 1% commission. Is there a way of disposing of these shares for less commission? I don't really want to pay $6700 for what seems a fairly simple job.
    I'm aware there are online brokers who offer much lower commissions however that may be complicated by two facts (1) the shares are still held in the name of the estate, rather than my name directly (can an estate open an online account?) and (2) I live in the UK. So I'm not sure if I'd be eligible for an online account.
    Any advice appreciated. I guess I can just ask for a better rate from the full service broker - does anyone know if they are prepared to negotiate?
    Many thanks
    Y
    Are the share & bond certificates held in 'street form' ? In this day of age no one ever holds shares or bonds physically as it's slow and a great hassle to remit to the broker when the decision to sell is made. Furthermore holding them in street form is a bit like holding physical gold in that you need to go to an exchange or broker to sell. Did a brokerage account original exist for which the certificates were physically issued? If so, during the estate probate process, you should of had access to the brokerage account and thus can remit the certificates back to the broker; for which the broker can change the names and thus ownership of the shares and bonds. This is an important process in disbursing the assets in the estate. Anotherwords, presenting certificates in someone else's name to a broker by opening up a new account requires a lot of proof (done again, through the estate probate process). Doing so after the estate has dissolved is an illegal act.

    For the hassles, it would seem paying the 1% is a small price to pay for the complication. Personally I would never hold assets under 1 name and practice the JWROS (joint tenancy).

  7. #7
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    I think you will find ( I did ) if you have shares that are in Australia that you will have to get probate over them via a lawyer ... ( cost 1000/1600 ish )
    A broker should be negotiable for a one off trade or liquidation of a portfolio . If you don't have any luck PM me I will put you in contact with one that would help

    Cheers

    S/L

  8. #8
    Member Yossarian's Avatar
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    Many thanks for the replies. One broker has offered an effective rate just under 0.5% so we'll go with that I think.
    No physical share certificates as far as I am aware, these holdings were mostly bought in the last 5 years or so.
    Re probate in Australia, I was originally advised we would need that however it seems that we may now get away without it. Not sure why to be honest!

  9. #9
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    Quote Originally Posted by Yossarian View Post
    Many thanks for the replies. One broker has offered an effective rate just under 0.5% so we'll go with that I think.
    No physical share certificates as far as I am aware, these holdings were mostly bought in the last 5 years or so.
    Re probate in Australia, I was originally advised we would need that however it seems that we may now get away without it. Not sure why to be honest!
    Out of interest, which broker?

  10. #10
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    Brokers are often quite negotiable for larger $ holdings, One just has to ask them whats the best deal you can give me?

  11. #11
    Member Yossarian's Avatar
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    Craigs.
    Cheers Joshua, that was what I did.

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