sharetrader
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  1. #16
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    Nov 2018
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    Quote Originally Posted by Snoopy View Post
    Because the shareholders are the owners, and the owners might want a choice as to which bank they want their dividend cheque deposited into.



    You can certainly do the above in New Zealand. However AFAIK all brokers will charge you an ongoing portfolio management fee to do it, albeit at a reduced rate to what they would charge if they were actually doing the managing.

    SNOOPY
    No one in this day of age holds shares in 'street form'. They're held by some broker and therefore, it seems sensible the place of holding also manages the disbursements (incoming our outgoing). What other logic is there, other than to want it cleared in a different bank account? Since 'direct credit' is the preferred way of transferring $ in NZ, perhaps the shareholder should go back and change the way dividends are sent out ; and have it deposited in a different bank. I mean how difficult can this be to arrange?

    For NZ brokers, their free structure is the key reason why I refuse to have any such account in NZ (and i'm speaking from a Jack Bogle point of view in terms of long term growth from compound returns) . Can you blame me coming from a N. American model where commission trades are going to zero and no annual account fees?

    Any person asking a NZ broker to manage their account is simply a fool.. they might as well hand them out free $ for sub par performance (for which the brokers are only selling to clients "THE CHANCE" that they would perform better than the market index).

  2. #17
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    Join Date
    Jun 2004
    Location
    , , New Zealand.
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    6,453

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    Quote Originally Posted by SBQ View Post
    No one in this day of age holds shares in 'street form'. They're held by some broker and therefore, it seems sensible the place of holding also manages the disbursements (incoming our outgoing).
    I don't know what you mean by 'street form'. All the correspondence on my shares come to my 'street address'. My NZ broker holds my CSN number and my FIN (password) number. So I can trade my shares just by ringing them without quoting my FIN number each time. Because my broker has my codes they can electronically check my share balances too. But I am in no way tied to my particular broker.

    I can go to another broker down the road and set up the same arrangement. Brokers do not 'hold the shares' in NZ, unless I ask for their managed portfolio service.

    By contrast the USA based shares I hold are on the books of Computershare USA, who are technically a share register, not a broker. Yet unlike in NZ, it seems I can sell my shares via Computershare USA without the need to go through 'a broker'. Yet Computershare USA will charge me a fee to do this. So I guess Computershare USA is a broker ???!??? I have never sold any of my USA based shares. So not sure in practice how this would work. I think I just have to fill in a paper request on a form printed by Computershare USA and send it off!

    Quote Originally Posted by SBQ View Post
    What other logic is there, other than to want it cleared in a different bank account? Since 'direct credit' is the preferred way of transferring $ in NZ, perhaps the shareholder should go back and change the way dividends are sent out ; and have it deposited in a different bank. I mean how difficult can this be to arrange?
    I suppose you could change the bank account you wanted to pay your dividend payment to electronically. But in my case I didn't want the change to be permanent. Sometimes I would put my dividend cheque straight into my Visa account for example. But if I didn't want to do that I would put it into another bank account. Having a cheque means you can be flexible with your payments without having to change your regular payment details each time.

    SNOOPY
    Last edited by Snoopy; Today at 07:36 AM.
    To be free or not to be free. That is the cash-flow question....

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