Bonus/consolidation question

[justakiwi]

Can someone please explain what this is/means? In relation to my USF holding. Screenshot from automated transaction in Sharesight.

USF.jpg

[Onion]

I don't know - but I've got a similar pair of transactions in Sharesight

[Onion]

May be relate to this announcement:

https://www.nzx.com/announcements/383331

[JayRiggs]

Here is some information about taxable bonus issues and unit cancellations from Smartshares FAQ:
https://smartshares.linkinvestorserv....nz/forms/FAQS

Specifically for your USF holdings:
https://www.nzx.com/announcements/383331

[JayRiggs]

From Smartshares FAQ:

Why are taxable bonus issues necessary?

Each Fund of the Scheme is a listed portfolio investment entity that pays tax at the corporate tax rate of 28%. When a Fund pays tax it generates imputation credits. These credits can be attached to ordinary distributions paid by the Fund and may also be attached to taxable bonus issues.

Due to the way New Zealand’s income tax legislation operates, a Fund may generate more imputation credits than can be attached to the ordinary distributions paid by that Fund to unitholders. Therefore, to ensure investors benefit from the full amount of imputation credits available, the Manager has determined that those excess credits should be distributed periodically by the relevant Funds via taxable bonus issues.

For more information on how the Funds are taxed, see the ‘Other Material Information’ document on the offer register at disclose-register.companiesoffice.govt.nz

[justakiwi]

So basically they issue bonus shares then cancel them? But why is the consolidation figure higher than the bonus figure? Why are the figures not the same?

[Onion]

There is also a dividend ex 29/11. Another part of the puzzle?

[iceman]

So basically they issue bonus shares then cancel them? But why is the consolidation figure higher than the bonus figure? Why are the figures not the same?

It is a 4.0 : 3.0 consolidation

[iceman]

There is also a dividend ex 29/11. Another part of the puzzle?

That is just a normal dividend payable on 20 December.

The already completed transactions are bonus issues (to use up imputation credits I think) followed by a 4 for 3 consolidation. All very confusing !!

[justakiwi]

I don't understand. So I am losing ​one share?

It is a 4.0 : 3.0 consolidation