ANZ.NZX - Anyone holding?

[dabsman]

Just talk with your friendly broker. Last time I moved some NZX shares to the ASX it meant to fill out some forms (which the broker will provide) and it did take a handful of days, but it didn't cost money.

Will call tomorrow - thank you

[peat]

Is there any easy way to move my ANZ holdings from NZX to ASX? Would rather not have to pay fees both ways if I can. Reason is I want them to sit with all the other ASX shares - and more liquidity too if I ever need to sell

I'd suggest dealing with the registry directly.

[dabsman]

I'd suggest dealing with the registry directly.

Gold star for you Peat - ASB told me to contact the registry directly and they will "shunt" the shares...

Anyone see any reason not to do this?

[percy]

Check to see whether the dividends are imputated in NZ.
If you are a NZ resident, Australian franking credits are of no use to you.

[Joshuatree]

If you are with Craigs they will shunt(shift) them ,no charge.

[lissica]

Check to see whether the dividends are imputated in NZ.
If you are a NZ resident, Australian franking credits are of no use to you.

We've held them on both NZX and ASX.

ASX holdings also have NZ imputation credits available on the dividend statement.

[Snoopy]

Check to see whether the dividends are imputated in NZ.

ANZ dividends are partially imputed for NZ Shareholders.

If you are a NZ resident, Australian franking credits are of no use to you.

Correct. But it makes no difference as an NZ shareholder if you hold ANZ shares on the NZX or ASX. You still get to claim the NZ imputation credits and you can't use the Aussie franking credits no matter what market you choose to hold your ANZ shares on.

Also just because you hold ANZ shares on the NZX do not assume that the advice ANZ give you about what to do with your shares is NZX friendly. To get around the Australian capital gains tax, some Australian companies offer so called tax effective buybacks which are a disaster for NZ based shareholders. Not only are NZ shareholders not eligible for the attached Australian franking credits. The shares bought back are classed as a dividend for NZ purposes which means that any capital returns using this method end up being fully taxable in NZ shareholders hands. But Australian companies have no obligation to point this out to NZ shareholders and generally they don't.

SNOOPY

[dabsman]

OK so from all these comments I take the following: Makes no difference except ASX has more liquidity for these stocks?

[macduffy]

OK so from all these comments I take the following: Makes no difference except ASX has more liquidity for these stocks?

Yes, I'd agree with that. A possible further advantage would be the ready availability, if needed, of AUD funds should one decide to sell. If NZD settlement is preferred NZ brokers are more than happy to make the sale on the ASX and pay up in NZD.

[Snoopy]

UDC and ANZ New Zealand have the same balance date. So it is legitimate to work out the distribution of loans on their respective books using 30th September end of year data. First I need to:

1/ Slightly rearrange the ANZ (NZ) categories (ANZ September 30th 2016 Bank Disclosure Statement, p29) so that they correspond to those listed in the UDC FY2016 Financial Statements. THEN
2/ I need to subtract the UDC equivalent figures (page 17, UDC FY2016 Financial Statements) to get the underlying ANZ bank figure.

(Note: Receivables for UDC in industry groups are listed after provisions for credit impairment are taken into account. OTOH, receivables for ANZ.NZ industry groups are listed before allowances for credit impairment are taken into account. This means the UDC figures are lower than they would be on a 'like for like' comparative figure basis. However the error is only 1.1% overall, not enough to undo the validity of this exercise in my judgment)

The results are below:

	All ANZ.NZ		UDC		Underlying ANZ.NZ
Agriculture forestry, fishing and mining:	$21,420m	(11.8%)	$506m	(19.0%)	$20,914m	(11.4%)
Business and property services:	$14,275m	(7.7%)	$133m	(5.0%)	$14,142m	(7.7%)
Construction:	$2,367m	(1.3%)	$356m	(13.4%)	$1,136m	(1.1%)
Entertainment, leisure and tourism:	$1,744m	(0.9%)	$8m	(0.3%)	$1,736m	(0.9%)
Finance and insurance:	$31,956m	(17.2%)	$89m	(3.3%)	$31,867m	(17.4%)
Government and local authority:	$12,373m	(6.6%)	$0.5m	(0.0%)	$12,373m	(6.7%)
Manufacturing:	$5,651m	(3.0%)	$66m	(2.5%)	$5,585m	(3.0%)
Personal & Other lending:	$87,719m	(47.1%)	$694m	(26.1%)	$87,025m	(47.4%)
Retail and Wholesale:	$6,177m	(3.3%)	$343m	(12.9%)	$5,834m	(3.2%)
Transport and storage:	$2,584m	(1.4%)	$460m	(17.3%)	$3,124m	(1.2%)
Total:	$186,266m	(100%)	$2,655m	(100%)	$183,611m	(100%)

The following inter-year table shows how UDC is funded by its 100% owner ANZ

	FY2014	FY2015	FY2016
UDC Shareholder Capital	$341.412m	$365.462m	$423.247m
ANZ Committed Credit Facility	$280.000m	$395.000m	$595.000m
Debenture Investments From Public	$1,569.247m	$1,736.026m	$1,591.711m

Time for my annual 'disentanglement' of ANZ.NZ from its UDC subsidiary. The information I need about the ANZ bank in New Zealand can be found here:

https://www.anz.co.nz/about-us/media...r-information/

UDC and ANZ New Zealand have the same balance date. So it is legitimate to work out the distribution of loans on their respective books using 30th September end of year data. First I need to:

1/ Slightly rearrange the ANZ (NZ) categories (ANZ September 30th 2017 Bank Disclosure Statement, p30) so that they link up to those listed in the UDC FY2017 Financial Statements. THEN
2/ I need to subtract the UDC equivalent figures (page 18, UDC FY2017 Financial Statements) to get the underlying ANZ bank figure.

(Note: Receivables for UDC in industry groups are listed after provisions for credit impairment are taken into account. OTOH, receivables for ANZ.NZ industry groups are listed before allowances for credit impairment are taken into account. This means the UDC figures are lower than they would be on a 'like for like' comparative figure basis. However the error is only 1.0% overall, not enough to undo the validity of this exercise in my judgement)

The results are below:

	All ANZ.NZ	=	UDC	+	Underlying ANZ.NZ
Agriculture forestry, fishing and mining:	$20,727m	(11.6%)	$563m	(18.9%)	$20,164m	(11.4%)
Business and property services:	$34,614m	(19.3%)	$171m	(5.8%)	$34,443m	(19.6%)
Construction:	$2,772m	(1.6%)	$409m	(13.8%)	$2,363m	(1.3%)
Electricity Gas Water & Waste:	$3,581m	(2.0%)	$12m	(0.3%)	$3,569m	(2,0%)
Finance and insurance:	$20,834m	(11.6%)	$70m	(3.3%)	$20,764m	(11.8%)
Government and local authority:	$11,201m	(6.3%)	$0.6m	(0.4%)	$11,200m	(6.4%)
Manufacturing:	$4,696m	(2.6%)	$59m	(2.0%)	$4,637m	(2,6%)
Personal & Other lending:	$71,031m	(39.7%)	$858m	(28.8%)	$70,173m	(39.8%)
Retail and Wholesale:	$7,260m	(4.1%)	$390m	(13.1%)	$6,870m	(3.9%)
Transport and storage:	$2,403m	(1.3%)	$443m	(14.9%)	$1,960m	(1.1%)
Total:	$179,119m	(100%)	$2,975m	(100%)	$176,144m	(100%)

As was the case last year, notwithstanding the shuffling of disclosure with the reclassification of the ANZ.NZ loan categories, the loan allocation of ANZ.NZ with UDC removed, is little different the loan allocation of the whole of ANZ.NZ. This is no surprise. The whole of the UDC loan book is only 1.6% of the ANZ.NZ loan book. And ANZ.NZ itself (which you cannot invest in directly) is only a fraction of the whole ANZ operation which is the ANZ vehicle listed on the NZX. However, the converse is not true.

UDC is very different from ANZ.NZ. In percentage terms:

1/ the Agricultural exposure of UDC is double,
2/ 'Construction' and 'Transport and Storage' exposure are up by nearly a factor of 10, AND
3/ 'Retail and Wholesale' exposure are higher by a factor of 4.

The volatility of these 'industry groupings' is testament to UDC being a much greater investment risk than any investment in ANZ itself.

The following inter-year table shows how UDC is funded by its 100% owner ANZ

UDC: Backing For Loans	FY2014	FY2015	FY2016	FY2017
UDC Shareholder Capital	$341.412m (15.6%)	$365.462m (14.6%)	$423.247m (16.2%)	$485.645m (16.7%)
ANZ Committed Credit Facility (Note 8)	$280.000m (12.8%)	$395.000m (15.8%)	$595.000m (22.8%)	$1,385,027m (47.6%)
Debenture Investments From Public (Note 8)	$1,569.247m (71.6%)	$1,736.026m (69.5%)	$1,591.711m (61.0%)	$1,039.133m (35,7%)

There is a very significant change happening with the role of debenture holders in funding UDC much reduced as the ANZ parent seemingly looks to take over that role. Debenture holders no longer have any guarantee that their debentures will not be repaid early - a big negative for some debenture investors.

SNOOPY