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Chapter 1: What is a share registry and why is it important for investors?
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Please remember that all of the information in this podcast episode is limited to general information only. That means the information is not specific to you, your needs, goals or objectives. So you should seek the advice of a licensed and trusted financial professional before acting on the information.
And before you acquire or apply for a financial product, please read the PDS or product disclosure statement, which should be available on the issuer's website. Lastly, please keep in mind that past performance is not indicative of future performance. Kate Campbell, question for you.
Do you, when you drink water, do you reuse the pump water bottle, the Mount Franklin or whatever it is that you're drinking out of?
Yeah, I've been reusing this one for months and I've been told it's not good to reuse plastic bottles because you start to digest the bottle, but I'm still going with it.
Yeah. I've heard something similar. If you use the bottle too much, it can actually release something. I don't know. Maybe one of our listeners can write in and tell us what actually happens if you continue to use one of those disposable water bottles for too long.
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Chapter 2: What paperwork do you receive after buying shares or ETFs?
Yeah.
I bought a nice aluminum one to help save the environment, you know, but it keeps going smelly.
Oh, geez.
so you just need to clean it or you just need to drink it to the bottom i soaked it in bicarbon it only lasts for like two weeks before i have to clean it again and i'm too lazy
Come on, save the environment. All right, speaking of environment, we're gonna try and eliminate some of that paperwork that people get from their investing. So whether you're investing in ETFs, managed funds, or you're in shares, or who knows what you're investing in. Chances are, there's gonna be some paperwork that comes with it. Chances are, you're gonna underestimate how much there is.
So we're gonna try and help you save the environment and save some headaches along the way. And this episode is all about share registry. So we're going to try and keep it nice and tight, really concise podcast episode on what a share registry is. What are the different things that go into a share registry? Why do you need one? What do you do with it?
If you want to do DRPs, we're going to share our screen, show you what they look like when you actually go into one. And basically just all of the admin stuff, which we kind of just let go until now on the podcast series. Yeah. So Kate, tell me, what is a share registry?
Okay, so when a company lists on the Australian Stock Exchange, there's a lot of administration when you have thousands, if not millions of shareholders. Let's think of like a huge company like BHP or Telstra. across their whole investor base, they've got millions of people investing in that company.
And that involves a lot of work keeping people's details up to date, paying them dividends, contacting them about annual meetings, if there's an issue to vote on. And so the company wants to focus on what it does best mining or providing you with some standard of internet. And so they sort of outsource a lot of this administration when it comes to their shareholders to a share registry.
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Chapter 3: How do share registries like Computershare, Link, and Boardroom operate?
Yeah. Okay. So it's all kind of like admin stuff. So if I have a broker, why do I need the share registry? Like if I've got ComSec or SelfWealth, Stake, why do I need the share registry?
Yeah. So when you're paid a dividend, when a company has an annual general meeting, it's not ComSec or Perla or Self Wealth's problem to deal with that. It's actually the company and they use the share registry to help with that. So when you're receiving a dividend, you're receiving it from the company that uses the share registry to sort of administer that process.
Okay.
Yeah, so I had a question the other day and someone was like, well, why can't I just use one share registry? Why can't I have all my shares in ETFs in one registry? And do I actually need to use the registry? And I mean, you can kind of survive without... setting up your share registry account.
But as you go on through your investing journey, you start to realize that maybe you're missing things or your tax file number hasn't been provided. And suddenly you're getting a statement saying $3 of tax has been held. And so, The company itself actually chooses the share registry, so you don't get to go, hey, I'm going to have all of my shares and ETFs in computer share.
So Owen's going to, I think, screen share shortly, but the company will actually decide, hey, we're going to use computer share as our share registry. And so you'll be able to find these details.
through a statement so when you first buy a company or an etf you'll probably receive a letter in the mail saying welcome brand new etf shareholder and please set up your share registry account on computer share or link market services and you'll have a ability to register now I think it's come a long way in the last few years.
It used to be quite complicated, but so putting things like your holder identification number. So if you have an account with ComSec or Perla, you're going to receive a holder identification number. And that's the number that all of your ETFs and shares you purchased through that broker are held under and your postcode. So that's another thing you have to keep your address details up to date.
And then you could also put in the, um, BHP or A200 or whatever you own and go through the process of setting up your account.
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Chapter 4: Why do companies use share registries instead of managing shareholders directly?
So if you're with ComSec or whatever, but it also should be recorded with the share registry because sometimes it doesn't pass across. So you need to be really careful. You want to have it definitely with the share registry and definitely with the broker. Just one of the things that you'll know, if you go into, if you buy a share, you'll get a statement in the mail.
Now that statement will either have an X on the statement, so have a big X and then a number, that would mean that your shares are held on HIN, holder identification number. Keep that number a secret.
Don't go and give that out because as you can see on the screen in front of us here, if you give that out, someone else might be able to get into your shareholding if they know your postcode and all that sort of stuff. The other thing is it may have an I. So you may have, instead of an X, you have an I, one, two, three, four, five, six, seven, eight, nine, 10, whatever the number is.
And that would be a shareholder reference number. So that's when it's issue is sponsored. So it's slightly different. And so you need those numbers to get in here. As you can see on my screen, for those of you who are watching, for those of you who aren't, I'm just on the individual,
option so like this is to register to create an account on computer share we can do the same here on linked market services so we would you know share login one thing i had to do for my father and all the other days he had shares that were under the company that he works for is actually on the stock exchange and he got options which turned into shares and he wanted to know how he could sell them he would log in here on linked market services um and then from there he would be actually able to sell the shares um
just because it's like a single parcel, or he could manage his shares from there. So if you are in a business like that, you can actually find out who the share registry is and use the information that you get emailed or sent from your HR team or wherever it comes and pop it in. So here we go. We've got
on the link screen we've got a chance to log in as a single holding so if you only have one holding for example if you have like a beta shares etf i believe beta shares i'm just going to jump onto yeah beta shares users link market services i think vanguard might use computer share you can find out all that stuff by going to the asx website so asxa200sx.com.au
And that's a really important starting point because if you're trying to, if you're on the wrong share registry for the ETF or share that you have, it won't come up. And so, yes, type in, go to the ASX website, type in the company code. And then if you keep scrolling down to the about section,
And so you've got a whole share registry section and it will say you can probably just do control F to search for share registry on the ASX website. And then it will come up with link market services, computer share boardroom, or if it's a smaller company listed, it could be registry direct or atomic. There's a few other smaller players as well.
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Chapter 5: What information do you need to set up your share registry account?
The ASX website is usually the easiest place to find which share registry. Otherwise, it might be in the letter you get in the mail, the annual report in the investor center.
Definitely in the annual report. Yeah, definitely in the annual report. Yeah, on the company's website. Some companies and ETFs, if you go to their website, basically all they have is just say, go to the share registry or go to the ASX for announcements. They really keep it kind of simple. Here we go with Boardroom as well. You can log in if you're an investor.
You can log in here, you can register and you can log in as an employee. So Kate, what are the types of things that you would want to go online and do with a share registry? Like what are some of the common examples of things or actions that you'd want to complete?
The first one, and this is the most important, is to make sure your tax file number is recorded via the share registry as well. And this will, if you have multiple ETFs and shares, you may have to have an account with ComputerShare and Link Market Services and Boardroom.
So keep those logins safe and then actually go and put your tax file number down and make sure there's a certain section where you can see your holdings and you can make sure that your tax file number is recorded against every account. or they'll say something like quoted, your TFN is being quoted against every single ETF or share.
And that means that if they pay a dividend or a distribution to you, they won't have to withhold tax, which you then have to remember to include if you do your tax return, which just adds a bit of administration to things. So you'd rather just get your full dividend or distribution upfront and not have any tax withheld.
So we've got tax with Howard, make sure you have that TFN handy. You want to make sure that the address that you have in your brokerage account is up to date and it matches all forms of your ID, just in case there are some sort of like things you need to change the share registry.
If you have to call them or your broker will want to know that you have proof of identity and that the, the address is the correct address. And that's obviously important too, when you set up your brokerage account, because you don't want all of your statements going to someone that has your holder identification number on it. Yeah. It's,
It's super important to have the address correct, especially if you ever want to transfer holdings. It's really important that the entity matches the next entity. So like if you have your address slightly incorrect, it is a bit of a hassle to update it.
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Chapter 6: How can you update your personal details with a share registry?
Imagine if you have a shareholding and the company's doing a capital raising. You can receive all that documentation online. If you've got an AGM, you can vote on things. You can just do it online. You don't have to post back some old school form. Do you even own a printer these days, Kate? Do you have one at home?
I do. It stopped working the other day and I don't have any ink, but I do need it for study sometimes. But yeah, that's really important. And you'll find that under communication preferences. And so you'll be able to choose what information you get via email or via posts.
And I mean, I'd really encourage you to put most of it via email and even have it automatically funneling to a particular folder in your inbox. Because if you do have a number of holdings, you do get
a lot of it could be annoying communication um and yeah and the other thing that's really important is updating your bank account details because if you are paid a dividend or a distribution you want to tell them where to actually send that money you don't want it sent to a bank account that you closed a year ago because it's they might send you an email or a notification that they weren't able to pay your distribution but after a while they send it to the
to the government to hold on to. And you have to go through the find my lost funds and it's just a whole process. So make sure you're actually getting the money by the simple thing of keeping your bank account details up to date through the registry.
Yep. And the same thing applies for dividend reinvestment plans. I think if you're in computer share, you'd go to your profile, click on DIPs or dividend reinvestment plans. And not every company offers a DIP, but sometimes there are benefits, which we've talked about in the past, you know, for some licks, there are particular tax benefits.
And also for some ETFs and even some shares, there may be other benefits. Like with some shares, I know that you can sometimes, for example, get a 5% discount on the price. So they say, instead of sending you the cash as a dividend, we would like to keep the cash and we'll give you a discount and issue you some new shares. And that can be a benefit to you if you're a long-term holder.
You still need to record it on your tax return, of course, which we've talked about in the past. But it's a benefit for being a long-term investor just to select that dividend reinvestment plan. And I think this is something that we often talk about in the showcase.
A lot of people miss that sooner or later, you may actually want to go to an AGM or you may want to vote on something that's important like ESG or strategy or something or directors.
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Chapter 7: What are dividend reinvestment plans and how do they work?
having your info up to date in advance is super helpful for that so um that's great and most of the voting issues you can actually do directly through the share registry now they've kind of got you can like click i agree or i disagree or whatever the the issue is and you can do it through the registry which makes it easier and you can find all your statements for tax time so they usually email these out as well but
When your accountant says, hey, look, I need all these statements on the various distributions you've had or the sales you've made, you can download them all in one spot from the registry as well.
Yep, so we've got, just in summary, we've got your ability to vote. You need to find, we'll start at the top. You need to find which share registry you have. That can be ascertained or discovered via the ASX website or by just going to the company's investor page.
You can use the share registry to update things like your tax information, your dividend information, receiving documents via email or in the portal rather than from,
um you know australia post um you can yeah as i said manage dividends change your bank details change your address details but it's important that what you have in your share registry matches your broker and you may need id you will need your tax file number and you will need either a holder identification number or a shareholder reference number.
So those two things, the shareholder reference number or the holder identification number will come on your welcome letter from your share that you've bought shares in or from your ETF provider or managed fund provider. They typically take a few days to arrive. So just be aware that if you buy shares today, you might not receive that letter for a little while and that's okay.
And that's basically share registries. Is there anything else?
No, I think that the main thing is just make sure that as soon as you start buying shares or ETFs, you set up your account, you keep those details safe, you make sure maybe every half year you go and update that.
um if you're buying things more regularly than that then i'd recommend sort of updating more regularly because your tfn might be missed or you might miss a dividend but um if you're if you're just buying a couple of etfs and you're a long-term investor it's probably something you can check in with once a year once you've got it all set up and you know what you're doing and it it doesn't get too much more complicated like once you've explored and you know where all the different sections are um
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Chapter 8: How can you manage communication preferences with your share registry?
Change your communication preferences to email because it's just too much paperwork and you don't need most of it via paper.
Love it. Great advice, Kate. As always, thanks for joining me on the show. Thanks, Owen.
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