Hi Chris
Usually the cash residual is carried forward and is included in the
calculation of your DRP (dividend reinvestment plan) shares in the next
dividend.
The balance is tallied at the individual SRN level within each company
by the share registry. You should see this on your dividend statements
for each SRN, which should show you the balance brought forward from the
last dividend, and the remaining balance carried forward after your
shares are purchased. (See attached Wesfarmers advice for an example).
I am not an accountant, but in GnuCash I lump all such balances into a
single "clearing account" called Assets:DRP Cash Carried Forward"
because (at least with my portfolio) it is never a material amount.
To extend the topic, the share registries have a process to consolidate
or merge your multiple SRNs in a company into a single holding if you
wish to reduce your administrative burden:-
https://boardroomlimited.com.au/corp/assets/pdf/investor-forms/share-registry/Consolidation%20of%20Holdings.pdf
https://www-au.computershare.com/Investor/Content/ab9d6057-5a56-4e7e-a32b-02716d5268a7
https://www.linkmarketservices.com.au/corporate/forms/holding-management/Link_ASN001_Interactive.pdf
Furthermore, if you trade with a broker, you can request that the SRN
holdings be converted onto your CHESS HIN (holder identification
number). Most of the online brokers offer this via self-service,
provided the registration details (name & address) match up. For example:-
https://www.nabtrade.com.au/investor/support/faqs/getting-started/transfer-issuer-sponsored-shares
Hope this helps.
Regards
Geoff
=====
On 27/07/2021 6:28 pm, Chris Good wrote:
Hi,
I apologize in advance for this non GnuCash question but I searched the
internet and could not find an answer
and I don't think I could get an answer I would trust from the Australian
share registries help lines.
I wonder if any Australian investors can help me with this.
If you reinvest your dividends and have multiple share holdings in a
particular company under different
SRN's (Security Ref Nos), is the cash residual (difference between total
dividend amount and the value of the
shares added because of the dividend reinvestment) held by SRN
(Investor/Company/SRN) or just a total per
investor (Investor/Company)?
For those non Australians, who may be wondering, this cash residual occurs
because, in my experience,
all Australian companies dividend reinvestment plans only reinvest a whole
no of shares.
(Although there has been 1 company that actually rounds up the no of shares
issued, so actually gives you more
shares than the dividend total - a real pain to account for).
I'd like to know because I've recently had to start dealing with multiple
SRN's per company and I have another
System I wrote (MS Access if anyone Aussie is interested - pls email me
direct) which I need to modify to handle
the multiple SRN's per company.
I suppose different share registries could do different things, so I'm
really mostly interested in what
ComputerShare & Link do.
Regards,
Chris Good
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