Question 1: Are the profit reserves that most LIC’s (listed investment companies) report included in their calculation of NTA (net tangible asset) value?
Answer: Yes. You will find that most LICs have two reserves – profits and losses. While they offset each other, under accounting “conventions”, they can pay dividends out of the profits reserve. Many LICs book profits one month into the profits reserve, and losses the next month into the losses reserve.
Question 2: I purchase and sell stocks with Nabtrade and since retirement find that there appears to be a price difference between the ASX site and the Nabtrade site when I switch from one to the other site quickly. Has anyone else seen this when purchasing and selling stocks?
Answer: Nabtrade and most of the other broker websites display live prices.
The ASX’s website [1] disseminates prices on a twenty-minute delay basis. That’s because the ASX charges Nabtrade and other brokers (CommSec etc.) a royalty fee to broadcast live prices.
Question 3: In relation to the ANZ entitlement offer, if I wanted to sell my entitlements on the ASX, will I simply get my entitlement number multiplied by the difference between the current share price and $18.90? If so how does this get treated from a tax angle?
Answer: If you sell your ANZ entitlements on the ASX, you will get whatever the traded price is for ANZR. The ANZR price will essentially be the difference between the current price for ANZ shares, and the $18.90 price for the new shares. For example, if ANZ is trading at $22.75, the ANZR price will be around $3.85.
In regard to the tax treatment, you should confirm with your accountant but the usual treatment is that the ANZR proceeds received will be treated as a capital gain. See here [2] and associated tax ruling.
Question 4: Do you think Mineral Resources (MIN) will pay a final dividend in September 2022?
Answer: The market does, with a current consensus dividend of 117c per share. The range is from a low of 80c through to a high of 146.5c per share. We will find out on 29 August.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.