Automated Corporate Actions

Corporate actions are typically automated in your portfolio by Sharesight. This includes dividend payments, name changes, listings, code changes, splits, consolidations and more.

Important note! Every so often highly complicated corporate actions do not get automated. The reason for this is that there is the need for you to make an important and personal financial decision. An example of such a corporate action is the issue of renounceable rights. Sharesight cannot know whether you wish to take up your rights or if you would like to sell them.

Sharesight is a software service and we do not human verify our data to keep the pricing of our plans affordable. It is important to check your portfolio for new corporate actions on a regular basis. We help speed up the process by notifying you via a Sharesight portfolio email and showing you a notification in the corporate event section once you’ve logged into your account.

Types of corporate actions

Consolidations

– We automatically handle consolidations for all supported markets.

Share Splits

– We automatically handle share splits for all supported markets.

Entitlement offer (Renounceable Rights)

– We do not handle entitlement offer (renounceable or non-renounceable rights).

– Add the offer as a Buy trade.

Initial Public Offering (IPO)

– We do not handle IPO.

– Add the offer as a Buy trade.

Mergers

We do not handle merger. Merger comes in a combination of 3 scenarios:

1.You receive cash only

2.You receive shares only in new company

3.You receive both cash and shares in new company

You receive cash only

– Add a Return of capital trade or

– Add a Dividend trade

Note: Which to use depends on the situation. Return of capital reduce cost base (increase capital gain); Dividend if cash is recognised as income

You receive shares only in new company

– Use Merge this holding

You receive both cash and shares in new company

– Add a Return of capital trade or a Dividend trade

– Use Merge this holding

Special Dividend

– We automatically handle special dividend for all supported markets

Return of Capital

– We automatically handle return of capital for ASX & NZX markets

– We do not handle return of capital for non-ASX & NZX markets

– Add a Return of capital trade

Bonus

– We automatically handles bonus share for all supported markets

Name change

– We automatically handles name change for ASX & NZX markets

– We do not handles name change for non-ASX & NZX markets

– Use Merge this holding

Share Purchase Plan (SPP)

– We do not handle SPP

– Add it as a Buy trade

Demerger (Spin-off)

– We do not handle demerger. Demerger may or may not have cost-base allocation.

Cost-base allocation: Yes

– Add Adjust cost base trade in holding page

– Enter allocation ratio in demerger calculator

– Select Add a new holding

– Search & add holding as Opening balance trade

– Total cost base = Adjust cost base

Example: A spin-off B. Allocation ratio 70:30. For every dollar invested in A, 30 cents get allocated to B. $1,000 invested in A, adjust cost base will be -$300, opening balance cost base for B will be $300.

Cost-base allocation: No

– Search & add new holding as Opening balance trade – Total cost base = $0

Delisted

Below are some main reasons why company gets delisted:

1.Privatisation

2.Administration

3.Merger & acquisition

Privatisation

– We do not handle privatisation.

– Add a Sell trade. Price will be the offer price.

Administration

– We do not handle administration.

– Add a Sell trade at $0 price

Note: Shareholders generally do not get paid in this scenario. If you do, the sell trade value will be the amount you received.

Merger & acquisition

– We do not handle merger & acquisition. Please refer to the above Merger (Acquisition)

Share buyback (repurchase)

– We do not handle share buyback

– Add a Sell trade at the buyback price

Broker transfer

– We do not handle broker transfer. Depending on how you segregate your portfolios, you may or may not need to make changes

One broker per portfolio

– Add a Sell trade at average cost base per share

– Add an Opening balance trade on the new portfolio

– Total cost base = Sell value

Multiple brokers in a portfolio

– You don’t have to make any changes.

Warrant

– We do not handle warrant.

– Select Add a new holding

– Search warrant ticker code

– Add a Buy trade at $0 price

Note: Warrant are generally given for free. Hence $0 price

Stock options

– We do not handle stock options

– Select Add a new holding

– Search stock options ticker code

– Add a Buy trade at $0 price

Note: Stock options are generally given for free.

Stock options conversion to ordinary shares

– We do not handle options conversion. Conversion can be partial or full, with or without fees

Conversion fees or partial conversion: No

– Use Merge this holding

Conversion fees or partial conversion: Yes

– Add a Sell trade at average cost base per share

– Add an Opening balance trade on the ordinary share

– Add conversion fees to the brokerage or price field

Shares transfer

Shares get transferred for reasons such as:

– Gifting to another family member

– Selling shares to another person

– Transfer between different tax entity i.e personal name to joint name or company name

Does the share transfer trigger a CGT event?

CGT event: Yes

– Add a Sell trade at market value

– Go to the recipient’s portfolio

– Search the stock by ticker code

– Add an Opening balance

– Total cost base = Market value

CGT event: No

– Add a Sell trade at average cost base per share

– Go to the recipient’s portfolio

– Search the stock by ticker code

– Add an Opening balance

– Total cost base = Sell value

The guide above is a suggestion on how to handle the corporate action in Sharesight and is not finance or tax advice. We advise you to consult your financial advisor or accountant. We also encourage you to review the official Documents for full details*.

Last modified on May 2, 2024 UTC

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