ASB Securities
Sharetrading Services
Contents
01 Benefit
from dealing with one of New Zealand’s leading sharetrading and investment firms.
02 Assist
you to meet all your financial goals.
03 Select
a service to suit your individual needs.
• Online Sharetrading Service : Convenience, 24 hours a day, 7 days a week. We provide the tools, you make the decisions.
04 Select
• Telephone Trading Service : A simple telephone service for investors who don’t want advice and who prefer to trade over the phone.
05 Intermediaries
A range of sharetrading services for financial intermediaries.
06 Fixed Interest
A service to help you withall your fixed interest needs.
07 Margin Lending
Leverage your investment opportunities.
08 Easy
Seamless access to other ASB products.
10 Getting Started
Some helpful information to get started.
Backing
ASB Securities Limited (ASB Securities) is a wholly owned
subsidiary of ASB Bank Limited (ASB), whose ultimate shareholder
is Commonwealth Bank of Australia (CBA). CBA is listed on the
Australian Stock Exchange and is one of Australia’s largest companies
and financial service providers.
With this backing, you are dealing with one of New Zealand’s premier
financial institutions, recognised as a market leader in technology and
customer service.
ASB Securities is a NZX Firm, and as such is regulated by the New
Zealand Stock Exchange.
Growth
Since inception our business has grown in strength year on year with
new and exciting services continually being added to cater for a wide
range of investors.
We are a leader in the market, recognised for our products, services,
and customer service.
Value
Our commitment to service and technology ensures our investors
have market-leading support with their investments. We have
worked hard to demystify the financial markets and structure a
comprehensive range of services.
People
Benefit
from dealing with one of
New Zealand’s leading
sharetrading and
Assist
you to meet all your
financial goals.
At ASB Securities, we understand that not all investors are the same
and that there is a ‘world of investors’ and a ‘world of investments’.
What is right for one, is not necessarily right for another.
At ASB Securities, you choose the type of service and the products that best suit your
individual style and investment goals.
Online Share Trading
Convenience 24 hours a day, 7 days a week. We provide the tools, you make the decisions.
The Online Sharetrading Service is a cost effective, convenient way to access information and
trade on the New Zealand and Australian sharemarkets. Our online demonstration will guide
you step by step through the entire trading process.
Our website at asbsecurities.co.nz is available 24 hours a day, 7 days a week.
As a registered internet client you will have secure access to:
• New Zealand and Australian share markets.
• Immediate online and emailed confirmation of market transactions.
• Live share quotes and market depth during trading hours.
• Latest company announcements and information as released by the respective Exchanges.
• Ability to create your own watchlists and portfolios.
• Detailed research and charting on selected Australasian companies.
• ASB Cash Management and Foreign Currency Accounts (including Internet banking access
to your Cash Management Account).
• Account Summary showing available funds for investment.
• Access to a range of products and Initial Public Offerings (IPOs).
• Daily ‘Morning Brief’ – an easy to read email of the latest financial news delivered to your
desktop.
• Margin Lending (if applicable).
• Nominee Service.
• Fixed interest products.
• Friendly and efficient help with any queries you may have.
To find out more, call us on 0800 272 732 option 2 within New Zealand
or +64 9 448 8120 from overseas, Monday to Friday between 7.00am and 6.00pm
(New Zealand time).
Select
a service to suit
Telephone Trading Service
A simple telephone trading service for investors who don’t require advice and prefer to
trade over the phone.
With Telephone Trading you can trade on the New Zealand, Australian and other world
markets. You have the freedom to research companies in your own time and when ready,
simply call one of our Client Service Representatives, who can provide you with the latest
share quotes and market information.
As a client of our Telephone Trading Service you will also have access to:
• Prompt confirmation of market transactions.
• ASB Cash Management and Foreign Currency Accounts.
• A range of products and Initial Public Offerings (IPOs).
• Fixed interest products.
• Margin Lending (if applicable).
• Nominee Service.
• Friendly and efficient help with any queries you may have.
To find out more, call us on 0800 272 732 option 2 within New Zealand
or +64 9 448 8120 from overseas, Monday to Friday between 7.00am and 6.00pm
(New Zealand time).
Select
a service to suit
your individual needs.
Access to New Zealand and overseas markets,
fixed interest products, managed funds,
new share issues and a wide range of
ASB Securities offers tailored sharetrading services to investment managers, financial
planners and advisors as well as other financial intermediaries.
Services include:
• Quality local and global research, including a comprehensive UK-listed Investment
Trust Service.
• Access to the ASB Securities website with real-time NZX and ASX share price
information.
• ASB Cash Management and Foreign Currency Accounts.
• Summary reports on Australasian companies.
• Margin Lending and fixed interest products.
• ASB economic reports and summaries.
• Priority (where available) to Initial Public Offerings (IPOs).
To find out more, call us on 0800 272 489 within New Zealand or
+64 9 448 8123 from overseas, Monday to Friday between
8.00am and 6.00pm (New Zealand time).
Intermediaries
ASB Securities is not just about investing in shares. Many investors have a need for
the certainty of regular income that fixed interest products can provide. Fixed interest
investments also diversify your portfolio and help you manage investment risk.
Regardless of which ASB Securities services you are using, our Fixed Interest Specialists
can advise on the purchase and sale of a range of investments including Government and
Corporate Bonds, Capital Notes, Debentures, Term Investments and Deposits.
They can also give you access to new fixed interest issues and Initial Public Offerings (IPOs).
From time to time, they may be able to offer you special investment rates and terms for a
number of products.
To find out more, call us on 0800 272 732 option 4 within New Zealand or +64 9 448 8123
from overseas, Monday to Friday between 7.00am and 6.00pm (New Zealand time).
Fixed Interest
Margin Lending uses one of the oldest financial techniques to enhance your returns
– gearing. With gearing, you are borrowing money against your share portfolio to increase
your investment power.
Normally used by more experienced investors, Margin Lending is simply a line of credit
against your existing share portfolio. Starting with an original amount (either cash, shares
or bonds), you can borrow using our Margin Lending facility against selected New Zealand
and Australian companies to help build a much larger investment portfolio. It’s a flexible,
low cost way to unlock your potential investment power.
The Margin Lending facility works like a fluctuating overdraft on your Cash Management
Account – you receive a daily overdraft limit based on the value of your shares and bonds.
You can use Margin Lending to increase the flexibility and scope of your portfolio, open up
new opportunities and give you greater financial freedom.
Cash Management Account
Our Cash Management Account is a personal ASB account that allows you to trade with ASB
Securities in a flexible and convenient way, as well as providing the following benefits:
• Funds are held by ASB, in your name on an on call basis and interest is calculated daily
and paid monthly.
• Interest rates are tiered, so the more you have in your Cash Management Account, the
more interest you will earn.
• Proceeds from trades, and New Zealand company dividends, can be direct credited into
your account.
• When you buy shares, the funds can be automatically debited from your account.
• Your Cash Management Account, along with other accounts, can be viewed and accessed
online through ASB’s FastNet Classic Internet Banking.
• If you want to transfer funds, simply use ASB’s FastNet Classic, or phone us on 0800 272
732, option 2.
Cash Management Accounts are governed by ASB Terms & Conditions which can be provided
on request.
Foreign Currency Account
If you want to invest in markets outside New Zealand, ASB Securities can arrange for an ASB
Foreign Currency Account to be opened in any of the major international currencies.
These accounts are domiciled in New Zealand and share many features of a normal NZ$
deposit account, meaning your funds stay in the same currency of your choice and still earn
interest.
Foreign Currency Accounts are governed by ASB Treasury Terms & Conditions which can be
provided on request.
Easy
seamless access
Nominee service
The ASB Securities Nominee Service is designed to help clients manage their investment
portfolios. If you utilise this service, we will register all your investments into an individual
nominee account held on your behalf.
You will receive all dividends, all corporate actions and other selected information, but we will
do all the paperwork, including general portfolio administration and account reconciliations.
We will send you a quarterly statement of holdings, annual and bi-annual company reports (if
requested) and pay any dividends to your Cash Management or Foreign Currency Accounts.
All Margin Lending clients use the Nominee Service. A six monthly fee applies for using this
service.
Custody services
ASB Securities uses foreign custodians for all our clients’ off shore trading. Commonwealth
Securities (CommSec) is our custodian in Australia; please refer to page 11 for additional
information.
ASB Securities also offers trading on most foreign markets through Bank of New York and its
associated companies.
By holding your shares in ASB Securities’ foreign custody you are able to buy and sell shares
on foreign markets without delays and risks involved in sending certificates and transfers
off-shore. Financial settlement can simply be made from your Foreign Currency Account or
converted to your Cash Management Account. You will still
receive any dividends or corporate actions occurring over your holding and we will notify you
of these events.
To find out more, call us on 0800 272 732 within New Zealand
Registration
The first step is to register as a client. To enable us to provide you with efficient and friendly service, and comply with the necessary rules and regulations, all new clients need to fill out an application form containing our Client Service Agreement. Remember, registration is free and if you need any assistance in completing the forms, our friendly staff will be more than happy to help in any way they can.
If you are an existing client of ASB and use ASB FastNet Classic Internet banking, you can easily register online by signing in to FastNet Classic and selecting “Apply For” and “Sharetrading”. Online registration is for individual applications only. For all other account types, such as trust, joint or company accounts, a Client Service Agreement must be completed.
To obtain a Client Service Agreement, visit our website asbsecurities.co.nz, call us on 0800 272 732, option 2, email internetbroking@asb.co.nz or write to ASB Securities, PO Box 35, Shortland Street, Auckland 1140, Freepost 7028.
Registration guidelines and
conditions
The ASB Securities Client Service Agreement provides you with the Terms and Conditions with which your sharetrading and investment services will be undertaken by ASB Securities. It is important you read and
understand these Terms and Conditions. In addition for Online Clients, Internet Trading Terms and Conditions specific to this service can be found
at asbsecurities.co.nz.
Limit orders and market
orders
When giving an instruction to buy or sell shares, it is important to clearly indicate whether your order is a limit order or a market order and to understand the difference between the two. ‘Limit’ orders allow you to set a maximum purchase price for your buy orders and a minimum price for your sell orders. If the market does not reach your limit price, your order will not be executed.
When you place a ‘market’ order, you are instructing us to buy at the current sell price or to sell at the current buy price. This is not the same as buying at the lowest price of the day, something everyone wishes they could do. In most cases, market orders will be executed immediately and therefore can not be cancelled or amended after the order has been placed. All limit orders are valid for 20 business days if not cancelled, executed or amended earlier, or there is a material change in the company’s quote basis.
You can place an amendment or cancellation on a limit order over the phone or Internet at anytime before the original order is executed. However, you should be aware that when the market is particularly busy, your original order might still be executed before your amendment or cancellation can be implemented. A limit order may also be cancelled automatically if the quotation basis for the stock changes. When your order has expired or automatically cancelled, you are ultimately responsible for reinstating your order. Other more advanced order functions are available for experienced traders.
Getting started
Some helpful information
to get started.
Minimum orders
If you wish to buy shares and you are not already a shareholder in that company, you may be required to buy a minimum number of shares. Each security has a minimum holding of shares that you must own before you can be a registered shareholder in that stock. This means that if you buy shares in a company for the first time, you must buy at least the minimum holding. If you own the minimum holding already, then you can purchase any amount available. The New Zealand Exchange and the Australian Stock Exchange have different rules with regard to minimum holdings. If you need information regarding minimum order size, please contact us.
Settlement
For shares you buy on New Zealand and Australian markets, payment must be made no later than three business days from the date of the transaction. This is referred to as T+3. If you are an Internet client, there is a requirement for you to have sufficient funds in your Cash Management Account before placing an order, to ensure settlement can be performed automatically. As a client, you can choose any of the following payment methods, although for easy settlement we strongly recommend you open an ASB Securities Cash Management Account.
• Pay with funds from your Cash Management Account (mandatory for our Online clients).
• Pay with funds from your Foreign Currency Account. • Pay by cheque. Please note: There is a clearance
period of three days and your shares will not be registered until we have cleared funds.
For shares you sell on New Zealand and Australian markets, you can choose one of the following methods of payment:
• Credit funds to your Cash Management Account (mandatory for our Online clients).
• Credit funds to your Foreign Currency Account. • Direct Credit funds to another bank account. • Cheque.
Settlement payment for New Zealand and Australian
Common shareholder
number
Trading shares is getting easier and faster. The NZX requires shareholders to obtain a Common Shareholder Number (CSN) and FASTER Identification Number (FIN) for all listed securities held at the New Zealand Share Registries.
For more information about CSN and FIN, refer to our website asbsecurities.co.nz or call 0800 272 732.
Chess sponsorship
CHESS is a computerised share sub-register system operated by the Australian Stock Exchange (ASX). Rather than each company issuing share certificates, share ownership in Australia is recorded electronically, either in the company’s own registry or in CHESS. As an ASB Securities client, you must have your shareholding sponsored in CHESS (broker sponsored by Commonwealth Securities), as opposed to being Issuer-Sponsored, if you wish to trade on the Australian Stock Exchange, ASB Securities can arrange this for you.
The advantages of having your shares sponsored by Commonwealth Securities are:
• You can buy or sell shares immediately. With Issuer Sponsorship, you cannot sell your shares unless you know your Shareholder Reference Number (SRN) and for some companies there can be a considerable delay to obtain this.
• You have only one Holder Identification Number (HIN) for all your shareholdings. With Issuer
Sponsored shares, you are given a different SRN for each company. A single HIN is easier to remember and if you change your address, you only need to notify us, rather than every registry that you hold shares in.
Issuer-sponsored shares
Your risk as an investor
Before you invest in shares and other equity
investments, you should be aware of the financial risk involved and ensure that you are able to accept such risk.
Much of the risk is related to share price volatility – or how much the value of your investments rise and fall in a short period of time. Share prices can fall very rapidly, especially for more speculative companies where value is based on a single business initiative. A company’s share price can also be affected by general movements in the stockmarket caused by the state of the economy, political changes, taxation policies and a range of other factors. Companies in different industries face different risks. Falling commodity prices, for example, have a greater impact on mining stocks than on entertainment stocks. Investors’ perceptions of the skills and stability of senior management, the image of the brand and the financial strength of the company may also affect the value of a company’s shares. Diversifying your investment across a range of companies and only investing money that you will not need in the short term may often be good risk management strategies. The information contained in this brochure is by necessity brief and is published solely for informational
purposes. It has been prepared without taking account of your objectives, financial situation or needs. It is not a substitute for specific investment advice. It is crucial that you understand the merits and risks involved in securities transactions prior to entering into any securities transaction and if necessary seek appropriate professional of financial advice based on your own objectives, financial situation or needs.
Sharemarket hours
New Zealand Sharemarket trading hours are between 10.00am and 5.00pm Monday to Friday. Australian Sharemarket trading hours are between 12.00pm and 6.00pm NZ time Monday to Friday. These times can vary during daylight savings changeover. Other sharemarket hours, such as for the US and UK markets, are available on request. Orders placed outside sharemarket hours will be processed when the markets reopen.ASB Securities Limited
12 Jellicoe Street, Auckland
PO Box 35, Shortland Street
Auckland 1140
New Zealand
0800 ASB SEC 0800 272 732
asbsecurities.co.nz
Contact us
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