ASB Securities Sharetrading Services You choose how you want to invest 2
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 with all 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. Please note that the services described in this brochure involve risk, including (but not limited to) currency and market fluctuations and determination risks, and the decision to utilise our services and enter into any transaction relating thereto must be made by you. You must ensure that you are capable of assuming, and assume the risks of any services and any transaction. Under no circumstances are we responsible or liable for any loss suffered as a result of you utilising any services or entering into any transaction with ASB Securities or ASB.
Benefit from dealing with one of New Zealand s leading sharetrading and investment firms. 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 ASB Securities is focused on providing excellent service to all our clients. We have a large and experienced team of sharebrokers, backed up by a skilled and energetic client services support team. ASB Securities Limited is a NZX Firm. A member of the Commonwealth Bank of Australia Group. 1
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. No matter where you are on your personal investment journey, an experienced investor or a beginner to the sharemarket, we can provide you with the tools, information and support to make your investment goals possible. 2
Select a service to suit your individual needs. 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). 3
Select a service to suit your individual needs. 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). Access to New Zealand and overseas markets, fixed interest products, managed funds, new share issues and a wide range of other investment products and information. 4
Intermediaries A range of sharetrading services for financial intermediaries. 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). 5 5
Fixed Interest We can help you with all your needs. 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). 6
Margin Lending Leverage your investment opportunities. 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. Of course, Margin Lending, like any geared investment, does have its risks and before utilising this facility you should make sure it meets your investment objectives and risk profile. To find out more, call us on 0800 272 732 option 3 within New Zealand or +64 9 448 8120 from overseas, Monday to Friday between 8.00am and 6.00pm (New Zealand time). ASB Margin Lending Terms and Conditions and lending criteria apply. Fees and service charges apply. 7
Easy seamless access to other ASB products. 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. ASB s current Disclosure Statement is available free of charge at any ASB branch. 8
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 or +64 9 448 8120 from overseas, Monday to Friday between 7.00am and 6.00pm (New Zealand time). 9
Getting started Some helpful information to get started. To get your long term financial future underway, there s no better time than now to take the first step. 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. 10
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 markets will be made to you no later than three business days from the date of the sale of the shares. This is also referred to as T+3. All other Markets have varying settlement periods. Please call 0800 272 732 for further details. 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 If you already have Issuer-Sponsored shares or any shares sponsored by another stockbroker, you can arrange to have them transferred to Commonwealth Securities by mailing your instructions to us with copies of any holding statements. Any existing Issuer-Sponsored shares you may have can be sold for you by ASB Securities through any of its services. 11
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 office hours are 7.00am to 6.00pm (New Zealand time) Monday to Friday. 12
Contact us We re here to help you reach your financial goals. 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 13
Keep in touch Visit asbsecurities.co.nz Call 0800 272 732 Visit us at facebook.com/asbbank Follow us on twitter.com/asbbank Drop in to any ASB branch asbsecurities.co.nz 1 ASB Bank Limited 7012 1303 0414