Hi guys,
I've purchased Microsoft shares in the last month or so but have not received any paper with account numbers or any sort of information through Nabtrade.
I am wondering if anyone has experience with holding overseas shares such as MSFT and if/how we would be able to apply for a DRP rather than have dividends go straight to a bank account/trade account.
Any help would be wonderful, thank you.
100% this. You don't actually own Microsoft. Someone else does on your behalf. This is the same as local Wrap platform providers such as NetWealth, BT, Macquarie to name a few. Worth noting you also generally lose the ability to vote etc. in company matters. The custodian will vote on 'your' behalf.
I recently transferred US stocks from a NABTrade international trading account to a differnet broker - both brokers took so long they kept on timing each other out. Forget DRP - this sort of stuff is too complicated for the finance industry.
You probably don't get any paperwork because they are held by a custodian not directly by you through something like CHESS. So NAB US (or whoever they have outsourced it to) hold your shares on your behalf, any dividends go into a segregated account and then allocated to you the portion of you are entitled to. I don't think you identify as an individual shareholder therefore DRP for some and not others is a nightmare.