A relatively new financial product that allows us Aussies to own a slice of Apple, Google, Disney or any other listed US company are called ‘TraCRs’.
What are TraCRs?
TraCRs, or Transferable Custody Receipts, are securities exclusively quoted on Chi-X, the innovative securities and derivatives exchange that delivers local and global opportunities for Australian investors. TraCRs give Australian investors access to the benefits of owning US shares in some of the world’s biggest brands – Disney, Zoom, Apple, Facebook, Intel and Costco to name a few.
TraCRs are traded in AUD, with dividends paid in AUD, making them easy to manage within your investment portfolio. Applicable US taxes and fees are deducted from dividends which are then converted to AUD.
As a TraCR holder you have a beneficial interest in the underlying US share (and the right, subject to the terms of issue, to convert your TraCR holding into that share). You also hold an Australian security which is traded, cleared and settled in Australian dollars (AUD), under Australian regulation, during Australian trading hours.
Key benefits of TraCRs
- TraCRs are traded in Australian dollars
- TraCRs are traded during Australian market hours through your local broker
- You receive your dividends in Australian dollars
- TraCRs are held and settled on your existing CHESS and HIN
- TraCRs give you greater portfolio diversification of owning US shares managed through your local broker
- Protected through Australian regulation and ASIC supervision
How TraCRs are traded and settled?
The beauty of TraCRs is that while they’re not a share or stock, you can buy and sell them during normal market hours the same way you would trade an Australian share or stock. Just like those securities, they are cleared through ASX CHESS, registered at a local share registry and settled on your CHESS HIN on T+2.
They are traded in Australian dollars with dividends paid in Australian dollars. Applicable US taxes and fees are deducted from dividends which are then converted to AUD.
With brokerage the same as what you pay for shares, TraCRs makes adding international exposure and diversifying your portfolio – with some of the best known brands – pretty convenient, transparent and cost effective (especially compared to most international share trading services provided in Australia).
As with any investment it is important to seek the advice of a qualified advisor or broker before making any decisions and carefully consider the Product Disclosure Statement.
If you are interested in purchasing your own TraCRs give us a call on (03) 5561 2643!
General advice disclaimer
The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
Only financial planning advice provided by CeebeksTM Financial Solutions is associated with Avana Financial Solutions.
Christopher Beks (Authorised Representative no. 231937) is a director of CeebeksTM Financial Solutions (Authorised Representative no. 344518) and an Authorised Representative of Avana Financial Solutions Pty Ltd AFSL 516325 and is authorised to provide personal financial advice.