Yup, full refund, save for the -0.01 USD "fee"

Having fun with WCRS function on Bloomberg to compute carry trade returns using different currency pair... Look at MYR...

This is using SGD as base currency.

Hello. I admit that's an old post... November 2022... not all info are correct... To answer your questions:

1. For margin account yes, you can sell the holdings and buy stocks thereafter. I think IBKR won't charge you interests. I don't use margin account, you may check with other sifus on that dwRK Medufsaid and Ramjade. For cash account, it used to be T+2 but not sure how things will be after the T+1 settlement cycle comes into place after May 27 this year but definitely for cash account there will be delay of 1-2 days before the cash is available for you to use.

2. Yes, the NAV increases daily and is paid out monthly (start of month). BIL for example has a dividend distribution schedule as stated here: https://www.ssga.com/library-content/produc...on_Schedule.pdf

3. Yea, that's my mistake... I wasn't aware of the refund back then... over the months and years I learnt from others here... Taking into account the lost in time value of money due to the late refund my BIL ETF IRR is around 4.8x% p.a. This 4.8x% is for ALL units of BIL ETF hold, unlike IBKR's own interest scheme which excludes the first 10k USD.

By the way, if your portfolio size is as big as 100k USD you should seriously consider buying US T-bills directly... it costs 5 USD per trade but given your fund size, the fees are peanuts when expressed as a percentage of the overall investment, thus you get to keep the bulk of returns...

Yea no WHT. IBKR won't mess up with Uncle Sam directly... ETF is a different story... withhold then refund...

These are infos a few months back, still pretty new.

https://www.reddit.com/r/singaporefi/commen...ortfolio_whats/

https://www.reddit.com/r/tax/comments/17cr9...l_interest_for/

Hehe that's opportunity cost, not really breakeven per se. But yea, that's one way to compare. Another way is to look at an IRR of 4.8x% (for BIL) vs the return of a 4-week T-bill yield of 5.4% minus the 5 USD fee (assume you pay once and hold the T-bill till maturity). I use a 4-week T-bill because the duration of BIL is around 1 month too (0.08 years = 0.96 months).

As for the automatically roll over part, yea, BIL ETF manager will purchase T-bills, T-notes and T-bonds with maturities of 1-3 months in the market on behalf of you whereas if you DIY you get to choose the T-bills/notes/bonds you wish to hold. If you choose a short-term one, you will have to rollover the proceeds of the previous matured issue to the next one and incur 5 USD charge every time you do so. So there is a tradeoff here you need to decide. In general, T-bills/notes/bonds which will mature in less than 12 months are very liquid, especially the very short-end ones. There is a big secondary market and you should be fine with either the 1,3 or 6 month issue.

Correct. T-bills are issued at a discount to the face value. Day by day the value of a T-bill appreciates until the date of maturity when the entire principal/face value is returned to you. The maturity profile looks something like that except that since T-bills are short-term, the line should start from somewhere around $950 instead of $100ish, i.e., the curve is not that steep.



It is important to note that BIL is a portfolio of Treasury bills/notes/bonds, not just a particular issue of T-bill. You can have a look at the detailed portfolio holdings of BIL here: https://www.ssga.com/us/en/intermediary/etf...-t-bill-etf-bil

This post has been edited by TOS: Mar 4 2024, 09:38 AM

Yup that's why using IRR is a better way to compare since the 30% WHT refund is taken care of in the cash flow calculation when the IRR is computed. In the end we care about the returns we get and we compare them. Fees can fluctuate.

Any members here staying near Damansara/PJ area can meetup this Wednesday around 2pm ++ near TTDI MRT station for a late lunch at a nearby mall with another LYN FBIH friend.

PM me for details if you are interested.

This post has been edited by TOS: Mar 4 2024, 10:53 PM

(Very) Good read on PE stuffs.

https://www.ft.com/content/55837df7-876f-42...20-02ff74970098

(Paywall ahead...)

This post has been edited by TOS: Mar 5 2024, 04:52 PM

Oh BOXX was discussed a few pages before. You can have a read at the posts quoted below:



This post has been edited by TOS: Mar 7 2024, 09:03 AM

For stockpickers' reference:

ASM3 2023 full list of investment portfolio is now available here: https://forum.lowyat.net/index.php?showtopi...ost&p=109295172

Novo Nordisk to the moon... and NVDA runs wild.

This post has been edited by TOS: Mar 7 2024, 11:17 PM

I think this is the closest I can find: https://www.ssga.com/library-content/produc...-us-en-cash.pdf

Based on the original PATH act, only 4 of these are qualified for a refund:

1. original issue discount on an obligation payable within 183 days of issuance
2. interest on an obligation in registered form (other than interest on an obligation issued by an obligor in which the RIC is a 10 percent shareholder or interest that does not qualify as portfolio interest)
3. interest on deposits, and
4. interest-related dividends received from other RICs.

Point 1 above is relevant for primary market-issues of 4-week, 12-week,... up to 6-month T-bills.

If you hold commercial papers (original issues with less than 183 days/6 month of maturities) I suspect it may be eligible for a refund as well.

Anything longer than 6-month generally will be a no.

Arrived at NTU hostel safely!

Nice meeting you guys in person.

dwRK MasBoleh! Takudan Shin3Ge Quazacolt

I have had a great week!

Text me/PM me whenever you guys are in SG.

If I happened to meet a match in Klang Valley will probably go there again... by bus... let's see.

5.72%

I guess majority of that number comes from MYR's depreciation against SGD. You short MYR (borrow MYR), then invest in a 1-year SG T-bill. 1 year later, you sell your T-bill, earn the interest (which is about the same as if you place the deposit in MYR), and you buy back MYR (settle the MYR loan plus interest which is roughly similar to SGD's loan rate), but by now MYR has depreciated about 5.3x% against SGD.

https://www.investing.com/currencies/sgd-myr



Will check with Bloomberg later, maybe not today, got dance classes later this evening.

This post has been edited by TOS: Mar 14 2024, 10:29 AM

https://www.ft.com/content/fa3d201e-0e0b-46...23-c75c7312becd (use a paywall bypass plugin...)

Time to buy noodle stocks Nestle products don't seem relevant in an inflationary world. Even Western countries' consumers are downgrading... Nestle can't fight against the declining purchasing power...

Gonna look at financial reports from Toyo Suisan and Nissin Foods.

Nope, for Swiss stocks, IBKR will withhold 35% of dividends, you need to submit a refund to Swiss Federal Tax Administration to request for the 20% refund (i.e. 15% tax treatment) by filling up Form 60.

https://www.estv.admin.ch/estv/en/home/inte...f/malaysia.html

You may send the form to FTA once every 3 years (include past 3 years of withholding tax) and you need to visit the local LHDN/IRB office to ask for verification that you are a Malaysia tax resident.

---------------------------

For Taiwanese stocks like TSMC, default withholding tax rate by IBKR is 21%, you may however claim back 8.5% (i.e. get the 12.5% tax treatment) by writing to the specific local tax office in Taiwan (e.g. Hsinchu 新竹 for TSMC or UMC) and claim back the tax from them.



 certification_of_payment_samlie.pdf ( 37.52k ) Number of downloads: 4
 Tax_Refund_Application_Form_for_Tax_Treaty_.pdf ( 147.17k ) Number of downloads: 4


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For China A- and H-shares, there will be 10% WHT automatically deducted when you receive the dividends.



This post has been edited by TOS: Mar 14 2024, 02:28 PM

Try not to purchase Level 1 ADRs which are traded OTC like NSRGY. OTC markets are illiquid during times of crisis and may trade at a huge discount to the underlying parent share in SIX. I will advise you to buy Nestle shares on SIX/European ECNs directly on IBKR. You save the ADR dividend handling fees also.

If you search "Swiss" in this thread you will find a lot of useful posts on reclaiming Swiss dividend taxes. https://forum.lowyat.net/index.php?act=Sear...posts&hl=&st=50

E.g. https://forum.lowyat.net/index.php?showtopi...#entry103087454

https://forum.lowyat.net/index.php?showtopi...#entry102601156

https://forum.lowyat.net/index.php?showtopi...#entry103923478

The above posts will answer your questions...

-------------------------------

I sold my Novartis ADR last year after the Sandoz spin-off, and given my remaining positions in Nestle and Roche are relatively small, the reclaimed money is relatively small compared to the amount of effort I have to put in. Below is a calculation I did last year (or the year before, can't remember), to give you a sense of the magnitude of returns over the efforts put in to reclaim your Swiss tax...



We are not multi-billion dollar mutual funds... just poor retail investors...

I suggest you to allocate the funds for NESN to an S&P 500 index fund. BRK is, in the end, still a company. No matter how diversified it is, it can't beat the S&P 500 forever. The fate of the company is tied too much to Warren Buffet alone, we are yet to see how Abel perform ... And BRK has difficulties beating the S&P 500 in the recent decade. There's not much room for alpha generation for a company the size of BRK.

------------------------

In normal times OTC works but during crisis you will see a huge divergence in performance. In the worst case the market just shut down due to huge bid-ask spreads, i.e., no trades are done.

These days I will advise investors to stick to the original listing venue instead of ADR except in cases like TSMC where Taiwanese markets are too restrictive to enter. Most other counters like the European ones (Nestle, Roche, Novartis, LVMH, Hermes etc.) have an active primary listing in their respective bourses back in Europe, an ADR just complicates matter and the ADR fees are like free money to the corporate banks... For the case of Tencent, you can consider the Hong Kong listed version. It's more liquid, although you do have to fork out a little more for a board lot purchase.

SNB cut CHF rates in a surprising move... CHF depreciated 1% against USD as of now...



https://www.investing.com/currencies/chf-usd