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

Hi i have a question. Does state street publish a list of their qualified interest income funds? For eg if i buy their etf composed of only US corporate bonds it should be a qualified interest income right?

This post has been edited by diffyhelman2: Mar 10 2024, 01:27 PM

corporate bonds are generally taxable

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.

not quite, see below.
thanks, I actually found a more updated list (7 Feb) here

https://www.ssga.com/library-content/produc...eation-2024.pdf

if you look at SPBO (corp bond) 85% of the income is qualified interest, SPHY (junk bond) is 79%. and the average tenure is 4-5 years for their holdings. the part that is not qualified is for those issuers who are non US companies issuing corp debt in the US market.

this makes it very attractive fund for me, as the expense ratio is only 5bp, and effective yield after factoring in a tax drag of 30% for the 20-25% of the porfolio that is not QII is about 5.1-7%.




even corporate long term bond (SPLB) fund is 90% QII.


PS: interestingly even BIL is not 100% QII, 99.7% only. maybe that explains the 0.01 that you didnt get back in refund?

This post has been edited by diffyhelman2: Mar 11 2024, 01:11 PM

i am not wrong... corporate bonds or company bonds are generally taxable

you showed a list of qii funds... these funds will have a mixed of taxable corporate bonds and non-taxable bills...

as for bil not 100% qii... because it also holds cash...

80% of this corporate bond fund (SPHY) is non taxable bills? I dont think so





This post has been edited by diffyhelman2: Mar 11 2024, 01:57 PM

some companies product have qii status... obviously for qii focused etf it will have these companies in their portforlio isn't it?... one should also be able to find list of corporate bonds that are 100% taxable...



anyways, no need to reply to me anymore... cheers

I am replying for the benefit of others who might see this, not you specifically.

The link you provided is for tax to US persons in general, not non resident aliens (NRA).

the key difference is portfolio interest exemption for NRA

US companies borrowing and paying interest to foreign persons generally qualify as portfolio interest.

https://www.refi.reit/family-office-investm...enture-capital/



for US companies borrowing and paying interest to foreign persons, it is considered exempt under this rule (subject to certain conditions). but for foreign companies selling bond in US and paid out to foreigners, no exemption. that is why about 15% of the corporate bond fund is not QII (because they are non US company). I am looking at the detailed holdings for that fund now, and so far can find identify already 7.5% of the fund that would not be QII based on this rule (non US companies).





This post has been edited by diffyhelman2: Mar 11 2024, 03:08 PM

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.

tested LSE fares by buying

• 1st batch manually @ $xxx.00
  Was charged $1.91, so tallies with my excel calculations (commission + exchange fees + clearing fees)
• 2nd batch via RSP @ same price
  Only charged $1.70, so I guess exchange and clearing weren't charged

both same ETF

This post has been edited by Medufsaid: Mar 12 2024, 01:06 PM

Big pay wage raises could signal BOJ will finally end negative interest rates. Implications for global interest rates?

5.72%

thanks... do you know what is their carry trade formula and base rates they used?

sg and my have quite close rates, so 5.72% is much higher than the rate differential i was expecting... just wanna understand the numbers...


This post has been edited by dwRK: Mar 14 2024, 10:09 AM

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.

thanks... yeah looks like it includes depre... no worries, enjoy your day...

This also applies to Swiss or japanese China etc ADR dividends right?

for eg I search swiss dividend tax on malaysia and get 15% witholding for individuals. so if I buy Nestle ADR I should get the 85% of the dividend amount:

https://phl.hasil.gov.my/pdf/pdfam/Switzerland.pdf

and China dividend withholding taxs are 10%, so if I buy BABA I should get 90% of the dividend. so far what I posted correct?

This post has been edited by diffyhelman2: Mar 14 2024, 02:08 PM

Swiss is 35%😁

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