Corporate Actions Covered by STM
STM operates with 3 central databases of corporate actions that are applicable to
all portfolios. The 3 databases are:
1. Listed Securities Database
- Includes corporate actions from the start of CGT in Australia on 20 September 1985 onwards
- Updates are provided to the central database, weekly, monthly or quarterly
- Import only purchases and sales.Corporate actions (eg bonus issues, dividends, distributions including trust tax deferred amounts and other tax components) are included in portfolios automatically. Difficult areas such as dividend and bonus re-investment schemes, partly paid shares, instalment receipts, convertible preference shares, capital reconstructions (splits, consolidations and returns of capital), take-overs, corporate demergers and stapled securities are handled with ease since all or most of the work is done for users automatically
- Generates dividend lists automatically
- Automates changes to company names and codes
- For complex takeovers such as the takeover of Coles by Wesfarmers, all you need to do is choose which option you took (i.e max cash, max shares, etc..) and STM will do the rest to calculate your tax parcels and tax costs.
2. Managed Funds Datbase
- Uses APIR codes as the unique identifier of funds and the managed funds database contains the APIR codes and fund names of some 13,000 funds.
- Contains distribution and tax component information for nearly two thousand funds. For PST’s, gains and losses are identified as exempt.
- Includes the accrual start and end dates for each distribution and the ex and pay dates.
3. User Maintained
- Trust codes and distributions are set up and maintained by users. This has the same functionality as the STM Managed Fund Database. It contains the CGT indexing and discounting rules. Other corporate actions applicable to internal trusts are added as required.
- Fixed interest securities and unlisted companies can also be set up in this database.
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