Forum Topics Capital raises
laoshi
3 years ago

Anyone confirm this. It appears that you cannot particpate in capital raising through shares held in member direct in Australian Super.

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Bear77
3 years ago

No, industry super funds like AustralianSuper do not allow members to participate in capital raisings unless it is an entitlement offer where you are issued with entitlement rights, or when you are issued with options.  So if the company issues you with something that has to be listed as yours in your portfolio (rights or options) then the super fund allows you to action those, but with a standard capital raise, like a SPP, they do not let you participate.  I was a member of AustralianSuper for a few years so I know this from first hand experience.  I am a current member of CBUS, another industry super fund and they are exactly the same as AustralianSuper in this regard.  It's a big drawback of investing through an industry super fund, but the big advantage is the lower fees and the tax benefits.

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laoshi
3 years ago

Thanks, guys.

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