GENERAL
1. What is Share
Builders Plan?
Share Builders Plan (SBP) is a
regular fixed-dollar amount investment plan, which enables you to
buy shares on a consistent and incremental basis so as to build up a
portfolio of good securities for
yourselves eventually. Therefore
you do not need a huge amount of funds to invest in blue chip
counters since SBP presents a new opportunity for you to buy odd
lots at a reduced cost.
2.
What is dollar-cost-averaging method of investment?
By investing a fixed amount of funds
consistently every month over a period of time, your average
cost of
shares purchased will be lower than the average price of the shares
over the same period of
time. This is possible since with the same
amount of funds, you will buy more shares when prices
are low and
less shares when prices are high. This investment method is known as
dollar-cost-averaging, and it is especially useful in hedging
against market volatility. With such a
disciplined and consistent
method, you will eventually build up a portfolio of stocks at a
lower
average cost.
APPLICATION
3.
Who is eligible to apply for SBP?
Anyone above the age of 18 years old can apply for SBP.
4.
Does SBP allow joint application?
Yes,
SBP allows for joint application. Either of the specimen signature
of both applicant’s is
authorised and empowered to act in accordance to
the terms and conditions binding SBP.
5.
How do I participate in SBP?
You need to complete
an SBP
application form and an Inter-bank
GIRO form. If you do not already
have a trading account with Phillip Securities, you will need
to open one. You may
visit any of
our Phillip
Investor Centres to personally open your trading account. The
purpose of the trading
account is to
facilitate the selling
of your SBP shares in the future.
With effect from 1
June 2008, please note that a monthly administrative fee of $2.14
(inclusive of
GST) will
be levied for each physical statement that we send to you.
Alternatively, you are
encouraged to opt for E-statement to
avoid incurring the abovementioned
$2.14 fee. Please login in to your
POEMS account > Stocks > Acct Mgmt > Update Particulars to
opt for E-statement.
6.
What do I need to bring along for opening a SBP account?
You will need to bring along your
NRIC or Passport (foreigners) and a bank account number that
you want to use for the Inter-bank GIRO deduction.
7.
Can I apply for SBP if I am a foreigner?
Yes, you can. All you need to do is
to bring along your passport. If you are working in Singapore,
you
will also need to bring along your work permit/employment pass.
8.
What is the minimum amount that I have to invest?
The minimum amount of investment is
$100 every month, subjected to a minimum of $100 per
counter.
9.
Can I choose the shares that I want to invest in?
Yes,
at the present moment, we offer a total of 19 blue chip Singapore
listed shares. You can
choose to invest in any of the counters offered.
10.
What are the share counters available?
The share counters offered by SBP
are:
|
1 |
CapitaLand |
11 |
SembMarine
|
| 2 |
CapitaMall
Trust
|
12 |
Singapore
Exchange (SGX)
|
| 3 |
City
Development
|
13 |
SingTel
|
| 4 |
DBS
Group
|
14 |
Singapore
Press
Holdings (SPH)
|
| 5 |
Fraser
& Neave (F&N)
|
15 |
ST
Engineering
|
| 6 |
Keppel
Corp
|
16 |
StarHub
|
| 7 |
Keppel
Land
|
17 |
STI
ETF |
| 8 |
Neptune
Orient
Lines (NOL)
|
18 |
UOB
|
| 9 |
OCBC
|
19 |
Venture
Corporation
|
| 10 |
Singapore
Airlines
|
|
|
11.
How do I indicate the share counters that I want to invest in?
You will have to complete the
investment instructions on the SBP application form. On the
investment instructions, you have to indicate the share counters as
well as the investment amount
for each counter.
12.
How would I know how many shares I have?
Every
month, there will be an e-statement sent to your email address
informing you of the
total shareholdings, current cash
ledger balance and investment execution of the month.
13.
I have an existing trading account with Phillip Securities, can my
existing account be
linked to this SBP account?
Yes,
you can link your existing trading account to your SBP account.
An email confirmation will be
sent to you once your SBP application has been approved.
14.
Is SBP online?
Not
at the present moment, but we are currently working to bring you
an online platform for SBP.
Meanwhile, you can view your shareholdings
online via your linked POEMS trading account but
selling of SBP shares is strictly to be
done through your trading representative. You may also
suspend, reactivate or amend investment
instruction via POEMS.
AMENDMENT,
SUSPENSION AND TERMINATION
15.
Can I amend the investment instructions?
Yes, you can amend the investment
instructions via POEMS or by completing the SBP
Investment Amendment
form. Amendments can be done to the selection of counters and the
investment amount.
16.
Will the investment amendment be effective immediately after I
submit the forms?
No, the investment amendment will
only be effective for the current month if you submit your
request 6 business days before the execution day, which is on the 18th of
every month. If not, the
amendment will be effective from the next
investment month.
17.
Can I temporarily suspend the SBP account?
Yes, you can suspend your SBP account
via POEMS or by completing the SBP Suspension
form. You can suspend
the SBP account for 3 months, after which Phillip Securities have
the
right to terminate your account.
18.
How can I re-activate my account after it is suspended?
You can re-activate your SBP account
via POEMS or by completing the SBP Re-activation form.
19.
If I want to terminate my account, what will happen to my SBP
shareholdings?
If
you have a CDP GSA, you can request Phillip Securities to transfer
your SBP shareholdings to
your GSA. For transfer of shares, you will
have to bear the transfer fees of $10.70 (inclusive of
GST at 7%) per counter chargeable by CDP and admin fees of $10.70 (inclusive of GST at 7%)
per counter chargeable by Phillip Securities. If you do not have a CDP GSA, you can request
for
us to sell your SBP shareholdings and subsequently credit you with the sales proceeds.
PAYMENT
20.
How do I pay for my investment?
Payment for the investment is via
monthly Inter-bank GIRO deduction. You will have to make sure
that
your GIRO bank account has available funds 6 business working days
from the investment
day – 18th of each month.
21.
Who are the participating banks for this Inter-bank GIRO facility?
All banks with banking facility in
Singapore are acceptable for Inter-bank GIRO deduction.
22.
How long does it take for my SBP account to be linked with my
Inter-bank GIRO account?
Usually
it takes 3 weeks to a month for the Inter-bank GIRO facility to be
linked up.
23.
Can my SBP investment plan start even if my Inter-bank GIRO facility
is not link-up?
Yes, it is possible. What you have to
do is to inform your dealer representative and issue a
cheque payable to “Phillip Securities Pte Ltd” and make a note behind
the cheque that it is for
payment of SBP. It is also important to
indicate your SBP account number behind the cheque.
24.
What if I do not have enough funds in my bank account?
If
you do not have enough funds in your bank account, your monthly
investment will not be
executed and there will be an insufficient
funds charge of $5.35 (inclusive of GST at 7%) to be
deducted from your ledger or from your GIRO deduction next month.
25.
Can I make arrangement for alternate payment methods?
Yes,
you can specially arrange to pay by cheque or cash. You have to note
that Phillip Securities
will only execute your investment
instructions upon receiving funds from you before the 17th of the
month. For both forms of alternate
payments, you have to inform your Trading Representative 6
business days before the 18th.
26.
Can I change my bank account for the Inter-bank GIRO facility?
Yes, you can change the bank account
by completing the Closure of Inter-bank GIRO deduction
form and
re-apply for a new Inter-bank GIRO deduction.
27.
How is the SBP handling fees deducted?
You will
have to indicate the preferred counter from which the handling fees
will be deducted. The
actual buy amount for the counter will be
the buy amount you stated on the investment
instructions less the handling fees.
You may amend your preferred counter via POEMS or by
completing the investment instruction
form.
For example, if you indicate that buy
amount for SIA is $300 and if handling fee of $6.42 (inclusive
of GST at 7%) is to be deducted from the counter SIA, then actual investment amount for SIA will be $293.58 every month.
EXECUTION
OF INVESTMENT
28.
When and how do you execute the buying?
The aggregate monthly investments of
all clients for any particular selected SBP counter will be
done on
the 18th of every month on a non-discriminatory and non-preferential
basis. If the 18th of
the month falls on a non-market day, buying of
the counter will be done on the next available
trading day.
29.
How do you allocate the shares to me?
You will be credited with the nearest
rounded-down whole number of the designated share counter
that can
be purchased with your fixed monthly investment less the
administrative fees.
30.
Will you execute my investment instructions based on the whole
amount of money I have
indicated?
Since we cannot credit shares on a
fractional basis, we will only buy shares to the nearest whole
number that is available with your monthly investment less the
handling fees. The uninvested
amount of money will be rolled over to
be aggregated with next month’s investment amount.
31.
How will you aggregate the uninvested amount of money?
The
uninvested amount from the previous month will be aggregated to the
investment amount of
the counter where there is a deduction
of the handling fees.
For example, on the investment
instructions, you state that you would like to invest $300 per
month on SIA. If uninvested amount last
month is $8.70, then investment amount for SIA this
month will be $302.28, which is the sum of
$300 with the uninvested amount less handling fees of
$6.42 (inclusive of GST at 7%).
32.
Can I put the uninvested amount into the Money Market Fund (MMF)?
No, uninvested amount will be held
commingled with excess funds of other customers of Phillip
Securities in a trust account in accordance with the provisions of
the Securities Industry Act.
SELLING
AND TRANSFER OF SHARES
33.
How do I sell my shares?
You
can sell it through the Phillip Securities trading account that is
linked to your SBP account.
Selling of SBP shares must be done through
your respective dealer representative. When selling,
it is important for you to indicate
that you are selling from your SBP shareholdings. Normal trading
brokerage charges will be applicable when
selling your SBP shares.
34.
How can I get the proceeds from selling the shares?
Proceeds will be credited to you
depending on the type of trading account you have.
35.
Can I transfer my SBP shareholdings to my own CDP GSA?
Yes,
you can transfer the shares but you will have to bear the transfer
fees of $10.70 (inclusive
of GST at 7%) per counter chargeable by CDP and admin
fees of $10.70 (inclusive of GST at 7%)
per counter chargeable by Phillip Securities.
HANDLING
FEES AND CHARGES
36.
What are the charges involved?
Types
of services |
Fees
and charges |
Handling
fees |
| |
<=2
counters |
>
2 counters |
Total
Investment amount
<= $1000 |
$6.42
(inclusive of GST at 7%) |
$10.70
(inclusive of GST at 7%) |
Total
Investment amount
> $1000 |
The
higher of 0.2% or $10.70 (inclusive of GST at 7%) |
|
Dividend
charges
|
<S$100
-
$1.07 (inclusive
of GST)
>S$100
-
1%
of Net Dividend, max.
S$53.50 (inclusive of GST)
*In
addition, handling charges are also imposed by foreign
custodians for foreign shares
|
| Insufficient
funds charge
|
$5.35 (inclusive of GST at 7%) |
| Share
Transfer Charges
|
$10.70
per counter transfer fee charged by CDP and $10.70 per
counter admin fee charged by Phillip (inclusive of GST at 7%)
|
| Cash
Offer, Rights Issue, Privatisation Exercise, Merger &
Exchange, Cash In Lieu, Liquidation, Redemption of
Warrant, Loan Stock or Bonds, Capital Distribution, Tender
Sales, Warrant Conversion
|
$10.70
(inclusive of GST at 7%) |
| Hard-copy
statement |
$2.14
per statement (inclusive of GST at 7%) |
OTHERS
37.
Will I be entitled to the dividend payment?
Yes, dividend payment will be
calculated based on the number of shares you hold and it will be
reinvested to your account on the payment day to allow you to buy
more shares. Dividends can
also be paid out to you on request.
38.
What about bonus issue and capital distribution?
For bonus issue, it will be allocated
to you based on the issue ratio and the number of shares you
hold.
As for capital distribution, it will be calculated and credited into
your ledger balance.
39.
Will I receive entitlements to a rights issue?
Yes, you will be credited with the
rights entitlement based on your shareholdings.
40.
How do I apply for the rights issues allocated to me?
You will have to complete and sign
the Rights Instruction Form send by us and return it together
with
full payment to us.
41.
What if I do not sell my rights allocation during the rights trading
period or subscribe for
the rights by the closing date for
acceptance?
The rights allocation will lapse and
become worthless. These entitlements will then be removed
from your
shareholdings accordingly.
42.
What if the share counter that I am buying is suspended
/ halted on the execution day?
If the share
counter is suspended /
halted on the execution day, the funds for
investment will be
rolled over to be invested in the preferred
counter the following month.
43.
If there is any corporate actions involved for the counter that I
invest in, will I be
informed?
You will be duly informed for any
corporate actions.
44.
Who can I contact for more detailed information with regards to SBP?
You can contact POEMS Marketing at
65311 555 or email poems_enquiry@phillip.com.sg
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