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Brookfield Corporation Class A Limited Voting Shares (BN)
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Brookfield Corporation Class A Limited (BN)
Q: Good afternoon
As a follow up to your response regarding your preference to purchase BN in a CDN$ Non Registered account would it also be advantageous to journal the BN shares that I currently hold in my US$ Non Registered account to my CDN$ Non Registered account given the relatively low value of the CDN$ and journal them back to the US$ account when the CDN$ regains some of its recent loss in value?
Thank you and I’ll await your sage advice,
Francesco
As a follow up to your response regarding your preference to purchase BN in a CDN$ Non Registered account would it also be advantageous to journal the BN shares that I currently hold in my US$ Non Registered account to my CDN$ Non Registered account given the relatively low value of the CDN$ and journal them back to the US$ account when the CDN$ regains some of its recent loss in value?
Thank you and I’ll await your sage advice,
Francesco
5i Research Answer:
Because inter-listed shares trade in tandem, there is not a lot of benefit to journaling. The value of the shares will be essentially the same always, regarless of currency moves. There is a tiny disadvantage in moving accounts because BN pays its dividend in US dollars and thus brokers would charge an f/x conversion fee on the dividend if held in a C$ account. Note there are no withholding taxes either way and the dividend gets the tax credit. Also note that some brokers will convert US dividends regardless, so it is important to note their policies and ask them not to convert if a dividend is paid in the same currency as the account.