Tag Archives: InvestorLine

What to Watch for When Transferring a Stock to the US Dollar Side of an InvestorLine Account

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First I set up a US dollar ledger or journal for my InvestorLine RRSP account. Then I transferred some shares of TD that I already owned from the Canadian dollar side of the account to the US dollar side. I forgot to watch out for one detail before I did this transfer though.

Receiving Dividend Payments in US Dollars within a BMO InvestorLine RRSP US Dollar Sub Account

I asked a BMO InvestorLine agent to move 100 TD shares from my Canadian dollar RRSP account to my US dollar sub-account. They journaled the shares over, as requested, on July 11.

I felt rather smug about that because they pay a dividend on July 31 and I wanted to see how that would work. For instance, what exchange rate and fee would I have to pay to receive the dividend in US dollars?

Watch Your Dividend Dates Before Requesting a CAD to USD Transfer

Unfortunately, I forgot the dividend PAYMENT date is not the important one. It’s the dividend RECORD date I should have tried to beat.

TD declared the July 31 dividend to be payable to shareholders on record on July 9. On July 9, I still held the shares in the Canadian dollar side of my account.

What Happens to a Dividend Payment In This Situation?

I don’t actually know how this will play out. I guess on July 31 I will find out. Actually it will be August 1, as InvestorLine does not pay dividends till one day later, then backdates the transaction. So I will report my findings in August.

I still have TD shares in my Canadian dollar account. I also now have TD shares in my US dollar account. The dividend could

  • Be paid for all of the TD shares in CAD to the cash account in the Canadian ledger; or
  • Be paid for the Canadian-held TD shares in CAD to the cash account in the Canadian ledger, and be paid for the US-held TD shares in CAD to the cash account in the US ledger but be converted to USD after applying an exchange rate and a foreign currency exchange fee.

I already had been puzzled about exactly what they would do for the dividend payable on the shares held in the US ledger:

  • would they pay the dividend in CAD and only apply the exchange rate; or
  • would they pay the dividend in CAD and apply both the exchange rate and a foreign currency exchange fee; or
  • would they pay the dividend is USD at an exchange rate set by TD.

That puzzle will not be solved until Hallowe’en!

Why Transfer TD Anyway?

Some of you may be wondering why I moved TD in the first place. It’s just that I bought it during the recent dip and I’ll be selling it soon to crystallize the capital gain. Then I’ll want to re-invest the money, preferably in a US stock. This was an easy way to move the value to the US side to have it ready to sell when I find something I want to buy.

The Moral of the Story

Be smarter than me. (I know that’s not much of a challenge!)

If you are transferring shares from your Canadian Dollar account to your US Dollar account, try to do it before the date of record. And I guess if you’re transferring them the other way, also keep an eye on the Record date.

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Testing a Sell (and Buy) of AAT770 in a BMO InvestorLine Account: Part Two, the Sell

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When last I tested a sale of units in the BMO high interest savings account fund, AAT770, I was greeted with several ominous warning messages. They said that the sale could be delayed. It’s been a few months and I wondered if things had calmed down any. So as soon as my recent purchase of AAT770 had settled, I tested the system with a sale of some of the units.

Tracking a Request to Sell AAT770 from InvestorLine

Following my own instructions on how to sell AAT770, I placed a Sell order on Wednesday, July 10, 2013 before noon. (Remember mutual fund orders usually have to be placed before 2 p.m. to go through that day.)

Immediately, when I select Order Status from the Trading Tab, I am provided with the following information:

  • the original order number
  • the symbol: AAT770
  • a description: BMO High Int Sving Account(BIL)
  • the order type: Sell
  • the original order quantity: $5,000
  • the outstanding quantity: blank
  • the entry date mm/dd: 07/10 (Good thing they clarify which one is the month)
  • the expiry date mm/dd: blank
  • the average fill price: blank
  • the status: submitted

The word submitted is a link but if I click it what opens is a definition of the term.

The original order number is also a link. If I click it the Order Status Details screen opens.

That screen has the following information already (minutes after I placed the order.)

  • Original Order Number
  • Symbol: AAT770
  • Fund Name: BMO High Int Svng Account(BIL)
  • Reference Number: this is the same number as the original order number
  • Order Type: Sell
  • Order Quantity/value: $5,000
  • Load Type: No Load
  • Most Recent Closing Price: $1.00
  • Dividend Option: Reinvest
  • Settlement Funds: CAD
  • Status: Submitted (same link to the definition)
  • Activity Date/Time: 2013-07-10 10:17

And an informational note:
“This order cannot be changed or cancelled for the following reason:
•  Mutual Fund and/or Fixed Income orders cannot be changed or cancelled online.”

My account balance is also shown in a small box in the upper right side of the screen. At this point it still shows a Cash Balance that does not include the amount I have just sold.

If I click on the My Portfolio tab, I also do not see the amount I just cashed out included in my Cash balances.

At this time, the HISA fund showing on my list of Investments on the My Holdings page has not been reduced yet.

If I select Transaction History from the list under the My Portfolio tab there is not yet any transaction listed. It does not list the order to sell the fund.

Welcome Back: The Sell Continues

On Friday, July 12
Under the My Portfolio tab, in the Transaction history I see a line item:

  • Transaction Date: July 10, 2013
  • Settlement Date: July 11, 2013
  • Activity Description: Sell
  • Description: BMO High Int Svng Account (BIL)
  • Symbol: AAT770
  • Quantity: -5,000
  • Price: 1.00 C
  • Total Amount: 5,000 C

And the money is now showing up in the Cash balance if I look at the My Holdings screen and in other screens.

Did I Need to Heed the Warnings about a Slow Sale of AAT770

So even though the program is still warning me that sales of units of AAT770 may be delayed, both in the past and in July 2013 I was able to sell units and have the cash appear in my account on the morning of the second business day after the sale. According to the transaction history, the money was actually available one business day after the sale.

The Schedule of Events for the Buy and Sell of Units of the AAT770 HISA Fund

  • Monday July 8 put in a request to buy units of AAT770 before 2 p.m. ET
  • Tuesday July 9 Cash still in account. AAT770 not yet listed as owned.
  • Wednesday July 10. Cash taken out of account. AAT770 units listed in My Holdings.
  • Wednesday July 10 put in a request to sell some units of AAT770 before 2 p.m. ET
  • Thursday July 11 Cash not in account. All units of AAT770 still listed as owned.
  • Friday July 12. Cash back in account. Sold units no longer listed in My Holdings.

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