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Date: 1/1/2009 4:42:01 PM
Author: drppingsoprano Country Flag
Subject: 12260/19638 - running a DRIP and SPP from a discount brokerage
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slimshady on 1/1/2009 3:12:42 PM

I've done a little research and found postings that the DRIPS offered by discount brokers are synthetic DRIPS that won't invest partial units and only allow it if you subscribe to it for all companies you own.

I have been looking into the Enbridge Income Fund (ENF) and the DRIP registration documents specifically are meant to be provided to your broker for enrollment, they also offer a monthly purchase program which is to be also sent to your broker for enrollment.
Does anyone know if this means you can get full reinvestment of the distribution including partial units this way and if my broker will charge me commission for any monthly purchases under the plan?

drppingsoprano on 1/1/2009 3:42:01 PM

There are two different kinds of DRPs - the ones you do through the TA (Transfer Agent), and the ones you do through a broker. I highly suggest you read the DRiP 101 articles in the articles section of this site, as this should clear up your confusion.

You should be aware, if you have been reading the ENF.UN materials, that you need to have 100 shares to enroll in the DRP through the TA.

studog on 1/1/2009 5:39:26 PM

slimshady on 1/1/2009 3:12:42 PM:
and the DRIP registration documents specifically are meant to be provided to your broker for enrollment

I believe what this is for, and other but not all DRIPs have similar language, is to allow your broker to enroll in the TA-run DRIP on your behalf. Theoretically this would mean fractional reinvestment in your broker account.

This of course requires your broker to cooperate, and since they run their own synthetic DRIPs I'm not at all hopeful they would. Still, you don't know until you ask.

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