(Nominee Entities who churn stock beneath the radar but who don't appear in the Top 30 of the register)
Following up on the churn numbers published the other day for the Top 30 holders, I have searched the register listings for the months of May, June, July and August looking for entities who are associated with significant buying and selling for any month but who don't retain a significant holding. These entities usually pass beneath the notice of anyone monitoring the Top 30 looking for any trends.
Interestingly, I came up with another bunch of Nominee companies (not private holders) for which the following statistics also make interesting reading.
And yes I am aware that some of the Nominee Holdings are broker controlled accounts that eventually disperse their holdings. But to where, and why do their clients need to have this facility, are the questions I would like to have satifactorily answered? And while the entities within the accounts may be simply looking to skim trading profits, they may also have other agendas as well.
Generally, Broker Nominee accounts are provided for sophisticated investors for ease of use and where anonymity might be considered an advantage. One of the conditions to qualify as a sophisticated or wholesale investor is to be able to demonstrate high net worth
Accordingly, I would generally associate the Nominee holdings with corporate clients rather than retail holders.
Trading Activity of Nominee Entities Outside The TOP 30
Month
ENTITY
Opening
OFF
ON
Balance
May
ACCBELL NOMINEES
9,026
452,054
485,446
42,418
June
ACCBELL NOMINEES
42,418
419,748
390,184
12,854
July
ACCBELL NOMINEES
?
0
0
?
Aug
ACCBELL NOMINEES
2,197
1,883,342
2,001,408
120,263
TOTALS
2,755,144
2,877,038
May
ABN AMRO CLEARING
107,697
163,178
138,592
83,111
June
ABN AMRO CLEARING
141,298
184,139
150,538
107,697
July
ABN AMRO CLEARING
?
0
0
?
Aug
ABN AMRO CLEARING
107,697
163,178
138,592
83,111
TOTALS
510,495
427,722
May
BAINPRO NOMINEES
10,474
1,133,654
1,143,004
19,824
June
BAINPRO NOMINEES
19,824
319,513
421,007
121,318
July
BAINPRO NOMINEES
?
0
0
?
Aug
BAINPRO NOMINEES
25,572
1,398,309
1,416,362
43,625
TOTALS
2,851,476
2,980,373
May
BELLSET NOMINEES
0
234,883
338,883
104,000
June
BELLSET NOMINEES
104,000
377,773
273,773
0
July
BELLSET NOMINEES
?
0
0
?
Aug
BELLSET NOMINEES
0
1,672,703
1,709,203
36,500
TOTALS
2,285,359
2,321,859
May
CMC MARKETS
19,000
148,227
129,232
5
June
CMC MARKETS
0
119,770
119,770
0
July
CMC MARKETS
?
0
0
?
Aug
CMC MARKETS
816
224,056
223,240
0
TOTALS
492,053
472,242
May
COGENT NOMINEES
282,481
39,522
28,031
270,990
June
COGENT NOMINEES
270,990
90,463
100,464
280,991
July
COGENT NOMINEES
280,991
0
26,000
306,991
Aug
COGENT NOMINEES
306,991
82,853
8,944
233,082
TOTALS
212,838
163,439
May
CS FOURTH NOMINEES
356,651
497,243
142,275
1,683
June
CS FOURTH NOMINEES
1,683
203,216
252,312
50,779
July
CS FOURTH NOMINEES
50,779
98,230
198,694
151,243
Aug
CS FOURTH NOMINEES
151,243
237,337
107,185
21,091
TOTALS
1,036,026
700,466
May
ECAPITAL NOMINEES
?
0
0
?
June
ECAPITAL NOMINEES
0
280,439
280,439
0
July
ECAPITAL NOMINEES
?
0
0
?
Aug
ECAPITAL NOMINEES
11,740
792,127
824,259
43,872
TOTALS
1,072,566
1,104,698
May
GOLDMAN SACHS NOMS
500
32,225
31,725
0
June
GOLDMAN SACHS NOMS
0
161,266
161,266
0
July
GOLDMAN SACHS NOMS
?
0
0
?
Aug
GOLDMAN SACHS NOMS
0
212,494
242,663
30,169
TOTALS
405,985
435,654
May
IDAMENEO (NO 79) NOMS
2,629
119,336
116,707
0
June
IDAMENEO (NO 79) NOMS
0
107,029
108,429
1,400
July
IDAMENEO (NO 79) NOMS
?
0
0
?
Aug
IDAMENEO (NO 79) NOMS
2,845
908,472
955,215
49,588
TOTALS
1,134,837
1,180,351
May
JERSEY INVESTMENTS
225,030
102,766
177,736
300,000
June
JERSEY INVESTMENTS
300,000
175,000
250,000
375,000
July
JERSEY INVESTMENTS
375,000
65,000
5,000
315,000
Aug
JERSEY INVESTMENTS
315,000
193,129
134,758
256,629
TOTALS
535,895
567,494
May
KARDINIA NOMINEES
11500
78,988
102,488
35,000
June
KARDINIA NOMINEES
35,000
183,000
158,000
10,000
July
KARDINIA NOMINEES
?
0
0
?
Aug
KARDINIA NOMINEES
0
640,109
799,447
159,338
TOTALS
902,097
1,059,935
May
MERRILL LYNCH
220,401
1,802,345
1,795,353
176,641
June
MERRILL LYNCH
213,409
1,010,330
987,998
380,090
July
MERRILL LYNCH
191,077
173,948
158,573
23,457
Aug
MERRILL LYNCH
175,702
1,242,023
1,164,173
117,852
TOTALS
4,228,646
4,106,097
May
MLEQ NOMINEES
2,920
239,932
242,350
5,338
June
MLEQ NOMINEES
5,338
590,816
599,925
14,447
July
MLEQ NOMINEES
0
206,394
207,146
752
Aug
MLEQ NOMINEES
7,846
1,403,007
1,419,784
24,623
TOTALS
2,440,149
2,469,205
May
MORGAN STANLEY
29,910
169,200
140,255
965
June
MORGAN STANLEY
965
193,044
212,501
20,422
July
MORGAN STANLEY
20,422
251,228
230,806
0
Aug
MORGAN STANLEY
0
366,347
415,307
48,960
TOTALS
979,819
998,869
May
NEWECONOMY
92,323
58,521
32,617
66,419
June
NEWECONOMY
66,419
106,418
122,436
82,437
July
NEWECONOMY
82,437
50,654
19,610
51,393
Aug
NEWECONOMY
51,393
128,320
102,450
25,523
TOTALS
343,913
277,113
May
PAN AUS NOMINEES
0
195,527
244,904
49,377
June
PAN AUS NOMINEES
49,377
269,498
255,184
35,063
July
PAN AUS NOMINEES
35,063
226,120
191,057
0
Aug
PAN AUS NOMINEES
0
270,008
430,018
160,010
TOTALS
961,153
1,121,163
May
PATICOA NOMINEES
29,953
568,904
568,465
29,514
June
PATICOA NOMINEES
29,514
428,665
418,659
19,508
July
PATICOA NOMINEES
?
0
0
?
Aug
PATICOA NOMINEES
12,275
752,979
769,104
28,400
TOTALS
1,750,548
1,756,228
May
PENSON AUSTRALIA
15,000
500,049
491,749
0
June
PENSON AUSTRALIA
6,700
226,947
222,747
0
July
PENSON AUSTRALIA
?
0
0
?
Aug
PENSON AUSTRALIA
0
900,375
1,123,900
223,525
TOTALS
1,627,371
1,838,396
May
PEPLON NOMINEES
10,450
62,400
54,950
3,000
June
PEPLON NOMINEES
3,000
250,680
250,880
3,200
July
PEPLON NOMINEES
?
0
0
?
Aug
PEPLON NOMINEES
1,453
232,933
267,780
36,300
TOTALS
546,013
573,610
May
SKEET NOMINEES
59,400
215,730
156,330
0
June
SKEET NOMINEES
0
66,825
66,825
0
July
SKEET NOMINEES
?
0
0
?
Aug
SKEET NOMINEES
0
1,146,572
1,251,572
105,000
TOTALS
1,429,127
1,474,727
May
UBS NOMINEES
?
0
0
?
June
UBS NOMINEES
6,410
0
4,1271
47,681
July
UBS NOMINEES
152,318
13,307
161,290
300,301
Aug
UBS NOMINEES
88,701
508,386
433,141
13,456
TOTALS
521,693
635,702
May
WARBONT NOMINEES
232,794
1,287,552
1,197,189
142,431
June
WARBONT NOMINEES
142,431
1,990,297
1,939,498
91,632
July
WARBONT NOMINEES
?
0
0
?
Aug
WARBONT NOMINEES
355,567
4,118,655
3,765,088
2,000
TOTALS
7,396,504
6,901,775
COMMENTS
The following observations come to mind.
The Nominee Entities usually have insignificant net holdings on the register by the end of the month's trading.
The number of shares bought and sold each month can be quite substantial
Some Nominees have churned for a couple of months and then simply ceased trading for an entire month, before resuming again
Churn volumes generally exploded after the resource upgrade announcement in the middle of August
For the 4 months of trading, the total share movement for the register was 170.7 million shares. Combined, the trading of all Nominee Accounts accounted for 78.3% of share movements OFF the register and 78.5% of movements ONTO the register.
For the month of August where total share movements amounted to 88,641,600 shares (an astonishing figure really as it is more than the previous 3 months combined), 'faceless' Nominee entities accounted for 82.5% of the movements OFF the register, and 83.8% of the share movements ONTO the register. A small net accumulation in fact!
The Nominees in the above lists also aren't dumping shares, as they don't hold many to start with, but they are generally buying and selling in similar quantities. Maybe they are dumping via shorting both intra day and over longer periods, with the aim of buying back cheaper. If so it has been a winning strategy, but I suspect not for much longer as prices have reached levels that should attract copper focused investors.