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BT Professional Investment Loan

Fund Category Miscellaneous
Minimum Initial Investment $50,000
Expected Close Date 23 June 2014


A next generation investment lending solution for building wealth, with no margin calls.

The Australian share market can provide a wealth of opportunities for longer-term capital growth, income and diversification.

The BT Professional Investment Loan provides the opportunity to build a diversified portfolio of Australian securities. By combining your choice of portfolio with responsible gearing levels, a competitive interest rate and no margin calls, you now have a new alternative for building wealth through gearing.

  • Borrow to invest into Managed Funds and Exchange Traded Funds
  • No risk of margin calls for up to 5yrs
  • Borrow up to 70%, full-recourse at maturity
  • Potential tax deductions for prepaid interest
  • Receive any dividends and franking credits
  • Investors required to have income $150k+ pa

 

Strategy for 30 June - Borrow up to 70% to invest in high dividend ETFs

BT is offering a special 12 month fixed interest rate for investors in BT Professional Investment Loan if using the Russell High Dividend ETF (RDV.AX)

  • Loans > $500,000 1 year fixed rate - 5.39% p.a.
  • Loans < $500,000 1 year fixed rate - 5.79% p.a.

A BT Professional Investment Loan, together with the Russell High Dividend ETF:

  • give clients the confidence to make a tactical asset allocation to the Australian share market,
  • with the comfort of no margin calls
  • the potential for interest deductions through the prepayment of interest, and
  • exposure to broad based exposure to an ETF with a track record of outperformance*

For more information, download and read the case study.  Click here for more information on the Russell High Dividend Australian Shares ETF.

*Past performance is not a reliable indicator of future performance and returns are not guaranteed.

 

AT A GLANCE

Minimum loan $50,000
Max term 5 years
Repayment Interest only with principal repayment on maturity
Early repayment Ability to repay early without penalty (break costs may be payable on fixed rates)
Margin calls No margin calls during the term of the facility
Capital protection No
Gearing levels 50% - 70% depending on the size of the loan

 

Who should consider a BT Professional Investment Loan?

BT's Professional Investment Loan may suit those

  • With a positive long-term view of the Australian share market.
  • Aims to build a diversified portfolio of equities
  • Seeks to invest in the share market through gearing without margin calls
  • Has the potential to benefit from the tax considerations that apply when borrowing to invest in equities
  • Is likely to be a professional with the financial resources to support the ongoing funding of this facility.

 

How to apply

Investors required to have income $150k+ pa to apply

  1. Download and read the Facility Agreement (product disclosure statement)
  2. Complete the enclosed application form including credit assessment and provide required documents
  3. Please ensure you notify our office of your intention to invest to ensure you receive the special interest rate.
  4. BT will sponsor an investor's HIN with any broker. Investor places the trade with broker to buy RDV.

Applications are required to be received no later than 23 June 2014 in order to be processed by 30 June.

 

Risks associated with a Professional Investment Loan include:

  • Borrowing to invest can increase your potential returns; it can also increase potential losses
  • The value of securities may not go up, or, if they go up, the increase in value may not be sufficient to cover costs of the investment
  • You need to ensure that you can fund your obligations under your loan including any interest, fees and changes. If you can't, the securities will be sold to satisfy these obligations
  • You should also consider the taxation consequences and seek independent professional tax advice.

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FEE DISCLOSURE

2020 DIRECTINVEST may receive a trailing commission of up to 0.35% pa of the loan value of the BT Professional Investment Loan.

Disclaimers and other important information

Investments

Australian shares
International shares
Property
Fixed income
Cash

 

Investment products

Managed Funds
Managed Accounts
Superannuation Funds
Wrap Accounts
Insurance Bonds

Strategies

St George Margin Lending
BT Margin Lending
Investment Bond
Sophisticated Investor Opportunities
Self Managed Super Funds

Fund managers

Colonial First State
Perpetual Wealthfocus
BT Investment Funds
MLC Masterkey
Spectrum Super

Australian Fund Managers

Investor Education

Managed investments
Superannuation
Separately managed accounts
Wrap accounts

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