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Investment Opportunities > Margin Lending > Leveraged Equities Margin Loan

Leveraged Equities Margin Loan

 

A Leveraged Equities Margin Loan allows you to borrow, in addition to your own capital, to invest in shares, managed funds, cash deposits, and assets within wrap accounts.

In addition to a comprehensive acceptable investments list, a Leveraged Equities Margin Loan features:

  • Exchange Options Plus: combine options transactions with margin lending
  • Short Plus: sell borrowed shares, with the intention of buying them back at a lower price at a later date
  • Instalment Plus: automated monthly saving plan
  • Rewards Plus: earn Qantas Frequent Flyer points on the loan balance of your margin loan.

 

Access Preferential Rates via 2020 DIRECTINVEST

2020 DIRECTINVEST is able to negotiate competitive variable and fixed interest rates with Leveraged Equities for new clients*.

Contact us for a quote 

 

About Leveraged Equities

Leveraged Equities is one of Australia’s first and longest continuously operating margin lending firms. Founded in 1991 by stockbroker Ord Minnett, Leveraged Equities has built a foundation of private banking style account management service, combined with innovative and responsive products, including margin loans and investment loans.

 

Benefits of a Leveraged Equities Margin Loan

Increase the amount you have available to invest

If your investments earn a net return that is higher than your borrowing costs then, by investing a larger amount, you will earn a higher net after-tax return than if you had not borrowed.

Diversify an existing portfolio without selling

If you already own an investment portfolio, you may be able to borrow funds to invest in other financial products. This may reduce some of the financial risks associated with investing.

Manage your investment activities with the help of a flexible facility

A leveraged Equities Margin Loan has a number of flexible features including a number of ways to pay interest, operate your Margin Loan Facility with your other investment accounts and a variety of investments that may be used to secure your obligations.

Potential tax deductibility

You may be entitled to claim an income tax deduction for some or all of your borrowing costs depending on your individual circumstances.

 

Please also be aware of the key risks of margin lending

  • Changes in the value of your portfolio and interest rates: it is possible that the performance of your investments or changes in interest rates will result in you earning a lower return or incurring a larger loss than if you had not borrowed to invest.
  • Events may occur that result in your loan becoming due for payment: Events, such as margin calls, events of default or termination, can result in some or all of your loan being due for payment in a short period, including immediately.
  • Mismatch of cash flows and restrictions on the ability to deal in investments: interest and other charges can become due for payment before you receive any distributions from your investments.
  • Net proceeds may not cover the loan: you are required to repay the total amount owing when declared due irrespective of any net sale proceeds.
  • Reliance on the Lender, Nominee and Sponsor, and any Authorised Person: including the operations, policies and procedures of the Lender, Nominee and Sponsor, and the Authorised Person acting in your interests.
  • Powers of the Lender, Nominee and Sponsor, and legislative changes: you give a Power of Attorney allowing certain acts by the Lender, Nominee and Sponsor. Changes to legislation and taxation policies can impact your facility.
  • A margin loan is more complex than a traditional loan: gearing can magnify your potential gains and losses. Ensure you have read and understood the Product Guide, as well as obtain the appropriate financial advice before investing.

 

Contact us for an interest rate quote

 

 

Important Note

*2020 DIRECTINVEST will charge a one-off access fee of 0.25% of the loan amount. There are no commissions in a Leveraged Equities Margin Loan. 

 

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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