Another way
to expand your investment

Margin Lending

BORROWING AGAINST YOUR PORTFOLIO

Margin lending gives investors the option to borrow against their existing securities, so they can invest more than they’d otherwise be able to.

USING YOUR PORTFOLIO’S EQUITY

If you decide to use a margin lending strategy, you will get a load (up to a certain level of your existing investment portfolio) that uses your portfolio’s assets as security.

THE BENEFITS OF MARGIN LENDING

With a margin loan facility, you can borrow funds from your existing portfolio to buy more shares.  Making it a great way to grow your wealth using what you have already built.

Considering the risks
Margin lending isn’t right for every investor, and you will need to think about your tolerance for risk before making a decision (since there is a potential for loss, as well as gain).  It is important that you only borrow what you can afford, and what you are comfortable with – so you can make regular interest repayments to keep your loan balance manageable.

Keep an eye on your portfolio
The value of shares can change quickly, so you will need to monitor your margin loan portfolio closely. Make sure you are regularly checking the loan-to-value ratio, and be aware of any changes that might make your portfolio healthier.

How Hobson Wealth can help
Margin lending is a sophisticated way to invest, with higher potential risks than other investments. So it is a good idea to talk to an expert, like a Hobson Wealth adviser, before you make a decision. They will explain everything and talk you through the benefits and risks involved in detail. Then, if you decide to go ahead, they will guide you through the process, and can help you manage your margin lending account in the long run.
Margin lending is subject to the provider’s terms and conditions and approvals.

How can margin lending help grow your wealth?
With a margin loan:

– you will have more funds available to invest
– you can use the income of the acquired shares to offset your interest payments, which could help you save on tax too
– you are able to re-weigh or diversify your portfolio without selling down
– you can grow your portfolio without having to draw on other assets.

Hobson Wealth Partners Limited is a leading private wealth advisory team with offices in Auckland, Tauranga, Wellington and Christchurch.

We operate our business with a strong focus on your wealth, so we can provide you with a high-quality, professional service. Whether you are looking for strategic investment planning and management, advice on securities, assistance with asset allocation, portfolio construction or securities trading, we can help.

Our people own the majority of the company. Macquarie Group Limited owns a strategic equity interest. Hobson Wealth was originally known in New Zealand as Macquarie Private Wealth.

Being majority owned by New Zealanders, we have the local insight to create well-rounded investment strategies. Our advisers and portfolio strategists have the global experience to take your investments to the next level, and the grounding to help you do it confidently.

The right investments are based on more than your finances. We will look at your individual circumstances, lifestyle goals and market conditions – so you can make better informed decisions that are truly right for your future.

Hobson Wealth’s global network of experts, access to extensive market research and industry relationships offer a world of unique investment opportunities for our clients.