Loan facilities are available using portfolios as collateral. Perpetual “hassle free” loans at competitive rates increase flexibility.
Equity portfolios have meaningful collateral value and the ability to borrow against equity value opens up a world of opportunity. Anchor Securities Private Wealth clients can obtain a lending facility against their portfolio at a very competitive rate.
Funds will be lent to a client based on the underlying value, spread, and liquidity of the portfolio. This product is referred to as a “carry account”. The funds obtained in this way can either be re-invested into additional assets with Anchor Securities Private Wealth (for example equities or unit trusts) or the facility may be used for any other purpose such as buying a house or a car or simply to fund short term day-to-day needs. If a client reinvests into qualifying shares, as much as a 100% facility could be made available, at a negotiated rate.
One of the biggest attractions of this facility is the “hassle-free” nature of the facility, a far cry from dealing with bank bureaucracy. Fast approval turnaround times and no initiation/structuring fees make this lending facility competitive and cheap. Interest is rolled, and the loan is perpetual, meaning that it has no term.
In times of market weakness, a carry facility enables a client to take advantage of obvious opportunities without selling out of the current portfolio. Other short term opportunities (eg. share placements) can be traded without disturbing long-term positions.
Anchor Securities Private Wealth staff have years of experience in the use of these lending facilities and we will guide you through the appropriateness and timing of implementing gearing strategies.