BT extends margin loans
BT Margin Lending has launched a regular gearing service into its retail managed funds, making it easier for clients and advisers to access margin loans.
The new service, previously available only through BT’s master trusts and wrap accounts, will give financial planners and individuals the option to regularly gear investments in a selection of retail funds, including those offered by BT Funds Management, Colonial First State and Perpetual Investments.
BT is also currently in negotiations with a series of other fund managers in regard to the gearing service, and is expected to announce an extension of the service to a wider selection of retail funds over coming weeks.
The new service is expected to attract clients who have previously steered clear of margin lending, allowing them to gear their investment every time they make a contribution to a managed fund rather than in one larger hit.
But the real boon could be for advisers, who will not only receive a trail on the entirety of the margin loan and on the investment in the retail fund, but also on every individual regularly geared contribution.
To access the service, investors need a minimum initial investment of $1000 per managed fund, and a further minimum monthly contribution of $1000.
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