Lonsec enters margin lending market
Lonsdale Securities (Lonsec)has entered the margin lending market with the launch of two Margin Lending Recommended Portfolios based on its Model Equity Portfolio.
The portfolios are designed to combine direct equities and managed investments and offers two portfolio configurations to choose from — a 50 per cent direct equity and 50 per cent managed fund, or a 35 per cent direct equity and 65 per cent managed fund.
The Margin Lending Recommended Portfolios use the same stock selection as the Model Equity Portfolio, a 12 stock portfolio which has long-term buy and hold position.
Lonsec head of equity research John Watson says the margin lending portfolio’s would also factor in specific margin lending-related criteria, such as dividends and risk profile over 12 months,
Over the past two years, the Model Equity Portfolio has made a total return of over 70 per cent, giving Lonsec further confidence to launch the geared product.
Watson says the products were developed in response planner’s demand for model margin lending investment portfolios.
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