Macquarie keen on margin lending
Macquarie Portfolio Services has linked Macquarie Margin Lending to its wrap account, a move that may see the beginning of a margin lending offering spree within the group.
The link between the two Macquarie divisions was finalised earlier this week, making it the second margin lending addition Macquarie has made in the past year. Last year the group added Colonial's margin lending product to the Macquarie wrap.
Macquarie Portfolio Services division director Neil Roderick says the addition of Macquarie's margin lending product to the Macquarie wrap was not a new decision, simply a move in response to adviser group demand.
"Advisers are telling us that they want access to Macquarie margin lending. They wanted to use the colonial one so we added it, now we have added ours," he says.
Roderick says such demand could even see Macquarie add further margin lending products to its wrap before 2001.
"Before the end of the year, I'd expect that we might add another one or two margin lending products, depending on demand," he says.
"We have a particular one in mind, from another margin lender, however I can not say anything as yet."
The Macquarie wrap account began in October 1999 and according to Roderick has grown rapidly since then. At present, more than 90 dealer groups use the Macquarie wrap.
The most recent link between Macquarie's divisions will offer Macquarie clients a 60 per cent loan to value ratio, enabling them to leverage their existing portfolios or begin accelerating their savings plans.
It will enable both one-off and irregular investments to be made into the client's choice of nearly 200 approved listed securities and managed funds.
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