Macquarie to launch lending option fund
Macquarie Bankwill be launching a new lending option fund aimed at the retail market.
The fund will allow investors to borrow to invest in a pool of managed funds.
Macquarie Investment Banking Group executive director Peter Lucas says the new fund will be different to other lending products in that it will allow Macquarie to redirect investments into cash as protection against bad investments.
“We will invest all the money into cash if the investment is looking risky. This will give the investor a lower exposure to risk,” he says.
Lucas says the cost of production of the new trust is low, costing about 80 basis points.
The managed funds to be selected will be “best of breed” and Lucas expects to see between six to 10 funds being offered initially.
“We will be including both international and domestic equity funds together with some hedge funds,” he says.
The fund is expected to be launched early May.
Macquarie is currently seeking a Product Ruling for the trust.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.