Macquarie wraps up margin lending
Macquarie will add a margin lending facility to its wrap account service in what it describes as the first geared investment features to be added to a wrap account.
Macquarie will add a margin lending facility to its wrap account service in what it describes as the first geared investment features to be added to a wrap account.
The Macquarie Portfolio Manager service, which is just over eight months old, will use Colonial's Investment Accelerator in a pilot project with a number of dealer groups.
The timetable for a wider rollout is set for July and will include geared equity products from other providers in the future.
"We are looking at two to three others in the medium term being rolled out to all existing customers as this part of the business is becoming substantial," says Mac-quarie Portfolio Services division director Neil Roderick.
Roderick says the group is adding the margin lending products to its lineup after research from across the country found planners and clients wished to use margin lending facilities within a wrap service.
"Our research shows planners prefer calculations of loans and margin calls to be based on the total value of the client's portfolio, rather than using a complicated formula involving different percentage weighting for different stocks," Roderick says.
"We ran discussion groups with advisers across the country and they confirmed the demand we were receiving from them and so this is a direct response to that."
All margin lending products within the wrap will keep their original branding with Roderick saying Macquarie regards itself as a facilitator offering named products which advisers and clients wanted to use.
The product will have access to 300 ASX listed stocks and 80 managed funds with a minimum loan of $20,000 and clients initial contribution being $7,500.
Roderick says however that it will still be pitched towards the medium to higher net worth end of the market.
"Wraps in general are more appropriate for this end of the market, and though it is available across the board, we are not seeking to change the profile of the service. Ideally we would expect clients with an investment portfolio over $100,000 to be attracted to the service."
AUTHOR
Jason Spits
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
