NAB Wealth launches SMSF margin loan product
NAB Wealth has launched a new product aimed at giving self-managed superannuation funds (SMSFs) access to margin loan facilities.
The group announced this week the launch of NAB Super Lever, which it describes as "an innovative margin loan product that allows SMSFs to borrow money to invest in listed shares and unlisted managed funds".
It said the product was being offered by NAB Equity Lending and is the first standard margin loan product of its type, designed for more sophisticated SMSF investors.
Commenting on the new product offering, NAB Equity Lending head Adrian Hanley said Savvy SMSF investors can borrow a minimum of $20,000 to purchase a single parcel of shares or units in a managed fund from the NAB Super Lever Approved Investment List.
The loan is interest only, which gives the trustee of the SMSF the flexibility to choose how fast the loan is repaid.
Head of NAB Equity Lending Adrian Hanley said: "NAB Super Lever presented a new investment option for SMSF investors who wanted to enhance their exposure to growth assets using a gearing solution designed for them.
"NAB Super Lever enables SMSF investors to test the concept of gearing with small transactions and no fees, providing the opportunity to build a footprint in the stock market," he said.
Hanley explained that to help SMSF trustees manage their financial obligations, the fund could only contribute a small portion of the total fund value into NAB Super Lever, ensuring the total value of the fund wasn't held as security - something which gives investors the ability to use it for other purposes such as mandatory pension obligations.
Trustees could also set the initial level of gearing, with a maximum between 40 per cent and 60 per cent, based on the investment choice.
"Market conditions might be tough, but for those SMSF investors with a longer term view, NAB Super Lever is a flexible new solution to create a geared exposure to the share market," Hanley said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
