UBS launches loan product

ETFs/superannuation-funds/ASX/

23 October 2014
| By Mike |

UBS has launched a new product – a limited recourse loan with no margin calls.

The company launched the product, UBS Investment Builders, this week claiming it would investors the ability to purchase shares, exchange traded funds (ETFs) and listed managed funds by paying a portion of the underlying security price themselves, while UBS then provided a limited recourse loan for the balance of the purchase price.

It said a key feature of buying the underlying shares through UBS Investment Builders was that investors became the beneficial owner and received exposure to price performance, dividends and potential franking credits.

The company claimed superannuation funds would be able to use UBS Investment Builders as one of the few ways to borrow to invest in listed shares and ETFs.

Commenting on the product, UBS head of derivative sales, Travis Miller said the product was innovative because it combined a limited recourse loan with a share or ETF that could be purchased on the ASX in a similar way to buying shares outright.

"UBS Investment Builders also offer individuals and SMSFs the benefits of potential interest deductions and franking credits, and in the case of UBS Dividend Builders, access to potentially enhanced dividend income streams,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS