Leveraged Equities is one of Australia’s first and longest continuously operating margin lending firms founded in 1991 by stockbroker Ord Minnett. The business model focused on a private banking style account management service combined with an innovative and responsive product offering.

In 2000, the success of these foundations saw it recognised by analysts as the pre-eminent lender to the stockbroking sector with an estimated market share of 40%. 

At this time, the business was sold to Adelaide Bank who were looking to diversify away from mortgage lending. Since 2000, the Bank’s margin lending book has grown to $4bn both organically and by acquisition- purchasing the Hartleys and Goldman Sachs Margin Lending businesses as the industry consolidated.

Despite one of the most well recognised and respected brands throughout the Australian margin lending industry, the business successfully adopted the wholesale model of its parent, establishing white label offerings with key partners ABN AMRO Morgans, Ord Minnett, Tolhurst, Navigator and Goldman Sachs JBWere.

For 17 years, Leveraged Equities has continued to operate and grow year after year- this longevity demonstrates how to be a successful lender in all markets by combining robust, solid credit policies with flexible, customer focused products and superior customer service.

As a result of parent Adelaide bank merging with Bendigo Bank to form Bendigo and Adelaide Bank in late 2007, in June 2008 Leveraged Equities merged the operations of 

Bendigo Margin Lending into its existing business. The Bendigo Margin Lending business has a strong retail network referrer base and as a result, the merger offers 

Leveraged Equities a new opportunity- to offer its fully featured, all market margin lending offer to a 400 strong Australia wide branch network. So from stockbroking roots, Leveraged Equities now sees itself with the opportunity to continue to grow through the financial planning channel as well as building loans under management via the retail branch network.

Rebate Financial Services will rebate 100% of all upfront commissions, where an ongoing commission is payable, when you invest in Leveraged Equities using Rebate Financial Services as your nominated adviser.  Where there is not any ongoing commission payable, Rebate Financial Services will rebate 80% of any upfront commission payable on your investment.  We will instruct Leveraged Equities to rebate 100% of all upfront commission as additional units in your investment.  This means you will have more of your investment dollar working for you right from the start.  We will also instruct Leveraged Equities to rebate 100% of all commission generated by future additional investments and regular contributions, again as additional units in your investment.   Many investment products have entry fees of around 5%, this upfront saving has the potential to significantly increase your returns over the life of the investment.  Where Leveraged Equities pays an upfront commission directly to Rebate Financial Services, we can directly credit your nominated bank account or send you a cheque, once the commission has been received.  Where ongoing commissions are not payable to the nominated advisers, Rebate Financial Services will rebate 80% of the upfront commission payable as additional units in your investment or, if this method is not available, by direct credit or cheque to the investor once the commission has been received.

Where your investment does not generate ongoing commission or there is a set time period for the investment or where commission rebates vary there will be full 

disclosure of what is received by Rebate Financial Services.

Rebate Financial Services will also rebate 50% of the ongoing commission payable on your investment where we receive in excess of $20 per month, per fund manager.

If you already have an investment in Leveraged Equities, or any other financial product, either directly or through a financial planner, you may be paying entry fees on any additional or regular investments.  There may also be trailing commissions being paid on your Leveraged Equities investment.  

Download and complete the Nomination Form below to receive up to 100% rebate or cancellation of future entry fees and up to 50% of any trailing commissions that 

are currently being paid to a financial advisor or being kept by the product issuer. Trailing commissions paid by financial institutions generally range from 0.20-0.60% p.a. 

These commissions are generally paid for out of the management fees levied against your investment are not an additional charge to you.

 

 

Features and benefits

Convenience - PowerHouse allows you to consolidate all your investment assets (property, shares and managed funds) on the one loan account. The consolidation of all your assets also helps you increase your borrowing power.

Flexibility - The daily operations of your margin loan account will not change with PowerHouse. Your loan continues to operate as a line of credit facility with no scheduled monthly interest of principal repayments. There are no restrictions on the size or frequency of draw down amounts or transactions provided they are within your maximum drawing level.

Stability - In comparison, if you hold shares or managed funds as security, you face daily value fluctuations, whereas PowerHouse allows the margin value of your security property to remain fixed for the first 10 years. This can significantly lower the risk of a margin payment being required on your account.

Savings - PowerHouse offers competitive interest rates. Once the property is added to your account as security, your interest rate will be discounted. This discounted interest rate is applied to your total loan balance, including any loan portion which is already secured by shares, managed funds, cash deposits, master trusts and assets within wrap accounts.

Features and benefits

Leveraged Equities offers a capital protected investment that allows you to borrow 100% of the purchase cost of your shares with all the upside of share ownership but with no 

margin calls* or risk of capital loss.

- 100% Capital protection - you will never receive a margin call as a result of falling share prices.*

- 100% Upside - as there is no offsetting of losses against gains, you profit from the winners and hand back the losers.

- 100% Finance - you can borrow the full purchase cost of your shares without having to provide any equity contribution. You only have to cover your interest obligations.

- 100% Ownership - you receive all dividends and franking credits from the shares.

- Tax benefits and interest deductibility - your only outlay is the interest payment which may be tax deductible depending on your personal circumstances.

- Broker of choice - you are free to trade your shares through a broker of your choice.

- 1,2,3,4 or 5-year terms - you can lock in your interest rate for up to 5 years. Interest rates vary depending on the term of the loan and the shares chosen. You can pay the interest monthly in arrears or annually in advance.

- Loan size - the minimum loan is $50,000 for a single stock and $100,000 for a portfolio of shares. There is a $30,000 minimum trade in each stock for a $100,000 portfolio and a  $40,000 minimum trade in each stock for a portfolio greater than $100,000.

- Trading ability - clients are able to trade their protected securities above the protected price over the term of the loan.

- Write Call options over protected stock - clients are able to write call options above the protected price of their securities. This can generate income to help offset annual interest payments on the Share Protection Plan.

Features and benefits

Profit from a falling market - ShortShare allows you to profit from a falling share market as you can sell stock that you have borrowed and then buy it back at a lower price.  Leveraged Equities has a broad list of approved stocks for ShortShare and will arrange to borrow the stock for you.

An alternative hedging tool - You may decide to hedge part of your portfolio by using ShortShare, as fully paid shares are generally more liquid than alternative hedging tools such as options and warrants.

Long/short trading strategies - ShortShare can allow you to adopt a more sophisticated trading strategy in the ordinary market, such as where you buy a stock you think will rise and sell another stock that you think will fall. This enables you to potentially profit on both sides of the trade. For example, you may have a view about two stocks in the one sector or a view that one sector will rise and another will fall in a similar time frame.

Pre Capital Gains Tax (CGT) stock - If you hold shares that were purchased prior to CGT legislation, but you have a view that they will drop in value, you still may be reluctant to sell. Instead, you could use ShortShare to sell borrowed stock and then make a profit by buying back the position after the price has fallen. You retain ownership of your original holding and have not realised the CGT liability, but have not been disadvantaged by the price drop.

Disclaimer: Information provided by Rebate Financial Services on this fund manager and its products is either factual or concerns observations of investor behaviour. 

This infortmation is not intended to be, and should not be considered to be recommendations or advice.  If you require advice please contact your financial advisor, or contact Rebate Financial Services for a referal to one.