Tailored Equities Multiplier
The Share Protection Plan (SPP) product is currently under going product development and a new version of this product will be released in 2010. It will be called Tailored Equities Multiplier (TEX) and will include changes to the operation of the product as well as a new look.
TEX is a type of investment loan that allows you to borrow 100% of the purchase price of your investment portfolio while removing the risk of margin calls.
What is SPP?
SPP is 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.
Features & Benefits
- 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 - you are able to trade
protected securities above the protected price over the
term of the investment.
- Write Call options over protected stock - you are able to write call options above the protected price of the securities. This can generate income to help offset annual interest payments on the Share Protection Plan.
Case Study
A detailed case study on how a SPP loan can benefit your investment portfolio can be found in the Share Protection Plan flyer below.
Downloads
- Download a copy of the Leveraged Equities Share Protection Plan Product Document
- Download a copy of the Leveraged Equities Share Protection Plan flyer (including case study)
- Click here to download a copy of the Leveraged Equities Margin Loan brochure dated 29 January 2008 (this version of the brochure will only be accepted for SPP applications)
How to Apply
You and any Guarantor must read the Share Protection Plan Product Guide and the Margin Loan brochure dated 29 January 2008 in their entirety before applying for a Share Protection Plan.
Please complete:
- The Leveraged Equities Share Protection Plan Application form (all clients).
- If you are a new client, also complete the Margin Loan Application Form.
* You will never receive a margin call as a result of falling share prices. A margin call will be made if annual interest payments are not met. Capital contributions may be required as a result of Corporate Actions.
