Accelerate the performance of your portfolio
Our Lombard Facility enables you to invest more than would be possible by using just your own funds, magnifying your return potential.
Diversify your investments without realising capital gains
With more funds to invest you can spread your potential risk across a wider range of investments. You can achieve this without the need to sell your existing holdings, which can result in capital gains implications.
Liquidity
Easily access equity in your investment portfolio without the need to sell your holdings and incur the tax consequences. With the Lombard Facility you obtain a line of credit for investment purposes.
Access opportunities
Using the liquidity a Lombard Facility provides you can efficiently take up investment opportunities as they arise without disrupting your long-term investment strategies.
Utilise excess investment income
You may wish to forgo dividend and interest income for potentially higher growth. Our Lombard Facility can use this investment income to fund exposure to a significantly larger portfolio.
Manage currency exposure
Borrow in the same currency as you wish to invest to reduce your exposure to unwanted currency movements. FX forwards are also available under the Lombard facility to tailor your currency exposure.
Tax considerations
Interest payable on borrowed funds may be tax‑deductible, provided that the funds are used for a business or investment purpose. You can also prepay the interest on your loan in certain circumstances.
^ Credit Ratings A+ from Standard & Poor's and Aa2 from Moody's as at March 2023.
Important note
This web page was produced in January 2024.
This document has been authorised for distribution to ‘wholesale clients’ and ‘professional investors’ (within the meaning of the Corporations Act 2001 (Cth)) in Australia only.
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