Margin Lending – Accelerate your investments

Margin Lending is a facility that is offered to investors, to enable them to effectively borrow against their existing shareholdings to purchase more shares.

Similar in nature to a mortgage, it provides investors the ability to;

• Utilise existing share investments to borrow money to purchase additional shares
• Increase their exposure to the sharemarket without utilizing cash, that may be tied up in other investments
• Lower investors overall risk, by enabling diversification without having to commit additional funds
• Generate greater returns from your existing investments

Margin Lending will typically allow you to borrow up to 70% or 80% of the value of approved securities. Similar in nature to a mortgage to purchase a property, you will be asked to ‘deposit' your existing shareholdings with the provider of the margin loan, who will hold the shares as a security over the loan you take, to purchase additional shares.

Through careful planning, Margin Lending can give you the scope and flexibility to reach your financial goals faster.

Margin Lending involves risk and therefore NZX recommends that you discuss your financial goals with an NZX Advisor, to understand whether or not margin lending is right for you.

Please find below links to Firms who currently offer Margin Lending Facilities.

NZX Market Particpant
ABN Amro Craigs	www.abnamrocraigs.com Ph: 0800 272 442
ASB Securities	www.asbsecurities.co.nz/section642.asp
Goldman Sachs JBWere (NZ) Ltd	www.gsjbwere.co.nz/marginlending
Leveraged Equities	www.leveragedequities.co.nz
Macquarie	www.macquarie.com/nz/margin_lending/product_details.htm Geoff Seed Ph 04 462 4913 or toll free 0800 SHARES (0800 742 737) Email geoff.seed@macquarie.com