Increase your participation in the share market and accumulate wealth faster through gearing.
Bell Potter Portfolio Lending is a margin lending product offered by Bell Potter Capital. It is for people who want to use gearing to build a strong portfolio of investments and to gain greater market exposure.
Used as part of a comprehensive investment strategy, responsible gearing gives you the potential to accumulate wealth faster than if you only used your own funds to invest, so that you can reach your financial goals sooner. Gearing also has the potential to help you own a more diversified portfolio and may have tax advantages for certain investors.
FULL VARIABLE INTEREST RATE SCHEDULE
$100,000
9.80%
$100,000 – $250,000
9.70%
$250,000 – $500,000
9.60%
$500,000 – $750,000
9.40%
$750,000 – $1,000,000
9.20%
$1,000,000 – $1,500,000
9.00%
$1,500,000
8.90%
Margin lending rates last updated: 8 November 2023
KEY BENEFITS
Multiply your investment potential
Use your loan to buy more approved domestic or international shares or managed funds for your portfolio, increasing your potential capital growth and income.
Competitive market offering
Our typical loan-to-value ratio (LVR) for major global companies is 70% and 75% for blue chip domestic securities. We offer very competitive variable, fixed and pre-paid rates. There are no establishment, maintenance or administration fees or minimum balance requirements. The Bell Potter portfolio lending facility can remain undrawn until required at no cost to the client.
Investment tax effectively
Depending on your own personal tax situation a margin loan may help maximise the after tax return on your investments by: 1) increasing your exposure to franking credits 2) claiming interest costs on your loan as a tax deduction, and 3) bringing forward your deductions by using our prepaid rates.
Access to well-known brands
Through Bell Potter you can purchase both domestic and international shares using your portfolio lending facility.
Ownership
You remain beneficial ownership of the stocks in your portfolio (unless you are in default).
Diversification
Create a more diversified portfolio without having to sell existing holdings.
Tools to monitor your portfolio
You can view your holdings, portfolio performance, end of day pricing and notifications via our Client Access website.
RISKS TO CONSIDER
Fall in value of portfolio
If your portfolio falls below a certain value – known as the loan-to-value ratio (LVR) – you could face a margin call. You could be required to add more collateral to your loan or to sell down stocks to cover the short call in value.
Interest rate increase
An increase in interest rates may mean that dividend receipts will cover less of the financial costs.
Full recourse
Margin loans are full recourse meaning that if you can’t pay back the loan, other assets owned by you may be sold to repay the outstanding amount.
Securities we lend against
SUITABILITY
Margin lending is not for everyone and should only be used as part of a wider investment strategy. Bell Potter investment Advisers can provide margin lending advice to help you work out if margin lending is suitable for you.
As part of the application process for retail clients you will need to complete a Suitability Statement, which asks questions about your current income, expenses, assets and liabilities.
Key Documents
Recent Changes – List of Approved Securities
Portfolio Lending Brochure
Portfolio Lending Product Disclosure Statement (PDS)
Portfolio Lending Application Form
Bell Financial Trust Product Disclosure Statement (PDS) and Application Form
Master Priority Deed
The Bell Financial Trust Target Market Determination (TMD) is available free of charge by contacting Bell Potter Capital Ltd on 1800 061 327 or by clicking on the link below. Previous versions of the TMD are available by calling 1800 061 327.
Bell Financial Trust Target Market Determination