Dumb query

Sorry - this is a very basic question but I need a starting point & thought of Invested. As background, property is my main field.

I have some managed funds margined through St George. I now want to buy some shares & margin them up by 40%. I know what I want to buy, don't want advice, just do it. How do I do this?

• Do I advise my margin lender to buy xyz share with a 40% margin?
• Or do I buy the share first & then contact my margin lender?

If I have to purchase them myself I was looking at an on line broker facility.

 

Assuming you have a margin facility set up and have already lodged the Managed fund with the faciltiy (if not you 1st complete this process), you would just buy your chosen shares at the value that would give you an overall LVR of 40%.

For example, if your managed fund is worth $12k and you want to gear to a total LVR of 40% would would then buy $8k of your chosen stock, as this would leave you owning $20k of funds and shares and you would owe $8k which is 40% of the $20k.

You should bear in mind the LVR rating that your margin loan provider has for the both the existing managed fund and the desired stock, which should be readily available on the margin loan provider's website.

 

Hi Rambada,

You need to make sure the account is set up correctly with the stockbroker (whether it discount or otherwise) the broker should know to settle it DvP with SGB ML. SGB ML use the trading name Value Nominees. Call SGB ML account managers on 1300 305 172. If you want a 0.2% discount PM me as I am a SGB FP.

Cheers,

Dan

 

If you want a .4% discount get your St George margin loan through 2020directinvest on line FPs.

 

Online FPs?
That's new...