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St George Stops Margin Lending On Navra!

Discussion in 'Managed Funds & Index Funds' started by Cheeks, 17th Dec, 2007.

  1. Cheeks

    Cheeks Member

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    Location:
    Karratha, WA
    Hi

    I submitted an application to buy additional units in the Navra AUS retail fund late last week. I checked my account today and part of my holdings have a 75% margin and part have 0%.

    Apparently St George have reached their allocated limit for the fund and not allowing any additional lending against the fund which they failed to tell me but processed my application anyway.

    So today I'm at 51% LVR with a maximum 50% available so I'm already in risk of a margin call.

    Very unhappy with St George!
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Have you actually checked with them what the situation is ? Is it possible that their online account information hasn't updated with the new information yet ?

    According to their website they are still lending on Navra AUS Retail

    It's not uncommon for accounts to show incorrect LVRs for new investments while everything gets updated.
     
  3. Cheeks

    Cheeks Member

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    I have check with them and they have stop lending on any new units.

    They are investigating why with their internal risk department but at this stage they are not willing to comment if lending will be opened up again.
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Given that their website still lists it as an acceptable security (make sure you print a copy of that PDF file as evidence - before it changes!), if they refuse to give you margin for your application - I would insist that they fix the problem for you (by either giving you security or by "cooling off" on the investment and giving you your money back).

    If you had known they weren't going to accept the security, you wouldn't have made the application - and it is unacceptable for them to mislead you in this way.
     
  5. Cheeks

    Cheeks Member

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    Hi

    On the web site it states "Near maximum - further lending on this security may not be accepted" which I think gives them a loop hole, however they should have called me to let me know especially as it put me over my maximum LVR!
     
  6. MJK

    MJK Well-Known Member

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    Called St George yesterday, said they would look into it and cal me back. No call yet. Said maybe they will review there limit. Original limit was 20mill units I think they said.

    Cheeks,

    Any progress? Have they now allowed the gearing?

    MJK
     
  7. Gem16

    Gem16 Member

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    14th Sep, 2007
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    Location:
    Brisbane
    I called St George yesterday as we are in the same boat as Cheeks, ie submitted an application last week to purchase units in Navra with 60% margin loan. St George has approved the application.
     
  8. AsxBroker

    AsxBroker Well-Known Member

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    Location:
    Sydney, NSW
    Hi Cheeks, MJK and Gem,

    I've sent an email to two contacts in SGB ML this evening so hopefully I'll get an answer shortly. Also if you would like a 0.2% pa discount on loans under $250k I can help arrange this.

    Cheers,

    Dan
     
  9. AsxBroker

    AsxBroker Well-Known Member

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    Hi guys,

    I heard back from the SGB ML contact and they said there is an extremely small (less than $100k) allocation of the Australian retail fund still available.
    Not sure about the wholesale, if this is the one you wanted...

    Cheers,

    Dan
     
  10. Cheeks

    Cheeks Member

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    Location:
    Karratha, WA
    Just check my account and all my units now have 75% margn against them, however, due to the poor service I have decided to move my ML to ANZ as they have no limit on the Navra fund.