Direct Investment Loan

Maximise investment opportunity 

Leverage an existing portfolio or create a new investment portfolio to boost your investment exposure, build wealth and meet your financial goals. 

Diversification 

Access more funds to diversify your investments into different asset classes, industries and companies. 

Liquidity 

Additional liquidity without selling assets so you can take advantage of investment opportunities when they arise.   

Flexibility 

Choose the degree of gearing that best meets your investment objectives and risk appetite. 

Tax Effectiveness 

You may be entitled to claim an income tax deduction for some or all of your borrowing costs depending on your individual circumstances. 

Changes in portfolio values and interest rates 

It is possible performance of your investments or changes in interest rates will result in you earning a lower return or incurring a larger loss than if you had not borrowed to invest. 

Events resulting in your loan becoming due 

Margin calls and events of default or termination can result in some or all of your loan being due for payment in a short period and/or immediately. 

Mismatch of cash flows and restrictions on the ability to deal in investments 

Interest and other charges can become due for payment before you receive any distributions from your investments. 

Net proceeds may not cover the loan 

You are required to repay the total amount owing when declared due irrespective of any net sale proceeds. 

Reliance on others 

Reliance on operations, policies and procedures of the Lender, Nominee and Sponsor, and the Authorised Person acting in your interests. 

Powers of the Lender, Nominee and Sponsor 

You give a Power of Attorney allowing certain acts by the Lender, Nominee and Sponsor. 

Legislative changes 

Changes to legislation and taxation policies can potentially impact your facility. 

Complexity of a Direct Investment Loan compared to a traditional loan 

Gearing can magnify your potential gains and losses. Ensure you have read and understood the Product Guide, as well as obtain the appropriate financial advice before investing.