Increase the amount you have available to invest
Borrowing to acquire an asset is called gearing or leverage. The net return on an investment includes growth in its value plus distributions less transaction costs and taxes. If, over your planned investment horizon, the net return on your investment exceeds your borrowing costs then by borrowing to invest you will generally earn a higher after-tax return than if you had invested without borrowing.
Diversify an existing portfolio without selling
You may be able to borrow against a portfolio of Acceptable Investments that you already own. You can then use the borrowed money to acquire other investments without selling your existing portfolio. These investments may be in a different range of asset classes, industries and companies. Investing in a range of different assets is called diversification and it is a financial technique that may reduce the risks associated with investing.
Manage your investments with the help of a flexible facility
There is no set date to repay the money you borrow although events may occur that result in your loan becoming due for payment in a very short period. The Ords Margin Loan Facility has a number of flexible features which your Adviser can discuss with you.