Investor Services

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SMSF Advisory is licensed to:

Provide financial product advice and deal in the following classes of financial products:

  • Australian Securities Exchange (ASX) listed securities
  • ASX Listed Warrants, including currencies, Gold and especially Instalment Warrants suitable for SMSF’s
  • ASX listed ETO’s ( Exchange Traded Options) including Indexes & Put Option insurance
  • ASX listed ETF’s (Exchange Traded Funds) including commodities
  • Deposit and Payment products including provision of Cash Management Trusts
  • Debentures, stocks or bonds issued or proposed to be issued by a government
  • Interests in managed investment schemes
  • Superannuation (SMSF) advice in establishing investment portfolios
  • International shares on all major exchanges Globally
  • International ETF’s on exchanges Globally including Indexes, commodities & currencies
  • Leveraged Investing including Margin Lending

Retail and/or Wholesale Clients

SMSF Advisory can assist in creating “Sophisticated Investor Status” for qualifying persons and or companies so as to take advantage of Special Offerings from time to time under section 708 of the Corporations Act.

SMSF Advisory have in the past been primarily involved with the junior resource sector because of the markets attraction to that area and high commodity prices, in recent times our activity has been dominated by the Blue Chip and top 200 sectors.

This change in attitude has been driven by the global lowering of interest rates resulting in fixed interest investors seeking higher returns on their cash holdings and yet wishing to remain in above average secure investments. No doubt this attitude will change when both commodity and interest rates rise again.

Portfolio Services

SMSF Advisory specialises in creating Portfolios to suit the individual requirements of their clients based on their income and or capital growth needs. Subject to the active trading and or size of trades for an account over any given 12 month period, SMSF Advisory will provide free of cost, Australia’s Praemium Portfolio service, which provides clients daily online access to their portfolio of investments from anywhere in the world and detailed trading history and reports for accountants.

Self Managed Superannuation Funds

SMSF Advisory can assist Trustees in creating a portfolio of investments in accordance with the Funds Investment Mandate to achieve the retirement needs of the members, together with a Portfolio service and trading reports that save considerable funds at year end accounting periods and provide instant visual assessment of your current position.

Warrants and Options

These derivatives provide leverage to trading in high priced shares and investment funds as well as providing increased dividend income. Leverage can increase profits substantially as well as increase losses. ASX provides booklets which must be read and understood before trading can commence in both Warrants and ETO’s (Exchange traded options).

International trading

Trading in shares and ETF’s provide a greater selection of products to investors, such as Johnson & Johnson, Nestles, Toyota, China Mobile and others which Australian investors would not normally have access to, as well as commodities and currencies. A big attraction to junior investors is the Gold and Commodity shares on the Canadian markets as well as the various Biotechnology stocks on the USA markets.

Margin Lending

Margin lending is borrowing money which you use, in addition to your own money, to invest in financial products such as shares and managed funds.

Essentially, you are “leveraging” the value of your investments through borrowing.

You must have adequate cash or existing shares to use as security for the loan. Only certain shares can be used as security and the amount that can be borrowed will vary for different shares.

Benefits

  • Margin lending can give you an opportunity to increase the size of your investments and to diversify your investments. Diversifying your portfolio can reduce your level of risk in the market.
  • It can also provide an opportunity to increase the gross return on your own equity by achieving excess returns over tax and borrowing costs.
  • Borrowing also allows you to invest at a time you want to invest, rather than having to wait until you have saved enough. This can help you avoid missing out on investment opportunities.
  • Interest on borrowed funds is generally tax deductible provided the funds are invested in Australian assets for income-producing purposes.

Please note: Deriving a tax benefit should not be your core focus. You should seek qualified tax advice from a registered tax agent so that you fully understand your personal tax position.

Borrowing limits

Margin lenders generally only allow you to borrow up to a certain value, or percentage, of the shares you wish to buy.

Commonly, limits are set at a maximum of 75% (known as the Loan-to- Value Ratio or LVR) of the value of the shares (less if the share is more speculative or risky). This means you have to make up the difference (ie 25%) with your own cash or existing shares.

This difference is referred to as the “margin”; hence the term “margin lending”.

Borrowing risks

Any borrowing strategy should always be approached with caution.

While borrowing to invest has the ability to leverage returns from investments, it also heightens investment risk. This is because you have a greater amount invested, which will magnify your losses if returns are negative.

Margin lending should be implemented as a long-term investment strategy to allow time to overcome any market volatility and for the leveraging effects to work.