Aurora teams up with UBS
Aurora Funds Management has signed a distribution deal with UBS Investment Bank to take its tax-effective Protected Geared Investment product (PGI) to brokers and financial planners.
The deal adds to the Aurora group’s role in taking the Pengana Capital andvan EykThree Pillars to the market, the former of which is to run until June 2 when the offer closes.
The UBS PGI product allows investors to purchase securities from a selection of over 65 Australian listed companies and trusts by borrowing up to 100 per cent of the purchase price of those securities.
Approved investors have the choice of fixing their loan term for one, two, three, four, or five years, with investors bearing the cost of the interest on the loan and the capital protection cost of the securities expressed as an overall interest rate.
UBS has obtained anAustralian Taxation Officeproduct ruling in respect of deductions, which will be available for interest prepaid by certain investors in the PGI.
Aurora director Simon Lindsay believes in the current volatile equities environment, this type of capital protected investment will suit risk averse investors looking to build a portfolio of Australian shares without running the risk of incurring any margin calls.
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