St George gears up
St GeorgeMargin Lending has expanded its margin lending product, a regular gearing facility, as competition in the margin lending market heats up.
The new facility, called Savings Gearing, will open up St George’s margin lending product to a broader range of investors, giving younger investors or those on lower salaries the opportunity to invest with an initial sum of $1,000, plus a monthly savings plan.
“Savings Gearing allows financial planners and advisers to get their clients into the market earlier, and by following a disciplined savings plan that is supplemented by borrowing funds, investors can grow their wealth more quickly,” St George Margin Lending head Andrew Black says.
The addition of the Savings Gearing facility is part of St George’s previously stated ambitions to raise its position in the margin lending market. Earlier this year, St George Margin Lending added Internet Account Access to its product, giving financial planners around the clock access to their clients’ portfolios.
The push by St George comes on the heels of a number of other gearing products introduced on the market, including the Commonwealth Bank’s online broker, CommSec, which launched a margin lending product direct to investors.
Like St George’s product, the CommSec Margin Loan with regular gearing combines margin loans with a savings plan to allow regular investments in shares or managed funds.
Late last year, BT Margin Lending also added a regular gearing service into its retail managed funds, a service that had previously only been available through BT’s master trusts and wrap accounts.
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