Accelerate your portfolio performance

With an LGT Wealth Management Lombard Facility. A Lombard facility is an investment loan, sometimes referred to as a margin loan, that allows you to leverage the capital in your portfolio to increase your investable assets.

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The benefits of a Lombard Facility from LGT Wealth Management

A truly global solution

Access global opportunities and limit your currency risk exposure by borrowing or using FX forwards through in any one of the following currencies: AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, USD.

Consolidated reporting

Holding all your investment assets on the LGT Wealth Management platform allows you to benefit from consolidated reporting, including tax reporting, and a daily credit position report for the Lombard Facility.

The trust of an A+ and Aa2 rated lender^

Enjoy the peace of mind of dealing with LGT, the largest privately-owned wealth manager in the world. With a dedicated Australian-based Credit team we pride our selves on the level of service we are able to offer our Australian clients.

Accelerate the performance of your portfolio

Our Lombard Facility enables you to invest more than would be possible by using just your own funds, magnifying your return potential.

Diversify your investments without realising capital gains

With more funds to invest you can spread your potential risk across a wider range of investments. You can achieve this without the need to sell your existing holdings, which can result in capital gains implications.

Liquidity

Easily access equity in your investment portfolio without the need to sell your holdings and incur the tax consequences. With the Lombard Facility you obtain a line of credit for investment purposes.

Access opportunities

Using the liquidity a Lombard Facility provides you can efficiently take up investment opportunities as they arise without disrupting your long-term investment strategies.

Utilise excess investment income

You may wish to forgo dividend and interest income for potentially higher growth. Our Lombard Facility can use this investment income to fund exposure to a significantly larger portfolio.

Manage currency exposure

Borrow in the same currency as you wish to invest to reduce your exposure to unwanted currency movements. FX forwards are also available under the Lombard facility to tailor your currency exposure.

Tax considerations

Interest payable on borrowed funds may be tax‑deductible, provided that the funds are used for a business or investment purpose. You can also prepay the interest on your loan in certain circumstances.

 

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Accelerate

Jay is a young executive looking to accelerate returns on his portfolio. He is a partner at a law firm and earns a high income. Still a long time from retirement, Jay has a long-term investment time horizon, and favours growth over income generating assets.

Using the LGT Wealth Management Lombard facility, he could increase the size of his investment portfolio. Although both gains and losses can be magnified by adding leverage, his long-term investment time horizon is suited to this strategy. As an added benefit, the interest expense on the Lombard facility may be tax deductible.

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Diversify

Helen is a company director and holds a sizable holding in her company’s stock. She wishes to diversify her exposure into a portfolio of international securities, fixed income and alternative assets to improve returns and reduce volatility within the portfolio. However, she does not wish to sell out of her company’s stock entirely.

Instead, Helen takes out an LGT Wealth Management Lombard facility, and using her existing portfolio and company stock as collateral, she may be able fund the purchase of the portfolio recommended by her investment adviser. Whilst there is additional risk from utilising leverage, the benefits of diversification include less volatile returns. As an added benefit, Helen has deferred the realisation of capital gains tax on her company stock.

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Manage currency exposure

The Williams Family Trust currently has exposure to Australian assets. They wish to maintain their Australian holdings and to add exposure to European assets in EUR, where they expect the EUR to depreciate. They are comfortable to leverage their portfolio which will increase the level of risk. 

They may use the LGT Wealth Management Lombard facility to establish a Euro (EUR) loan. The EUR loan position will allow investments in European holdings which increase the exposure to the Euro. Alternatively, they may prefer to hedge exposure to the Euro using FX forwards.

^ Credit Ratings A+ from Standard & Poor's and Aa2 from Moody's as at March 2023.

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