01 March 2005
In February 2005 the Reserve Bank of Australia (RBA) released its latest Margin Lending results from its December 2004 survey which show that growth in the Investment Lending Industry, as a whole, has achieved a 21% increase YTD to reach $15.162Bn.
Macquarie Margin Lending (MML) has significantly outgrown the industry. The MML Margin Lending portfolio has grown by 64%, compared to the industry’s growth of 23.4%.
Macquarie’s Margin Lending Head of Distribution and Marketing, Steve Robertson, said Macquarie’s Margin Lending portfolio has grown at triple the industry growth rate over the last 12 months.
Mr Robertson said the continuing growth experienced in margin lending could be attributable to a number of key factors;
“The number of Financial Advisers using margin lending as a wealth accumulation tool has grown significantly. We have seen strong growth with the number of Financial Advisers using our products increasing by 20% over the last 12 months. In particular we are seeing strong growth in instalment gearing (ie: savings plan with a gearing component) and gearing using managed funds.”
“Another key growth driver for Macquarie has been in lending against shares – with the continued growth in the sharemarket and increased awareness of the benefits of geared investments, investors are more willing to use investment debt in order to reach their financial goals and create wealth faster.”
“Our clients are demanding a higher level of service and a broader range of products. We have responded to this by delivering enhanced product features such as “Trading Power” which provides investors with additional tools, (such as 100% investment protection via put options strategies), to manage their investments via their margin loans more effectively. Over the last quarter we have seen strong take up of these features. Additionally our products are being extensively used via investment platforms such as wraps and master funds.”
“It is also encouraging to see the RBA industry average number of margin calls per day has reduced by 37% from 234 in the September 2004 quarter to 148 in December 2004. The awareness of the benefits of margin lending has increased and more investors are diversifying their portfolio in order to minimise the risks and are not gearing at their capacity.”
“For us, the last quarter of 2004 was our largest ever non June quarter. This level of activity is remarkable for this time of year and places us in a good position to be able to build on this previous growth. We are committed to delivering high quality products and services and this approach is being rewarded with stronger than industry growth.”
For further information, please contact:
Head of PR & Communication
Macquarie Financial Services Group
Macquarie Funds Management Group
Tel: (612) 8232 3241
Mobile: (61) 417 260 309
Head of Distribution and Marketing
Macquarie Margin Lending