BT margin lending exceeds $4.2bn
BT Financial Group margin lending has now exceeded $4.2bn in loans under administration.
According to BT, growth in margin lending continues at a strong rate and this is being driven by financial advisers working with clients to increase their exposure to the equities markets while also tapping the potential tax effectiveness of gearing strategies.
The overall Margin Lending market grew by $7.7bn in 2006 during which time BT saw its loans under administration grow by 36%.
Its growth has been attributable to equity market performance and a successful June 2006 year end campaign, along with growth in loans above $10m. This momentum is continuing in the lead up to the end of this financial year.
BT noted the importance of understanding risk when using gearing strategies. Its clients are not necessarily risk takers rather they understand the importance of managing risk.
They understand the need to diversify, the need to take a long term investment approach and to expect market volatility.
BT said its clients’ average gearing levels are generally below 40% compared to an industry average of 41.1%.
22-May-2007