Asgard Wealth Solutions has launched a new gearing capability with eWrap platform investments purely for self managed superannuation fund (SMSF) members.
The new facility is in the form of a non-recourse loan with a loan-to-value ratio of 50 per cent. No personal guarantees are required for the product and SMSF trustees have the option of investing in the majority of the funds available on the eWrap platform as the underlying asset.
Unlike instalment warrants, the gearing facility has no set timeframe over which the loan has to be repaid and SMSF members can enter and exit the facility at any time they see fit.
“It’s not a contracted term, it’s a strategy that’s monitored over a period of time,” Securitor authrorised representative John Strong said.
Repayment methods are also flexible, with options such as principal plus interest and interest only available to clients.
The initiative was deliberately offered solely to SMSFs, according to head of Asgard and Advance Wayne Wilson.
“We find that investors in SMSFs and the people who advise them on that tend to take a more robust and detailed view of managing their super, so they are more active managers of their super and less likely to put their investment into a managed fund and let it sit idly,” he said.
Within the SMSF sector itself, Wilson said the facility was more likely to appeal to people in the middle of the superannuation cycle.
The new capability is an extension of Asgard’s existing SMSF gearing offering launched in June last year to enable the purchases of both residential and commercial property.
