Margin Loans

Let VM Wealth finance your investment purchases today or providing you with short term financing. A margin loan gives you the power to increase your securities portfolio and enhance your returns with minimal cash, leveraging the combined value of your intended purchase and existing securities as collateral while leaving your investments untouched.

All listed blue chip companies, high grade corporate bonds and treasury securities have an associated loan to value ratio which ranges anywhere from 50% to 80%. . The loan to value ratio determines the proportion that we will contribute to the total cost of your purchase.

Example: J$1M Bond Purchase

Value of Holding Loan to Value Ratio VM Wealth Loan Equity from Client Bond Rises to Profit Return to Client
$1 million 80% $800,000 $200,000 $1.1M $100,000 50%

Lending ratios are reviewed from time to time, and may change without notice, or may be adjusted based on individual information.

What do I do with my returns?

The returns can be used for any purpose including acquiring additional securities, withdrawn as cash, or pay down your margin loan.

What are the Benefits?

  • You can choose the level of exposure/leverage
  • If you have chosen wisely, it is an excellent way to accelerate your wealth, while leaving your investments untouched
  • Your shares/securities still belong to you despite being held as collateral

Understanding the Risks

Margin loans involve risks, as the value of your shares will change regularly, so too will your loan to value ratio. As a result, we recommend that you speak to your VM Wealth Advisor about your asset allocation strategy before taking out a margin loan.

To learn more about how a VM Wealth margin loan can complement your overall investment strategy and enhance your returns, contact a VM Wealth Advisor or complete our Contact form.


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