Moderately Geared Managed Accounts

Gearing uses borrowing to increase market exposure with the aim of enhancing long-term capital growth. While gearing can increase investment returns over time, it also magnifies losses and is best suited to investors with a long investment horizon who understand the associated risks.

Gearing is managed within the investment structure using institutional funding. This means clients don’t need to establish investment loans, complete credit assessments or manage margin calls, providing a simpler way to access a geared investment strategy.

The portfolios use a moderate level of gearing to enhance long-term capital growth while recognising the additional risks associated with geared investing. The level of gearing is actively managed within a target range to balance growth potential with the risks of borrowing and changing market conditions.

The portfolios are designed for investors with a high risk tolerance and a long investment horizon who are comfortable with the risks of gearing. They may be suitable for investors seeking enhanced long-term capital growth as part of a diversified investment strategy. Individual suitability will depend on a client’s objectives, financial circumstances and risk profile.

With a margin loan, the investor is responsible for establishing and managing the borrowing arrangement. In the Betashares Moderately Geared Managed Accounts, gearing is managed within the portfolio, removing the need for client loans or margin calls while providing access to professional portfolio management and institutional funding.

Gearing magnifies both gains and losses and may not be suitable for all investors. The portfolio is intended for investors with a high risk tolerance and a long investment horizon who understand the risks associated with geared investing.