Portfolio credit

Vistafolio helps you build a long term portfolio by analyzing and selecting the best quality businesses to invest in. As part of this process, you'll build a robust portfolio that has value as a security for lending. You may select the option to access a broker line of credit at wholesale money market rates, directly from your managed investment account.

This will enable you to borrow with ease and at rates that are generally much lower than a home mortgage. It will also allow you to grow your portfolio on margin if desired and access funds when needed at low cost without selling your securities or disrupting your investment strategy.

Margin Lending

How does margin lending work?

See below for sample client, Jeff Farmer:

J R Farmer

Global Brokerage Account

$428,000 portfolio value =
up to $214,000 lending availability
up to $856,000 buying power

Deposit/withdraw funds
on broker margin

J R Farmer

Bank Account

Banks/currencies supported from most countries with same day transfers

Can purchase additional stocks/fx on margin
by arrangement


Investment Mandate

You sign this with us to enable us to build and manage your portfolio

Important things to note

Interest rate risk

The interest rate changes as currency interest rates move. For example the USD rates are based on a margin of 0.3% to 1.5% above the Central Bank benchmark rate. These benchmark rates are based on market rates such as LIBOR or the OCR.

Margin risk

When you borrow on your portfolio, your portfolio serves as collateral. If the value of your investments fall significantly, you may have to deposit funds to pay back some of the loan (margin call). Not all holdings may be eligible for broker margin credit and the broker may adjust eligibility on a particular stock at any time, particularly if there is a change in that company's risk profile.

Liquidation risk

If your portfolio value falls below the lending threshold, the broker may need to sell some of your investments to maintain the margin. You will usually be notified and given opportunity to restore the margin before this occurs.

Notification requirements

The margin lending service is provided by the independent broker you will set up your account with, and not Vistafolio. Under your agreement with Vistafolio, you will need to notify us before making any withdrawal (in cash or on margin) so we can manage the impact of those withdrawals on trading and work to mitigate your risks.

Investor criteria

This is not a retail service and is subject to eligibility criteria.

Open a Managed Investment Account today

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