"We have seen a number of innovative margin loans introduced to the market place that are aimed squarely at certain investor profiles," Cannex senior research analyst Harry Senlitonga said.
Two examples of recent innovations highlighted in the report are ANZ's diversified margin loan, giving investors access to small cap stocks on the provision of portfolio diversification, and Macquarie Bank's investment multiplier, which removes the possibility of a margin call.
Overseas markets have traditionally been spurned by consumers because of the zero tax deductions associated with overseas investments, but according to Senlitonga, with some foreign markets now at record levels the potential capital growth gains for investors could now also be considered.
"It is now more important than ever that consumers think seriously about what sort of investor they are and what level of risk they are willing to expose themselves to. Different investor types have different requirements according to risk tolerance, underlying securities and taxation benefits."
The biannual Cannex margin lending star rating report released yesterday reported that St George, Macquarie Bank and Colonial Margin Lending products have retained their five star, "Superior Product" rating, with ANZ Bank joining the group.
