National Australia Bank Limited · ASX:NAB
National Australia Bank — NAB Equity Builder presentation for NXNW Expo August 2019
20 slides from National Australia Bank's conference presentation, August 2019
Slide 1: Nab Equity Lending
Nab Equity Lending ADVISER PRESENTATION - AUGUST 2019 August 2019
Slide 2: Disclaimer
DISCLAIMER This communication is provided by National Australia Bank Limited ABN 12 004 044 937 AFSL 230 686. This information may constitute general advice. It has been prepared without taking account of an investor’s objectives, financial situation or needs and because of that an investor should,
Slide 3: Thank you for attending regional road show
THANK YOU FOR ATTENDING REGIONAL ROAD SHOW 3
Slide 4: NAB Equity Lending
NAB EQUITY LENDING SEAN KELLY TOPICS – UNIQUE PRODUCTS NAB Group for the past 29 years • NAB EQUITY BUILDER State Manager from 2003 - 2007 within MLC looking Latest NO MARGIN CALL INVESTMENT LOAN BUILT after all of the Nab Groups Debt offering’s available to the adviser market. FOR ADVISERS & CLIENT
Slide 5: Where are the opportunities? Gearing makes sense for the right client
WHERE ARE THE OPPORTUNITIES? - GEARING MAKES SENSE FOR THE RIGHT CLIENT ! (000) Mean household assets, debts and net worth by age cohort 6.8 MILLION (30%) 1,400 AUSTRALIANS AGED 30-50? 1,200 Net Worth 1,000 Other Assets 800 Superannuation Other Property 600 Home 400 Home Debt 200 Other Property Debt
Slide 6: NAB Equity Lending – Margin Lending v NAB Equity Builder & History
NAB EQUITY LENDING – MARGIN LENDING V NAB EQUITY BUILDER & HISTORY ASX 200 – Margin Lending STORY 2003 - 2011 NAB Equity Builder Example (Assuming 3% - Growth) 6
Slide 7: NAB Equity Builder - Ever Greater Control – No Margin Call
NAB EQUITY BUILDER - GREATER CONTROL – NO MARGIN CALL EVER • Approved Investments from: 845 managed funds, ETFs, (LVRs 70% to 80%) – eg PM Capital / Elston MA Via Platforms like Netwealth – CLIENT FORCED INTO DIVERSIFIED PORTFOLIO. • Choose your gearing Level on day 1 – Put in 30% Equity Borrow 70%
Slide 8: NAB Equity Builder - Ever Greater Control – No Margin Call
NAB EQUITY BUILDER - GREATER CONTROL – NO MARGIN CALL EVER • Adviser Controls Debt & Investment (Don’t Need Credit Licence to write loan as Financial Product). • Loan has to be used for Business or Investment Purpose – Full access to Dividends paid out or Reinvested. • Current Variable Rate 4.55%, N
Slide 9: Dean's Story
DEAN’S STORY MEET DEAN GOAL Dean is 50, and by the time he’s Generate an income of $25,000 60, would like to be working part p.a. in ten years time time He has $75,000 to invest and because he owns his own home, he has strong cash flow 9
Slide 10: Dean Borrows to Invest
DEAN BORROWS TO INVEST Step 1 Step 2 $75,000 $75,000 $175,000 Cash XYZ Investment NAB Equity Builder $250,000 XYZ Investment NO MARGIN CALLS Note: The case study example is hypothetical and for illustrative purposes only and should not be considered advice. The names and features do not represent an
Slide 11: Dean's Repayments Over Ten Years
DEAN’S REPAYMENTS OVER TEN YEARS $1.6 $0.6 $3.6 $2.6 $4.5 $175,0 $6.2 $5.4 $7.7 $7.0 $8.4 00 $16.1 $16.9 $17.8 $18.7 $19.6 $20.6 $21.7 NAB Equity Interest: 4.55% pa $13.8 $14.5 $15.3 Builder Term: 10 Years loan Repayments: $21,804 p.a. Amounts shown are in ‘000s Year 1 Year 2 Year 3 Year 4 Year 5 Ye
Slide 12: After Ten Years, Dean's Investment Has Grown to $500,000
AFTER TEN YEARS, DEAN’S INVESTMENT HAS GROWN TO $500,000 $25,000 Interest Principal End of Year Portfolio Value $500,000 $450,000 $20,000 $400,000 $350,000 $15,000 $300,000 $250,000 $10,000 $200,000 $150,000 $5,000 $100,000 $- $50,000 Year 1 1 Year 2 2 Year 3 3 Year 4 4 Year 5 5 Year 6 6 Year 7 7 Ye
Slide 13: Dean Has Achieved His Goal
DEAN HAS ACHIEVED HIS GOAL Size of Dean’s $250,000 Dean’s initial investment $500,000 portfolio Fit for purpose loan $25 His portfolio 7.2% p.a. Total return k returns 5% p.a. Diversification 4.2% p.a. Income 3% p.a. Growth 90% $10,052 Tax-effective franked His franked dollar amount Professional man
Slide 14: Helping You with Your Client Conversations for Equity Builder
HELPING YOU WITH YOUR CLIENT CONVERSATIONS FOR EQUITY BUILDER Client Conversation Client case 3 Minute Adviser Controls – brochure starters studies Client video Investment & Debt Ideal client : Short animated video Adviser Support • Kids Education • Client need • Dedicated Support Team • House depos
Slide 15: NAB Equity Builder - Client Example
NAB EQUITY BUILDER - CLIENT EXAMPLE 15
Slide 16: Nab Super Lever
Nab Super Lever ADVISER PRESENTATION - AUGUST 2019 BORROWING FOR SMSF (MANAGED FUNDS) August 2019
Slide 17: NAB Super Lever – SMSF Borrowing Arrangement for Equities & Funds (LRBA)
NAB SUPER LEVER – SMSF BORROWING ARRANGEMENT FOR EQUITIES & FUNDS (LRBA) 17
Slide 18: NAB Super Lever – SMSF Borrowing Arrangement for Equities & Funds
NAB SUPER LEVER – SMSF BORROWING ARRANGEMENT FOR EQUITIES & FUNDS A limited recourse loan designed for SMSFs • Conservative Gearing – Maximum Limit 50% of Net assets of Fund eg $500k, Limit of $250k – Fund Geared at 33% (Maximum). • Approved Investment List comprising 100+ ASX shares and 100+ unlist
Slide 19: NAB Super Lever Example
NAB SUPER LEVER EXAMPLE 19 Market Value Security Value Facility Limit Total Loans Margin Call LVR Base LVR Current LVR % Fall to Margin Call Margin Call Amount Facility Position Code Security Name Who $264,165.92 $158,499.55 $97,750.00 $74,992 44 75.00% 60.00% 28.39% 62.15% $0.00 @ In Order Net Equi
Slide 20: Thank You
THANK YOU 20
National Australia Bank — NAB Equity Builder presentation for NXNW Expo August 2019 on 6ix