Products & Services
Securities
Shares, or securities as they are now sometimes known, represent part ownership of a company. They may be ordinary shares, partly paid (contributing) shares or preference shares.
Derivatives
Options, if used correctly, can provide investors with protection for their share portfolio and an opportunity for higher returns. To do this you need to be fully aware of what options are and how they work.
An option is a contract between two parties giving the taker (buyer) the right but not the obligation, to buy or sell a parcel of shares at a predetermined price, on or before a predetermined date. To acquire this right the taker pays a premium to the writer (seller) of the contract.
The types of options available are called call and put options.
A call option gives the taker the right, but not the obligation, to buy the underlying shares at a predetermined price, on or before a predetermined date.
A put option gives the taker the right, but not the obligation, to sell the underlying shares at a predetermined price, on or before a predetermined date. The taker only needs to deliver the underlying shares if they exercise the option.
These may be used individually or they may be combined by the investor to form a variety of trading strategies to cover market expectations.
It is important to note that the purchase and the sale of options involves a risk and may not be suitable for all investors. Investors considering trading in options should ensure that they understand the nature of their rights and obligations and are aware of the risks.
It is recommended that you talk to your Hartleys Investment Adviser to obtain advice about your personal financial situation and the suitability of options trading for you.
Deposit products
There is a type of unit trust that operates by pooling investor’s money into high yielding money market instruments normally only available to professional investors with hundreds of thousands of dollars. Cash management trusts operate with a trust deed, a trustee overseeing activities and a management company responsible for the investment strategy.
Investors can buy into a cash trust with as little as a few thousand dollars. At Hartleys a cash management trust is usually used in conjunction with managing your investments. Your Hartleys Investment Adviser can help you determine if a cash management trust is suitable for your individual needs.
Managed Investments
A managed fund is a form of investment that pools your money with that of other investors to form an investment fund. These investment funds might be in just one type of investment such as Australian shares, international shares, cash, property or mortgages. Alternatively they could be diversified funds which invest across a range of these asset classes.
Obviously you could invest your money in all or any of these asset classes directly but in some cases this might not be effective for every one. Managed funds can provide you with a more diverse range of investment opportunities than might ordinarily be available to you.
Your Hartleys Investment Adviser can help you determine if managed funds are a suitable investment for your individual needs.
Warrants
A warrant is financial instrument that is issued by a bank or other financial institution, which can be traded on the Australian Stock Exchange’s equity market. Warrants may be issued over securities such as shares in a company, a currency, an index or a commodity.
Superannuation & Pension Products
Superannuation is a “financial vehicle” that enables you to save while you are working, to help meet your costs of living in retirement. As such superannuation investments are recognised by special tax concessions compared to other types of investments. There are many types of superannuation funds available for you to choose from and as selecting the right fund for you can be a difficult task you should consult your Hartleys Investment Adviser for advice on which fund might be suitable to your needs.
In most cases a pension is a regular income stream paid to someone who is no longer working for an income. These can take many forms, including, but not limited to, a government pension or benefit, a superannuation fund converted to an allocated pension, an annuity or a complying pension. The process for determining which is most suitable to your needs, or requirements is extremely complicated and is one that should be done in conjunction with your Hartleys Investment Adviser.
Life Products
One of the key aspects to successful investing is managing the risk involved and this includes protecting your income earning capacity and debt extinguishment on death or total incapacity.
Many investors fail to see the importance of relevant and affordable insurance cover for themselves in setting their investment strategies. Your Hartleys Investment Adviser can help you with determining what would be relevant insurances for your investment needs.
Fixed Interest Products
There are different forms of fixed interest products available and these include bonds and the more classical bank fixed term deposit.
A bond is an amount of money, invested for a given time period which produces a defined return. A bond is set up so that there is a market to cash it up or buy into it between set up and maturity. Bonds are classified both in terms of time to maturity, and the “credit rating” of the issuing organisation.
Bonds can be short term, overnight, within one month or ninety days and are called short bonds. Those that mature after five years, ten years, or even thirty years are termed long bonds.
Traditionally bonds are issued by governments, government instrumentalities, financial institutions and listed companies.
The traditional fixed term deposit does not have a market like a bond does but can still be cashed in if required but this usually involves taking an interest penalty.
Your Hartleys Investment Adviser can help you determine if fixed interest investments are a suitable investment for your individual needs.
Margin Lending
Margin lending is simply an investment strategy where you borrow money, using your existing cash, shares or managed funds as security, to invest in more shares or managed funds.
It is possible to gear as part of your regular savings plan. Regular gearing allows you to match your own equity each month with money borrowed from your margin loan, potentially doubling your monthly investment.
How it works is that your existing portfolio is used as security for the loan and the lender applies a lending ratio to each investment in the portfolio. You can then borrow up to that level to purchase other shares. If the value of the shares that are used as security fall then you either have to sell some of the shares or deposit cash to maintain the lending ratio. This is what is known as a “margin call”.
Like many other investment strategies margin lending can be risky and consequently it is not suitable for every one. Your Hartleys Investment Adviser can help you determine if a margin lending strategy is suitable for your individual needs.
Portfolio Management
For clients who require or want a higher level of reporting we offer our Portfolio Management Service.
Portfolio Management Service is a detailed personal service utilised by retirees, high net worth individuals, individuals whose aim is to develop and grow a portfolio over time, and those with self managed superannuation funds and allocated pensions.
Clients may be kept fully informed by comprehensive account management and reporting systems and in regular reports that are accessible online, should a client wish to participate in such a reporting services these services are available through Echelon™ and Australian Executor Trustees (AET).
Products available within the Portfolio Management Service include:
- Shares traded on the Australian Stock Exchange
- Options and warrants traded on the Australian Stock Exchange
- Superannuation
- Managed Funds
- Fixed Interest
Services available within the Portfolio Management Service include:
- Ongoing wealth management advice
- Research
- Developing and managing a portfolio
- Margin lending facilities
