To redeem a managed fund investment you need to complete the managed fund redemption instruction form.
Where you have an existing broker, there's generally no need to change this relationship. The buying and selling of shares can be conducted through any broker who will settle with us.
If you don't have an existing relationship with a broker and would like to trade online yourself, you may like to register with nabtrade.
Managing margin calls
What should I do if I am in margin call?
If we make a margin call, you should undertake one or more of the following steps to restore the security value of your portfolio to more than your outstanding loan amount:
- Reduce your outstanding loan amount (for a variable rate loan).
- Deposit cash into your Cash Management Account (for a fixed rate loan).
- Sell some investments and apply the net sale proceeds against your NAB Equity Lending facility.
- Provide additional approved investments as security.
How do I minimise margin call risk?
It's important that you closely monitor your facility on a regular basis and promptly take action if you are in a margin call position. While we'll attempt to contact you if you're in a margin call position, if we're unable to do so we may sell shares or redeem managed fund units to restore your facility position without further reference to you.
If you intend to go away or won't be contactable for some time, we recommend you consider:
- depositing additional funds (either to the credit of your variable interest rate loan account or to your Cash Management Account)
- providing additional approved investments as security
- nominating an authorised representative to act on your behalf (including responding to margin calls).
Other ways to minimise the risk of a margin call are to:
- pay the interest monthly instead of having the interest added (capitalised) to your loan balance (for variable interest rate loans)
- arrange for dividends and distributions to be credited directly to your variable rate loan or Cash Management Account;
- not borrow up to the maximum allowed - for example only borrowing up to 60% against an investment with a security value of 70% provides you with additional protection
- diversify your portfolio across a number of investments and industry sectors to lessen the impact of poorly performing investments.
