ZIP Training - Products and Services Flashcards
What 8 investment options does nabtrade offer?
- Australian shares
- International shares
- A-REITs (Australian - Real Estate Investment Trusts)
- Exchange Traded Funds (ETFs)
- Fixed Income (Bonds, Convertible notes)
- Options & Warrants
- Margin Lending
- Access to IPOs
Are Equity and Debt securities traded in the same way on the nabtrade platform through the order pad?
Yes
Outline the key differences between equity and debt?
Equity = Own (share in company; may receive dividend)
Debt = Loan (investment in loan; may receive interest). Also known as interest rate securities and Fixed Income. Bonds are the most common type of debt security.
What are Exchange Traded Funds (ETFs)?
Type of investment fund that invests in a basket of securities or other assets that seek the track the performance of a specified index or benchmark. Investors usually hold units rather than shares (each unit represents an interest in a portfolio of securities, currencies, or commodities).
Do ETFs trade on exchanges in the same way as shares, or differently?
ETFs trade on exchanges in the same way as shares.
What are 3 benefits of ETFs?
- Low cost (much lower management fee than managed funds; diversification at fraction of cost of holding the assets directly).
- Liquidity (traded like shares).
- Fair value - designed for price to closely reflect value of underlying assets.
What are the risks of ETFs?
- Market risks (liquidity risk could be hard to buy/sell ETF).
- Use of derivatives and counter party risks (synthetic ETFs may use OTC derivatives which lack central counterparty clearing agreements).
- Exchange rate risks for ETFs based on overseas index/benchmark.
- Tracking error - return on portfolio may differ from index/benchmark tracked.
- Taxation outcomes - may be different taxation outcomes for investors in synthetic ETFs compared with conventional ETFs.
What are Unlisted Managed Funds (mFunds)?
mFunds allow clients access to sell unlisted managed fund units through the nabtrade platform. nabtrade only allows mFunds Sell orders via manual order. Settlement period is different for each mFund.
What are derivative securities?
Tradeable products which are derived from an underlying security.
What are the only two derivatives available on nabtrade?
Exchange Traded Options (ETOs) and Warrants. ETOs require completion of a questionnaire prior to being able to trade in these.
What is investment lending?
Investment lending works in a similar way to borrowing money to buy a home - clients borrow money to invest in a portfolio (e.g., listed securities and/or managed funds), and the borrowed funds are then secured against the portfolio of financial assets.
What is NAB Equity Lending (NEL)?
NEL provides investment lending options. NEL is a broker but they have no platform to facilitate trading (NEL clients must link their equity loan to a broker e.g., nabtrade before trading).
What equity loans does nabtrade allow?
Only NAB Equity Loans (NEL); we do not facilitate third party equity loans.
What 3 investment lending solutions does NEL offer?
- NAB Equity/Margin Loan
- NAB Super Lever
- NAB Equity Builder
True or False: nabtrade gives access to more international research and insights than the other Big Four banks?
True - this is done through an internal research team and powerful partners including Morningstar, Trading Central and Refinitiv
True or False: Clients can set up, administer, and/or bring their existing Self-Managed Super Funds to nabtrade?
True - we have partnered with Heffron SMSF Solution to help clients set up and administer an SMSF.
What are the 3 main service levels of IRESS ViewPoint?
- Bronze/Silver/Gold - No Charge
- Platinum - $19.95 or no charge if qualifications met
- Platinum + IRESS Trader/ViewPoint - $59.95 or no charge if qualifications met
