IMCO is the developer and promoter of the Index Mortgage. Described by Citigate Dewe Rogerson as “an entirely new approach” that will “drive a sea change” and “revolutionise the market”, the Index Mortgage allows a borrower to embed an exposure to risk assets within its mortgage loan. We call this “Linking”. One advantage to Linking is that Links are “synthetic” and so no investment is required, although clients must meet IMCO’s credit criteria. In addition, Linking is tax neutral (i.e. has no tax effect) as confirmed by the ATO in Tax Ruling PR 2020/4. For higher income earners this makes Linking a superior strategy to direct ownership, enabling sophisticated investors to retire direct equity and fund holdings and replicate those positions through Links.
