Unit Trust Financing
Double Up* your Investment Portfolio
Maximize Your Investment Potential:
1. With no additional cash outlay*
2. Financing rates of:
Unit Trust Portfolio
SGD Financing Rates
≥ SGD 250,000
PSPL may at any time at its sole discretion change the interest rates set out based on prevailing interest rate environment and quality & concentration of securities in your portfolio.
3. Financing available for over 200 unit trusts (Marginable UT)
2 easy ways to use UT Financing:
Transfer your Marginable UT to buy more unit trusts.
– No additional cash required!
Deposit Cash to buy Marginable UT.
How much can I buy?
Example 2: Assume instead, that you would like to deposit $10,000. This allows you to purchase up to $20,000 Marginable UT.
How much do I pay for my borrowing?
Where can I find Marginable UT?
What are risks?
What is margin requirement and how does it work?
Margin Ratio is used to compute the amount of investment you can make using leverage and for the purpose of computing margin calls.
1 Collateral = Market value of unit trusts x 0.7 (Financing Factor for Grade B)
2 Ledger (Debit Balance) = the amount you borrowed to buy additional unit trusts
Where MR is ≥ 140% the account is deemed to be within a healthy range.
Where MR is 130% ≤ MR < 140%, client is not permitted to buy any additional Unit Trust using leverage even if he has available credit limit; client may sell his existing holdings to reduce his Debit Balance.
120% ≤ MR < 130% : Client is required to satisfy margin call within 3 market days including the date of notice to restore the MR to at least 130%.
MR < 120% : Client is required to satisfy force-selling call on the same day before 3:00 pm to restore the MR to at least 130%.