Unit Trust Financing

Double Up your Investment Portfolio*

Unit Trust Portfolio SGD Financing Rates
≥ SGD 250,000 2.68% p.a.
< SGD250,000 3.08% p.a.

Maximize Your Investment Potential with no cash outlay

Financing available for over 200 unit trusts (marginable Unit Trusts)

Getting Started!
2 easy ways to use Unit Trusts Financing

Transfer your marginable Unit Trusts to buy more Unit Trusts.
No additional cash required!

Deposit Cash to buy marginable Unit Trusts.

Find out the marginable Unit Trust

Note:

  • Grade S = 80% financing in Share Financing Account (V) or 70% financing in Phillip Investment Account – Margin (M).
  • Grade A = 70% financing, Grade B = 50% financing

Why Phillip Unit Trust?

To find out more, chat with us using our Live Chat function.

Alternatively, you may call us at 6531 1555 or email us at financing@phillip.com.sg


FAQ

Example 1: Assume you would like to pledge S$10,000 worth of your marginable Unit Trusts. This allows you to purchase up to $10,000 more of marginable Unit Trusts or $5,000 more of non marginable Unit Trusts.

Example 2: Assume instead, that you would like to deposit $10,000. This allows you to purchase up to $20,000 marginable Unit Trusts.

For both Example 1 and Example 2 (please refer to the first FAQ), you pay SGD0.84 (3.08% x 10,000 / 365) per day. It is accrued daily and compounded at the end of the month.

All new Phillip Investment Account – Margin (M) will have an initial credit limit of S$50,000. Please contact your trading representative or financial adviser for limit revision.

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.


Margin Calls:

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%.

To collateralize your marginable Unit Trust, Kindly email us at financing@phillip.com.sg or call us at 6531 1560. Collateralization of Units Trusts takes up to 3 working days.

Collateralized units trusts need to be released before liquidation can take place. Kindly email us at financing@phillip.com.sg or call us at 6531 1560 to enable liquidation of collateralized Unit Trusts.
The process to enable liquidation of collateralized unit trusts may take up to 3 working days.
Pursuant to your Unit Trust being released, you may proceed to liquidate your units using POEMS or by contacting your Financial Advisor Representative.

Terms and Conditions
  • Financing factor is dependent on whether the collateral is Cash or marginable Unit Trusts. Financing is not available for non-marginable Unit Trusts.
  • Phillip Securities Pte Ltd (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.
  • PSPL reserves the right to amend the Terms & Conditions without prior notification.

Disclaimer

This page is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to purchase or sell any investment products mentioned. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting based on this information.

Hypothetical examples used on the website are for illustration purposes. Past performance figures in the specific examples are not indicative of future performance. Investments are subject to investment risks. The risk of loss in margin trading can be substantial. You may sustain losses in excess of your initial funds and may be called upon to deposit additional margin funds at short notice. If the required funds are not provided within the prescribed time, your positions may be liquidated. You should also consider the finance costs involved in margin trading. The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange.

Margin financing may not be suitable for clients whose investment objective is preservation of capital and/or whose risk tolerance is low. Clients are advised to read the Terms and Conditions of Margin Financing and Margin Information Sheet, which can be obtained by clicking here or from Phillip Securities Pte Ltd before undertaking transactions on margin.

You may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a qualified financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest and we do not offer any advice in this regard unless mandated to do so by way of a separate engagement.