Unit Trust Financing

Double Up your Investment Portfolio*

Unit Trust Portfolio SGD Financing Rates
≥ SGD 250,000 2.5% p.a.
< SGD250,000 2.88% p.a.

Maximize Your Investment Potential with no cash outlay

Financing available for over 200 unit trusts (Marginable UT)

Getting Started!
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.

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 UT. This allows you to purchase up to $10,000 more of Marginable UT or $5,000 more of non Marginable UT.

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

For both Example 1 and Example 2, you pay SGD0.79 (2.88% x 10,000 / 365) per day. It is accrued daily and compounded at the end of the month.

While profits may be magnified as a result of leverage it is important to note that unfavorable price movements may result in your losses being maginfied. Understanding the initial margin requirements of the Phillip Investment Account – Margin (M)

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%.

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.
  • The Transfer-In Promotion (“Promotion”) is opened to all existing and new customers.
  • This promotion is only valid from 1st April to 30th June 2018 (“promotion period”), both dates inclusive.
  • Clients will receive S$20 for every S$10,000 worth of unit trust holdings successfully transferred in and kept with PSPL in his/her account for a period of three (3) calendar months, and he/she will be eligible for the cash reward.
  • Client’s transfer-in forms must reach PSPL during the promotion period to be eligible for this promotion.
  • This offer is applicable for transfer-in of Cash holdings only.
  • The maximum cash reward is S$1000 per individual investor for that year of promotion (“reward amount”).
  • The reward amount is also limited to S$1000 for joint accounts for that year of promotion.
  • If, however, the investor has both individual and joint accounts, only one account will be entitled to the reward amount.
  • The reward amount will only be credited into an eligible Phillip Investment Account or Cash Management Account after the three (3) months period.
  • Existing Unit Trust Investment account holder may return this form for a free conversion to Phillip Unit Trust Cash Management account.
  • Existing unit trust holdings maintained with PSPL (including Regular Savings Plan) will not be considered.
  • Transfer-in of unit trust holdings takes approximately 4 to 6 weeks to be completed
  • PSPL’s decision on all matters relating to or in connection with the initiative is at our absolute discretion and shall be final, conclusive and binding on all parties.
  • PSPL shall not be obliged to give any reason on any matter concerning the initiative and no correspondence or claims will be entertained.
  • PSPL has the absolute right and discretion to determine whether the Eligible Customers have met all the requirements of the initiative.
  • While all the information provided herein is believed to be reliable at the time and date of printing, PSPL makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy.

Disclaimer

The risk of loss in financing a transaction by deposit of collateral may be significant. The Customer may sustain losses in excess of his/her cash and any other assets deposited as collateral with PSPL. The Customer may be called upon at short notice to make additional margin deposits or interest payments. If required margin deposit or interest payment is not made within the prescribed time, the Customer’s collateral or positions may be liquidated by PSPL at a loss without prior notification to the Customer. The Customer should therefore carefully consider whether such a financing arrangement is suitable in light of your own financial position and investment objectives.