Optimise The Value Of Your Investment Portfolio.

Portfolio Financing is a margin facility that accepts a variety of collaterals such as Unit Trust funds (UT), Structured Investments (SI), Retail Securities / Bonds, and other investment products offered under ABMB Wealth Management platform, in addition to quoted shares, cash, ABMB Fixed Deposits (FD), and other collaterals acceptable to the bank from time to time. This sets it apart from a regular bank loan.

Before engaging in portfolio financing, it is important to be aware of the following risks:

• Loan Financing Risk
• Interest Rate Risk
• Currency risk
• Liquidity Risk

For more detailed information on investment risks, you can refer to the document available at the following link:
https://www.alliancebank.com.my/Alliance/media/Documents/Financing/PDS_Portfolio_Financing.pdf.

Portfolio Financing empowers customers to maximise their investment and purchasing power without the need to sell off existing securities or assets. By leveraging the value of their current portfolio, individuals can access additional funds to further invest or seize new opportunities, contributing to wealth accumulation and growth.

Note: Customers are also reminded that Portfolio Financing may involve higher risks that could directly incur higher losses or costs to the investors depending on the market conditions.

Portfolio financing offers a maximum 3x financing multiplier, determined by the pledged collaterals valued at bank’s cap price. This allows customers to leverage their existing portfolio to access additional funds.

Moreover, customers can strategically utilise the credit facility granted by the bank to invest in more assets, potentially yielding higher annualised investment returns.

Note: Customers are also reminded that Portfolio Financing may involve higher risks that could directly incur higher losses or costs to the investors depending on the market conditions.

For a detailed illustration of the potential returns, refer to the document available at the following link:
https://www.alliancebank.com.my/Alliance/media/Documents/Financing/PDS_Portfolio_Financing.pdf.

To apply for personal portfolio financing with Alliance Bank Malaysia, applicants must meet the following eligibility criteria:

• Malaysian citizens and Permanent Residents of Malaysia.
• Individuals must be a minimum of 21 years old and a maximum of 70 years old.

Portfolio financing requires a minimum collateral (bank value) of RM34,000 for a minimum Credit Limit of RM50,000.

There is a minimum limit of RM50,000 and a maximum credit limit of up to RM20,000,000 for portfolio financing with Alliance Bank Malaysia. For more information, feel free to reach out to our dedicated bank dealers at our Share Trading Center (STC).

You can find the STC contact number at the following link:
https://www.alliancebank.com.my/Alliance/media/Documents/Corporate/Branch-List/Branch-Type/sharetradingcentres-satellites2023.pdf.

Yes, the interest rate for portfolio financing fluctuates over the duration of the loan tenure. It is charged based on the SBR (Standardised Base Rate) plus a spread.

The SBR is a reference rate determined solely by the prevailing Overnight Policy Rate (OPR) set by the Monetary Policy Committee of Bank Negara Malaysia (BNM). The spread is as prescribed in the Letter of Offer (LO).

Yes, you can still earn dividends from the securities in your Portfolio Financing account with us.

The repayment period for portfolio financing with Alliance Bank Malaysia is flexible and not fixed, as long as the customer's account remains healthy and does not exceed the facility limit.

However, in the event that the customer's account reaches the margin call level, a grace period of four (4) business days will be provided to regularise the account. Failure to do so within this period will result in force selling by the Bank on the 5th day.

Customers are required to maintain the security margin at all times. In the event that the value of securities is inadequate to cover the loan outstanding, you may be subject to a margin call or force-sell, requiring additional collaterals or cash. The bank reserves the right to force-sell pledged collaterals if the security margin is not rectified within the stipulated timeframe.

In addition to any other right which the bank may have, the bank shall be entitled at any time, and with prior notice to you, to combine or consolidate all or any of the accounts and liabilities of yours or set-off or transfer any sum or sums standing to the credit of one or more of such accounts, in or towards satisfaction of any of the liabilities of yours under the portfolio loan facility.