Portfolio Financing
Optimise The Value Of Your Investment Portfolio.
A multi-asset financing that enables you to draw up to 3x the value of your existing investments. Maximise your purchasing power or access funds without having to sell your existing assets.
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Multiply your purchasing power with Alliance Bank Portfolio Financing.
Introduction
Leverage Your Investment Portfolio Maximise your investment capacity without having to liquidate your existing investments (eg. share, unit trust, bond, structured investment and other assets).
Get a new credit line (Portfolio Financing) with attractive financing rates for up to 3x the pledged collateral value of your existing investments.
You can use the new credit line to make new investments.
Build your investment portfolio comprising both wealth products and latent property as collateral.
Get a new credit line (Portfolio Financing) with attractive financing rates for up to 3x the pledged collateral value of your existing investments.
You can use the new credit line to make new investments.
Build your investment portfolio comprising both wealth products and latent property as collateral.
Customer’s Eligibility
- Malaysia Resident.
- Must be at least 21 years old and no older than 70 years old.
Personalised Financing Packages
- Financing Amount/ Limit: Minimum RM50,000; Maximum RM20,000,000
- Competitive interest rate
- Margin of Financing (MOF): Up to 75%
Acceptable Collaterals
- Cash (MYR in Settlement account)
- Foreign Currency (in Settlement account)
- ABMB Fixed Deposit (FD)
- ABMB Foreign Currency FD
- Quoted Shares (local & foreign stocks)
- Unit Trust1
- Structured Investments1
- Retail Securities / Bond (Investment Grade)1
- Non-Investment Grade & Unrated Bonds / Sukuk1
- Property2
- Universal Life Insurance Policy
- Selected products distributed under ABMB Wealth Management Platform.
- Only applicable for Premium Portfolio Financing & Privilege Banking Portfolio Financing.
How It Works?
How Portfolio Financing (PF) Works? 
*The rate of return shown are for illustration purposes only.
**In this illustration, assume PF interest is 5% p.a. on the financing of RM3 mil (Standardised Base Rate ("SBR") + 2% p.a.)
Note that if investment return is less than the PF interest charge, PF interest will be borne by the customer.
For more information, kindly refer to Product Disclosure Sheet (PDS). If you prefer to trade with our panel brokers / investment banks, kindly refer to Product Disclosure Sheet (PDS) - External Portfolio Financing.
*The rate of return shown are for illustration purposes only.
**In this illustration, assume PF interest is 5% p.a. on the financing of RM3 mil (Standardised Base Rate ("SBR") + 2% p.a.)
Note that if investment return is less than the PF interest charge, PF interest will be borne by the customer.
For more information, kindly refer to Product Disclosure Sheet (PDS). If you prefer to trade with our panel brokers / investment banks, kindly refer to Product Disclosure Sheet (PDS) - External Portfolio Financing.
Disclaimer
Please note the above information is for illustration purposes only and should not be construed as legal, tax or investment advice. The above information is not tailored to the financial or investment objectives of any one individual and should not be construed as a recommendation or guarantee of any specific outcome or profit, nor should investors assume that their investment performance will equal or exceed the illustrated figures. The above information is not, and shall not constitute an offer to sell, a solicitation of an offer to buy or an offer to purchase any securities, nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any investment and it may vary according to market fluctuations. Alliance Bank Malaysia Berhad ("the Bank") does not guarantee the result of your portfolio management. The interest rate is indicative, subject to change and all application is subject to the Bank’s approval.
FAQs about Alliance Portfolio Financing
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:
https://www.alliancebank.com.my/Alliance/media/Documents/Financing/PDS_Portfolio_Financing.pdf.
- Loan Financing Risk
- Interest Rate Risk
- Currency risk
- Liquidity Risk
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.
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.
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.
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).
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.
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.
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.
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