Borrowing against your portfolio can give you access to extra liquidity when you need it

Portfolio Finance

If you have financial assets with Wealth and Investment Management, or can bring assets to us, you can use Portfolio Finance to borrow against them to access liquid funds.

  • Liquidity

    Buy that new car or new boat, take advantage of an unexpected opportunity or be assured of a line of credit for short-term borrowing. Please consider interest rates on the loan may exceed any gain on the investment. Interest rates may also change throughout the term of the loan. There may be an extra risk if you borrow in a different currency to the currency of the assets in your portfolio.
  • Leverage

    Introduce strategic leverage to your investment portfolio. Remember this is a high risk activity suitable only for experienced investors who understand the risks of leverage. With a leveraged investment you would be responsible for repaying the loan and interest on it. Adding leverage to your portfolio may amplify returns in a rising market, although losses may also be amplified if the market falls.
  • Creating a trading line

    Use derivatives within your investment portfolio, whether as a foreign exchange hedge or for strategic investment through a derivative structure. Derivatives can increase the risk in your investment portfolio. Derivative transactions can be speculative investments. You can lose your entire investment or you could have future payment obligations within your portfolio.
  • Investment option with higher risk and reward

    Portfolio Finance is only suitable for investors with an understanding of leverage, who can take on additional risk in the pursuit of higher returns. You will need to be able to afford the potentially higher losses associated with leveraged investments.

Key benefits

  • Liquidity for large purchases or used against short-term borrowing
  • Diversify your portfolio
  • Derivative trading lines
  • High risk and reward investment

Things to consider

  • Derivative transactions can be speculative investments. You can lose your entire investment or you could have future payment obligations within your portfolio.
  • With a leveraged investment you would be responsible for repaying the loan and interest on it
  • Interest rates on the loan may exceed any gain on the investment. They may also change during the term of the loan.
  • We recommend you consult your tax adviser before using the service.
  • There may be an extra risk if you borrow in a different currency to the currency of the assets in your portfolio.

Why use portfolio finance

Portfolio Finance offers many advantages to you as an investor, including flexibility and attractive diversification benefits.

  • Flexibility

    There is no application charge and you can use the service at any time, provided you have the collateral.
  • Growth and diversification

    If you use the service for leverage, you can re-invest, increasing the gross value of your portfolio and potentially increasing diversification.
  • Range

    Thousands of globally traded assets have been approved as collateral for Portfolio Finance, and the number is growing.
  • Control

    Buy or sell assets at any time (provided your portfolio always has enough value to support the amount you owe).
  • Support

    Your banker is with you every step of the way, from taking trade orders to giving you market updates.
  • Borrowing limits

    The amount you can borrow through Portfolio Finance is limited by the value of your investment portfolio.

We will review your portfolio and if the value drops, or the value of your exposure increases, or if there isn’t enough collateral to support the exposure, we will ask you to add more cash or securities to your portfolio.

If this isn’t possible, we may have to sell some or all of your assets, or close some, or all, of your derivative transactions.

Key benefits

  • No application charges
  • Dedicated support from your Private Banker
  • Thousands of globally traded assets approved as collateral

Things to consider

  • Derivative transactions can be speculative investments. You can lose your entire investment or you could have future payment obligations within your portfolio.
  • With a leveraged investment you would be responsible for repaying the loan and interest on it
  • Interest rates on the loan may exceed any gain on the investment. They may also change during the term of the loan.
  • We recommend you consult your tax adviser before using the service.
  • There may be an extra risk if you borrow in a different currency to the currency of the assets in your portfolio.