Need a bit of extra financial flexibility? You've got it with the Portfolio Power credit facility. You can leverage your existing deposits and investments with Citibank to enjoy additional liquidity.
- Wide selection of investment products used as collaterals including bond, mutual funds, structured products and equities
- Additional liquidity for general use
- Overdraft and Term Loan (with tenor of 1, 3, 6, 9 or 12 months) are available for selection
- No handling charge and annual fee
Type of Loan
Your leveraged position is evaluated by using the formula of Margin Erosion (“ME”) by mark-to-market basis, and you are required to restore ME to below “0” or such lowest possible percentages whenever there is a Pre Margin Call, Margin Call or Force Sell status.
|Pre Margin Call
0%< ME <25%
|Any settlement proceeds will be used as repayment of any outstanding loan|
|Margin Call *
25% =/< ME <50%
Top up the margin, within 7 calendar days by
|Force Sell #
|Force liquidation all or part of the investments and/ or deposits without prior notice|
If you have any questions, please feel free to contact your Relationship Managers or call our 24-hour CitiPhone Banking Hotline at (852) 2860 0333.
Important Notice:Important Notice:
"Portfolio Power" is a leveraged product and is subject to a number of risks, including:
• Leverage risk
The use of leverage means that relatively small price movements will have a multiplying effect on customers’ corresponding gains or losses or the overdraft credit limit and the degree of investment risk customers face is greatly increased. Thus, the risk of loss in foreign exchange margin trading, leveraged investments or derivatives can be substantial. Customers may sustain losses in excess of their margin funds. Placing contingent orders, such as “stop loss” or “stop limit” orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. Customers may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, their positions may be liquidated. In the event that the market deteriorates rapidly beyond the margin call level and reaches the forced sell level, the bank reserves the right to close out all or part of the outstanding positions without notice and without any margin calls. Customers will remain liable for any resulting deficit in their accounts. This brief statement cannot, of course, disclose all the risks and other significant aspects of trading in currencies/derivatives or any other leveraged investment products. Customers should therefore carefully study the market before they trade.
• Price Risk
Leveraging on customer’s existing margin deposits and/or securities such as stocks, mutual funds, bonds, notes, Premium Accounts is highly speculative and risky and is subject to the risk of market fluctuation. The value of customers’ holdings may be reduced as a result.
• Interest Rate Risk
The interest rates for loan may vary during the period for investment or utilization of the overdraft credit line, the interest costs for customers may therefore also vary. This may affect the net return on investments or overdraft credit limit.
• Liquidity Risk
During adverse market conditions, the customers may not be able to liquidate all or any part of their holdings.
• Credit Risk
The approved line amount granted is dependent on the loan-to-value ratio allowed for each margin deposit and/or security.
• Currency Risk
If the currency of the loan is different from the currency of the underlying investments and / or deposits, foreign exchange rate risk implications may affect the value of the loan, underlying investments, and / or deposits. Relatively small movements in the exchange rate will have a multiplying effect on customers’ corresponding gain or loss and resulting in the possibility of margin call and force-sell.
• Marked-to-market Losses
The customers’ leveraged position is marked-to-market intraday, daily, weekly or monthly, whichever is applicable, and they may be called upon at short notice to deposit additional funds to avoid a forced sell of their leveraged positions.
• Pre-margin Call
For Portfolio Power, in the event that the erosion of the Initial Equity Position (that is, loan outstanding divided by weighted loan-to-value ratio, then minus the loan outstanding at the relevant time) falls within the region of 0%<x<25%, Citibank shall have the absolute discretion to exercise the right:
- to decline the execution of any type of transaction of the customer in respect of any eligible investments and/or eligible deposits; or,
- to apply any settlement proceeds to restore the Initial Equity Position to below 0% or such lowest possible percentages.
• Margin Call
The implications of margin call levels for the leveraged facility and positions may be liquidated at the discretion of the Bank if a margin call is not complied within the stipulated time period. The margin call levels are also subject to change by the Bank without prior notice and the Bank has no obligation to notify customer of the aforesaid event, therefore it is customer’s duty to monitor the same. For Portfolio Power, margin call trigger is set at the level where the Initial Equity Position erodes for 25% or above. If a margin call is triggered, customers need to top up the shortfall margin within 7 calendar days.
The implications of forced sell levels for the leveraged facility, including all or any part of customers’ margin deposits and/or securities may be realized for settling all or any part of their outstanding without notice. In the event that the market deteriorates rapidly beyond the margin call level and reaches the forced sell level, the bank reserves the right to close out all or part of the outstanding positions without notice and without any margin calls. The forced sell levels are also subject to change by the Bank without prior notice. For Portfolio Power, forced sell trigger is set at the level where the Initial Equity Position (that is, loan outstanding divided by weighted loan-to-value ratio, then minus the loan outstanding at the relevant time) of the customer portfolio erodes for 50% or above.
Important Disclaimer:Important Disclaimer:
Portfolio Power (the "Facility") is a general purpose credit facility. The credit limit of the Facility is determined with reference to the aggregate margin value of the eligible deposits in the Currency Manager and/or the aggregate margin value of the eligible investment products and may be revised by the Bank from time to time. If the Security Margin is not complied with, customers may be required to restore the Security Margin by either depositing with the Bank additional sums and/or securities acceptable to the Bank, or repaying part of the total amount outstanding. If customer fails to bring in additional funds and/or securities, the Bank has the discretion to apply any eligible deposits, realize all or any part of the pledged investment products or terminate the Premium Account before its maturity date for settling all or any part of the amount then outstanding under the Facility without notice. The losses may be substantial as a result of such redemption of investment products or early termination of Premium Account and customers will remain liable for any resulting deficit in their accounts.
Terms and Conditions:Terms and Conditions:
- The grant of Portfolio Power is subject to the approval of Citibank (Hong Kong) Limited ("the Bank") and terms and conditions.
- Investments are not bank deposits and are not protected under any deposit protection scheme or authority.
- Acceptance of deposits and investments as collaterals is subject to the approval of Citibank (Hong Kong) Limited.
- Citibank (Hong Kong) Limited reserves the right of final decision upon disputes.
- Not eligible for U.S. persons and might only be applicable to limited jurisdictions.
- The facility is subject to our annual review whereupon we will re-assess based on our annual review criteria (as determined by us from time to time) which may include, but are not limited to: your (a) credit history, (b) bankruptcy check, (c) net worth and (d) customer segment (Citigold or Citigold Private Client). You may be required to provide additional information or documentary proof upon request. We may renew the Facility (with the same of different Facility Limit and on the same or different terms) or terminate the Facility.
- The bank reserves the rights to liquidate any or all of the eligible deposit or collateral held with the bank and/or set off any credit balance in any of your accounts (or your joint accounts with other person(s)) against any outstanding balances and terminate Portfolio Power services.