INVESTMENT PLUS

Power up your capital.

Power up your capital.

"Investment Plus" is a powerful tool to enhance your investing power by providing you with additional capital to seize investment opportunities as they happen.

Features
  • Offer leverage of up to 5.61 times of your initial funds with us
  • Provide additional capital of up to 85%2 of your initial investment holdings with us
  • Enable you to enjoy interest differentials by profiting from high-interest investments3 using money obtained from low-interest loans4 (as low as 1.38% p.a.5)
  • Offer hassle free repayment that you will only need to repay the monthly calculated interest every 3 months
  • Let you enjoy same-day loan disbursal. Upon successful account opening, your loan application will normally be processed and disbursed within the same business day6
Benefits

Your Investment Potential

Illustration 1: If you are holding CASH

If you are holding CASH

Illustration 2: If you are having Investment Holdings

If you are having Investment Holdings

Illustration Example 1

If customer is holding CASH

  • Ms. Wong has available cash of US$100,000.
  • She wants to invest US$330,000 in a 10-year US Corporation Bond.
  • With "Investment Plus", she enjoys the leveraged investment and receives an additional capital of US$230,000 for the corporate bond investment.

If customer is holding CASH

Return Comparison

Before After
Initial Investment Capital US$100,000 US$100,000
Additional Investment Capital obtained from "Investment Plus" Not applicable US$230,000
Annual Interest Return from the
10-year US Corporate Bond
(Assume the coupon rate is 3.0% p.a.)
US$ 3,000 (US$ 100,000 x 3.0%) US$ 9,900 (US$ 330,000 x 3.0%)
Interest Cost from "Investment Plus"
(Assume the interest rate is 1.38 % p.a. for a 12-month tenure)
Not applicable US$ 3,174 (US$ 230,000 x 1.38%)
Net Return US$ 3,000 US$ 6,726
Return on Investment (p.a.)
(Based on Initial Investment Capital)
3.0% 6.73%

Notes:

  1. The tenure of "Investment Plus" and the investment period of individual investment products may be different.
  2. Assume the loan interest rates of "Investment Plus" (i.e. 1.38% p.a.) and the bond prices remain the same throughout the entire investment period illustrated above. Actual loan interest rates are subject to prevailing market interest rates.
  3. Figures shown in the examples are referenced to April 29, 2015. The Hypothetical rates of return and loan interest rates stated are for illustrative purposes only and are not indicative of actual and / or future performance and borrowing costs.
  4. Investments should be subject to investor's own investment objectives and risk profiles.
Illustration Example 2

If customer is holding Investment Holdings

  • Mr. Lee has a US$100,000 10-year US Corporate Bond holdings at Citibank.
  • He plans to invest US$60,000 in an Enhanced Growth Mutual Fund Portfolio.
  • With "Investment Plus", Mr. Lee obtains an additional capital of US$60,000 by pledging his existing bond holdings for the extra Enhanced Growth Mutual Fund Portfolio investment.

If customer is holding Investment Holdings

Return Comparison

Before After
Initial Investment Holdings US$100,000 US$100,000
Additional Investment Capital obtained from "Investment Plus" Not applicable US$60,000
Annual Interest Return from the
10-year US Corporate Bond
(Assume the coupon rate is 3.0% p.a.)
US$ 3,000 (US$ 100,000 x 3.0%) US$ 3,000 (US$ 100,000 x 3.0%)
Annual Return / Loss from Enhanced Growth Mutual Fund Portfolio Not applicable (Assume the expected rate of return is 8.47% p.a.) US$5,082 (US$60,000 x 8.47%) (Assume the expected rate of return is -10% p.a.) -US$6,000 (US$60,000 x -10%)
Interest Cost from "Investment Plus"
(Assume the interest rate is 1.38% p.a. for a 12-month tenure)
Not applicable US$828 (US$60,000 x 1.38%) US$828 (US$60,000 x 1.38%)
Net Return / Loss US$ 3,000 US$ 7,254 - US$3,828
Return / Loss on Investment (p.a.)
(Based on Initial Investment Capital)
3.0% 7.25% -3.83%

Notes:

  1. The tenure of "Investment Plus" and the investment period of individual investment products may be different.
  2. Assume the loan interest rates of "Investment Plus" (i.e. 1.38% p.a.) and the bond prices remain the same throughout the entire investment period illustrated above. Actual loan interest rates are subject to prevailing market interest rates.
  3. Figures shown in the examples are referenced to April 29, 2015. The Hypothetical rates of return and loan interest rates stated are for illustrative purposes only and are not indicative of actual and / or future performance and borrowing costs.
  4. Investments should be subject to investor's own investment objectives and risk profiles.
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Remarks:Remarks:

1
Depending on individual investment products (e.g. mutual fund , bonds, structured products and eligible deposits) being purchased. 5.6 times is an example of pledging US Corporate Bond.
2
Depending on individual collateral used.
3
Additional investment(s) will be subject to investors' own investment objectives and risk profile.
4
Loan interest rates will be subject to prevailing market interest rates and may be subject to change from time to time.
5
1.38% p.a. interest rate is referenced to "Investment Plus" USD term loan as of April 29, 2015. Interest rate(s) is/are for reference only and is/are not guaranteed. The actual interest rate(s) will be dependent on loan currency and loan drawdown date and may be subject to change from time to time.
6
Customers are requested to submit their loan application before 3:00p.m. Same-day loan disbursal will normally be subject to the cut off time of the respective investment product(s).

Important Notice:Important Notice:

What are the risks?

"Investment Plus" is a leveraged product and is subject to a number of risks, including:

Currency risk

Investors investing in products denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal.

Interest rate risk

As interest rates for leveraged loan may vary during the investment period, the interest cost for customer may therefore also vary. This may affect the net interest return on your investment.

Leverage risk / Margin call risk

The degree of investment risk investors face is magnified because the transaction is leveraged. The risk of loss in "Investment Plus" can be substantial. A relatively small market movement will have a proportionately larger impact on the funds you have invested or will have to deposit. Investors may sustain a total loss of their pledged investment products and any additional funds deposited with the Bank to maintain your position. If the market moves against your position or margin requirements are increased, investors may be called upon at short notice to deposit substantial additional funds to maintain position. If investors fail to comply with request for additional funds within the time prescribed, all or any part of their pledged investment products may be realized for settling all or any part of their outstanding without notice. Investors will remain liable for any resulting deficit in their account.

Important Disclaimer:Important Disclaimer:

  • This material is for information purpose only and does not constitute any offer or solicitation or advice to buy or sell any investment products. The investment decision is yours but you should not invest in "Investment Plus" unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
  • Investments are not bank deposits and are not protected under any deposit protection scheme or authority.
  • Investors should have sufficient net worth to be able to assume the risks and bear the potential losses of investing in "Investment Plus".
  • Leveraged transactions carry high degree of risks. Investors may therefore wish to seek independent advice before making a commitment to enter into a position of "Investment Plus". In the event that investors choose not to seek independent advice, you should carefully consider whether "Investment Plus" is suitable in the light of your own investment objectives, financial position and risk profile. For more information on the collateralized investment products, investors should also carefully read the relevant terms and conditions.
  • Investors should not rely on the content of this material / website alone to make investment decisions. You should also read other relevant documents for details including the risk factors. If you have any inquiries, please seek independent professional advice prior to subscription.
  • Past performance is not indicative of future performance.
  • Investors' investments are subject to the insolvency and credit risk of Citibank (Hong Kong) Limited (the "Bank"). There is no assurance of protection against a default by the Bank in respect of payment obligation. In case of insolvency of the Bank, you may lose your entire investment irrespective of the performance of the market or segment invested and the terms of the investment.
  • Investment products are not available for US persons and might only be applicable to limited jurisdiction.