Diversified Portfolio Feature
The Diversified Portfolio feature gives customers with diversified portfolios the ability to borrow against additional securities that are on the Diversified Portfolio Acceptable Security List.
With additional securities to borrow against, your portfolio may benefit from:
- Increased diversification
- Increased borrowing limit
- Reduced risk of margin call due to reduced sensitivity to individual security price movements and an increased borrowing limit
To qualify for the Diversified Portfolio feature, you must have (and maintain):
- 3 securities on the ASL (not including cash); and
- The largest security holding must account for less than 50% of the portfolio’s value.
When your portfolio qualifies for the Diversified Portfolio Security, the amount you may borrow against securities on the Diversified Portfolio Acceptable Securities List is limited to a maximum value of 20% of the market value of securities on the Acceptable Securities List. This Limit is known as the Diversified Portfolio Acceptable Securities Cap.
The additional borrowing limit applied to your account and known as the Diversified Portfolio Acceptable Securities Limit, is calculated as the value of securities on the Diversified Portfolio Acceptable Security List (up to the value of the Diversified Portfolio Acceptable Securities Cap) multiplied by the LVR. This is automatically applied to your account while your account qualifies as a Diversified Portfolio.
Check out the Diversified Portfolio Frequently Asked Questions.
You can also contact us for more information. Call 1800 805 972 or email email@example.com