Introducing Yield Enhancer
Your Financing Tool For Better Investment Yields
Multiply Your Investment Power
Get up to 3.5x leverage by collaterising securities or cash.
Be Ready When Opportunity Knocks
Free up cash flow without selling your holdings.
Maximise Your Yields in Every Opportunity
Yield Enhancer allows you to invest more than what you have, at affordable financing rates, and without having to sell your current holdings. With your buying power multiplied by up to 3.5x, you can potentially enhance your investment yields too!
Multiply your investment power
Up to 3.5x when you collateralise cash, and up to 2.5x when you collaterise marginable securities.
Diversify your portfolio
Eligible for shares traded on multiple exchanges including SGX, BURSA, HKSE, and NYSE.
Multi-tiered interest rates
From as low as 1-month SIBOR + 2.28% p.a and varies according to securities pledged.
Collaterals Accepted
Cash
Pledge cash with no stipulated minimum amount.
Securities
Pledge any shares listed on SGX, BURSA, HKEX, and NYSE.
Getting Started
FAQs

If you are an investor seeking for passive income through dividend-paying stocks such as REITS, Margin Yield Enhancer may be one of the suitable investment tools you can leverage on to magnify your yields.

With Margin Financing facility, you are able to leverage up to 3.5 times of your existing capital to finance the purchase of securities by pledging cash and/or marginable securities as collateral.

Collateral Cash Shares
Amount Pledged S$20,000 S$20,000 of ABC Co. shares
Maximum Credit Available to Buy S$70,000 (including cash pledged) S$50,000
Total Collateralized Share Value (TCSV)

Value of Shares Purchase
S$70,000

Initial Shares Pledged + Value of Shares Purchase
S$20,000 + S$50,000 = S$70,000
Total Loan Utilized (TLU) Value of Shares Purchased - Cash Deposit
S$70,000 - S$20,000 = S$50,000
Value of Shares Purchased
S$50,000
Minimum Financing Ratio to be maintained = 140% (TCSV ÷ TLU) X 100%
(S$70,000 ÷ S$50,000) X 100% = 140%
(TCSV ÷ TLU) X 100%
(S$70,000 ÷ S$50,000) X 100% = 140%

Illustration: Using Cash as Collateral

A local Singaporean client with S$100,000 cash and wants to trade on Singapore REITs market.

   Option 1: 
Cash Trading  
Option 2: 
Margin Financing Trading
With Margin Facility
Cash  $100,000  $100,000  
Maximum Leverage 1x 3.5x  
Buying Power  $100,000  $350,000 Increase S$250,000 by 2.5 times
DEF Share Price $3.20 per unit  
Maximum Number of Shares can be purchased 31,250 109,375 Increase 78,125 units by 2.5 times
Dividend for DEF Life REIT $0.131 per share  
Dividends Collected $4,093.75 $14,328.13 Increase S$10,234 by 2.5 times
Interest Cost per year
(Assuming interest rate is 3.5% p.a. on a loan size of S$250,000)
N/A 8,750  
Profit $4,093.75 $5,578.13 Increase S$1,484.38 by 36%
Yield 4.09% 5.58% Increase by 1.49%

You will have to open a Margin Trading Account and meet the minimum age of 21 years old in order to enjoy this facility. The average processing time takes 3 to 5 business days and is subjected to approval. More time will be required should there be any exceptional conditions for approval.

To open an account, you may contact your Trading Representative, call our Customer Service hotline at 1800 538 9889 or email to clientservices.sg@cgs-cimb.com.

The list of marginable counters offered by Margin Yield Enhancer consists of mostly S-REITs; mainly Office, Retail, Industrial, Hospitality, Healthcare, Data Centre etc. For full listing, click here.

For CGS-CIMB’s list of marginable counters for Margin Financing, you may refer to the full listing published on our website. 

There will be the interest rate levied on your Margin Trading Account under the Grade-Based Margin Financing Scheme. Click here to refer to our Margin Share Financing Fees Schedule under Interest Rates Scheme II on our website.

Grade of Securities Grade Based Interest Rate
SGD HKD USD
A 1 Month Sibor + 2.28% 1 Month Hibor + 2.28% 1 Month Libor + 2.28%
B 1 Month Sibor + 3.28% 1 Month Hibor + 3.28% 1 Month Libor + 3.28%
C 1 Month Sibor + 4.28% 1 Month Hibor + 4.28% 1 Month Libor + 4.28%
D 1 Month Sibor + 5.28% 1 Month Hibor + 5.28% 1 Month Libor + 5.28%
OTHERS* 1 Month Sibor + 6.28% 1 Month Hibor + 6.28% 1 Month Libor + 6.28%

*Rates apply for all securities indicated in the CGS-CIMB Margin List as "Others".

For other fees that may apply, please refer to the Fee Schedule for full details.

A Margin call will be triggered if your Financing Ratio falls below the maintenance margin.

The margin call triggering point for Singaporeans/Singaporean Permanent Residents and Foreign clients is as follows:

  Margin Call Force-Sell Call
Singaporeans/ Singaporean Permanent Residents FR % falls below 140% but equals to or above 130% FR % falls below 130%
Foreign Client FR % falls below 160% but equals to or above 150% FR % falls below 150%
Time Frame 3 market days including date of call Same day before 2pm

Note: FR (Financing Ratio)

Withdrawal of shares or cash is allowed if your Financing Ratio is above the Minimum FR or other maintenance margin as prescribed by CGS-CIMB Securities.

Cash withdrawal is only allowed if you have a credit balance or sales proceeds.

All withdrawals requires authorization from the client by signing the Withdrawal Form.

The key risks associated with Margin Financing include:

1) Risk of loss exceeding capital loss
An investor trading on margin can lose more than the initial capital.

2) Risk of rising interest rates
Interest Cost on margin loan might erode the gains made on Margined Securities. 
In a rising interest rate environment, the interest rate on the margin loans will head higher, adding to the interest load for investors who engage in margin trading.

3) Risk of Suspension or Restriction in Trading
Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any security because of price limits or trading halts) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.

Important to Note: The list of abovementioned risks is not exhaustive.
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