A METHOD FOR OPTIMISING THE SECURITY VALUE OF AN INVESTMENT PORTFOLIO

摘要

An automated method of optimising a security value of an investor investment portfolio financed using a margin lending facility, the investment portfolio including a plurality of security holdings at least some of which comprise a diversified portion of the portfolio, the method including the following steps: A) determining a market value and composition of the portfolio based on a level of diversification in the portfolio, the composition of the portfolio including a diversified portion and a standard portion; B) applying a diversified LVR to the diversified portion of the portfolio and a standard loan to value ratio to the standard portion of the portfolio to calculate a maximum security value; and C) comparing the maximum security value calculated against a minimum security value required to secure the loan to determine whether the margin loan requires clearing.