When you create a new goal, we recommend suitable funds for you based on the following factors:
Your investment horizon and objective
Investment horizon provides an indication for us to understand how long you intend to remain invested in the goal. This allows us to assess products suitable r for the relevant investment horizon indicated.
Additionally, we will also assess alignment based on your indicated investment objective. We will consider the fund’s worst 12-months’ performance on a rolling basis since Dec 2006 (if a fund was established after Dec 2006, we will use historical data available since its inception), and curate a list of funds that fall within the range and suitable for the investment horizon indicated:
|Range of worst 12-months’ performance
|“Preserve capital by taking less risk”
|0% to -20%
|“Grow capital by taking some risk”
|-21% to -40%
|“Maximise returns by taking greater risk”
|-41% or higher
The Product Risk Ratings (PRR) of specific funds and your Client Risk Rating (CRA) Profile
Besides your indicated investment horizon and objective for a specific goal, we will also consider your Client Risk Rating (CRA) profile on our platform.
A fund is determined suitable for you if the Product Risk Rating (PRR) of the fund is less than or equal to your Client Risk Assessment (CRA) score.
Our suitability framework is conducted on a holistic approach, for funds with a higher PRR than your CRA, they may not be deemed unsuitable, taking into consideration other factors such as concentration of the investment within your total portfolio/assets, and provided the fund is not Complex Product as per definition by the Hong Kong SFC.