(1) What is “GoWealth Digital Wealth Advisory Services”?

To provide pioneering investment advisory solutions, the Bank has teamed up with Allianz Global Investors, one of the leading global asset management firms, to co-develop “GoWealth Digital Wealth Advisory Services”. With technology, “GoWealth Digital Wealth Advisory Services” strives to provide a personalised, multi-dimensional, fund investment solution, so that you may reach your financial goals on autopilot. Set. Track. Goal. All in one app offering you the ultimate flexibility in your investment .

Key features of “GoWealth Digital Wealth Advisory Services” include:

Personalised investment recommendation
Ground-breaking projections
Stay on track with smart alerts
Ultimate flexibility with no lock-up period and no redemption fee

The “GoWealth Digital Wealth Advisory Services” we provide are not discretionary asset management services. This means that:

We will evaluate your portfolio every month but we do not actively manage the performance of your portfolio;
We will not make any changes to your portfolio unless we are expressly instructed by you to do so;
It is your responsibility to monitor the performance of the portfolio. Our App provides certain tools to help you with that;
If you would like to obtain advice on changes to your portfolio, you may ask us to make recommendations but we are not obliged to and will not make recommendations pro-actively; and
We are not required to recommend any changes to your portfolio unless you have asked.

(2) How can I create a goal portfolio?

After accessing the “GoWealth” icon, you can tab “Digital Wealth Advisory Services” and click “Add New Goals” to create a goal. You can then follow the on-screen instructions to complete the goal setting process by entering the goal parameters such as target wealth, goal horizon, one-time investment amount, and monthly investment amount.

(3) Is there any restriction on investment tenor?

The minimum investment tenor is 1 year, and you can set up your goal for an investment tenor up to 70 years old. If you wish, you can redeem the investment asset before tenor end date. (No lock-up period and no redemption fee)

(4) What kind of investment instruments will “GoWealth Digital Wealth Advisory Services” use to create the Model Portfolios?

The “GoWealth Digital Wealth Advisory Services” will use funds to create various Model Portfolios for you to invest in.

(5) For “Build my Investment Habit”, how will “GoWealth Digital Wealth Advisory Services” generate the Target Wealth?

For “Build my Investment Habit”, our Investment Engine will generate the Target Wealth for you based on your latest inputs and personal circumstances, including but not limited to, one-time investment amount, monthly investment amount, and goal-specific investment horizon.

(6) How are the Model Portfolios constructed? How are the individual funds selected?

Each Model Portfolio corresponds with certain risk profiles and asset classes which consists of a certain number of funds selected by the Bank (the "Selected Funds"). The asset allocation of asset classes is determined by AllianzGI and the Bank. The Selected Funds within a certain asset class and their composition in the Model Portfolio will be determined at the Bank’s sole discretion and may vary from time to time. This means that you will not be able to adjust the proportion of the individual funds within the Model Portfolio.

In order for the Selected Funds to be included into the Model Portfolio, all the funds must go through a rigorous due diligence and internal approval process to ensure a thorough understanding of the funds in terms of the nature and extent of risks e.g., market and industry risks, economic and, regulatory restrictions and any other factors which may directly or indirectly impact on risk return profiles and growth prospects of investments.

For individual fund product level, the key areas of evaluation include, but not limited to, fund basic structure, investment objective, investment strategy and process, investment team assessment, performance and risk assessment, operational setup, fee structure and etc.

Based on the due diligence framework, the Bank will select funds and determine corresponding weightings that fit into the specific asset classes and the target risk/return profile of model portfolios.

(7) How does the algorithm work?

The algorithm used for “GoWealth Digital Wealth Advisory Services” relies on information to be provided by you. It will also rely on our capital market forecast on various asset classes and the Model Portfolios in terms of risk, return and correlations. This is a similar process to any type of computer programming which is dependent, in part, on the skill and knowledge of the individuals writing the program. The process, although computer based, is reliant upon human judgment.

That judgement includes the capital market forecast and/or deciding on what personal information would be relevant for the purpose of “GoWealth Digital Wealth Advisory Services”.

In order for the algorithm to provide you with “GoWealth Digital Wealth Advisory Services”, the algorithm will take into account certain personal information provided by you or based on certain criteria selected by you including but not limited to the following:

(a) your goal-specific investment objective;

(b) your goal-specific investment horizon;

(c) your goal-specific financial situation: including:

One-time and monthly investment amount
Target wealth

(d) your risk appetite and capacity; and/or

(e) your investment knowledge and experience.

After collecting the necessary information about your goal, “GoWealth Digital Wealth Advisory Services” will apply the following algorithm(s) to provide recommendation(s) for you:

For Optimal Probability: The algorithm will base on the recommendation rationale mentioned above to return a model portfolio with the most optimal statistical probability to achieve the goal which you set at the beginning. While maximizing the probability of achieving the goal is the primary objective, the Investment Engine also takes a risk-aware approach. A 2% probability of success buffer is built in the Model Portfolio selection process. The Investment Engine will recommend a Model Portfolio with the highest probability of success and lowest expected risk level within the 2% probability of success buffer range.
For Higher Target Wealth: If an alternative recommendation matching your personal circumstances with higher possible target wealth is available, upon your confirmation to discover a new portfolio, the algorithm will base on the recommendation rationale mentioned above to return a model portfolio with a higher possible target wealth based on your latest inputs and relevant personal circumstances. However, the statistical probability to achieve the higher target wealth may be lowered since this model portfolio may come with larger fluctuations and the risks associated with this model portfolio may be higher, although the model portfolio matches with your risk appetite and risk capacity.

The Model Portfolio which is presented to you is based on the information available to us at the time. Changing market conditions and other external economic factors, may affect the prices of constituent funds or the underlying securities in which they invest, means that there can be no guarantee your investment goals will be achieved.

Although both recommendations are considered suitable for you, the risks associated with the two recommendations may be different and you should carefully consider before investing.

(8) What are the limitations of the algorithm?

The algorithm we use to provide “GoWealth Digital Wealth Advisory Services” is designed to recommend a Model Portfolios or a revised model portfolio. In either case the algorithm relies on the data available at the time the relevant model portfolio is presented. It is not designed to monitor the performance of your portfolio against your objectives or market developments affecting the value of your investments in order to recommend possible changes proactively. The monitoring tool, which relies on the algorithm, is provided for your convenience and is not designed to alert you that your portfolio may benefit from changes to its constituent funds.

The algorithm is dependent on information it is programmed to take into account. Specifically, it does not take account:

your other investment holdings held in your accounts with us or any other investment holdings for the purpose of portfolio construction;
any changes to your holdings due to any trading activities or market movements which occur after you give us Instructions to invest in the relevant model portfolio; or
any fund price movement which may result in a different portfolio allocation originally suggested by the Bank.

The algorithm we use is licensed from a third party. If for any reason the licence is withdrawn, suspended or is otherwise not available to the Bank, our ability to provide the “GoWealth Digital Wealth Advisory Services” may be affected. Accordingly we have the sole and absolute discretion to terminate or suspend the “GoWealth Digital Wealth Advisory Services”. If the “GoWealth Digital Wealth Advisory Services” are terminated or suspended, upon termination or during the period of suspension, the Bank is not obliged to provide any services which rely on the algorithm, including but not limited to provision of recommendation on model portfolios or revised model portfolios and the monitoring tools.

Further you should be aware that the Bank cannot guarantee the service provided is faultless. If the service provided by the Bank is defective, and the defect is unavoidable by the technological level of the industry at the time, the flaw will not be regarded as a breach of contract. Although we will use reasonable endeavours to maintain the availability of the algorithm and reliability support, the Bank cannot make any commitment as to the continued availability or reliability support, and this may affect our ability to prove “GoWealth Digital Wealth Advisory Services” model inputs are based on capital market forecast.

Fund performance can deviate from forecasts.

(9) What are the key risks involved in the “GoWealth Digital Wealth Advisory Services”?

Key risks involved in the “GoWealth Digital Wealth Advisory Services” include, but shall not be limited to:

General Investments Risks and Fund Risks
Risks of Investment in Portfolio
Market Risks
Risks associated with recommendation and switching of Portfolio(s)
Partial Execution Risks
Regulatory Risks
Investment Strategy Risks
Concentration Risks

For details, you can refer to our Wealth Management Service Terms and Risk Disclosures.

(10) How do the Wealth Management Services determine the product risk rating of the model portfolios and constituent funds?

Product risk rating (1 = Low, 2 = Low to Medium, 3 = Medium, 4 = Medium to High, 5 = High) is assigned by assessing various factors, including but not limited to, product type, price volatility, credit risk, currency risk, product features and geographical factors, etc. We may revise the product risk rating assigned from time to time without any prior notice. This information is for general information and reference only.

Model Portfolio and Individual Funds share the same assessment methodology and classification of product risk rating. In case of Model Portfolio, instead of considering each individual fund independently, the assessment will be performed holistically so that the product risk rating will describe the risk rating of the Model Portfolio as a whole. Therefore, there is possibility that a Model Portfolio will consist of funds with product risk rating which is higher or lower than the risk rating of the Model Portfolio. The algorithm will consider the product risk rating of the Model Portfolio but not the product risk rating of individual funds when selecting the Model Portfolio to you.

(11) What does the goal status mean?

You may see there are below status shown on the Goal your created:

Draft: You have not placed an order to start investing for this goal yet.
• Processing: Your order for this goal is being processed.
• On track: Your probability of success for this goal is equal or above 50%.
• Off track: Your probability of success for this goal is below 50%.
• Achieved: You have achieved your target wealth for this goal before the planned goal horizon.
• Completed: You have reached the end of this goal horizon.

(12) What does probability of success mean?

Probability of success is a statistical probability to achieve your target wealth at the end of the investment plan. It is computed by simulating the potential growth of wealth based on the goal parameters provided by you during the goal setting process, model portfolio allocation and our capital market assumptions.

The statistical probability does not reflect or project actual investment performance of the model portfolio or any individual fund in the model portfolio. It is not a guarantee of future result nor a guarantee that you will achieve your goal.

The probability result is classified into four groups:

Off-track: Less than 50%

Comfortable: 50 to less than 65%

Very comfortable: 65% to less than 80%

Very very comfortable: 80% to 100%

(13) What is scenario analysis?

Scenario analysis illustrates the performance of the portfolio recommendation under adverse and favourable scenarios, with reference to your Target Wealth.

Please note that our scenario analysis is only for reference only and it is not a guarantee of future result nor a guarantee that you will achieve your goal. Before investing, you should carefully consider your investment objective, risks, charges and expenses and seek independent professional advice if necessary.

(14) What does it mean by “adverse scenario” and “favourable scenario”?

The adverse and favourable scenarios are statistical projections of your portfolio values at the 10th and 90th percentile based on the goal settings, investment plan, model portfolio and capital market forecast.

Please note that our scenario analysis is only for reference only and it is not a guarantee of future result nor a guarantee that you will achieve your goal. Please also be reminded that the price of funds may move up or down, and may become valueless.

(15) How do I make changes on, edit or delete my goal?

Once your goal is set up, you can click your goal on the “GoWealth” > “Digital Wealth Advisory” and you will find the “Edit” button where you can adjust your goal. For example, you may change the name of your goal. You may also adjust the parameters of your goal.
If you want to cancel the goal, you can click your goal on the “GoWealth” > “Digital Wealth Advisory” and click the “Sell” button. By further clicking the “Sell All” button, you can redeem all your holding and cancel the goal altogether with your future monthly investment.

(16) Is there any charge to terminate a goal?

No, there is no termination charge/early redemption fee.

(17) How are ESG factors considered in the investment recommendation process?

ESG assessment is a part of our product due diligence process where the ESG factors and relevant investment strategies and processes of each individual fund will be assessed before we construct a model portfolio for our investment recommendation.