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.

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