Disclaimer

The content of this webpage is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. Investment involves risk. The investor type classification has no relationship with and is not any substitute for the Financial Needs Analysis (the “FNA”) or your risk profiling under the FNA. You instruct us that if there is any conflict or inconsistency between the investor type classification and your investment risk profiling under the FNA, the latter shall prevail and be used for assessing your risk profile for your conducting investment product transaction with our Bank. Please also note that asset allocation does not generate positive return or protection against market loss. Please read the notes appended.

Notes:

  1. The expected return of the strategic asset allocation (SAA) model is based on capital market assumptions derived from Morningstar’s econometric model that relies on historic, current and forecasted data on the indices highlighted below. The information is for reference only.
  2. The expected risk (or expected standard deviation) of the SAA model represents the expected risk level of the portfolio based on asset class relationships (correlations) and expected volatility,  based on the indices highlighted below. The information is for reference only.
  3. Morningstar’s SAA model started on 1 October 2010. Morningstar reviews the strategic asset allocation (“SAA”) on an annual basis. The current Strategic Asset Allocation (SAA) is as of 01 July 2018.
  4. Based on the SAA model, the Dynamic model has the highest risk, followed by Balanced, Moderate and Conservative, with Conservative being the least risky. The risk consideration that was used in formulating the Strategic Asset Allocation was the expected volatility as measured by expected standard deviation.
  5. The investor type classification for the portfolio has no direct relationship with the Financial Needs Analysis customer risk profile types and the portfolios are not assigned any product risk rating based on the bank’s proprietary risk rating methodology.
  6. The above SAA model is effective July to September 2018 and are subject to change.
  7. The expected return and expected risk are based on the following indices for calculation:
    • Equity: US - MSCI USA GR USD; Europe - MSCI Europe GR USD; Japan - MSCI Japan GR USD; Asia ex Japan - MSCI AC Asia Ex Japan GR USD
    • Bond: Developed Market Bonds- Citi WGBI USD; Developed Market Corporate Bond - Citi WBIG USD; Emerging Market Bonds - JPM EMBI Global Diversified TR USD
    • Alternatives: Gold - S&P GSCI Gold Spot; Hedge Fund - Credit Suisse Hedge Fund USD
    • Cash: BofAML US Treasury Bill 3 Mon TR USD

Morningstar’s Strategic Asset Allocation

The core methodology of Morningstar Strategic Asset Allocation Model used to determine investment portfolios is mean-variance analysis. Mean-variance analysis was developed by Harry Markowitz in the 1950’s and provides a mathematical framework for generating portfolios that maximize expected return for a given level of risk (efficient portfolios). Mean-variance analysis requires three statistical estimates for each asset class: 1) Expected return (Mean), 2) Expected risk (Standard Deviation), and 3) Expected relationship between the asset classes (Correlation Coefficients).

Morningstar Investment Management (MIM), through its heritage in Ibbotson Associates, is widely viewed as one of the leading authorities on the development of capital market assumptions. They have written numerous award-winning articles on the subject. MIM’s “building block” methodology for estimating returns was first developed in the 1970s and continues to be improved upon.

Disclaimer by Morningstar:

For Professional Investors Only. Morningstar Investment Management Asia Limited (“Morningstar”) is licensed and regulated by the Hong Kong Securities and Futures Commission to provide investment research and investment advisory services to professional investors only.

Morningstar provides strategic asset allocation to DBS Bank Limited (“DBS”) based on certain criteria set by DBS. DBS has the authority to accept, reject or modify Morningstar’s strategic asset allocation. Morningstar takes no responsibility for advice provided by DBS to its clients. Morningstar is licensed with the Hong Kong Securities and Futures Commission to provide investment research and investment advisory services to professional investors (which include DBS) only. Morningstar is not acting in the capacity of adviser to individual investors. Morningstar is not affiliated with DBS. The Morningstar name and logo are registered trademarks of Morningstar, Inc. All investments involve risks. The information is for your reference only and does not constitute any offer or solicitation to enter into any investment arrangement. Past performance is not indicative of future performance. You should refer to relevant investment offering documents for detailed information prior to investing in any investment option.

Disclaimer by DBS Group:

  1. The content in this Invest Your Wealth webpage (the “Information”) is not and shall not be construed as investment advice. This Information is meant to be informative and for general purposes only. It does not take into account your individual needs, investment objectives and specific financial circumstances. The classification, SAA, TAA and model portfolios are for illustration only and do not constitute an offer, invitation, recommendation, or solicitation of any action based upon it.
  2. Although the content in the information has been taken from sources that are believed to be accurate, no warranty or representation is made by DBS Bank (Hong Kong) Limited and/or its subsidiaries (collectively, “DBS Group” and each of them “DBS”) as to its correctness, completeness, timeliness or accuracy. DBS Group and its related companies do not assume or undertake any duty to advise any person or investor, and accept no liability whatsoever for any direct, indirect or consequential loss arising from or in connection with any use or reliance of this Information or anything contained in it. Investors should read the relevant offering documents (including the prospectus, if any) before deciding to subscribe for or purchase any product. No part of this Information may be (i) copied or duplicated in any form, by any means, or (ii) re-distributed without the prior written consent of DBS. DBS shall have no liability for any misuse or unauthorised distribution of this Information.
  3. The content of this webpage is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. Investment involves risk. The investor type classification has no relationship with and is not any substitute for the Financial Needs Analysis (the “FNA”) or your risk profiling under the FNA. You instruct us that if there is any conflict or inconsistency between the investor type classification and your investment risk profiling under the FNA, the latter shall prevail and be used for assessing your risk profile for your conducting investment product transaction with our Bank. Please also note that asset allocation does not generate positive return or protection against market loss.

Risk Disclosure Statements:

  1. The Information is not an investment advice and does not constitute any offer or solicitation to subscribe or redeem. Investment involves risk. Past performance is not indicative of future performance. Investor should refer to the offering documentation of the product(s) for detailed information (including risk factors) prior to investing in the product(s). If you have any query on the above information or any product offering documentation, you should seek independent professional advice.
  2. The Information has not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong. DBSHK is not acting as an adviser or in any fiduciary capacity.
  3. If there is any inconsistency between the English and Chinese versions of this Information, the English version shall prevail.