Risk/reward profile

The risk/reward profile is determined by Friends Provident International from information provided by the management company of underlying fund and is based on the following characteristics of the underlying fund:

• volatility
• asset type
• geographical region.

The risk/reward profile will be reviewed and, if appropriate, revised at least yearly by us as a result of our ongoing research analysis. The information given in the risk/reward profile is for reference only and the SFC has not assessed or approved it, nor has it verified the accuracy of such information.

Grade 1: Investment-linked funds offering conservative return similar to money market rates. The underlying funds that these investment-linked funds invest in may be exposed to the following risk factors: FI, D.

Grade 2: Low-risk investment-linked funds offering security and potential growth. The underlying funds that these investment-linked funds invest in may be exposed to the following risk factors: FI, B, D.

Grade 3: These investment-linked funds take a balanced approach to investment by holding a diverse portfolio of assets. The underlying funds that these investment-linked funds invest in may be exposed to the following risk factors: Eq, FI, B, D.

Grade 4: A more focused asset exposure provides good growth potential with the risk of short-term volatility. The underlying funds that these investment-linked funds invest in may be exposed to the following risk factors: Eq, Li, FI, B, Com, EM, D.

Grade 5: These aggressive investment-linked funds balance the risk of high volatility with the potential for high capital growth. The underlying funds that these investment-linked funds invest in may be exposed to the following risk factors: Eq, Li, FI, B, Com, EM, D.

To find out more about the risk factors, please click here.