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.

The methodology used to determine the risk/reward profile for each mirror fund is as follows:

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.