Robo 360 uses a quantitative approach to provide guidance to help you build your own portfolio, keep track of the portfolio performance and provide timely rebalancing advice online.

Robo 360 gives you the following advantages:

A disciplined way of investment
You can set financial goals, take action to invest and build your own portfolio based on quantitative models. You will also be provided with rebalancing alerts when necessary to help you invest in a disciplined and strategic way.

Low cost and low investment amount
You will only need to pay an all-inclusive “Advisory Service Fee” for the all-round services provided by Robo 360. No subscription fees for individual funds will be charged. Using Robo 360, you can start investing with as low as HKD800/USD100.

For other fee items, you have to refer to the offering documents or prospectus of each respective fund.

Reliable wealth management service
You will be offered guided advice to keep track of your investments throughout the investment horizon.

Easy-to-start, self-manageable
You can simply log in inMotion app to start your investment with Robo 360 anytime, anywhere, with no hassle of physical meetings.

Robo 360 uses quantitative methodologies, financial theories and algorithms to tailor model portfolios to your needs.

Robo 360 collects information such as risk profile and investment horizon to pick a model–driven model allocation for your investment goal plan. It calculates the projected values of the goal plan using models with assumptions based on historical data. You can proceed to create the goal plan if the probability of achieving the target amount is at least 50%, otherwise it will recommend you to adjust the plan by changing the investment amount, investment horizon or target amount. After the goal is set, you will be guided to construct a portfolio using investment funds as the underlying investments.

Here are some key limitations of the algorithms in Robo:

• Extreme events such as a systematic failure of financial markets are not explicitly modelled.
• Model inputs are based on historical data.
• Model allocation is based on representative benchmark data and not investment fund data. Fund performance can deviate significantly from benchmarks.
• Short, medium and long-term projections are based on the same assumptions and parameters.
• Asset returns are assumed to follow a particular statistical distribution and yet in reality asset return distribution can vary in different market conditions.

You will need the following to experience Robo 360 Advisory Services:

• a valid One Account
• inMotion App
• “CNCBI Token” for 2-factor authentication
• valid investor risk analysis (IRA)

First and foremost, you determine a goal, i.e. your reason for investment. Robo 360 will provide you advice on asset allocation mix and tell you if the simulated performance of your goal plan may reach your target amount under a normal market based on your

• target amount
• investment tenor
• Initial investment amount / Monthly contribution amount
• latest Investor Risk Analysis (IRA) results

The longest investment tenor is capped at 50 years. Also, considering customers’ risk appetite, the sum of customers’ age and investment tenor cannot exceed 85.

Yes. You can modify your investment goal setting such as the target amount and investment tenor after a goal is set. Simply go to the Robo 360 dashboard, click the goal and click “Manage” for change.

Robo 360 will use investment funds to create Goal Portfolio. You can invest in a multi-asset portfolio of investment funds that are suitable for your investment objective.

In selecting investment funds in Robo 360, the following factors will be considered:

• Equity funds or bond funds which passed our due diligence process
• Funds which denominated in HKD or USD

The fund for each asset class category is ranked according to a scoring method by taking into consideration of each fund’s performance and tracking error against respective asset class benchmark indices. The fund with highest score within each asset class will be shown as the first fund in the fund drop-down list.

The product risk rating of each fund (1,2 = Low Risk; 3 = Medium Risk; 4,5 = High Risk) is assigned by the Bank’s internal risk assessment of various factors, including but not limited to, the fund type, single country concentration, sector focus, denominated currency, liquidity, volatility and transparency, and whether the fund is complex or not etc. The product risk rating is for reference only.

Your risk profile is assessed based on Investor Risk Analysis (“IRA”). The results of IRA are built on the assumption that an appropriate risk level of an investor will depend on investor’s investment objective, investment horizon, liquidity needs, investment knowledge and experience, and risk and return expectation.

The questionnaire design for IRA and scoring methods are based on the findings from empirical research. The investment risk profile of a customer is divided into the following 5 levels where the investment products involving higher risk are only suitable for customers with higher risk tolerance levels.

Conservative
You can tolerate low level of investment risk and accept the risk of minimal negative price movement. Generally, you tend to invest in products with low price volatility and potential expected return that is similar to the bank deposit rate. You are regarded as a conservative investor who is likely to aim at capital preservation or low risk products.

Moderate
You can tolerate low-to-medium level of investment risk and accept the risk of low-to-medium negative price movement. Generally, you tend to invest in products with low-to-medium price volatility and potential expected return that is slightly higher than the bank deposit rate. You are regarded as a moderate investor who is likely to aim at low-to-medium risk products.

Balanced
You can tolerate medium level of investment risk and accept the risk of medium negative price movement. Generally you tend to invest in products with medium price volatility and potential expected return that is much better than the bank deposit rate. You are regarded as a balanced investor who is likely to aim at medium risk products.

Growth
You can tolerate medium-to-high level of investment risk and accept the risk of medium-to-high negative price movement. Generally, you tend to invest in products with medium-to-high price volatility and potential expected return that is comparable to the stock market indices. You are regarded as a growth investor who is likely to aim at medium-to-high risk products.

Aggressive
You can tolerate high level of investment risk and accept the risk of high negative price movement with the potential of losing the whole initial investment amount. Generally, you may consider investing in products with high price volatility and potential expected return that is remarkably higher than the stock market indices. You are regarded as an aggressive investor who is likely to aim at high risk products.

Based on the IRA results, you can opt-down your risk profile.

By comparing the projected performance of the customer’s contribution and the customer’s goal (i.e. target achievement), a goal status will be determined, i.e. “Above Target”, “Below Target” or “On Target”:

Above Target: The projected achievement at the end of the goal is above the target under a poor market. This happens when the probability of the portfolio missing the target amount is less than 10%. The platform monitors this goal status every day and sends out an alert to the customer as soon as the goal status is changed to Above Target.

Below Target: The projected achievement at the end of the goal is below the target under a normal market. This happens when the probability of the portfolio missing the target amount is greater than 50%. The platform monitors this goal status every day and sends out an alert to the customer when the probability of the portfolio missing the target amount is greater than 50%.

On Target: The projected achievement at the end of the goal is above the target under a normal market but below the target under a poor market.

The 10th, 50th and 90th percentile of the simulated monthly performance represent the model allocation performance under Poor, Normal and Good market environments respectively.

Projections are simulations based on expected returns and volatilities associated with the investment model selected according to the Bank’s portfolio construction methodology assuming them to be fixed for the rest of the investment tenor. These parameters are assumptions based on historical performance and might not be achieved in the future.

Rebalancing is the process of adjusting the portfolio so as to achieve the original investment objective.

Market conditions can lead to performance differences between asset classes. Not confirming the rebalancing action will lead to performance difference and non-alignment of portfolio risk with the model portfolio and the portfolio may become no longer suitable for you.

Rebalancing in Goal portfolio is the process of selling units of one or more funds held in the portfolio and buying units in one or more new funds or/and adding units to one or more existing positions.

Robo 360 will monitor the portfolio and offer rebalancing advice when necessary. You will receive a rebalancing alert if any one of the following scenarios arises:

• The portfolio has drifted from its target allocation;
• Your risk profile has changed;
• Your investment funds holding no longer suitable to you such as change of product risk rating;
• Your projected portfolio returns have become “below target” or “above target”.

Depending on your preference, rebalancing alerts will be sent via SMS or email. Also, you can retrieve rebalancing alerts in the notification centre, which is under the “Bell” icon on the top right corner of Robo 360 dashboard in inMotion anytime, anywhere.

Robo 360 will provide rebalancing suggestions when necessary and send you corresponding alerts via SMS or email. However, portfolio settings will not be modified without your instruction and confirmation.

In case of any delay in providing rebalancing instructions or ignoring of rebalancing suggestions, your investment portfolio may diverge from the suggested model asset allocation mix, causing deviation from achieving your investment objectives, hence no longer suited to your needs or expectations.

The rebalancing process involves redemption(s) and subscription(s) of one or more funds. Upon receiving your instruction for rebalancing, Robo 360 will assist you to subscribe the investment funds after all the redemption transactions have been settled successfully. Assuming the longest time for any fund redemption and subscription transaction to settle to be 3 business days, the whole process would take 6 to 10 days. In this regard, it will take longer time as redemption and subscription orders are not executed at the same time.

Yes, there is minimum redemption amount, ie USD 100 or HKD 800.

If your portfolio worths less than this amount, Robo 360 will only allow a full redemption. If you hold more than that amount, both full and partial redemptions are allowed.

No. You cannot redeem an individual fund under one portfolio. However, full or partial redemption, i.e. a designated portion of the funds under the portfolio is allowed.

You can redeem your portfolio but not transfer out the underlying assets.

Yes, you can redeem your portfolio either partially or fully anytime.

Yes. HKD 800 or USD 100 per month to start Monthly Saving Plan with Robo 360.

Three calendar days (5^th / 15^th / 25^th) are available for customers to choose.

If the bank is unable to make the relevant debits for the monthly contribution amount from customer’s Robo 360 account for three consecutive months, the relevant Robo 360 Monthly Saving Plan will then be terminated automatically.

Any notice of cancellation or variation shall be given through Robo 360 at least two working days prior to the date on which such cancellation/variation is to take effect.

• The selected fund(s) for the Monthly Saving Plan is/are no longer available in Robo 360 platform; or
• The selected fund(s) for the Monthly Saving Plan is/are no longer suitable to the customer; or
• If the bank is unable to make the relevant debits for the monthly contribution amount from customer’s Robo 360 account for three consecutive months.