CMB Wing Lung Bank Limited (“the Bank”) proudly presents a brand new robo advisory service, Wealth-Tech Services, which provides you with professional investment advices through analysis of algorithms. The Service creates a customized fund portfolios for customers, and monitors each fund portfolio every second around the clock. Wealth-Tech Services is your technology partner in wealth management.

What is Wealth-Tech Services
The Reasons of choosing
Wealth-Tech Services

CMB Wing Lung Bank cooperates with a licensed robo investment advisory company

The Bank cooperates with AQUMON, a robo investment advisory firm with licenses type 1, 4 and 9 of the Hong Kong Securities and Futures Commission (SFC), providing professional investment advices and customized fund portfolios to customers. Customers’ assets will be kept in custody by the Bank to make transactions more assured.

Deploying algoritmic models to generate fund portfolios to reach asset diversification

Wealth-Tech Services deploys quantitative models to analyse more than 100 factors such as fund size, fund categories, interest rate and past performance, as to select suitable funds out of thousands to form fund portfolio for customers, customers can have multiple fund portfolios in Wealth-Tech Services’ investment portfolio.

Analysing Risk Preferences

Wealth-Tech Services divides risk preferences into 5 categories: Conservative, Stable, Balanced, Growth and Aggressive. After completing the Investment Risk Profiling Questionnaire by customers, Wealth-Tech Services will take the risk preference results as one of the criteria for investment analysis.

Customizing Fund Portfolios

Everyone’s risk preferences and market views are different. Wealth-Tech Services considers each customer’s individual investment preferences such as geographic locations, industry sectors, and risk preference and etc., to formulate customized and personalized investment plan to fulfill different investment needs. Wealth-Tech Services will provide different tailored fund portfolios for each customer with different preferences.

For example, even 2 customers with the same risk preference as Conservative, Wealth-Tech Services would generate fund portfolios with different varieties of funds and fund weightings since those 2 customers selected different industry sectors. Wealth-Tech Services would generate more than 1 customized and personalized fund portfolios for customer to subscribe, and there is no limitation on subscribing the number of fund portfolios which will then form the whole investment portfolios in Wealth-Tech Services.

Providing 24x7 Monitoring Services

Wealth-Tech Services’ real time monitoring services run 24x7. The system alerts customers with rebalancing recommendations in response to market changes.

$0 Handling Fee and Trading Fee

All charges are transparent. There is no hidden handling fee nor trading fee. All the handling fee for subscription, redemption and rebalancing services has been waived. Only 1% annualized Service Fee # will be charged monthly for Wealth-Tech Services.
# Service Fee of 1% p.a. will be charged monthly on the customers’ total value of Wealth-Tech Services fund portfolios (accrued daily and charged monthly). Monthly Service Fee = 1% of the total values of Wealth-Tech Services fund portfolios / number of days in year.

Investment amount of Wealth-Tech Services

The minimum investment amount is USD4000.

Latest Promotion

From now (29 March 2021) to 31 December 2021 (“this Period”), customers who participate in this new Services will enjoy $0 Service Fee, as the Bank will waive the 1% p.a. Service Fee in this Period.

Please logon CMB Wing Lung Bank Wintech Application (“Wintech”), click “All”- “Wealth Management”, enter Wealth-Tech Services to subscript investment portfolios.

Investment process

Investment Risk Profiling Questionnaire

After opening a Wealth Management Account, customers are required to complete an Investment Risk Profiling Questionnaire.

Fund Portfolios Recommendation

Wealth-Tech Services will take customers’ personal investment preferences, risk preferences and more into consideration when generating customized investment fund portfolio recommendation.

Transaction

Transaction will only be conducted upon customer’s confirmation on subscribing customized fund portfolio.

Fund Portfolio Analysis

Wealth-Tech Services monitors each fund portfolio every second around the clock.

Rebalancing Recommendaton

Wealth-Tech Services alerts customers with instant rebalancing recommendations in response to market changes.
Tutorial for First Transaction
Investment Thoery

Selecting high-quality funds by algorithm

Using algorithms to analyse funds, such advanced quantitative model techniques help select high-quality funds as asset option for the formulation of fund portfolios.
*The back test period is 29 February 2016 to 31 December 2020. The benchmark is composed by the Bloomberg Barclays Global Aggregate Bond Index and the Morgan Stanley Capital International – All country World Index proportionally.

Quantitative Allocation

The high-quality funds weightings of each portfolio are calculated with advanced quantitative and statistical model techniques, such as using algorithms, statistics and other academic modeling, achieving a multi-angle quantification and statistical analysis.

Risk Diversification

By using quantitative models and adding funds of different industry and sector into fund portfolios, risk will be diversified by balancing risk and return.

Customization Service

Take into consideration of customer’s investment preferences and risk preferences, Wealth-Tech Services will generate customized and personalized fund portfolio for each customer.
Background

What is Wealth-Tech Services?

Wealth-Tech Services is a robo advisory service that generates tailor-made investment fund portfolios after analyzing customer’s risk profiles and investment preferences. By analysing more than thousands of factors such as past performances of funds and other risk factors, Wealth-Tech Services selects suitable funds that may outperform the market. In addition, Wealth-Tech Services monitors each fund portfolio every second around the clock. The system alerts customers with rebalancing recommendations in response to market changes, so as to ensure that customers’ portfolios are within a range of the optimal weightings prescribed by the algorithm.
Transaction will only be conducted upon customer’s confirmation on subscribing customized fund portfolio.

Where and how can I use Wealth-Tech Services?

Wealth-Tech Services is provided through CMB Wing Lung Bank Wintech mobile application (“Wintech”). After login Wintech > Click “All” > Click “Wealth Management” > Click “Wealth-Tech”.

How does Wealth-Tech Services work?

Based on the information provided by customers such as financial situation, investment experiences, investment objectives, risk level, investment preferences and other circumstances, Wealth-Tech Services will generate fund portfolios that match customers’ needs. Once customers subscribe the fund portfolio, it will monitor the fund portfolio every second around the clock. Whenever there is any market crisis or updates on algorithm, Wealth-Tech Services will alert customers by sending rebalancing recommendation messages, so as to ensure that customers’ portfolios are within a range of the optimal weightings prescribed by the algorithm. Transactions will only be conducted upon customer’s confirmation on subscribing the customized fund portfolios.

How to open the Wealth-Tech Services Account?

The Wealth-Tech Services Account will be automatically opened when customer successfully subscribe the first fund portfolio through Wealth-Tech Services. An individual account number would be developed for the Wealth-Tech Services Account.

How does the algorithm work?

The investment recommendations for Wealth-Tech Services involve fund selection and weighting optimization. Each underlying fund is selected from over thousands of funds, based on factors such as volatility, track records, assets, and underlying holdings. The algorithm systematically scores these factors and outputs a ranking for each fund category. The weightings for the selected high scored funds are generated via various optimal weighting algorithm and quantitative models.

Who provides the algorithm?

The Wealth-Tech Services’ algorithm is provided by a third party service provider who operates algorithm asset allocation and constructs the portfolios.

Is there any Artificial Intelligence (“AI”) in this service?

Wealth-Tech Services does not involve any Artificial Intelligence.
 
Benefits and Limitation

What are the benefits of Wealth-Tech Services?

• Professional Service – Wealth-Tech Services provides professional customized asset allocation service, which generates fund portfolios comprising 8 to 12 funds based on customers risk profile and investment preferences.
• 24x7 Monitoring – Wealth-Tech Services monitors fund portfolio 24x7. It alerts customers with instant rebalancing recommendations in response to market changes, so as to ensure that customer’s holdings remain optimal.
• Rebalancing Mechanism – Rebalancing is offered in the Wealth-Tech Services platform to ensure that customers’ portfolios are within a range from the optimal weightings prescribed by the algorithm.
• $0 Handling Fee and Trading Fee – Wealth-Tech Services charges $0 for fund portfolio subscription, redemption, and rebalancing. Only an annual Service Fee of 1% p.a. of the total Wealth-Tech Services fund portfolios’ value is charged on monthly basis.

What are the limitations of Wealth-Tech Services?

• The Wealth-Tech Services is only available via Wintech.
• Modification of any of the pre-set underlying funds / backup funds or such allocation percentage for each fund portfolio for subscribing / rebalancing / redeeming fund portfolio(s) is not allowed.
• There is a minimum amount for subscription, redemption, additional subscription, rebalance and holdings. If the investment amount is lower than the minimum amount, Wealth-Tech Services will not be available or the instruction may not be accepted or allowed.
• Amendment and cancellation are not allowed once an instruction is placed.
• During system downtime, any other system interruption, or any occurrence that is out of control, trading suspension may be resulted.
• Third party service provider may not necessarily be able to deliver the algorithm data (if any) or any information documents on time; as a result, some of these information may be delayed.
 
Fund Portfolios Subscription

How are the customized portfolios generated?

Wealth-Tech Services will take customers’ personal investment preferences, risk preferences and more into consideration when generating customized investment fund portfolio recommendation.

Is there a minimum subscription amount?

The minimum subscription amount is USD4,000.

What will happen if my Wealth-Tech Services settlement account does not have sufficient funds for subscription?

If the settlement account does not have sufficient funds for subscription, the subscription instruction will be rejected.

Can I pick and combine the funds that I want into any Wealth-Tech Services fund portfolio freely?

It is not allowed to pick, combine or transfer any funds into any fund portfolio that are out of the recommendations from Wealth-Tech Services.

Can I adjust the fund weighting?

It is not allowed to adjust any funds weighting in any Wealth-Tech Services fund portfolio.

Do I need to pay any subscription fees?

Wealth-Tech Services waives all kinds of subscription fees, redemption fee, switching fees, rebalance fees and any other trading fees. Only an annual Service Fee of 1% p.a. of the total Wealth-Tech Services fund portfolios’ value is charged on monthly basis.

Can I subscribe more than one fund portfolio?

Yes, there is no limitation on subscribing the number of fund portfolios.
 
Rebalancing Portfolios

What is rebalancing?

Rebalancing is offered in Wealth-Tech Services as it monitors fund portfolios continuously. It alerts customers with rebalancing recommendations in response to algorithm updates, market changes and customer risk profile changes, so as to ensure that customers’ portfolios are within a range of the optimal weightings prescribed by the algorithm.

When and how the fund portfolios will be rebalanced?

After receiving the rebalancing instruction from customers, Wealth-Tech Services would process rebalancing by subscribing and redeeming funds in portfolios. Typically, rebalancing recommendation is triggered in the following scenarios:
• The current fund portfolio has deviated a certain level from the optimal allocation
• Algorithm updates
• Change of investment risk profile, investment preferences and objectives by the customers
• Change of product risk level

How many times will a portfolio be rebalanced?

There is no fixed period for rebalancing. However, according to past record, it usually occurs in every quarter.

Will I receive any rebalance alert?

Yes, if rebalancing is triggered, customers will receive a push message via Wintech.

Can I postpone the rebalancing instruction?

Yes, Wealth-Tech Services allows customers to postpone the rebalancing instruction by a day, a week or a month. However, fund portfolio will not be in an optimal status defined by the algorithm if you postpone the rebalancing instruction.

Can I ignore or postpone any rebalancing instruction?

Yes, as long as customers acknowledge the involved risks and consequences of ignoring or postponing any rebalancing instructions.

Do I need to pay any fees for rebalancing?

Wealth-Tech Services waives all kinds of subscription fees, redemption fee, switching fees, rebalance fees and any other trading fees. Only an annual Service Fee of 1% p.a. of the total Wealth-Tech Services fund portfolios’ value is charged on monthly basis.

How long does the whole rebalancing process usually take?

After customers confirm rebalancing instructions, the Bank will first redeem the relevant funds in such portfolios before subscribing the relevant fund in such portfolios. The process may take as much as 14 trading days (or more depends on the situation) to settle the whole rebalancing process.
 
Fund Portfolios Redemption

When can I sell the fund portfolio?

There is no time limitation on sell fund portfolios. Customers can place the redemption instruction anytime via Wintech

Can I sell one or a few funds from the fund portfolio?

No, customer cannot sell one or few funds in the fund portfolio, you need to sell the fund portfolio as a whole proportionately.

How much can I sell? Is there a minimum redemption amount?

There is a minimum amount for redemption, the amount has to be equal to or higher than USD2,000, which is the minimum redemption amount.

Is there a minimum holdings amount?

There is a minimum holdings amount. For the left over after the redemption, the amount has to be equal to or higher than USD3,500, which is the minimum holdings amount.
 
Contract Notes and Statements

Will I receive contract notes and statements?

Yes, same as other general investment, customers will receive electronic version of contract notes and monthly statements after trade.

Is the Monthly Report issued by Wealth-Tech Services same as statement?

Wealth-Tech Services will provide Monthly Reports that include the summary of investment portfolios holdings, profit and loss, transaction and more. The Monthly Report is for reference only. For details on the portfolios transaction records and holdings, please refer to the Contract Notes and respective monthly consolidated statements.
 
Service Fee

What are the fees charged by Wealth-Tech Services?

Wealth-Tech waives all kinds of subscription fees, redemption fee, switching fees, rebalance fees and any other trading fees. Only an annual Service Fee of 1% p.a. of the total Wealth-Tech Services fund portfolios’ value is charged on monthly basis.

Any trading fees?

Wealth-Tech Services waives all kinds of subscription fees, redemption fee, switching fees, rebalance fees and any other trading fees. Only an annual Service Fee of 1% p.a. of the total Wealth-Tech Services fund portfolios’ value is charged on monthly basis.. However, for other fees which are charged by fund houses, please refer to the individual fund’s offering documents.

When and how does the Service Fee being calculated and charged?

The Wealth-Tech Service Fee will be based on customers’ daily portfolios total values x 1% / number of days in a year. The Service Fee is charged monthly.

Will there be any other fees that is in each of the fund?

Some funds may charge management fee, performance fee and / or other fees, and those fees usually are reflected in the NAV. For details, please refer to Key Facts Statement and other related documents for the fund.
 
Other Enquiries

Where can I get more info about Wealth-Tech Services?

From “Wintech” - After login > Click “All” > Click “Wealth Management” > Click Wealth-Tech.

Can I transfer in other funds to the Wealth-Tech Services fund portfolios?

It is not allowed to transfer any funds into Wealth-Tech Services fund portfolios.

Can I transfer out the funds from Wealth-Tech Services fund portfolio to my other fund accounts or other bank accounts?

It is not allowed to transfer out any funds from Wealth-Tech Services fund portfolio.

Can I close Wealth-Tech Services Account?

Customers can close Wealth-Tech Services Account anytime. However, before closing the Wealth-Tech Services Account, customers are required to redeem all the fund portfolios in the account, and to ensure there will be no foreseeable income (such as dividends) and fees in the account. For more details, customers can visit any of our branches, communicate with our Relationship Manager or contact our Customer Services Hotline at 230 95555.

I have redeemed all fund portfolios, can I still keep the Wealth-Tech Services Account? Will there be any fees?

The fee that the Bank is charging for Wealth-Tech Services is based 1% p.a. on the total values of the fund portfolios. If customers have already redeemed all fund portfolios in Wealth-Tech Services, customers can keep the Wealth-Tech Services Account without any charges.
 

Investment involves risks.

Offers and services are subject to relevant Terms and Conditions.

Enquiry Hotline：230 95555

Risk Disclosure Statement

The above information is for reference only and does not constitute and should not be regarded as any offer to purchase or sell. Investment involves risks and the price of investment products may fluctuate or even become worthless. Past record is not an indicator of future performance. Losses may be incurred rather than making a profit as a result of investment. You should carefully and independently consider whether the investment products are suitable for you in light of your investment experience, objectives, financial position and risk profile. Independent professional advice should be obtained if necessary. Please read the relevant terms and conditions together with the risk disclosure statements in the prospectus of the investment product before making any investment decisions. The contents of this document have not been reviewed by the Securities and Futures Commission of Hong Kong.