SUITABILITY METHODOLOGY ASSESSMENT

Suitability Methodology Assessment

Suitability Methodology Assessment

Various Options Available To Grow Your Wealth Potential

When it comes to investments, the key is to have a sound strategy that is tailored to your investment needs and goals. That is why we provide you with investment suitability assessment approaches to help you identify investment opportunities that are in line with your investment risk profile and objectives.

At Citigold, we approach your investment portfolio with a holistic view. Our objective is to help you grow, protect and preserve your wealth, with our extensive range of wealth management products that span across geographies and asset classes.

Identifying Investor Profiles

Before we offer our investment services to you, we will complete a detailed Investment Risk Profiling with you. This will help us to understand your risk attitudes, financial means and investment objectives in order to identify your Investor Profile. From your Investor Profile, we will discuss a range of investment products or portfolio for your consideration. We will also reassess the Investment Risk Profiling with you on an annual basis to cater for changes in your risk tolerance and investment objectives.

A Holistic Approach to Your Investment Portfolio.

The tolerance for investment risk vary across the board for different people. We make recommendations based on your Investment Risk Profile (IRP), which is determined by an assessment conducted with our Suitability Methodology. With that in place, we can strategize more effectively and identify suitable opportunities for you.

PORTFOLIO

Investment Suitability Assessment Approaches

In determining the investments which may be suitable for you, we assess your risk tolerance against your portfolio via two different approaches:

Level 1 - Product to Profile (P2P)

P2P is a suitability assessment approach which involves comparing your Investor Profile against the product risk rating. It is intended to alert you from investing in a product which carries risks higher than your risk tolerance.

Level 2 - Weighted Average Adjusted Risk Rating (WAARR)

WAARR is a suitability assessment approach which involves comparing your Investor Profile against your portfolio risk rating. Before transacting, you will be alerted if an investment in a product will result in your portfolio risk rating exceeding your Investor Profile.

Comparisons between P2P and WAARR

Comparisons between P2P and WAARR

  Level 1 - P2P Level 2 - WAARR
Description
  • Compares your Investor Profile against the product risk rating
  • Alerts you from investing in a product that carries risks higher than your risk tolerance
  • Compares your Investor Profile against your portfolio risk rating
  • Alerts you from investing in products that would result in your portfolio risk rating exceeding your portfolio risk tolerance
Suitable if
  • You maintain limited investment exposure with Citigold
  • You prefer a suitability assessment to be performed on a product level instead of a portfolio basis
  • You maintain diversified investment exposure with Citigold
  • You prefer a suitability assessment to be performed on a portfolio basis instead of on product level
Benefit(s)
  • More conservative
  • Holistic assessment as WAARR takes into account all investment products and liquid funds (i.e. Savings and Time Deposit Accounts)
  • Better diversification as investment risk is measured on an aggregated portfolio basis with focus on assets allocation
  • Effective tool for portfolio rebalancing

For more information, speak to your Relationship Manager or SMS INVEST to 36700 36700.

DisclaimerDisclaimer

Investment products* are not deposits and are not obligations of, not guaranteed by, and not insured by, Citibank Berhad, Citibank N.A., Citigroup Inc. or any of their affiliates or subsidiaries, or by any government or insurance agency. Investment products are subject to investment risks, including the possible loss of the principal amount invested.

*For any Market Linked Investments issued by, and Dual Currency Accounts with, Citibank Berhad, please refer to the relevant product disclosure sheet for information on whether your investment is guaranteed by Citibank Berhad and insured by Perbadanan Insurans Deposit Malaysia (PIDM).

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