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Product Risk Rating

As part of DBS' commitment to deliver fair dealing outcomes for our customers, we provide below changes in the risk ratings of our investment products. In this way, you can make informed financial decisions with respect to your investment objectives, financial situation and particular needs.

The product risk ratings are based on the Bank's proprietary risk rating methodology which takes into consideration a variety of qualitative and quantitative factors. Based on the Bank's current methodology, the Bank's products are risk rated under a 5-point risk scale starting from 1 (representing the lowest risk) and gradually increasing to 5 (representing the highest risk).

For any queries on the changes in product risk ratings, you may wish to contact your Relationship Manager.

Please click on each product category for the full list of products whose risk ratings have been changed.

Additional Information

  • Frequently Asked Questions
  • Important Information
  • Important Information
  • Frequently Asked Questions
  • Important Information
    1. Why are you informing me about changes to your product risk rating?

      We aim to provide relevant and timely information to our clients. This helps our clients understand the appropriateness of a product relative to their risk appetite. In this way, our clients can make informed financial decisions with respect to their investment objectives, financial situation and particular needs.

       

    2. How are products risk rated?

      The product risk rating is based on the Banks proprietary risk rating methodology which takes into consideration a variety of qualitative and quantitative factors. All investment products are rated on 5 risk levels (1 to 5; 1 being the lowest risk level, 5 being the highest risk level).

      For any queries on the product risk ratings, you may wish to contact your Relationship Manager.

      For DBS Treasures customers, kindly contact your DBS Treasures Relationship Manager.

       

    3. What are the key changes in the product risk rating?

      The product risk ratings are reviewed regularly based on the latest information to determine if a change to the product risk rating is warranted. Similarly, to stay relevant to the prevailing market conditions and new product innovations, the risk rating methodology is also subject to review. In the latest revision, the key changes include a minor fine-tuning to the risk rating of bonds relative to their Credit Rating, and adopting a granular approach to the risk rating of equities.

       

    4. Does the change in product risk rating affect the valuation or the outlook of the product that I have bought?

      Product risk rating is an independent assessment of the products investment risk that serves as a guideline for assessment of investment suitability. It is not a forward-looking indicator nor predictor of the products future performance. It does not change nor affect the products features and valuation.

       

    5. Why is the products risk rating or the risk rating methodology revised if the products features and valuation remain unchanged?

      Although the products features and valuation remain unchanged, its risk level may change due to changes in the market environment, or a different product feature emerging to become the dominant source of investment risk.

       

    6. My risk appetite was medium and the existing product was assigned a risk rating of 4 when I first purchased it. This product is now assigned a risk rating of 5 as shown in the Product Risk Rating list. Do I need to sell or switch the investment?

      The product risk rating is updated regularly based on the prevailing market environment and risk parameters, which may be significantly different from those at the time when the investment was purchased. As the change to product risk rating could have arisen from a variety of causes, we recommend that you speak with your Relationship Manager / Personal Financial Manager to review the product within the context of your overall investment portfolio as well as your personal investment objective / risk profile before making a decision.

       

    7. How often will the Bank review and update the product risk rating?

      The Bank monitors the product information that may impact the product risk rating, and will update the product risk rating accordingly. The review is usually performed semi-annually, but selected products may be subject to more regular or ad-hoc review. In addition, the risk rating methodology is also subject to regular review and revision, and product risk rating may be impacted arising from a change in the methodology. There is no pre-determined frequency for updating the methodology.

      Information on changes to the Product Risk Rating will be posted on our websites. Customers are advised to visit our website regularly to ensure that they are apprised of the latest updates.

       

    8. I have bought a similar investment product from your Bank and another bank. Why do they have different risk rating?

      Each investment product typically faces a variety of quantitative and qualitative investment risk. Each financial institution has its own proprietary product risk rating methodology that focuses on different aspects of investment risks. Risk calibration scales may also differ, which may result in a different product risk rating, even if the same factors may be used to determine the risk rating.

       

    Although DBS Bank Ltd has its own internal guidelines relating to sale or distribution of products to help investors assess the suitability of the investment products against their risk appetite, financial means and investment objectives before they make any investment decision, investors are entirely responsible for assessing, satisfying and determining for themselves if any investment to be entered into is in their best interest. DBS Bank Ltd does not assume any fiduciary responsibility or liability for any investment decision made by investors.

    This publication is meant to be informative and for general purposes only. This publication does not constitute an offer, invitation, recommendation or solicitation of any action based upon it and should not be viewed as identifying or suggesting all risks, direct or indirect, that may be associated with any investment decision. This publication does not take into account your individual needs, investment objectives and specific financial circumstances and investors should read the relevant offering documents (including the prospectus, if any) and/or obtain separate legal or financial advice regarding the suitability of the product, having regard to their specific investment objective, financial situation and particular needs before deciding to subscribe for or purchase any product. Investors should consider the suitability of the investment product, taking into account their specific investment objectives, market events, financial situation, particular needs and the risk factors contained in the relevant offer documents.