FWD Capital Guarantee Fund

Investment Objective

The fund's investment objective is to preserve the capital of the assets and to seek a stable return to the fund investors. The long-term investment strategy would include equities, fixed income securities and cash with a range of 0% to 33%, 67% to 100% and 0% to 10% respectively.

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Guarantee Feature

FWD Capital Guarantee Fund is a managed fund that guarantees the declared rate will not be less than 0% per annum on the total contributions, less any withdrawals and other applicable charges and fees received for the period of ten years from the commencement date of the participation in the fund. Such guarantee shall remain unchanged until the expiry of such period of ten years or the termination of this fund, whichever is the earlier. The guarantor is FWD Life Insurance Company (Bermuda) Limited (“FWD Life”). In case there is any shortfall, FWD Life will make up this over the first ten policy years.

After ten years from the commencement date of the participation in the fund, unless FWD Life decides otherwise, the guarantee will lapse.

The guarantee is subject to qualifying conditions. Please refer to section 1 of Part II of the Principal Brochure for details of the guarantee features and conditions.

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Declared Rate

The fund is denominated in Hong Kong dollars and the declared rates for the past years are:

Year Declared rate* (p.a.)
 2017   2.40% 
2016 2.20%
2015 2.20%
2014 3.10%
2013 3.05%
2012 3.15%
2011 3.60%
2010 5.10%
2009 5.25%
2008 3.00%
2007 7.25%
2006 6.25%
2005 6.25%
2004 6.25%
2003 7.00%
2002 6.00%
2001 6.25%
2000 7.50%
1999 8.75%
1998 7.00%
1997 7.50%
1996 8.10%
1995 7.00%

The above are historical rates FWD Life has declared to its clients. Please note that the declared rate is the actual rate at which interest has been credited to the fund accounts and that no deductions are made by FWD Life from such interest. Please also note that the figures are for indication only and that past performance is not necessarily a guide to future performance. Investment return may fluctuate.

The interest will be credited to individual member’s account on the policy anniversary (or the termination of membership).

The declared rate as declared annually by FWD Life at its absolute discretion, is based on the yield earned and may be nominal value on the investment, net of all relevant taxes and charges but including realized and unrealized gains and adjustments made by the actuary to smooth market fluctuations.

Subject to the guarantee feature listed above, the declared rate will be determined entirely at FWD Life’s discretion. Moreover, FWD Life, at its sole discretion, has the right to retain the investment income of the fund in excess of the declared and guaranteed benefits under the fund.

The annual declared rate will be announced after each fiscal year end of the fund.

*Source: FWD Life

Note: Investment involves risk and the price of units may go down as well as up. Past performance is not indicative of future returns. Please refer to the relevant Explanatory Memorandum/Offering Document for further details.

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