FairHorizons
Risk & Reward Profiles · Asset Classes · Definitions.
Risk & Reward Profiles
Successful investors need to have a clear understanding of what they expect — from their money and from their emotions. We have developed the FairHorizons to make the world of investment solutions quickly comprehensible with clear colour coding and illustrative examples. Their function is to provide orientation so you can invest your capital in the best possible way and according to your personal needs.
This concept is by no means dogmatic. Your portfolio remains flexible and can be freely designed according to your individual wishes. We see our model as a guidepost which you can always use to orient your personal investment goal. At the same time, you can take a new path at any time based on your personal situation.
FairHorizon Purple
Lowest Risk
- Investment time-horizon
- 0 – 2 years
- Expected returns
- Matching or beating inflation
- Expected volatility
- 0 – 3% p.a.
- Most suitable portfolio
- 100% short-duration Investment Grade Bonds
- Most suitable investments
- Highest-quality short-duration bonds; time deposits
Asset classes in this horizon
FairHorizon Blue
Low Risk
- Investment time-horizon
- 2 – 4 years
- Expected returns
- Exceeds inflation by up to 2% p.a.
- Expected volatility
- 3 – 5% p.a.
- Most suitable portfolio
- 80% Investment Grade Bonds / 20% Stocks
- Most suitable investments
- High-quality government and investment-grade bonds with short to medium duration
Asset classes in this horizon
FairHorizon Green
Medium Risk
- Investment time-horizon
- 4 – 7 years
- Expected returns
- Exceeds inflation by up to 3% p.a.
- Expected volatility
- 5 – 7% p.a.
- Most suitable portfolio
- 60% Investment Grade Bonds / 40% Stocks
- Most suitable investments
- Investment-grade debt with medium-to-longer duration; emerging-market investment-grade debt; Asian debt
Asset classes in this horizon
FairHorizon Yellow
Elevated Risk
- Investment time-horizon
- 7 – 10 years
- Expected returns
- Exceeds inflation by up to 5% p.a.
- Expected volatility
- 7 – 10% p.a.
- Most suitable portfolio
- 40% Investment Grade Bonds / 60% Stocks
- Most suitable investments
- Emerging market debt; global high-yield debt
Asset classes in this horizon
FairHorizon Orange
Higher Risk
- Investment time-horizon
- At least 10 years
- Expected returns
- Exceeds inflation by 6 – 7% p.a.
- Expected volatility
- 10 – 15% p.a.
- Most suitable portfolio
- 20% Investment Grade Bonds / 80% Stocks
- Most suitable investments
- Global large-cap equities; Tier 1 & preferred securities
Asset classes in this horizon
FairHorizon Red
Highest Risk
- Investment time-horizon
- At least 15 years
- Expected returns
- Exceeds inflation by 6 – 8% p.a.
- Expected volatility
- 15 – 20% or higher p.a.
- Most suitable portfolio
- 100% Stocks
- Most suitable investments
- Global small & mid-cap stocks; REITs
Asset classes in this horizon
- Asia Ex Japan Equities - Core
- Commodities
- Emerging Market Equities - Core
- Emerging Market Equities - ESG
- Emerging Market Equities - Value
- Emerging And Frontier Equities
- Europe Equities
- Europe Equities - Core
- Europe Equities - Momentum
- Europe Equities - Quality
- Europe Ex UK Equities - Core
- Germany Equities - Core
- Germany Equities - Mid Cap
- Global Equities - Core
- Global Equities - Energy Focused
- Global Equities - Health Care Focused
- Global Equities - Real Estate Focused
- Global Equities - Resources Focused
- Global Equities - Small Cap
- Global Equities - Technology Focused
- Global Equities Ex-US
- Global Private Equity
- India Equities
- Japan Equities
- Latin America Equities
- South Korea Equities
- Switzerland Equities
- UK Equities - Core
- UK Equities - Mid Cap
- US Equities - Core
- US Equities - Dividend
- US Equities - Mid Cap
- US Equities - Quality
- US Equities - Small Cap
- Vietnam Equities