--- KENVER: RETIREMENT SOLUTIONS --- [Property Investment : Risk Profiling : Stirling Mortimer] ---

Wednesday 03.12.08

Risk Profiling

Questionnaire 3

Investment Risk Profiler for Trustees

Kenver - Risk Profiling Before completing this form your financial adviser should already have completed a full fact find:

By now your financial advisor should have already completed a full fact find and, having established your needs and objectives, made a recommendation for a suitable product from the Kenver range. To enable your adviser to fine-tune your attitude to risk for this particular investment, please complete this questionnaire, ensuring all questions are answered and that they are in relation to this particular investment only.

The resultant risk score will vary from one to ten, with one being the least risky and ten the most risky. A risk score of one will result in a suggested portfolio consisting mostly of cash, with ten resulting in a portfolio heavily weighted in equities. Intermediate scores will result in a broader spread of asset classes. Your adviser will explain the relationship between these risk scores and your investment.

The Kenver risk assessment is simply a guide based on information provided and does not take into account your full personal circumstances.

The decision to invest – be it in accordance with your risk assessment score, more conservatively or more aggressively – is always at your discretion.

Section 1: Trustee details

Main Contact Details:

Title:
First Name:
Middle Name(s):		Phone Number:
Surname:		Email Address:
Address:		Post Code:

Trustee Details:

Title: First Name: Surname:

Title: First Name: Surname:

Title: First Name: Surname:

Title: First Name: Surname:

Title: First Name: Surname:

Title: First Name: Surname:

Title: First Name: Surname:

Title: First Name: Surname:

Section 2: Risk profile questions

How long do the trustees intend to hold on to this investment?
(Enter a number of years from 3 to 30. This time period is very important in the risk assessment process.)

Do the trustees have an emergency fund to provide for unexpected distributions, so as to avoid drawing on medium, to long term, savings to meet immediate needs?

Yes - but very small

Less than six months capital and income requirements

Around one years capital and income requirements

More than two years capital and income requirements

What is the trustee's expectation of the trusts' income over the next five years?

We expect the income of the trust fund to decrease

We expect the income of the trust fund to keep pace with inflation

We expect the income of the trust fund to increase somewhat ahead of inflation

We expect the income of the trust fund to far outstrip inflation

We expect the income of the trust fund to fluctuate

What percentage of the trusts' total assets are the trustees proposing to invest now?

Less than 25%

25% to less than 50%

50% to less than 75%

75% or more

Which statement most closely reflects the trusts' current financial situation?

The trust is completely debt free

The trust is loan free but with a few other obligations

The trust has a reasonable loan (or loans) but no other obligations

The trust has a loan (or loans) and a few other obligations

The trust has a lot of obligations

Which statement best reflects the trustees objectives for this investment?

Risk averse and not prepared to expose my investments to high volatility to earn higher long term returns. Stable annual returns are desired

To achieve higher long term returns; prepared to tolerate reasonable levels of volatility

To maximise my long term returns and spend little time worrying about short term market movements

At the beginning of the year the trust has £100,000 invested. The chart and options below show the performance of five different hypothetical investments. Each bar gives a range of possible values at the end of the same year. Which investment are the trustees most happy with? (Potential, best and worst case end values)


	Portfolio A	Portfolio B	Portfolio C	Portfolio D	Portfolio E

(This chart is for illustrative purposes only and does not reflect the performance of a specific index or fund)

Portfolio A: £114,000 to £96,000
Portfolio B: £124,000 to £90,000
Portfolio C: £131,000 to £84,000
Portfolio D: £138,000 to £78,000
Portfolio E: £144,000 to £72,000

What level of fall in the value of this portfolio over a one-year period would concern the trustees, bearing in mind that equity investment requires a long-term view?

0% to just under 5%

5% to just under 10%

10% to just under 15%

15% to just under 20%

None of the above concern me

Suppose one year ago the trust invested £100,000 in a portfolio. The market value has gone down during the period and the investment is worth £87,000. Would the trustees:

Sell the portfolio and invest the proceeds in less volatile investment ?

Sell part of the portfolio and invest the proceeds in less volatile investment ?

Sit tight expecting the portfolio to recover?

Sell the portfolio and invest the proceeds in something riskier to try to recoup their losses?

Invest more money in the same portfolio?

The trustees are more concerned that the investments grow faster than inflation than about returns over any one-year period.

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

If the trust could increase the chances of improving the returns by taking more risk, would the trustees be:

willing to take a lot more risk with all of the money?

willing to take a lot more risk with some of the money?

willing to take a little more risk with all of the money?

willing to take a little more risk with some of the money?

unlikely to take much more risk?

Section 3: Your investment objectives

How much do you wish to invest? (Enter amount in sterling)

(a) If you are investing for growth: (eg. Optimised Portfolio)

Is there a target amount you wish to achieve? If so, what is it?
(In deciding upon your target, please allow for the effects of inflation, investment risk and your tax position)

When do you need this money or how long do you want to hold on to this investment?
(Enter a number of years from 3 to 25)

(b) If you are investing for income: (eg. Yield Portfolio)

What is your expected tax rate?

Starting

Basic

Higher

What annual yield do you require (after allowing for the specified tax rate)?

(percentage)

Investors should assess the acceptable inflation and investment risk of not meeting a given target (after allowing for personal tax),
particularly for periods under 10 years for volatile investments.

After completing this form, please click the send button below (only once); the contents will then be forwarded to Kenver.

Your independent adviser will then compute a suggested risk score and asset allocation.

The risk score gives an indication of the level of risk you may be prepared to take with this investment on a range from 1 (low risk) to 10 (high risk). As mentioned earlier, the risk score is only a guide, and you can decide, with the help of your adviser, to invest more conservatively or more aggressively.

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