For complimentary Investment Policy Statement
(IPS) proposal, please fill in the following form and click the
'Submit' botton at the end of the form. Please do not skip any
question (unless otherwise indicated). Thank you.
Determining the right investment strategy is essential to each
investor’s future success. The right strategy will help
you endure market fluctuations and stay focused on your long-term
goals. The objective of this questionnaire is to help us to gain
a better understanding of your needs and preferences so we can
create a recommended asset mix for you.
Another important factor when creating your investment strategy
is your tolerance for risk. The level of risk you are willing
to accept is directly related to the level of returns you can
expect to achieve. Understanding your individual risk-return profile
will allow us to construct an appropriate investment strategy.
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5. An investment portfolio
can be structured to achieve a number of investment objectives,
including preservation of capital, income and growth. However,
not all objectives can be of top priority, and most investors
need to make tradeoffs in balancing their objectives.
Which one of the following best
describes your current investment objectives? |
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Preservation
of capital |
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A focus on preserving capital, while
providing for regular income |
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A balance between
preservation of capital, growth of that capital and a provision
for moderate income |
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Long-term capital growth with modest
income returns |
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Maximum growth potential,
with no need for income from the investment at this time |
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| 6.
To help us further understand the relative importance of your
investment objectives, please rank them in order of importance
to you. With one being the most important, and four being
the least important, order the following 4 objectives from
1 to 4. |
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Growth |
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Income |
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Liquidity |
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Preservation of Capital |
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| 7. The following chart
demonstrates the relationship between historical average returns
and the range of returns, or volatility, of the portfolio. |
- The dots represent the historical average return of
seven sample asset mixes (A to G)
- The dark bars represent the range of annualized returns
experienced by those asset mixes over five-year periods.
- The light bars represent the range of annualized returns
experienced by those asset mixes over three-year periods.
- The shaded bars represent the highs and lows experienced
for one-year periods.
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| As
the chart demonstrates, in general, the higher the average
rate of return, the greater the range of returns that the
recommended asset-mix will experience. Which
asset mix closely reflects your willingness to accept greater
volatility in order to achieve greater potential returns? |
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| 8. Let’s now look
at potential worst-case scenarios. As part of our overall
portfolio construction strategy, we use long-term historical
data to determine the likely, worst-case scenario based on
statistics over one-year periods for various asset mixes.
Assume that you invested $100,000 for a very long-term
goal, with no immediate need for that capital.
What is the maximum one-year decline
in your portfolio, that you could withstand before reassessing
your personal risk tolerance and determining that you would
require a more conservatives asset mix?
Remember that historically, portfolios with greater risk
levels have often generated higher long-term returns. |
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Zero. I cannot tolerate
any decline. |
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$5,000. A 5% decline is my limit. |
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$10,000. A 10% decline
is my limit. |
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$15,000. A 15% decline is my limit. |
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$20,000. A 20% decline
is my limit. |
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$25,000. A 25% decline is my limit. |
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Short-term declines
do not concern me. I’m totally committed to maximizing
my long-term return. |
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9.
What about potential worst-case scenarios over a three-year
time period?
What is the maximum three-year decline
in your portfolio, measured on an annual basis, that you
could withstand before reassessing your personal risk tolerance
and determining that you would require a more conservative
asset mix?
Remember that historically, portfolios with greater risk
levels have often generated higher long-term returns, however
these gains can take more than three years of being fully
invested to realize. |
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-1% per year for
three years |
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-2% per year for three years |
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-3% per year for
three years |
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-4% per year for three years |
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-5% per year for
three years |
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Significant under-performance over
three-year period would not cause me to adjust my investment
strategy. |
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| 10.
How long would you be willing to
wait foo your portfolio to return to it’s pre-decline
value before reassessing your personal risk tolerance and
determining that you would require a more conservative asset
mix? |
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Less than one year |
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Between one and two
years |
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Between two and five years |
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More than five years |
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| 11.
After how many years will you decide
this strategy generally meets your portfolio performance expectations? |
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Less than one year |
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One to two years |
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Three to five years |
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Greater than five
years |
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12.
Within an equity asset class, there are two main styles
of investing:
- Value: Manager seeks out companies that are currently
out of favor and/or have lower valuation measures (e.g.
low price-to-earnings and price-to-book ratios). The expectation
is that share prices will move toward their true value.
- Growth: Manager seeks out companies with accelerating
earnings growth and/or increasing market share and is
less sensitive to current valuation measures. The expectation
is that share prices will increase accordingly.
Which asset class or combination
best describes your preferences regarding investment management
styles?
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100% Value |
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80% Value, 20% Growth |
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50% Value, 50% Growth |
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