PRIVATE WEALTH. Client Questionnaire and Risk Profile

Transcription

1 PRIVATE WEALTH Questionnaire and Risk Profile

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3 Important Notice to The Australian Corporations Act (2001) requires that an Adviser making personal advice recommendations must have reasonable grounds for making those recommendations. This means that an Adviser must conduct an appropriate investigation as to the financial objectives, situation and particular needs of the client. The information requested in this form is necessary to enable recommendations to be made and will be used solely for that purpose. We accept no liability for any advice given on the basis of inaccurate or incomplete information. Please Note There is no need to complete Parts C and D as these will be discussed and completed with you during our initial discussions. Please complete and return Part A, Details Questionnaire, and Part B, Risk Profile Questionnaire, to the following address: Sornem Private Wealth GPO Box 2031, Melbourne, Victoria

4 Part A Questionnaire The process for developing, protecting and growing an investment portfolio is continuous and can be broadly summarized by the following four steps: 1. The client completes this questionnaire which will allow us to determine their personal and financial objectives and their tolerance towards exposure to the various risks associated with investing. The initial discussions will include but not be limited to tax issues, appropriate structures for investments, general investment and superannuation strategies, agreed time horizons and investment objectives. 2. Based on our understanding of the client s situation and objectives, we construct a tailored financial and investment strategy with the client by developing long term exposures and benchmarks. Asset classes include, but are not limited to appropriate allocations to the major investment types. 3. With the client s situation and tailored investment strategy agreed, we continuously review the economic environment and implement a dynamic asset allocation approach that facilitates the achievement of the agreed objectives by assuming the minimum amount of risk deemed necessary. This is completed by conducting analysis of the risk and expected return of each individual investment and its appropriateness for inclusion in the client s portfolio at the current point in time. Factors considered include the current state of markets, specific assets, diversification and propensity to act in the current environment. 4. We establish a timeframe and routine for ongoing review and monitoring of the client s portfolio. This will involve updating the client s needs analysis, reassessing the client s personal and financial objectives, evaluating the client s portfolio structure and measuring the client s portfolio performance against both relevant benchmarks and personal expectations. 2

5 Personal Information Important Details Title Given Name Surname Preferred Name Home Address Date of Birth Marital Status Tax File Number Contact Phone ( ) ( ) Work Phone ( ) ( ) Mobile Fax (Home) (Home) (Work) How did you hear about us? Dependant/s details (Children or other) Name Name Name Name Date of Birth Financially Dependant? 3

6 Personal Information (cont.) Corporate Structure - Entities (Companies, Trusts, SMSF, Partnerships) Name Purpose TFN ABN Please attach all trust deeds and constitutions that relate to the above entities. Other Professional Advisers Company Name Contact Details Permission to Contact Accountant Yes No Solicitor Yes No Other Yes No 4

7 Income and Expense Information Employment Details Occupation Status Employer Salary Superannuation Guarantee Salary Sacrifice Other sources of income Superannuation Company Family Trust Government Investments Rent Estimated Expenses Amount Frequency Weekly, Monthly, Yearly Yearly Total Amount or % tax deductible Living Expenses (Non-discretionary) Capital Expenses (Discretionary i.e. holidays, investment loans) 5

8 Income and Expense Information (cont.) Do you expect any significant change in income or expenses in the next year? Yes (details as follows) No Major Future Expenses Please detail here all planned future lump sum expenses over the next 5 years. Amount Year of Expense Holidays Education New Car/Car Upgrade Home Improvements Debt Repayment Other (eg. Wedding) Retirement Planning / Forecast Planned Retirement Age Required / Estimated annual living expenses in retirement (today s value) Are you comfortable that your current rate of saving/contributions will provide you with the retirement lifestyle you desire? Yes No Yes No 6

9 Assets and Liabilities Information Assets Lifestyle Assets Owner Value Security for Loan Principal Residence Holiday House Home Contents Vehicles / Boat / Caravan Other (eg. Jewellery / Art) Total Details Retain? Financial Assets Owner Value Details including: Account Number/s, Broker Details, Provider/s Cash Term Deposits Investment Property Shares Managed Funds Company Family Trust Superannuation Other Total Please attach a copy of all relevant policies, annual statements and CGT history of each investment and superannuation account. 7

10 Assets and Liabilities Information (cont.) Liabilities Non Tax Deductible Loan Purpose Comp/ Lender Interest Rate Fixed (F) Variable (V) Amount Owing Repayments Frequency % Term Principal Residence Holiday Property Car Loan Credit Cards Personal Loan Other Tax Deductible Loan Purpose Comp/ Lender Interest Rate Fixed (F) Variable (V) Amount Owing Repayments Frequency % Term Investment Property Line of Credit Investment Loan Margin Lending 8

11 Contingency Planning Personal Insurance Owner Provider Type Life Insured Amount Benefit Period Waiting Period Premium p.a. Estate Planning Do you have a Will? Yes No Yes No Original Date / / / / Review Date / / / / Location Executor(s) Power of Attorney Yes No Yes No Type General Enduring General Enduring 9

12 Objectives Personal and Financial Objectives Your financial plan should take into consideration factors that are important to you. Please highlight both short and long term personal and financial objectives. Please rate your objectives in order of importance to you by placing a circle around the relevant number. The numbers represent: 1: not important, 2: slightly important, 3: important, 4: very important. Short Term Objectives Importance Medium Term Objectives Importance Long Term Objectives Importance 10

13 Part B Risk Profile Questionnaire Please complete the following questions to the best of your knowledge to allow us to discuss your risk characteristics in more detail during our meeting. Which of the following best describes your current stage of life? Answer (Please tick) Score Mature Family You are in your peak earning years and the mortgage is under control. Your partner may also work and any children you have are close to financial independence and/or have already left home. You are starting to think about retirement, although it may be many years away. 5 Single with few financial commitments You are keen to accumulate wealth for the future. Some funds must be kept available for enjoyment such as cars, clothes, travel and entertainment. 4 Young Family This is the peak home purchasing stage and you have a mortgage and very little savings as you are still establishing yourself. 3 Preparing for retirement You own your home and have few financial commitments, however you want to ensure that you can afford a comfortable retirement. You are interested in travel, recreation and self education. 2 Retired No longer working, you must rely on existing funds and investments to maintain your lifestyle. You may be receiving the age pension and are keen to enjoy life and maintain your health. 1 11

14 How familiar are you with investment markets? Very little understanding or interest 1 Not very familiar 2 Have enough experience to understand the importance of diversification. 3 Understand that markets may fluctuate and that different market sectors offer different income, growth and taxation characteristics Experienced with all/many investment sectors and understand the various factors which may influence performance. 4 5 Please mark which of the following investment types you have previous experience investing in and indicate whether the investment assisted in achieving your objectives. Asset Class Achievement of investment objective Fixed Interest Negative Neutral Positive Australian Equities Negative Neutral Positive Listed Property Negative Neutral Positive Direct Property Negative Neutral Positive International Equities Negative Neutral Positive 12

15 The following table outlines the most common concerns for investors. Please mark which level of concern is most applicable to you: Low Level of Concern Medium Level of Concern High Level of Concern Volatility Risk Capital Return Income Return What return do you reasonably expect to achieve from your investments? A return without losing any capital 1 Inflation rate plus 1 2% per annum 2 Inflation rate plus 3 4% per annum 3 Inflation rate plus 5 6% per annum 4 Inflation rate plus 6 % or over per annum 5 If you didn t need your capital for more than 10 years, for how long would you be prepared to see your investment performing poorly before you cashed it in? You would cash it in if there was any loss in value 0 Up to 3 months 1 Up to 6 months 2 Up to 1 year 3 Up to 2 years 4 More than 2 years 5 13

16 The greatest tax savings are generally obtained from more volatile investments. Which balance do you feel most comfortable with? Preferably guaranteed returns, before tax savings. 1 Stable, reliable returns, minimal tax savings. 2 Some variability in returns, some tax savings. 3 Moderate variability in returns, reasonable tax savings. 4 Unstable, but potentially higher returns, maximum tax savings. 5 From 1 November 2007 to 1 November 2008 the Australian sharemarket fell 42%. What would your reaction be as an investor if you had invested $1,000,000 in the Australian share market before 1 November 2007 and by 1 November 2008 your investment was worth only $580,000? Horror. Security of your capital is critical and you did not intend to take risk. 1 You would cut your losses and transfer your money into more secure investment sectors. 2 You would be concerned, but would wait and see if the investments improve 3 You understand that this was a calculated risk and you would leave the investments in place, expecting performance to improve. You would invest more funds to lower your average investment price, expecting future growth

17 Which of the following best describes your purpose for investing? You can invest for longer than 3 years. You understand investment markets and are mainly investing for growth in assets such as shares and property in order to accumulate long term wealth. You are not nearing retirement yet, have surplus funds to invest and you are aiming to accumulate long term wealth from a diversified portfolio, comprising shares, property, fixed interest and cash. You have a lump sum (for example, an inheritance or an eligible termination payment from your employer) and you are uncertain about what investment alternatives are available. You are nearing retirement and you are investing to ensure you have sufficient funds available to enjoy your retirement. You want a regular income stream and/or to totally protect the value of your savings For how long would you expect most of your money to be invested before you would need to access it? (Assuming you and/or your financial adviser have made plans to meet short term financial goals and to handle emergencies?) Less than 2 years 1 Between 2 and 3 years 2 Between 3 and 5 years 3 Between 5 and 7 years 4 Longer than 7 years 5 Total Investor Risk Profile Score 15

18 Risk Category Guidance Low Risk We generally see low risk investor as; Seeking to preserve their current value of capital acknowledging that this may limit the long term investment growth opportunities; Wishing to invest for the short term which should be generally regarded as less than 12 months; Using assets in the portfolio that have substantial exposure to cash and fixed interest investments Medium Risk We generally see medium risk investor as; Seeking to achieve higher overall investment returns, while keeping a balanced approach to portfolio volatility and growth expectations; Seeking income from their investment portfolio with proportionately more weighting to fixed interest and cash assets; Medium volatility of capital value is important; Having a minimum investment time frame of 3 5 years High Risk We generally see high risk investor as; Seeking to achieve balanced growth over the medium to long term; Seeking to achieve a high level of growth on an investment, prepared to accept a modest income stream; Accepting a higher level of volatility in anticipation of higher returns over the medium to long term; Having a minimum investment time frame of 6 7 years

19 Part C Acknowledgement / Declaration Acknowledgment / Declaration Note: The following details to be discussed and completed with you during our interview. The information provided in this Data Collection Form is complete and accurate to the best of my/our knowledge and is provided to assess my/our requirements for investments and/or risk products. I/We understand that recommendations made without my/our completion of a Data Collection Form, or following my/our partial or inaccurate completion, may not be appropriate to my/our needs. I / We will advise you of any relevant change in my/our current situation, needs or objectives that may reasonably have an effect on the advice provided. I / We confirm that I/we have received a copy of Sornem Private Wealth s. Financial Services Guide from my/our Adviser and understand the contents. I / We understand that this questionnaire may not be conclusive and will supply any relevant additional information required. I / We understand that I/we may raise any further matters with my/our Adviser who in turn, may ask further questions. I / We authorise my/our Adviser to obtain further details as required. I / We give authority for you to send me/us s at the address supplied which relate to investment opportunities and/or information you become aware of which may be of interest to me/us. Name Name Signature Date Signature Date 17

20 Part D Scope of Advice Statement / Authorisation Scope of Advice Statement / Authorisation I / We authorise you to retain my/our tax file number on file and understand that it will not be released to a third party without my consent, except where it is the direct result of the advice. Legislation requires that the/our Adviser must know the client before making any recommendations. However, there is provision that in certain circumstances an Adviser may supply limited advice. If you are seeking limited advice of a particular nature you must make this known at the time of the interview and you should recognise that the recommendations will only relate to that limited advice being sought. I / We require advice on a full range of services. I / We require only limited advice as specified in this Data Collection Form, which is limited to the following areas of advice only: Investment Advice Financial Planning Advice Superannuation & Rollovers Advice Retirement Planning Advice Life Insurance Total and Permanent Disability Insurance Trauma Insurance Income Protection Insurance Insurance Investment Advice Business Overhead Insurance Name Name Signature Date Signature Date 18

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24 SORNEM PRIVATE WEALTH Level Little Collins Street Melbourne, Victoria 3000 Australia GPO Box 2031 Melbourne, Victoria 3001 T F sornemwealth.com.au ABN