RISK PROFILE QUESTIONNAIRE

This questionnaire is designed to measure your risk tolerance – an input used in determining your risk profile and appropriate investment strategy.

Risk tolerance is a measure of your attitudes and perceptions towards the uncertainties associated with investing.

A risk-averse investor is less willing to accept risk of loss and is therefore comfortable with lower returns
on their investment; and conversely
An investor with high risk-tolerance is willing to accept greater risk of loss in exchange for potentially
higher investment returns.

Risk tolerance is only one part of the broader financial planning process. Your financial planner will determine the most appropriate portfolio based on your ability to take risk (i.e. risk capacity), financial objectives, financial
situation and particular financial needs, while taking the outputs from this questionnaire into account.

This questionnaire does not consider your capacity to take risk, financial objectives, financial situation or specific financial needs.

Client Name*

First NameLast Name

Spouse name

First NameLast Name

Entity/SMSF name (if applicable)

Client email address*

example@example.com

1. Any investment requires taking some level of risk. There are going to be times when the value of your investments rises and falls. Over the next year, is there an amount that you cannot afford to have fall in value? For example, you may require funds to make a purchase or payment?*

NoOther

Question 2

2. The graph above shows the potential one-year performance of five investment portfolios. The green bars show the potential gains, while the blue bars show the potential loss each portfolio could experience. Assuming annual returns fall in this range most of the time, which of these portfolios would you prefer?*

3. Investment markets go up and down. If your diversified investment portfolio fell by 20% over a short period, how would you react?*

I would not change my portfolioI would wait at least one year before changing to options that are more conservativeI would wait at least three months before changing to options that are more conservativeI would immediately change to options that are more conservative

4. For many investors, the possibility of losing money is a key concern. How do you feel about investment losses?*

Investment losses make me very uncomfortable. I check my investments often, so I can sell quickly if they begin to lose money.Investment losses make me uncomfortable, but not uncomfortable enough to sell immediately. If losses occur over several months, I would probably sell.Investment losses in the short term do not bother me. I would wait an entire year before making changes.I understand that investments can have losses, but also that I have a better chance of reaching my investment goals by sticking to the strategy over the long term. I would not make changes.

5. Which of the following choices best reflects your attitude toward inflation and risk? Inflation is an economic situation in which the general price of goods and services increases resulting in the same dollar buying less goods and services than before.*

My main goal is to avoid loss, even though I may only keep pace with inflation.My main goal is to earn slightly more than inflation, while taking on a low level of risk.My main goal is to increase investment returns and I can accept short-term losses. However, I am not comfortable with the larger losses and performance shifts that may be experienced with the most aggressive investments.My main goal is to maximise investment returns, and will accept the larger potential losses and performance shifts (especially in the short-term) that can be associated with pursuing higher returns.

6. Most investments go up and down. If your portfolio incurred a loss during one year, when would you sell down your portfolio?*

Only if the investment loses 10%.Only if the investment loses 15%.Only if the investment loses 20%.Only if the investment loses 25%.I would not sell despite any loss.

7. Investing involves a trade-off between return and risk. Investments with higher returns generally have higher risk (i.e. chance of loss). Investments with lower returns generally have a lower risk or chance of loss. Which of the following statements best describes your attitude to risk?*

I am willing to accept lower returns to limit my chance of loss.I am willing to bear some risk and chance for loss to achieve higher returns, but prefer most of my portfolio to be invested in investments with low return/risk.I am willing to accept moderate risk to achieve higher returns. Minimising risk and maximising return are equally important to me.I am willing to accept high risk to achieve high returns on my investments.I am only concerned with maximising investment returns. I am not concerned with risk or loss and will accept significant short-term fluctuations in my portfolio.

Question 8

8. The table above presents the hypothetical value of five sample portfolios after one year. The investment is $100,000 at the beginning of the year. The table shows three return scenarios: very strong, average, and very poor. Which portfolio would you prefer?*

Your Score is

9. When considering the types of investments that best suit you, everything else being equal, which do you prefer? (select all that apply)*

I prefer to invest in a low cost provider, with a single investment option that is more of a set and forget approachI prefer to have access to invest in more investment options, and to invest in a more proactive style, I understand that I may pay more for the expertise of this approachI wish to receive ongoing strategic advice from you in the future

When answering the following questions please:

Consider your investment portfolio, whether inside super or not, and how important the following factors are to you.

10. Always accessing the cheapest investment options:*

HighMediumLow

11. Receiving ongoing investment advice from your adviser:*

HighMediumLow

12. Access to multiple investment managers:*

HighMediumLow

13. Ability for you and your adviser to seamlessly implement your ongoing requirements:*

HighMediumLow

Disclaimer
This document is issued by Morningstar Investment Management Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Morningstar’). © Copyright of this document is owned by Morningstar and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent of Morningstar.

The information provided is for general use only. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Morningstar nor its third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included.

Morningstar warns that (a) Morningstar has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation.
Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document.
For a copy of the relevant disclosure document, please contact our Adviser Distribution Team on 02 9276 4550.

RISK PROFILE QUESTIONNAIRE

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Risk Profile Questionnaire

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