Risk Profile Questionnaire

Confidential Document
IMPORTANT
Your RBS Morgans adviser is required by law to make enquiries as to the level of service you are seeking, your investment objectives
including your risk profile, financial situation, and particular needs.
A key consideration is understanding your investment requirements and your attitude to and tolerance of risk.
The following questionnaire has been prepared to help you consider the various investment risks and to understand how they impact
on your personal circumstances. The questions define your attitude to security and the level of risk you are prepared to accept for your
investments.
Please take the time to answer these questions as they will assist your financial adviser to develop an appropriate investment strategy that
will meet your financial and lifestyle objectives.
Please note that you may decline to provide the information requested, but you should note that RBS Morgans recommendations and
obligations will be limited accordingly and you will need to determine whether the advice provided suits your individual circumstances.
RBS Morgans Limited ABN 49 010 669 726 AFSL 235410 A Participant of ASX Group. Professional Partner of the Financial Planning
Association of Australia
RBS Morgans Limited (ABN 49 010 669 726 - AFSL Licence 235410) 2 Risk Profile Questionnaire

Identifying your investment profile

1. Which of the following best describes your current stage of life?
a) Single with few financial burdens. Ready to accumulate wealth for future short term and (5 points)
long term goals.
b) A couple without children. Preparing for the future by establishing a home. Expecting to (3 points)
have or already have a high purchase rate of household and consumer items.
c) Young family with a home. You have a mortgage and childcare costs and maintain only (1 point)
small cash balances.
d) Mature family. You are in your peak earning years and your mortgage is under control. (5 points)
You both work and you may or may not have children that are growing up or have left home.
You’re ready to start thinking about your retirement years.
✔ e) Preparing for retirement. You own your home and have few financial burdens; you want to (3 points)
ensure you can afford a comfortable retirement.
f) Retired. You rely on existing funds and investments to maintain your lifestyle in retirement. (1 point)
You may already be receiving a Government pension and/or Superannuation pension.

2. How familiar are you with investment matters?

a) Not familiar at all with investments and feel uncomfortable with the complexity. (1 point)

b) Not very familiar when it comes to investments. (2 point)

c) Somewhat familiar. I don’t fully understand investments, including the sharemarket. (3 points)

✔ d) Fairly familiar. I understand the various factors which influence investment performance. (5 points)

e) Very familiar. I use research and other investment information to make investment decisions. (7 points)
I understand the various factors which influence investment performance.

3. How long have you been investing, not counting your own home or bank type deposits?
✔ a) 3 years or more. (5 points)

b) Up to 3 years. (2 points)

c) This is my/our first investment. (1 point)

4. How long would you invest the majority of your money before you think you would need access to it?
(Assuming you already have plans in place to meet short term cashflow and/or emergencies.)
a) In 2 years or less. (1 point)

✔ b) Within 3 – 5 years. (3 points)

c) Within 6 – 10 years. (5 points)

d) Not for 10 + years. (7 points)

 3 Risk Profile Questionnaire

RBS Morgans Limited (ABN 49 010 669 726 - AFS

AFSLLicence
Licence235410)
235410) 3 Risk Profile Questionnaire

Identifying your investment profile

5. In some instances, tax savings can be obtained from investments but this means taking on more risk. Which of
the following statements best describes your goal for investing?
a) Preferably guaranteed returns, before tax savings. (1 point)

✔ b) Stable, reliable returns, minimal tax savings. (3 points)

c) Some variability in returns, some tax savings. (5 points)

d) Moderate variability in returns, reasonable tax savings. (7 points)

e) Unstable but potentially higher returns, maximise tax savings (9 points)

6. Assume you had an initial investment portfolio worth $100,000. If, due to market conditions, your portfolio fell to
$85,000 within a short period, say a month, would you: (If your portfolio has experienced a drop like this, choose
the answer that corresponds to your actual behaviour.)
a) Sell all of the investments. You do not intend to take risks. (1 point)

b) Sell a portion of your portfolio to cut your losses and reinvest into more secure investment (3 points)
sectors.
c) Hold the investment and sell nothing, expecting performance to improve. (5 points)

✔ d) Invest more funds to lower your average investment price. (7 points)

7. If the value of your investments fell to $60,000 over the next 12 months, would you: (If your portfolio has
experienced a drop like this, choose the answer that corresponds to your actual behaviour.)
✔ a) Sell all of the remaining investment. (1 point)

b) Sell a portion of the remaining investment. (3 points)

c) Hold your investments and sell nothing, expecting conditions to improve. (5 points)

d) Invest more funds. You can tolerate short term losses in expectation of future growth (7 points)

8. The table below shows the highest one-year gain and highest one-year loss on four different hypothetical
investments of $100,000. Given the potential gain or loss in any one year, where would you invest your
money?
a) Investment Portfolio A (1 point) Investment
A B C D
Portfolio
✔ b) Investment Portfolio B (3 points)
Highest Gain $15,000 $20,500 $26,600 $31,300
c) Investment Portfolio C (5 points) Highest Loss $-2,400 -$6,400 -$11,000 -$14,600

d) Investment Portfolio D (7 points)

RBS Morgans Limited (ABN 49 010 669 726 - AFSL Licence 235410) 4 Risk Profile Questionnaire

Identifying your investment profile

9. Which one of the following statements describes your feelings towards choosing an investment?
a) I would prefer investments with little or no fluctuation in value and have a low degree of (1 point)
risk associated with them. I am willing to accept the lower return associated with these
investments.
b) I prefer to diversify with a mix of investments that have an emphasis on low risk. I am (3 points)
happy to have a small proportion of the portfolio invested in assets that have a higher
degree of risk in order to achieve a slightly higher return. I am prepared to accept a
negative investment return of 1 in 10 years.
c) I prefer to have a spread of investments in a balanced portfolio. I am happy to have a (5 points)
negative return of 1 in 7 years.

✔ d) I prefer to diversify my investments with an emphasis on more investments that have higher (7 points)
returns, but still having a small amount of low risk investments. I am happy to accept a
negative return of 1 in 5 years.
e) I would select investments that have a higher degree of investment price fluctuation so that (9 points)
I can earn higher long term returns. I am happy to accept a negative return of 1 in 3 years
in order to achieve this goal.

10. How secure is your current and future income from sources such as salary, pensions or other investments?
a) Not secure. (1 point)

b) Somewhat secure. (3 points)

c) Fairly secure. (5 points)

✔ d) Very secure. (7 points)

Additional questions
Apart from your home, have you ever borrowed money to make an investment?

a) Yes (% of your total assets) ✔

b) No

Would you consider borrowing money to make an investment?

a) Yes ✔
b) No
If Yes, what is the maximum level of borrowing (gearing) you are prepared to accept as a percentage of your net
assets (your equity)? %
 5 Risk Profile Questionnaire

RBS Morgans Limited (ABN 49 010 669 726 - AFSL Licence 235410) 5 Risk Profile Questionnaire

Your score
Add up the points you scored for each answer. Based on the total points, you can compare your score with the range of
Profiles described below.

44
Total points: Client Partner

Indicative Score Description

Investor Profile
Conservative 0 –18 points You are a conservative investor who does not wish to take any investment risk. Your priority is to
safeguard your investment capital. You are prepared to forego higher returns for peace of mind.
Balanced 19 – 40 points You are a balanced investor with some understanding of investment market behaviour. You prefer a
balance between capital growth and capital security. You are prepared to accept some short term
risk in order to gain longer term capital growth.
Assertive 41 – 52 points You are an assertive investor who understands the movement of investment markets. You are most
(Growth) interested in maximising long term capital growth, although you do not wish to make unbalanced
investment decisions. You are happy to take calculated risks in order to maximise long term capital
growth. Tax advantaged investments are a focus.
Aggressive 53 – 65 points You are an aggressive investor with a strong bias towards investments with high growth potential. You
are willing to accept higher performance fluctuations in return for potentially higher long term capital
growth. You also have a greater focus on tax advantaged investments and/or leverage of your assets
to further improve capital growth potential.
Very Aggressive 66 + points You are an experienced or sophisticated investor. Security of capital is secondary to the pursuit of
high investment returns. Your portfolio will comprise almost solely of growth assets and you are happy
to accept the risks this involves.

Please remember that this questionnaire is designed to help you evaluate your risk profile and that given the answers to the above questions,
your risk profile may be in the indicated sector.
If you feel comfortable with the analysis provided, then your RBS MORGANS adviser can use it to devise an appropriate investment portfolio.
If you don’t agree with the analysis, or want to ask more questions about it, please discuss it with your RBS MORGANS adviser.
RBS Morgans Limited (ABN 49 010 669 726 - AFSL Licence 235410) 6 Risk Profile Questionnaire

I hereby acknowledge that the above investment risk stance is consistent with my investment risk requirements and profile.

I have had the concept of investment risk explained to me and am happy to proceed on this basis. .

Or

The above investment risk stance is not consistent with my risk requirements and profile which I hereby nominate to be

Please proceed on this basis.

(Signature of Client) (Signature of Partner)

Print name Date Print name Date

 7 Risk Profile Questionnaire

RBS Morgans Limited (ABN 49 010 669 726 - AFSL Licence 235410) 7 Risk Profile Questionnaire

This page has been left blank intentionally

RBS Morgans Limited RBSM_RPQ_072013

ABN 49 010 669 726 AFS Licence 235410

A Participant of ASX Group
A Professional Partner of the Financial Planning Association of Australia.

HEAD OFFICE
Level 29 Riverside Centre
123 Eagle Street Brisbane QLD 4000 Australia
GPO Box 202 Brisbane QLD 4001 Australia
DX 9007
Telephone: 61 7 3334 4888
Facsimile: 61 7 3831 9946
Toll Free: 1800 777 946
Email: info@rbsmorgans.com
Web: www.rbsmorgans.com

IMPORTANT INFORMATION
The information contained herein is general in nature and is not intended to constitute an investment recommendation or financial advice. This information
is not necessarily complete and its accuracy cannot be guaranteed. Before making any investment decisions, we recommend individuals should consult an
investment advisor and, where appropriate, a tax specialist, to take into account their particular investment needs, objectives and financial circumstances.
Any opinions expressed reflect RBS Morgans’ judgment at this date and are subject to change. This example is not representative of any particular investment
product. RBS Morgans is an Australian Financial Services Licensee (AFSL 235410).

Financial Security > Superannuation > Investing for Income

Investment Structures > Wealth Creation > Estate Planning

Queensland New South Wales Victoria

Brisbane (07) 3334 4888 Sydney (02) 8215 5055 Melbourne (03) 9947 4111
Bundaberg (07) 4153 1050 Armidale (02) 6770 3300 Brighton (03) 9519 3555
Cairns (07) 4222 0555 Ballina (02) 6686 4144 Camberwell (03) 9813 2945
Caloundra (07) 5491 5422 Balmain (02) 8755 3333 Carlton (03) 9066 3200
Capalaba (07) 3245 5466 Chatswood (02) 8116 1700 Farrer House (03) 8644 5488
Chermside (07) 3350 9000 Coffs Harbour (02) 6651 5700 Geelong (03) 5222 5128
Edward St (07) 3121 5677 Gosford (02) 4325 0884 Richmond (03) 9916 4000
Emerald (07) 4988 2777 Hurstville (02) 9570 5755 South Yarra (03) 9098 8511
Gladstone (07) 4972 8000 Merimbula (02) 6495 2869 Traralgon (03) 5176 6055
Gold Coast (07) 5592 5777 Neutral Bay (02) 8969 7500 Warrnambool (03) 5559 1500
Ipswich (07) 3202 3995 Newcastle (02) 4926 4044
Western Australia
Mackay (07) 4957 3033 Newport (02) 9998 4200
Perth (08) 6462 1999
Milton (07) 3114 8600 Orange (02) 6361 9166
Noosa (07) 5449 9511 Port Macquarie (02) 6583 1735 South Australia
Redcliffe (07) 3897 3999 Scone (02) 6544 3144 Adelaide (08) 8464 5000
Rockhampton (07) 4922 5855 Sydney – Level 9 (02) 8215 5000 Norwood (08) 8461 2800
Spring Hill (07) 3833 9333 Sydney – Level 33 (02) 8216 5111
Sunshine Coast (07) 5479 2757 Sydney Macquarie St (02) 9125 1788 Northern Territory
Toowoomba (07) 4639 1277 Sydney Macquarie St (02) 9615 4500 Darwin (08) 8981 9555
Townsville (07) 4725 5787 (Parramatta)
Tasmania
Yeppoon (07) 4939 3021 Sydney Reynolds (02) 9373 4452
Equities Hobart (03) 6236 9000
Wollongong (02) 4227 3022

ACT
Canberra (02) 6232 4999

Phone us today for more details or log on to:

www.rbsmorgans.com