This document is part of our process in establishing your level of risk tolerance and ability to bear losses which are crucial to ensuring the recommendations we make are suitable and appropriate.
We understand that individuals respond differently depending on how information is presented and communicated, and we therefore use various methods to assess your thoughts, attitudes and experiences when making financial investment decisions.
We would be grateful if you could take the time to complete this form and should you have any questions, please do not hesitate to contact us. The form is split into three sections with the following objectives for each section:
This will help us to understand the type of investment assets you are considering when completing the form, the length of time you are looking to invest and whether you have any views on the investment strategy you wish to use.
This is a series of questions which are designed to assess your thoughts and experiences when making financial investment decisions.
We would like your views based on a graphical example of the average annual investment returns you may achieve at each level of investment risk from 1 to 10 as well as the maximum probable gains or losses you may experience at each level. The graphs show how a portfolio of assets might perform over the next 12 months based on our analysis of generic asset classes. It is not an analysis of how specific products or funds might perform, improve on or reduce these growth rates. The figures used are only examples of what might happen, are not minimum or maximum amounts nor are guaranteed in any way.
There are three graphs, which vary depending on the length of time you are intending to hold the investment.
• Short-term investment Period - up to 9 years
• Medium-term investment period - 10 years to 19 years
• Long-term investment period - 20 years or more
As an example, the Medium-Term investment period graph demonstrates the average growth you may achieve in portfolio 6 is +4.8% per annum but you could experience a gain of up to +29% or a loss of up to -20% in any single year.
The greater risk that an investor takes will give the potential for greater variation in the investment returns, either positive or negative. The model we use to prepare this analysis is said to have 95% confidence that your returns will fall between the upper and lower band. In other words, it can be thought of as being very unlikely to have performance outside of these parameters in any twelve-month period (though of course it is possible).
Please take the time to review the graphs and then indicate where you would feel most comfortable when comparing the average returns against the possible gains and losses these may produce in a given twelve-month period.
Please read the introductory comments below and then answer/select the most appropriate option based on your current thoughts and motivations.
E. Personal Preferences in your Investment Strategy We wish to understand if you have any preferences on the type of investment strategy or funds you would like us to consider when preparing our recommendations. The questions below are designed to help identify any preferences you may have. We will discuss these with you to help identify your reasons for the preferences and explain how they will affect our investment fund recommendations. If you wish to provide any supporting details or commentary, please provide these in the box on the previous page of this questionnaire.
Active or Passive Investing
Passive investing tracks a certain market benchmark, such as the FTSE 100 index, and aims to achieve performance as close to that benchmark’s performance as possible. The funds will aim to mirror the relevant index (or group of indices) and do not intend to outperform the benchmarks they are tracking. These funds generally provide diversification across different asset classes and geographical regions by tracking a range of indices.
Active investing is where a fund manager tries to beat the performance of the fund’s target or benchmark. These funds are where the skill and experience of the managers really come in to play. Fund Managers have discretion to change the asset type and individual stock selection if they feel this will improve returns.
An investors’ objectives do not always include purely economic goals. All fund managers must adhere to strict rules on how they invest but some clients wish to choose investments that specifically reflect their moral views or religious beliefs.
Socially responsible investing is where individuals choose to avoid investing in firms they consider may cause harm to people or the planet (e.g. companies who produce or sell addictive substances such as alcohol or tobacco) or only invest in companies or industries they believe will have a positive impact for people or the planet (e.g. companies engaged in social justice or environmental sustainability).
Religious based investing is where individuals invest in accordance with the beliefs and principles of their faith, e.g. Shariah Law.
Many businesses are now acutely aware of the impact of their activities on the environment. Accessing these types of investments no longer necessarily means that you will be paying higher charges or having to accept lower returns to follow your principles.
Please answer the following questions which ask about your thoughts, attitudes and experiences when making financial investment decisions. There are no right or wrong answers. They are used to help assess your level of risk tolerance and ability to bear losses when making investment decisions.
Please answer every question selecting just one answer even if you feel it doesn’t really apply to you.
The following questions do not impact the results of your Risk Questionnaire and are designed to establish what risks you can realistically afford to take.
Short Term Investment Period (Up to 9 years)
Data taken from eValue Efficient Portfolio Update, April 2021 Updated on 27th July 2021
Click to expand Graph
Medium Term Investment Period (10 years to 19 years)
Long Term Investment Period (20 years or more)
Wingate Financial Planning is a trading name of Wingate Wealth Management Ltd which is authorised and regulated by the Financial Conduct Authority. FCA Registration No: 478923. Wingate Wealth Management Limited is registered in England No 6469596.
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