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Confidential Financial Questionnaire Portfolio Management

Before establishing your investment portfolio, we need to collect sufficient information to enable us to: Understand your investment objectives and financial situation. Ensure that you are able financially to bear the investment risks associated with your portfolio. Ensure that you have the necessary experience and knowledge in order to understand the risks involved in investing in the portfolio. We appreciate that completing this form can be time consuming. However, we believe that this is the best way to ensure that we take full account of your circumstances and provide a suitable solution. Our service will be restricted to establishing a mandate and investing your portfolio in line with that mandate. As our portfolios are managed on a discretionary basis these are suitable for investors that are happy not to be involved in the day to day management of their investments. This questionnaire asks for information about your wider financial affairs. However, this is in order to help us meet the above requirements in relation to the portfolio. We will not be providing advice on your wider financial affairs.

Section 1: Personal details


Name: Spouse/Partner: Self Address Spouse/Partner
If address is different

Day phone Evening phone Mobile phone E-mail address Date of birth Marital status Country of Residence Tax domicility (if different to residence) Nationality National Insurance Number Are you in good health? Names of Children & Dependants Yes/No
(delete where appropriate)

Yes/No

(delete where appropriate)

Relationship and Date of Birth

Relationship and Date of Birth

Confidential Financial Questionnaire Portfolio Management

Section 2: About your portfolio


Initial amount to invest (Please note that the minimum amount of money that we are able to manage on your behalf is 100,000)

What percentage of assets available for investment would the portfolio represent?

In relation to the assets that you wish to invest please confirm how these were accumulated? (e.g. pension contributions, out of income savings, inheritance, sale of business etc.) Where are your monies / investments currently held? (e.g. registered pension scheme, Individual Savings Account (ISA), personal taxable funds)

What rate of income tax are you currently subject to? 0% 20% 40% 50%

If this is likely to change please confirm to what rate and when this is likely to occur:

What are your financial objectives for this portfolio? (e.g. saving for future retirement, retirement income being drawn, lump sum for capital growth, inheritance. Please detail any specific goals and dates.)

Over what period are you prepared to invest? Very short (<1yr) Short (1-5yrs) Medium (5-10yrs) Long (10+yrs)

Confidential Financial Questionnaire Portfolio Management

Do you have any strong views on where your money should be invested? (e.g. ethical funds) Yes No

If yes please detail:

In respect of this investment do you intend to make any future contributions or withdrawals? If so please detail these. Type Estimated date Amount Frequency
(e.g. one -off, annually etc.)

Reason
(e.g. to pay for holiday, retirement income etc.)

Section 3: Your other overall assests and liabilities approximate value and details
Self Property Cash savings - instant access Cash savings - term deposits Collectives (unit trusts, OEICS and ISAs invested in unit trusts and OEICS) Direct equities (shares) Pension savings Business interests Have you made use of this years ISA contribution allowance? Liabilities Mortgage Other (e.g. credit cards / loans) Yes/No
(delete where appropriate)

Spouse/Partner Yes/No
(delete where appropriate)

Confidential Financial Questionnaire Portfolio Management

Section 4: Your income and expenditure details


(per annum, please state whether figures are gross or net) Self Income being drawn from this portfolio Other income Earnings State Pension/benefits (please indicate when this is payable) Occupational/private pension (please indicate when this is payable) Dividend/savings income (please indicate when this is payable) Spouse/Partner

Other income (please specify)

Expenditure Estimated monthly outgoings (if you expect your outgoing to change in the near future, please give details)

This portfolio may lose capital value and the income from this portfolio may fall. Please indicate what degree of loss in the value of the portfolio you would be able to cope with in terms of making up the shortfall from other sources of wealth or adjusting your expenditure accordingly. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Please explain your response below:

Confidential Financial Questionnaire Portfolio Management

Section 5: Your investment knowledge/experience


How would you describe your investment knowledge and experience? No experience Inexperienced Moderate experience Highly experienced

We have provided information in relation to our portfolio management services and the risks involved in the document Investment Services for Private Clients. Have you read this information and understood it? Yes No

Are you aware that you could receive less money back from your investment than you originally invested? Yes No

The portfolio may invest in equities, bonds, ETFs/ETCs (Exchange Traded Funds/Commodities), money market instruments, collective funds, foreign currencies and exchange traded derivatives. Do you understand these products? Yes No

The portfolio may be subject to a level of gearing. Do you understand the term gearing and the implications of using this within the portfolio? Yes No

How many times in the past have you invested or traded in shares, bonds, fixed interest and funds? Never Infrequently - typically less than once per year Regularly - typically one or more times per year

Active investor - typically one or more times per month

Section 6: Attitude to risk


Some individuals are more able to tolerate financial risk than others. Researchers have argued that financial risk tolerance can be broken down into two parts: 1. Ability to take risk (or risk capacity) 2. Willingness to take risk (or risk attitude) An individuals ability to take risk relates to their financial circumstances and their investment goals. Generally speaking, the higher the individuals level of wealth and income, and the longer their investment horizon, the more able they will be to take financial risk and the greater their risk capacity. Risk attitude, on the other hand, has more to do with the individuals psychology than with their financial circumstances. Some individuals will find the prospect of volatility in their investments and the chance of losses distressing to think about. Others will be more relaxed about those issues. You should also consider the term available for investment; if you have a longer term (e.g. pension investment) you might go for the approach that has the higher potential for growth and is therefore more adventurous or if you need the money in the shorter term, you would probably choose a more cautious approach. You should also answer the questions in respect of the portfolio that you are investing. If you have a different attitude in respect of your overall financial wealth, please specify this when completing the questions.

Confidential Financial Questionnaire Portfolio Management

Please tick the description which most closely applies to you.

I am not willing/am unable to take any risk with my capital


This may be appropriate if you have a very short timeframe to invest monies and/or require a specific amount for a known purpose. This category is usually appropriate to those that prefer knowing that their capital is safe rather than seeking high returns. They are not comfortable with the thought of investing in the stock market and would rather keep their money in the bank. This category may also be appropriate to you if you have little or no experience of financial matters and do not wish to take the risk that your investment capital could be eroded. It is important that you understand that it is not possible to remove all risk. Even where funds are deposited in a bank account you will potentially be exposed to inflation rate risk in that the real purchasing power of your money could be reduced if the inflation rate exceeds the interest rate which you are receiving. You understand you may lose some of your money below this line

I am very conservative with my money


This category is usually appropriate to those that do not like to take risk with their investments. They would prefer to keep their money in the bank, but would be willing to invest a small amount in other types of investments if they were likely to be better for the longer-term. Very conservative investors may have low levels of knowledge about financial matters or may have limited interest in keeping up to date with financial issues. They may have some limited experience of investment products, but will be more familiar with bank and building society accounts than other types of investments. If you are a very conservative investor it is likely that, when investing your money, you look for the security that your investments will not be volatile which means the value will not go up and down a lot. Some common traits of very conservative investors are that: You expect the majority of your investment to be invested in low risk asset classes such as cash and government bonds. You are comfortable with up to 30% of your investment being invested in shares, and some of which may be outside the UK. You accept that it is possible you may lose some of what you invested for the prospect of better growth. You will probably want to spread your money across different types of investments, which should help to reduce the risk by balancing out one type of risk against another.

I am a cautious investor
This category is usually appropriate for those that are uncomfortable taking risk with their investments, but would be willing to do so to a limited extent in order to target higher returns than can be achieved in cash accounts. They realise that riskier investments are likely to be better for longer-term returns but do not wish to expose the majority of their assets to such risk. Cautious investors may have low to moderate levels of knowledge about financial matters and quite limited interest in keeping up to date with financial issues. They may have some experience of investment products, but will be more familiar with bank and building society accounts than other types of investments. Some common traits of moderately cautious investors are that: You accept that the value of your investment is not guaranteed and might go down as well as up. You are comfortable with typically 40%, but no more than 60%, of your investment being held in shares, some of which may be outside the UK. You accept that it is possible you may lose some of what you invested for the prospect of better growth. You will probably want to spread your money across different types of investments, which should help to reduce the risk by balancing out one type of risk against another.

Confidential Financial Questionnaire Portfolio Management

You understand you may lose a moderate to significant amount of your money below this line

I am a moderately balanced investor


This category is usually appropriate to those that understand the consequences of taking investment risk in order to be able to meet their long-term goals. They are likely to be willing to take risk with at least part of their available assets. It is likely that moderately balanced investors will have some/moderate levels of knowledge about financial matters and will pay some attention to keeping up to date with financial matters. They may have some experience of investment, including investing in products containing risky assets such as equities and bonds. Moderately balanced investors will usually be prepared to give up a certain outcome for a risk of loss, provided that the potential rewards are high enough. Some common traits of balanced investors are that: You are happy to put the majority, but no more than 75%, of your money in shares or other longer-term investment types. You accept that there is a risk of losing your money, but this is balanced with the prospect of greater growth. You might have an interest in and knowledge of the stock market. You understand the general risks involved with investing.

I am a balanced investor
This category is usually appropriate to those willing to take on investment risk and understand the potential benefits of doing this in terms of generating long-term return. They are willing to take risk with a substantial proportion of their available assets. Typically balanced investors have moderate to high levels of financial knowledge and will usually keep up to date on financial issues. They will usually be fairly experienced investors, who have used a range of investment products in the past. Some common traits of balanced investors are that: You will usually take investment risks where you see the potential rewards as being attractive. You are happy to put typically 60%, but no more than 85%, of your money in shares or other longer-term investment types. You will usually be able to make up your mind on financial matters quite quickly. You can suffer from regret when your decisions turn out badly but you are usually able to accept that occasional poor outcomes are a necessary part of long-term investment.

I am an adventurous investor
This category is usually appropriate to those that are happy to take on investment risk and understand that this is crucial in terms of generating long-term return. They are willing to take risk with most of their available assets. Typically adventurous investors have high levels of financial knowledge and keep up to date on financial issues. They will usually be experienced investors, who have used a range on investment products in the past, and who may take an active approach to managing their investments. If you are prepared to take high risk, it is likely that you are an experienced and knowledgeable investor, whose primary aim is to achieve the highest possible returns on your money, while accepting that this means taking substantial risks. Some common traits of adventurous investors are that: You are happy to put up to 100% of your investment into shares or other longer-term investment types. You are looking for high returns on your money and you are willing to take substantial levels of risk to achieve it. You accept that there is a real risk of losing your money but this is balanced with the prospect of greater growth. You are attracted to new markets with substantial risk or enjoy trying new types of investment. You accept that the value of your investment can fluctuate rapidly and by a large amount. You are experienced in investing in the stock market and probably already manage a range of your own investments. You understand the risks posed to your money when investing, particularly that your investment is very likely to regularly go up and down in value.

Confidential Financial Questionnaire Portfolio Management

I am a very adventurous investor


This category is only appropriate to those that have very high levels of financial knowledge and a keen interest in financial matters and that are willing to take a risk of losing all their available assets. They have substantial amounts of investment experience and will typically have been active in managing their investment arrangements. In general, very adventurous investors are looking for the highest possible return on their capital and are willing to take considerable amounts of risk to achieve this. They are usually willing to take risk with all of their available assets. Very adventurous investors can easily be persuaded to take a gamble rather than a certain outcome and enjoy gambling as an activity. They have firm views on investment and will make up their minds on financial matters quickly. They do not suffer from regret to any great extent and can accept occasional poor outcomes without much difficulty.

Whilst the descriptions above are detailed and provide sufficient information for you to understand your own attitude to risk, you may find it helpful to check your own estimation of your ability and willingness to take investment risk by looking at the questions which follow. You will notice that there are options indicated with the letters most accurately reflects how you feel.

A - E.

You should circle the response which

1. Which response to the following statement best describes your attitude: I am comfortable with investment returns that may frequently vary and experience losses in value if there is a potential for higher returns
Please circle your response

Strongly disagree

Disagree

Somewhat agree

Agree

Strongly agree

2. The following graph shows the results of five example portfolios over a one year period showing the best potential gains and the worst potential losses. 50 40 30 20 10 0 -10 -20 -30 Please circle which of these portfolios would you prefer to hold? Max Gain Max Loss

Confidential Financial Questionnaire Portfolio Management

3. What is your expectation of future income over the next 5 years? The answer to this question will help to assess your capacity to take investment risk rather than your attitude to taking investment risk.
Please circle your response

A B C E

Income will go down in actual terms or you are uncertain about future earnings. Income may slightly increase but will not keep pace with inflation. Income will keep pace with inflation.

D Income will increase above inflation.


Income to far outpace inflation.

4. The following table shows a the best potential gains, the worst potential losses and the expected gains for a hypothetical investment of 10,000 in five example portfolios over a five year period. Potential best case gain Portfolio A Portfolio B Portfolio C Portfolio D Portfolio E 1,760 2,966 5,489 8,127 10,129 Expected gain 638 1,478 1,983 2,844 4,026 Potential worst case loss - 351 - 1,178 - 1,513 - 2,721 - 4,874

Please circle which of these portfolios would you prefer to hold?

5. You have made an investment of 10,000 and its value falls by 20% to 8,000. Assuming you have 10 years until you need to start withdrawals, how would you react?
Please circle your response

A B C D E

I would immediately change to investment options that are more stable. I would wait at least three months before changing to investment options that are more stable. I would wait at least one year before changing to investment options that are more stable. I would not change my portfolio.

I would move some of my portfolio into riskier assets in order to try to take advantage of the unstable and potentially under-valued markets.

Confidential Financial Questionnaire Portfolio Management

6. Which response to the following statement best describes your attitude: I am comfortable with investment returns that may frequently vary and experience losses in value if there is a potential for higher returns
Please circle your response

A B

I am most concerned with risk and I am willing to accept lower potential returns in order to limit my chance of losses. I am willing to bear some risk and a chance of loss in an effort to achieve higher returns but would prefer a significant portion of my portfolio to be invested in cautious assets. I am willing to accept a moderate risk and a chance of loss in order to achieve higher returns. Minimising risk and maximising return are of equal importance to me. I wish to achieve high returns on my investments and I am willing to accept a higher risk and chance of losses. I am primarily concerned with maximising the returns from my investments and I am willing to accept significant fluctuations in the value of my portfolio and a substantial chance of loss.

C D E

7. I associate the word risk with the idea of opportunity.


Please circle your response

Strongly disagree

Disagree

Somewhat agree

Agree

Strongly agree

8. If you were advised that your current fund and future savings are not sufficient to meet your investment goals, what action would you take?
Please circle your response

A B C D E

Amend your goals and make no changes to the investment risk or savings levels. Increase savings sufficiently to meet your goals. Increase savings slightly and increase risk slightly in the hope that the combination will meet your goals. Take more risk with some of the money to try to improve returns. Take more risk with all of the money to try to improve returns.

Once you have answered the questions, count up your scores and see which letter appears most frequently in your answers Mostly A Very conservative investor Mostly B Cautious investor Mostly C Moderately cautious investor Mostly D Balanced investor Mostly E Adventurous investor If you answered mostly As and you have a very short term timeframe to invest monies and/or require a specific amount for a known purpose or if you have little or no experience of financial matters, then you will fall into the category of people who are not willing or able to take any risk with your capital. If you believe this applies to you please indicate by ticking here: If you answered mostly Es and you have a very high level of financial knowledge and a keen interest in financial matters and are willing to take a risk of losing all your available assets, then you will fall into the very adventurous investor category. If you believe this applies to you please indicate by ticking here:

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Confidential Financial Questionnaire Portfolio Management

Section 6: Declarations
I/we sign and return this Confidential Financial Questionnaire. I/we confirm that the details contained in this document are correct as far as I am/we are aware. I/we further understand that the quality of advice may be affected if I/we have not provided complete information. Please see the next declaration if you have not provided all information. Signature: Name: Date: Signature: Name: Date:

You only need to complete the second declaration if you do not wish to disclose certain information about your financial circumstances and therefore realise that we cannot take this information into account when constructing your portfolio.

I/we confirm that I/we do not wish to provide any details/full details (delete as applicable) regarding (please insert the name of the relevant sections) I am/we are aware that by refusing to provide this information, BWI is unable take this information into account when constructing my/our portfolio. Signature: Name: Date: Signature: Name: Date:

Barnett Waddingham Investments LLP are authorised and regulated by the Financial Services Authority (463721) Barnett Waddingham Investments LLP are covered by the Financial Ombudsman Service Registered in England and Wales No OC323081. Registered Office: Cheapside House, 138 Cheapside London EC2V 6BW

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