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Investment risk and you During the course of developing your strategies, we have had detailed discussions about your past investment experience, and have determined your understanding and preferences towards investing.

The Investment Risk Profile shown below is the most comfortable compromise for you between your tolerance of risk, return and volatility; and the best probability of generating the rate of return you require to achieve your goals and objectives.

Investment risk profile – Sample Client

We have determined that your Investment Risk Profile is 70% Growth / 30% Defensive.

70% Growth / 30% Defensive: This profile may be appropriate for investors with an investment horizon of at least five years and a moderate risk tolerance. The bias to growth assets means that the portfolio will have greater short term fluctuations in value than portfolios with greater allocations to defensive assets. This strategy suits investors aiming to achieve capital growth over a medium to long term timeframe and who want lower volatility than that provided by a 100% growth asset mix. Given the 70% exposure to growth assets, investors will experience volatility.

Your Investment Risk Profile provides us with a target allocation for each of the major asset classes.

Defensive vs Growth Assets Defensive Assets include cash and fixed interest, and typically have a lower risk of capital loss and lower potential for capital growth.

Growth Assets include shares and property, and typically have the potential for greater capital growth and greater risk of capital loss.

Your Investment Risk Profile influences the strategies and investments we recommend for you. For this reason, it is important that if you disagree or are uncomfortable with our assessment of your attitude to risk, you discuss this with us prior to implementing any of our recommendations.

For further information see our Understanding Investment Concepts document.