PRIVATE CLIENT MANAGED PORTFOLIOS. Investor Profile Questionnaire

Transcription

1 PRIVATE CLIENT MANAGED PORTFOLIOS Investor Profile Questionnaire

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3 ASSANTE PRIVATE CLIENT INVESTOR PROFILE QUESTIONNAIRE INTRODUCTION Determining the right investment strategy is essential to each investor s future success. The right strategy will help you endure market fluctuations and stay focused on your long-term goals. The investment management professionals at Assante Private Client understand this and the complexities of today s capital markets. Dedicated, seasoned and committed, our goal is to relieve you of the burden of managing your investment portfolio alone, so that you may enjoy the rewards of your career and your family. The first step in the process is the completion of this Investor Profile Questionnaire (IPQ) which has been carefully designed to take you through an important information gathering process. We use the IPQ to provide us with a clear understanding of your overall financial well-being. The information provided through this exercise will be used by our analysts in preparing your Investment Policy Statement (IPS) a personally tailored document outlining our formal investment recommendations for you. Your IPS will detail our asset allocation decision, which is the single most important step in structuring your portfolio. Studies have shown that over 90% of the variability of a portfolio s return is associated with the asset mix decision (Source: Brinson, Hood and Beebower). Your IPS is the baseline against which you will be able to measure the ongoing performance of your investments. The effectiveness and precision of the IPS are largely based upon the quality of the information that goes into its preparation. That is why it is so essential for you to be thoughtful and thorough in answering all of the questions contained in the IPQ. While some questions may appear to be indirect or unrelated, they have all been designed to elicit useful and important responses. It is also important to note that the management of your portfolio is a dynamic process one that is constantly evolving. Therefore, it is essential that you continue to keep us informed of any major changes in your life that could impact on your portfolio. That way, we will be able to make any necessary adjustments. We look forward to working together with you to develop a tailored investment strategy best suited to your personal situation and individual needs. Please be assured that the information you provide will be maintained in the strictest of confidence. PRIVATE CLIENT MANAGED PORTFOLIOS 1 INVESTOR PROFILE QUESTIONNAIRE INTRODUCTION

4 Section ONE 1 BACKGROUND INFORMATION OF INVESTOR(S) IN THE INVESTMENT POLICY GROUP Our approach to portfolio management emphasizes long-term wealth creation and preservation. Consistent with this approach, a portfolio will often include accounts belonging to a number of individual taxpayers managed under the same investment policy (referred to as an IP Group). This, in turn, allows the opportunity to manage, to the degree possible, the impact of income taxes on a family group s portfolio. When examining whether a particular account should be included in the IP Group we consider all the following criteria: Related by marriage or blood Connected under the Income Tax Act Residing in the same household Common financial goals and investment objectives Beneficial ownership and control of corporations or trusts In addition to the foregoing, there are additional considerations in order to assess if a corporation or a trust should be managed within a particular IP Group. All of the information gathered will be used to manage your accounts, as part of a single portfolio, unless we determine that to do so would be inappropriate. If there are additional investors to be included in this IP Group beyond what we have provided space for, please attach a supplemental page and ensure that the appropriate signatures are obtained in this IPQ. If any person or entity is to be managed separately from this IP Group, a separate IPQ must be completed. PRIVATE CLIENT MANAGED PORTFOLIOS INVESTOR PROFILE QUESTIONNAIRE SECTION ONE

5 Section ONE 1 NAME OF THE IP GROUP: A. Is this a new IP Group, or an update to an existing IP Group? m New m Update IP Group Name and #: Note: A New Account Application and Advisory Agreement Form must be completed for each individual and/or entity that is part of this IP Group. B. List the name(s) of the individuals and/or entities that are part of this IP Group 1) Name/Trust/Legal Entity ) Account Type (Individual, RRSP, Corporate, etc.) Amount of Initial Deposit (Approximate $) Name/Trust/Legal Entity 3) Account Type (Individual, RRSP, Corporate, etc.) Amount of Initial Deposit (Approximate $) Name/Trust/Legal Entity 4) Account Type (Individual, RRSP, Corporate, etc.) Amount of Initial Deposit (Approximate $) Name/Trust/Legal Entity Account Type (Individual, RRSP, Corporate, etc.) Amount of Initial Deposit (Approximate $) PRIVATE CLIENT MANAGED PORTFOLIOS 3 INVESTOR PROFILE QUESTIONNAIRE SECTION ONE

6 The first step in determining your investment strategy is finding out who you are as an investor. This questionnaire is designed to help us understand your financial situation, your investment goals, how long you plan to invest and in particular, how much market volatility you are willing to accept. Based on the information you provide, we will recommend an asset mix that will best help you preserve and grow your wealth. We ask that you complete all questions so that we can tailor your portfolio to your specific goals and needs. TELL US ABOUT YOURSELF These questions help us determine which investments are suitable for your stage in life and financial situation 1. What is your age? Please also include the age of your spouse if this is a joint investment or of the person who will ultimately use these funds. a) AGE INVESTOR 1 b) AGE INVESTOR i) Under 30 i) Under 30 ii) 30 to 45 ii) 30 to 45 iii) 46 to 55 iii) 46 to 55 iv) 56 to 65 iv) 56 to 65 v) Over 65 v) Over 65 N/A other, such as a corporation N/A other, such as a corporation. a) What is the approximate aggregate amount being managed in this portfolio? $ b) How long are you planning to let the assets in this portfolio grow? If you intend to remain invested for a long period, your portfolio may be able to withstand a greater allocation to equities because it may have time to recover from cyclical lows. If you need your money sooner, you might want to consider investments that fluctuate less in value. If you have important financial goals with different timeframes, you may need more than one Investment Policy Statement (IPS). m a) Less than three years m b) Three to five years m c) Six to 10 years m d) 11 to 15 years m e) Over 15 years PRIVATE CLIENT MANAGED PORTFOLIOS 4 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

7 3. How would you describe your investment knowledge? m a) Novice I m new to investing. m b) Fair I have invested in GICs and similar investments, but my understanding of other types of investments is limited. m c) Good I have invested in basic types of investments, such as mutual funds, stocks and bonds, and understand how they work. m d) Sophisticated I am very knowledgeable about the markets and different kinds of investments. 4. How stable is your financial situation? Financial stability is generally determined by how stable your non-investment income is, how predictable your expenses are and by how much your assets outweigh your debts. The more stable your financial situation is (e.g. secure job, good health, regular pension entitlement, etc.), the less likely you ll need to withdraw funds from your portfolio unexpectedly or earlier than planned. m a) Very unstable m b) Somewhat unstable m c) Stable m d) Very stable 5. What is your marginal tax rate? Taxes can be a significant drain on investment returns over time. We can structure your family s accounts on a tax-effective basis and recommend a strategy to help minimize taxes. This might include consolidating all family accounts under one IPS while treating each account separately from a tax point of view. MARGINAL TAX RATE % Investor 1 % Investor Note: we suggest you speak to a tax professional regarding any specific tax consequences on investments. PRIVATE CLIENT MANAGED PORTFOLIOS 5 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

8 6. Are you using or do you plan to use borrowed money to invest? m No m Yes (If yes complete below) a) Amount of your initial investment $ b) Percentage of your total investment assets this investment represents % c) Percentage of this investment funded with borrowed money % I/We acknowledge that using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. INVESTOR INITIALS X JOINT APPLICANT INITIALS X 7. Please describe your ability to save. Your ability to save factors into your ability to tolerate changes in the value of your portfolio. a) What percentage of your pre-tax income do you currently save and invest in your portfolio each year? m i) Not applicable currently earning no employment or business income, or expect to retire within next three years. m ii) 0 to 3% m iii) 4 to 9% m iv) 10 to 15% m v) Over 15% b) Will you be using a dollar cost averaging strategy to invest in this portfolio? m No m Yes (If yes complete below) $ Frequency: Start date: $ Frequency: Start date: $ Frequency: Start date: c) How will the deposits to the account be made? m i) Debit (bank account on file) m ii) Cheque m iii) Other PRIVATE CLIENT MANAGED PORTFOLIOS 6 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

9 8. How will you be using the majority of this portfolio? (Please check one) m a) To fund your lifestyle currently, or within the next three years m b) To fund your future retirement (more than three years away) m c) To fund core expenditures, such as a house, education or business m d) To fund discretionary expenditures, such as a vacation property or boat m e) For charitable giving m f) To leave for your estate or the next generation m g) Other: 9. It is important to know if you are currently using your investments to fund your lifestyle, or will be within the next three to five years. a) What other sources of income do you have to supplement your required investment income? m i) Not applicable not living off my savings currently or within the next three years. Or, please check one or more of the following if applicable: m ii) Canadian Pension Plan and/or Old Age Security m iii) Company or other pension plan payments m iv) Part-time employment, consulting or other sources m v) Family member s income m vi) Other savings m vii) None relying completely on my portfolio to fund lifestyle b) If yes, how much pre-tax income do you expect you will need to withdraw each year? $ (pre tax) m per month m per quarter m per year Or, % of your initial investment in this portfolio per year. PRIVATE CLIENT MANAGED PORTFOLIOS 7 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

10 10. Do you expect to withdraw a sizable lump sum from your portfolio in the next five years to fund a major expenditure, such as starting a business or financing a child s education, purchasing property etc? a) m No please go to question 10 (b) m Yes please complete below Please provide details of your expected expenditures so we can take them into account when recommending your asset mix. $ Date: For: $ Date: For: $ Date: For: b) Since withdrawing funds at market lows can significantly impair your wealth, do you have other means to fund any unexpected cash needs that may arise at inopportune times? m No m Yes 11. What percentage of your initial investment in this portfolio do you expect to withdraw over the next five years to fund regular income requirements and/or lump-sum expenditures? m a) 0% m b) 1 to 10% m c) 11 to 33% m d) 34 to 66% m e) 67 to 100% YOUR INVESTING PERSONALITY Your peace of mind is one of the most important considerations when building your portfolio. These questions help us understand how much market volatility you are comfortable taking in exchange for potentially higher returns. This is called the risk-return trade-off. 1. Which statement best describes your objectives for your portfolio? m a) Preservation of capital. I am willing to accept lower returns over the long term if it means minimizing the chance of a loss. m b) Modest growth. I am willing to take on a small amount of risk if it means achieving some growth. m c) Balanced growth. I am willing to invest in a portfolio with medium risk if it means achieving moderate returns. m d) High growth over the long term. I am willing to invest in a portfolio whose value may fluctuate dramatically in the short term, if it means achieving higher returns over the long term. PRIVATE CLIENT MANAGED PORTFOLIOS 8 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

11 13. Please help us further understand the relative importance to you of capital preservation and growth of principal by allocating a total of 10 points to the following. (The more you allocate to one of the two choices, the more important it is to you.) Preservation of capital Growth of principal + = The chart below shows the relationship between a portfolio s average return over the long term and the minimum loss that could be expected once in about every six years. As the chart shows, the higher the average rate of return, the greater the probable loss in a down market. 10% FOR ILLUSTRATIVE PURPOSES ONLY Average Return gross of fees and expenses 5% 0% 5% 10% 15% Portfolio A Portfolio B Portfolio C Portfolio D Portfolio E Hypothetical returns of portfolios based on an investment period greater than 15 years This Chart is for illustrative purposes only and used to demonstrate the volatility of returns on different portfolios Which portfolio most closely reflects your willingness to accept greater market volatility to achieve greater potential returns? m a) Portfolio A m b) Portfolio B m c) Portfolio C m d) Portfolio D m e) Portfolio E m f) None I want a portfolio that minimizes the risk of loss even further PRIVATE CLIENT MANAGED PORTFOLIOS 9 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

12 15. How would you react if your portfolio was underperforming? In general, the portfolio with the lowest volatility available to investors consists entirely of government-issued treasury bills (T-bills). The return on this portfolio is known as the risk-free rate. As investors add volatility to their portfolio by including other investments, such as stocks and bonds, they can expect to be rewarded with higher long-term rates of return. The return above the risk-free rate is known as the managed account premium ( MAP ). However, in a market downturn, such a portfolio could experience lower returns than the risk free rate, possibly for an extended period. The graph below shows the hypothetical returns of a portfolio over six years, compared to an investment in T-bills with an annual rate of return of 3%. Average Annual Return gross of fees and expenses 1% 8% 4% 0% -4% -8% FOR ILLUSTRATIVE PURPOSES ONLY Year 1 Year Year 3 Year 4 Year 5 Year 6 Hypothetical returns of portfolios based on an investment period of 6 years This Chart is for illustrative purposes only used to demonstrate the potential impact of equities on a portfolio Risk-Free Rate 3% Assuming the portfolio s recent performance has been comparable to the market s performance, but is lower than the risk-free return, how would you react at the six-year mark if you still had a reasonable investment timeframe and didn t need to withdraw your investment to fund a cash need? m a) Sell the entire portfolio immediately and reinvest the proceeds in a GIC or money market fund. m b) Sell some of the portfolio, invest the proceeds in a GIC or money market fund and keep the rest invested in the existing portfolio. m c) Ask your advisor to recommend a more conservative portfolio. m d) Continue to hold with the expectation that the portfolio s value will recover. m e) Make an additional investment to take advantage of lower prices. PRIVATE CLIENT MANAGED PORTFOLIOS 10 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

13 16. Which of the following statements best describes your willingness to tolerate decreases in the value of your portfolio from one quarter to the next? m a) Not at all. m b) I can tolerate small decreases (-1% to -5% in a quarter). m c) I can tolerate medium-sized decreases (-6% to -1% in a quarter). m d) I am not worried about the size of any quarterly loss. 17. What is the largest cumulative decline in the value of your portfolio that you could tolerate before re-evaluating your risk tolerance? Markets can suffer large losses over varying lengths of time, but historically, portfolios with greater proportion to equities have the potential to generate higher returns over the long-term, i.e. greater than 10 years. m a) 0% 5% m b) 5% 10% m c) 10% 15% m d) 15% 0% m e) Market declines do not concern me. I am committed to maximizing my long-term return. 18. Over the course of a bear market, assume the value of your portfolio has declined by 5% or more. How would this affect your lifestyle and financial goals? m a) My lifestyle would not be compromised and my main financial goals (e.g., retirement or leaving a sizable estate) would remain comfortably achievable. m b) I would be able to maintain my lifestyle but would have to alter my main financial goal(s) by extending the date or scaling them back. m c) I would have to change my current lifestyle by saving more or spending less to maintain a high probability of achieving my main financial goal(s). m d) I would be forced to scale back my lifestyle and re-evaluate my financial goals. m e) My lifestyle and/or financial goals would be seriously compromised. 19. How many years will you give your portfolio before deciding if it is meeting your performance expectations? m a) Less than one year m b) One to two years m c) Three to five years m d) Six to nine years m e) More than 10 years PRIVATE CLIENT MANAGED PORTFOLIOS 11 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

14 YOUR INVESTMENT PREFERENCES These questions provide us with additional information so that we can further customize your portfolio to reflect your preferences. If you decide not to answer them, your recommended portfolio will be based only on the first 19 questions. 0. What is your preference for investment style? We offer you three investment-management styles for the large-cap equity portion of your portfolio: Value, Alpha and Growth. Value managers seek companies that are currently out of favour and/or have lower valuation measures (e.g., low price-to-earnings and price-to-book ratios). The expectation is that share prices will rise toward their true value. Growth managers seek companies with accelerating earnings growth and/or increasing market share. Although these companies often trade at higher valuations than the broader market, the expectation is that share prices will increase accordingly. Our Alpha managers create a concentrated portfolio of their best ideas consisting of approximately 0 to 60 stocks, selected for their attractive valuation and/or growth prospects. Our Alpha managers ignore the index when constructing the portfolios, taking on different risk than the index. Our current default style allocation is 60% value and 40% growth portfolio allocation. If you prefer to have a style mix other than our default allocation, please indicate your preference by allocating a total of 10 points in the table below. (The more you allocate to one of the three choices, the greater the presence it will have in your portfolio.) CANADIAN LARGE CAP U.S. LARGE CAP INTERNATIONAL DEVELOPED MARKETS Value + Growth + Alpha + Total = PRIVATE CLIENT MANAGED PORTFOLIOS 1 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

15 1. Which of the following best describes your preference for investing outside Canada? Canada represents less than 3% of the world s available investment options. Our portfolios are structured to allow you to participate in opportunities from around the world. Increasing portfolio diversification through carefully selected foreign securities has been found to increase long-term returns and reduce portfolio volatility, but it can also present currency and other risks to Canadian investors. m a) m b) m c) Standard allocation I have no particular preference and will invest in the standard foreign allocations determined by Assante Private Client. Reduced allocation While I recognize that I need to diversify with foreign securities, I would like to invest a smaller percentage than the standard foreign allocation. My portfolio will include the appropriate allocation to small cap, emerging markets and real estate securities. Increased allocation I recognize that I need to diversify with foreign securities and I would like to invest a larger percentage than the standard foreign allocation. My portfolio will include the appropriate allocation to small cap, emerging markets and real estate securities.. Do you have any portfolio constraints? Describe any specific preferences or investment restrictions you would like us to consider in creating your portfolio. An example of a specific preference might be to overweight or underweight a specific asset class or to incorporate certain securities that you already own into your portfolio. An example of an investment restriction would be to avoid investing in certain pools or segregated securities. PRIVATE CLIENT MANAGED PORTFOLIOS 13 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

16 INTERNAL USE ONLY 3. Special instructions to IP Group: 4. Investment Counsellor comments and additional information to be reflected in the Investment Policy Statement: PRIVATE CLIENT MANAGED PORTFOLIOS 14 INVESTOR PROFILE QUESTIONNAIRE SECTION TWO

17 Section THREE 3 TO THE INVESTOR: You have now completed the Investor Profile Questionnaire and have provided our analysts with the information they require in order to prepare your Investment Policy Statement. The Investment Policy Statement and the investment management services we will provide to you will be based solely on the information gathered in this Investor Profile Questionnaire. To the extent that the information is inaccurate or incomplete, we cannot be confident that the asset mix will be appropriate to your circumstances. Please sign below and record the date, confirming that you have answered the questions accurately and completely, and are satisfied to the best of your knowledge with the answers you have given. By signing below you agree that all of the accounts in your IP Group should be managed as a group, unless we determine that it would be inappropriate to do so. This Investor Profile Questionnaire, together with the New Account Application and Account Agreement, forms the contract between you and Assante Private Client, a division of CI Private Counsel LP. Privacy Consent: I/We agree to the collection and use of my/our personal information contained in this Investor Profile Questionnaire solely for the purpose of carrying out Assante Private Client s due diligence and in the preparation of an Investment Policy Statement for me/us. I/We understand that if I/we do not consent to use/share such information, Assante Private Client will be unable to prepare an Investment Policy Statement and is therefore unable to open the account or provide Assante Private Client services. Investor/Authorized Signing Officer(s): X Name of Investor 1 Signature Date (MM / DD / YYYY) X Name of Investor Signature Date (MM / DD / YYYY) X Name of Investor 3 Signature Date (MM / DD / YYYY) X Name of Investor 4 Signature Date (MM / DD / YYYY) PRIVATE CLIENT MANAGED PORTFOLIOS 15 INVESTOR PROFILE QUESTIONNAIRE SECTION THREE

18 Section THREE 3 TO THE INVESTMENT COUNSELLOR: You have now reviewed the Investor Profile Questionnaire with your Client(s). Please sign below and record the date, confirming that you are satisfied the information provided is thorough and accurately reflects the financial situation, attitudes and investment objectives for this IP Group. X Investment Counsellor Name Investment Counsellor Signature Date (MM / DD / YYYY) Address Phone Number Fax Number Private Client Managed Portfolios are made available through Assante Private Client, a division of CI Private Counsel LP ( Assante Private Client ). Assante Private Client and Assante Private Client design are registered trademarks of CI Investments Inc. 015 Assante Private Client, a division of CI Private Counsel LP. All rights reserved _E (0/16) PRIVATE CLIENT MANAGED PORTFOLIOS 16 INVESTOR PROFILE QUESTIONNAIRE SECTION THREE

19 _E (09/15)

20 Please send the Investor Profile Questionnaire along with completed Account Application(s) to: ASSANTE PRIVATE CLIENT 15 York Street, Seventh Floor, Toronto, Ontario M5J 0A3 Telephone: Fax: