What does your Risk Profile mean?

What does your Risk Profile score mean for you?

Your risk profile score is a central element of what will guide your Strategem Financial Adviser when they are tailoring advice to your individual situation.

By completing our Strategem Risk Profile questionnaire, your Adviser now has a deeper understanding of what you look for and what you perceive to valued in regards to your investment portfolio. It’s important to note that this is only the first stage in determining your true risk profile. There are a number of other factors that your Adviser will take into account when working with you (please see disclaimer below for full details).

The table below indicates what your recommended models are when investing. This is based on the score you received after completing our Investor Risk Profile.

See what your score says about you using the descriptions below.

If at any time you have any questions or would like this explained in more details, please do not hesitate to contact your Adviser.

Conservative – This suits investors with a minimum two-year timeframe or those that seek a portfolio invested predominantly in interest bearing assets, with a small proportion of growth assets. This portfolio also suits investors who give a high priority to the preservation of capital and are therefore willing to accept lower potential investment performance, hence the 85 percent exposure to income assets (cash and fixed interest). Historically, the above asset allocation has produced a negative return once every 11.7 years.

Moderately Conservative – This suits investors with a minimum three-year timeframe or those who seek a portfolio with an emphasis on interest bearing assets, with some exposure to growth asset classes. This portfolio also suits investors seeking a lower level of investment value volatility, and therefore willing to accept lower potential investment performance, hence the 70 percent exposure to income assets (cash and fixed interest). Historically, the above asset allocation has produced a negative return once every 7.9 years.

Balanced – This suits investors with a minimum five-year timeframe. This portfolio also suits investors who desire a modest level of capital stability but are willing to accept moderate investment value volatility in return for commensurate potential investment performance, hence the 50 percent exposure to growth assets (shares, listed property and infrastructure) and 50 percent exposure to income assets (cash and fixed interest). Historically, the above asset allocation has produced a negative return once every 5.4 years.

Growth – This suits investors with a minimum seven-year timeframe or those who are willing to accept higher levels of investment value volatility in return for higher potential investment performance. Some exposure to interest bearing assets is still desired, but the primary concern is a higher return, hence the 70 percent exposure to growth assets (shares, listed property and infrastructure). Historically, the above asset allocation has produced a negative return once every 4.4 years.

High Growth – This suits investors with a minimum nine-year timeframe or those who are willing to accept high levels of investment value volatility in return for high potential investment performance. The 85 percent exposure to growth assets (shares, listed property and infrastructure) means that capital stability is only a minor concern. Historically, the above asset allocation has produced a negative return once every 4 years.

Aggressive – This suits investors with a minimum ten-year timeframe or those who are willing to accept very high levels of investment value volatility to maximise potential investment performance. The 100 percent exposure to growth assets (shares, listed property and infrastructure) means that capital stability is not a consideration. Historically, the above asset allocation has produced a negative return once every 3.7 years.     

If you have any questions, please do not hesitate to contact our office to speak with your Advisor.

If you have any questions after reading your risk profile. Please contact us via our website or phone to speak with your Adviser:
Bendigo 03 5445 4777
Melbourne 03 8621 8100

DISCLAIMER: This score is the first stage in helping your adviser work with you to determine your true risk profile. Other factors including timeframe, individual preferences and conflicting goals will also be discussed during your upcoming meetings, your risk profile is derived with a thorough understanding of your personal objectives, financial situation and needs and your attitude towards risk.

In preparing this questionnaire Strategem has not taken into account the objectives, financial situation and needs of any particular person.  Before making an investment decision on the basis of this questionnaire the investor needs to consider, with or without the assistance of an adviser, whether the advice is appropriate in light of the particular objectives and financial situation and needs.

Strategem believes that the information contained in this document is accurate when issued. Strategem does not warrant that the advice contained herein is accurate, reliable, complete or up to date, and, to the fullest extent permitted by law, disclaims all liability of Strategem and its Associates for any loss or damage suffered by any person by reason of the use by that person of, or their reliance on, any information contained in this document or any error or defect in this document, whether arising from the negligence of Strategem or its Associates or otherwise.  AFS Licence No. 244222 A.B.N. 25 006 596 587.