HSIA Asset Allocation Inquiry

Time Horizon

1. When do you expect to take distributions from your investments?

2. Once distribution begins, for how many years do you expect them to continue?

Risk Tolerance Level

3. Which of the following statements best reflects your views toward investment risk and the effects of inflation?

4. This table presents the potential worst case loss, probable gain, and potential best case gain of $100,000 invested in five hypothetical portfolios over a one year period. In which of the following portfolios would you prefer to have your investments?

  Potential Worst Case Loss Probable Gain Potential Best Case Gain
-5,500 +7,500 +17,500
-10,000 +9,500 +25,000
-15,000 +11,000 +34,000
-20,000 +13,000 +43,000
-25,000 +15,000 +51,000

5. This graph below shows the investment performance of a hypothetical portfolio over a ten-year period. If this was your investment portfolio over 10 years, what would you do?

6. The willingness to endure investment losses is a major determinant in portfoli suitability. Generally, investments that have experienced high degrees of return fluctuation and higher chance of loss fluctuation have historically provided greater returns over the long run. The following table shows the probable performance of four hypothetical portfolios over 20 years. Which portfolio would you prefer?

  Probable Number of Negative Years Probable Worst Annual Return Probable Average Annual Return
2 -5% +7%
2 -14% +9%
5 -20% +10%
6 -30% +12%

7. This graph shows hypothetical gains of five sample portfolios over a three-year holding period. The best potential gains and worst potential losses are presented. Notice that the portfolio with the best gain also had the largest loss. (Select the portfolio in which you are the most comfortable having your investments.)

8. The following table presents the probable chance of loss and probable gain for a $100,000 investment in five hypothetical portfolios over a one-year holding period. Based on the information shown below, which of the following portfolios would you select for your investments?

Chance of Loss -10% -15% -19% -22% -25%
Probable Gain +7,500 +9,500 +11,500 +13,000 +15,000

9. Which of the following statements is most consistent with your investment attitudes?

Please complete the following brief survey so that we may diagnose your current investment decision-making style.

I depend on advice from experts when making investment decisions
I prefer not to make investment decisions on my own, without getting advice
I prefer not to implement investment decisions myself.
I prefer to have someone else implement my investment decisions
I trust someone else to manage my finances