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WEALTH MANAGEMENT ASSESSMENT Helping you realize your financial aspirations

WEALTH MANAGEMENT ASSESSMENT Helping you realize your financial aspirations. The ESB Approach to Wealth Management. At ESB we recognize that each investor has unique financial aspirations.

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WEALTH MANAGEMENT ASSESSMENT Helping you realize your financial aspirations

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  1. WEALTH MANAGEMENTASSESSMENT Helping you realize your financialaspirations

  2. The ESB Approach to Wealth Management At ESB we recognize that each investor has unique financial aspirations. For us, the key to developing an investment strategy lies with truly understanding your financial needs,; only then can we craft appropriate solutions. To help us do this, we utilize a three step process: Step 1 Conduct an in-depth needs assessment to determine your risk appetite, current and desired financial position. Step 2 Design a tailor-made investment portfolio addressing your needs and risk parameters. Step 3 Conduct periodic portfolio reviews to ensure that your investment objectives are being met. It all starts with you, so let us walk you through the first step of our process – assessing your financial needs.

  3. Assessing Your Financial Needs Understanding your financial requirements may sound complicated but in reality it is simply about uncovering your investment objectives and your risk tolerance. AT ESB, we help you do this by reviewing your investment history and determining your desired investment horizon. We also help you quantify the risk level you are currently taking or may want to take in the future and the corresponding potential rewards. By combining your investment goals with your sensitivity to risk and time horizon, we can create an Investment Profile that will guide the formation of your financial portfolio. You can have peace of mind that ESB is considering all relevant information into the design of your investment portfolio.

  4. Building Your Investment Profile Investment History How long have you been actively investing? Do you currently hold, or have you ever considered investing in emerging markets, mutual funds or alternative investments? What does your current investment portfolio look like? Are you happy with the performance of your current portfolio? Are you comfortable with the risks associated with your current portfolio?

  5. Time Horizon When do you expect to start drawing income from your portfolio? • Not for at least 20 years • In 10 to 20 years • In 5 to 10 years • Not now, but within 5 years • Immediately

  6. Long Term Goals and Expectations You expect your portfolio: • To grow aggressively • To grow significantly • To grow moderately • To grow with caution • To avoid losing money

  7. Long Term Goals and Expectations Assuming normal market conditions, you expect the performance of your portfolio over time to: • Generally keep pace with the stock markets • To slightly trail the stock market, but make a good profit • To trail the stock market but make modest profits • To have a high degree of stability, but make small profits Suppose the stock market performs unusually poorly over the next decade. What would you expect from your portfolio? • To lose money • To make very little or nothing • To make a small gain • To make a modest gain • To be little affected by the stock market

  8. Short Term Goals and Attitudes Which of the following statements best describes your attitudes about the next three years’ performance of your portfolio? • I would not tolerate losing money • I would tolerate a loss • I would tolerate a small loss • I would have a hard tolerating any losses • I would need to have at least some returns Which of the following statements best describes your attitudes about the next three months’ performance of your portfolio? • I would not care, one calendar quarter means nothing • I would not worry about losses in that time frame • I would be concerned about a loss of more than 10% • I would only tolerate short term losses • I would have a hard time accepting any losses

  9. Historical Asset Allocation Returns There is an element of risk to any investment and it is vitalto understand the level of risk you are prepared to tolerate. Which of the following portfolios would you feel most comfortable investing in? 50% Highest Return 40.1% 40% 34.5% 30.9% 27.0% 30% 22.8% Annualized Returns 20% Average Annual Total Return 8.9% 11.3% 10.0% 11.0% 10.7% 10% 0% 0.1% - 10% - 6.7% - 13.1% - 20% - 19.4% Lowest Return - 24.1% - 30% - 40% Portfolio 2 Portfolio 3 Portfolio 4 Portfolio 1 Portfolio 5

  10. What Type of Investor Are You? Our experience tells us your true risk appetite is a mix of your self-perception as an investor and our understanding derived from your views on risk and your investment history. What type of investor do you think you are? Moderately Conservative Moderately Aggressive Moderate Aggressive Conservative L H Conservative

  11. Cash 5% Cash 45% Cash 15% Cash 5% Cash 35% Fixed Income 30% Fixed Income 0% Fixed Income 35% Fixed Income 15% Fixed Income 20% Equities 20% Equities 10% Equities 50% Equities 90% Equities 70% Alternatives 15% Alternatives 10% Alternatives 10% Alternatives 15% Alternatives 5% Moving from Needs Assessment (Step 1) to Portfolio Development(Step 2) ESB has developed a range of model portfolios to suit the needs of investors across the risk spectrum. Based on the information we have compiled today, we will seek to match you with the portfolio which best fits your Investment Profile. SAMPLE PORTFOLIOS Moderately Conservative Moderately Aggressive Conservative Moderate Aggressive L H R I S K S P E C T R U M

  12. Next Steps Congratulations on completing the Needs Assessment step of ESB’s Approach to Wealth Management Strategy. What to expect: Our next meeting - Step 2 A tailor-made investment proposal addressing your needs within your risk parameters. On a semi-annual basis - Step 3 Ongoing periodic portfolio reviews to ensure that your investment objectives are maintained.

  13. A Wealth of Experience Realize Your Aspirations This document is to be used as an information gathering tool to assess and better qualify a client’s investment profile. The information provided by the client is confidential and shall be used in adherence with Espirito Santo Bank and E.S. Financial Services, Inc. Privacy policy. Source of information: Espirito Santo Financial Services with data provided by Bloomberg International. The maximum, minimum, and average annual return figures for 1994 to 2005 represent five hypothetical asset allocation plans. The asset allocation plans are weighted averages of the performance of the indices used to represent each asset class in the plans and are rebalanced annually. The client should consult with their Relationship Manager for a Risk and Needs Analysis. Past results are not indicative of future performance. 02/06 Brokerage Products: Not FDIC Insured – No Bank Guarantee – May Lose Value

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