WEALTH MANAGEMENT ASSESSMENT

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WEALTH MANAGEMENT ASSESSMENT Helping you realize
your financial aspirations
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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.
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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.
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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?
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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

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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

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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

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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

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Historical Asset Allocation Returns

• There is an element of risk to any investment and
  it is vital to 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
Annualized Returns
22.8
20
8.9
Average Annual Total Return
10.0
11.0
11.3
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 1
Portfolio 4
Portfolio 5
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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
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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
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Next Steps
Congratulations on completing the Needs
Assessment step of ESBs 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.
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A Wealth of Experience
Realize Your Aspirations
This document is to be used as an information
gathering tool to assess and better qualify a
clients 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