ANCHOR CAPITAL ADVISORS

THE FINANCIAL ADVISORY PROCESS

Knowing our customer and her financial needs and personal goals is a must to rightly establish investment targets in accordance with risk tolerance, time horizon and available assets of our client.

Client

Investment Advice implies that the advisor must obtain the necessary information about his clients:

· Needs.
· Distribution of Assets.
· Knowledge and Experience.
· Financial Situation.

Planification

Essential aspects for efficient management of patrimony:

· Survey of needs.
· Financial planning.
· Tax Planning.
· Assessment of client risk profile.
· Investment Strategy.

Control

Identification of opportunities and risks:

· Performance monitoring.
· Risk control.
· Portfolio Rebalancing.
· Tactical fine tuning.
· Strategical review.

Value proposal

We advise our clients in a completely independent way, with strict professional criteria and free from any conflict of interest, since we do not belong to any banking group or financial institution, nor do we receive economic incentive of any kind. The fees from our customers are our only source of income, which allows us to guarantee a total and continuous alignment with their interests.

Our value proposition rests on the pillars of integrity, professionalism, commitment, availability and confidentiality, guaranteeing through the continuous updating of the knowledge the financial advice in the field of investment to its highest degree of excellence.

EXPERIENCE AND CLOSENESS

Obtaining the confidence of the investor is essential to develop a good financial advice.

How to get the investor's confidence if he does not know us?

We only see one way to move forward in building trust:

• Our fees are aligned with the result obtained by our advice.

• Our independent analysis capabilities of financial markets are exclusively at the service of our clients.

KINDS OF

CLIENT RISK PROFILE

Anchor must evaluate suitability in order to act in best interest of our clients. This process consists of information collection about client’s investment goals, situation, experience and knowledge, and subsequent evaluation of suitability of a particular asset class or financial product with respect to the client and her particular targets.

The risk profile shows investor’s ability to take losses. As to achieve higher returns in the long run you may take on more risk, we use risk aversion measuring to assign an according risk profile to monitor risk control and avoid unbearable loss.

Graphical examples in percentages to imply the risk tolerance of each profile.

%

Conservative

%

Moderate

%

Risky

%

Very risky

VOLATILITY AND INVESTOR PROFILE

Volatility < 5%

Max. Loss > -2,5%

Value at Risk < 2,5%

Volatility < 8%

Max. Loss > -5%

Value at Risk < 5%

Volatility < 15%

Max. Loss > -10%

Value at Risk < 10%

Volatility > 15%

Max. Loss < -10%

Value at Risk > 10%

HOW WE DETERMINE

A CLIENT'S RISK PROFILE?

MIFID Test

01.Financial Knowledge

Customer financial experience.

02.Fiscal-Financial Situation

Assets.
Liabilities.

03.Investment Objective

Preserve.
Increase.

04.TIME FRAME

Life cycle.
Needs of disposal.