Translating Asset Allocation Into Risk Allocations

The RiskGrade Suitability Scale aligns concrete, numerical data with subjective investment terminology - such as short-term, conservative, balanced, growth, aggressive and speculative - to paint a clearer picture of risk exposure.

Financial professionals can use the Risk Suitability Scale to:

• Establish precisely the appropriate level of risk for an account at initiation
• Manage the portfolio to be consistent with chosen risk level/investment strategy
• Articulate in relative terms equivalent risk (Investor portfolio vs. S&P500, Nasdaq, FTSE)

Speculative Plan RiskGrade 125>	Aggressive Plan RiskGrade 100 Stocks 100% Bonds 0% Cash 0%	Growth Plan RiskGrade 75 Stocks 80% Bonds 20% Cash 0%
Balanced Plan RiskGrade 50 Stocks 60% Bonds 35% Cash 5%	Conservative Plan RiskGrade 25 Stocks 20% Bonds 70% Cash 10%	Short Term Plan RiskGrade 5 Stocks 0% Bonds 0% Cash 100%

None of the information herein constitutes a recommendation or a solicitation by RiskMetrics Group, Inc. that any particular investor should purchase or sell any particular security in any amount, or at all. The information is not intended to provide tax, legal or investment advice.