Portfolio Risk Information

At LWM we create bespoke portfolios for clients. The portfolios invest in UK investment funds and investment trusts (our team may consider other investments vehicles, for example ETFs, if appropriate).

We have a team in place that tracks performance, engages in deep analysis of a fund to really understand the manager / team’s process and then constructs portfolios to match risk profiles from defensive through to adventurous.

Portfolios are rebalanced annually but monitored on an on-going basis.

This section of the website provides a brief definition of each portfolio highlights key aspects and outlines the variability of annual returns over a ten year period. This information is based on the current holdings of the portfolios as at July 2015, and does not reflect the previous holdings.

LWM Ethical

The portfolio will look to invest in a basket of OEICS (open ended investment companies) and investment trusts to achieve above inflation returns over the medium to long term.

The investments will be screened from the available UK Ethical Funds and Investment Trusts (currently approximately 80 available investments). The portfolio will look to avoid investments which are ‘sustainable’ but don’t have an ethical screening.

Key points

  • The portfolio is positioned as a long term investment (5 plus years); this means we are aiming to achieve a positive outcome over the investment period. Investors should be aware that there will be movements in value (both positive and negative) during this time frame
  • We aim to spread the risk of the portfolio by providing a diversified spread of investments across sectors and geographical regions, there will be holdings in both emerging and developed markets
  • The portfolio is positioned to be balanced, which reflects a desire for higher returns but still providing a balance between risk and reward. This means it holds a higher content of equities compared to the cautious and defensive portfolios, but less than the adventurous portfolios. Currently the equity holding is just over 74% with the balance in assets such as fixed interest investments, absolute return funds and property. We believe this is the best way to provide potential upside growth as well as providing a balance between risk and reward
  • If investors are looking for a cash investment then unlike a high street deposit account there is potential for capital loss and there is no guarantee that the original investment will be returned, in summary this portfolio is not aimed at cash investors
  • Although we aim to provide a positive outcome, past performance is no guide to future performance and investments can fall as well as rise

Annual returns

The chart below shows the variability of annual returns. This is based on the performance of the underlying holdings between July 2007 and June 2017. This is purely to provide an indication of what the portfolio would have done during this period. You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.

Over the period the portfolio would have returned 7.07% p.a. During the investment time frame the portfolio had 29 positive periods, and only 11 negative periods.

Please read the important notes at the bottom of the page.

LWM Defensive Growth

Summary

The portfolio looks to deliver above inflation returns (through capital growth) whilst taking a level of risk consistent with a defensive risk attitude through a combination of fixed interest, equity and property investments.

Key points

  • The portfolio is positioned as a long term investment (5 plus years); this means we are aiming to achieve a positive outcome over the investment period. Investors should be aware that there will be movements in value (both positive and negative) during this time frame
  • We aim to spread the risk of the portfolio by providing a diversified spread of investments across sectors and geographical regions, there will be holdings in both emerging and developed markets
  • The portfolio is positioned to be defensive compared to our other portfolios and currently holds approximately 57% in equities with the balance in assets such as fixed interest investments, absolute return funds and property. We believe this is the best way to provide potential upside growth as well as protection against downside fluctuations
  • If investors are looking for a cash investment then unlike a high street deposit account there is potential for capital loss and there is no guarantee that the original investment will be returned, in summary this portfolio is not aimed at cash investors
  • Although we aim to provide a positive outcome, past performance is no guide to future performance and investments can fall as well as rise

Annual returns

The chart below shows the variability of annual returns. This is based on the performance of the underlying holdings between July 2007 and June 2017. This is purely to provide an indication of what the portfolio would have done during this period. You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.

Over the period the portfolio would have returned 7.05% p.a. During the investment time frame the portfolio had 26 positive periods, and only 14 negative periods.

Please read the important notes at the bottom of the page.

LWM Cautious Risk 4

The portfolio looks to deliver above inflation returns whilst taking a level of risk consistent with a cautious risk attitude through a combination of fixed interest, equity and property investments. This portfolio has a slightly lower weighting to equities compared to Cautious Risk 5 Portfolio with an income bias.

The Cautious Risk 4 Portfolio was previously called the Cautious Income Portfolio.

Key point

  • The portfolio is positioned as a long term investment (5 plus years); this means we are aiming to achieve a positive outcome over the investment period. Investors should be aware that there will be movements in value (both positive and negative) during this time frame
  • We aim to spread the risk of the portfolio by providing a diversified spread of investments across sectors and geographical regions, there will be holdings in both emerging and developed markets
  • The portfolio is positioned to be cautious compared to our other portfolios and currently holds approximately 55% in equities with the balance in assets such as fixed interest investments, absolute return funds and property. We believe this is the best way to provide potential upside growth as well as protection against downside fluctuations
  • This portfolio has a slightly lower weighting to equities compared to Cautious Risk 5 Portfolio with an income bias. Income is normally provided through encashment of units rather than yields provided by the underlying funds
  • If investors are looking for a cash investment then unlike a high street deposit account there is potential for capital loss and there is no guarantee that the original investment will be returned, in summary this portfolio is not aimed at cash investors
  • Although we aim to provide a positive outcome, past performance is no guide to future performance and investments can fall as well as rise

Annual return

The chart below shows the variability of annual returns. This is based on the performance of the underlying holdings between July 2007 and June 2017. This is purely to provide an indication of what the portfolio would have done during this period. You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.

Over the period the portfolio would have returned 8.62% p.a. During the investment time frame the portfolio had 29 positive periods, and only 11 negative periods.

Please read the important notes at the bottom of the page.

LWM Cautious Risk 5

The portfolio looks to deliver above inflation returns whilst taking a level of risk consistent with a cautious risk attitude through a combination of fixed interest, equity and property investments. This portfolio has a slightly higher weighting to equities compared to Cautious Risk 4 Portfolio with a growth bias.

The Cautious Risk 5 Portfolio was previously called the Cautious Growth Portfolio.

Key points

  • The portfolio is positioned as a long term investment (5 plus years); this means we are aiming to achieve a positive outcome over the investment period. Investors should be aware that there will be movements in value (both positive and negative) during this time frame
  • We aim to spread the risk of the portfolio by providing a diversified spread of investments across sectors and geographical regions, there will be holdings in both emerging and developed markets
  • The portfolio is positioned to be cautious compared to our other portfolios and currently holds approximately 64% in equities with the balance in assets such as fixed interest investments, absolute return funds and property. We believe this is the best way to provide potential upside growth as well as protection against downside fluctuations
  • This portfolio has a slightly higher weighting to equities compared to Cautious Risk 4 Portfolio with a growth bias
  • If investors are looking for a cash investment then unlike a high street deposit account there is potential for capital loss and there is no guarantee that the original investment will be returned, in summary this portfolio is not aimed at cash investors
  • Although we aim to provide a positive outcome, past performance is no guide to future performance and investments can fall as well as rise

Annual returns

The chart below shows the variability of annual returns. This is based on the performance of the underlying holdings between July 2007 and June 2017. This is purely to provide an indication of what the portfolio would have done during this period. You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.

Over the period the portfolio would have returned 8.69% p.a. During the investment time frame the portfolio had 29 positive periods, and only 11 negative periods.

Please read the important notes at the bottom of the page.

LWM Balanced Growth

The portfolio looks to deliver above inflation return whilst taking a level of risk consistent with a balanced risk attitude through a combination of fixed interest, equity and property investments.

Key points

  • The portfolio is positioned as a long term investment (5 plus years); this means we are aiming to achieve a positive outcome over the investment period. Investors should be aware that there will be movements in value (both positive and negative) during this time frame
  • We aim to spread the risk of the portfolio by providing a diversified spread of investments across sectors and geographical regions, there will be holdings in both emerging and developed markets
  • The portfolio is positioned to be balanced, which reflects a desire for higher returns but still providing a balance between risk and reward. This means it holds a higher content of equities compared to the cautious and defensive portfolios, but less than the adventurous portfolios. Currently the equity holding is just over 79% with the balance in assets such as fixed interest investments, absolute return funds and property. We believe this is the best way to provide potential upside growth as well as providing a balance between risk and reward
  • If investors are looking for a cash investment then unlike a high street deposit account there is potential for capital loss and there is no guarantee that the original investment will be returned, in summary this portfolio is not aimed at cash investors
  • Although we aim to provide a positive outcome, past performance is no guide to future performance and investments can fall as well as rise

Annual returns

The chart below shows the variability of annual returns. This is based on the performance of the underlying holdings between July 2007 and June 2017. This is purely to provide an indication of what the portfolio would have done during this period. You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.

Over the period the portfolio would have returned 8.97% p.a. During the investment time frame the portfolio had 28 positive periods, and only 12 negative periods.

Please read the important notes at the bottom of the page.

LWM Moderately Adventurous Growth

The portfolio looks to deliver above inflation return whilst taking a level of risk consistent with a moderately adventurous growth risk attitude through a combination of fixed interest, equity and property investments, but with a higher weighting to equities.

Key points

  • The portfolio is positioned as a long term investment (5 plus years); this means we are aiming to achieve a positive outcome over the investment period. Investors should be aware that there will be movements in value (both positive and negative) during this time frame
  • We aim to spread the risk of the portfolio by providing a diversified spread of investments across sectors and geographical regions, there will be holdings in both emerging and developed markets
  • The portfolio is positioned to be moderately adventurous, which reflects a desire for higher returns and at the same time an acceptance of higher levels of risk. This means there is a high level of equity exposure compared to the defensive, cautious and balanced portfolios. Currently the equity holding is just over 86% with the balance in assets such as fixed interest investments, absolute return funds and property. We believe this is the best way to provide potential upside growth with a higher level of risk, however there is less protection against downside risk
  • If investors are looking for a cash investment then unlike a high street deposit account there is potential for capital loss and there is no guarantee that the original investment will be returned, in summary this portfolio is not aimed at cash investors
  • Although we aim to provide a positive outcome, past performance is no guide to future performance and investments can fall as well as rise

Annual returns

The chart below shows the variability of annual returns. This is based on the performance of the underlying holdings between July 2007 and June 2017. This is purely to provide an indication of what the portfolio would have done during this period. You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.

Over the period the portfolio would have returned 10.09% p.a. During the investment time frame the portfolio had 26 positive periods, and only 14 negative periods.

Please read the important notes at the bottom of the page.

LWM Adventurous Growth

The portfolio looks to deliver above inflation return whilst taking a level of risk consistent with an adventurous growth risk attitude through a combination of fixed interest, equity and property investments, but with a higher weighting to equities.

Key points

  • The portfolio is positioned as a long term investment (5 plus years); this means we are aiming to achieve a positive outcome over the investment period. Investors should be aware that there will be movements in value (both positive and negative) during this time frame
  • We aim to spread the risk of the portfolio by providing a diversified spread of investments across sectors and geographical regions, there will be holdings in both emerging and developed markets
  • The portfolio is positioned to be adventurous, which reflects a desire for higher returns and at the same time an acceptance of much higher levels of risk. This means there is a high level of equity exposure compared to all the other portfolios we offer. Currently the equity holding is just over 92%. We believe this is the best way to provide potential upside growth with a much higher level of risk, however there is less protection against downside risk
  • If investors are looking for a cash investment then unlike a high street deposit account there is potential for capital loss and there is no guarantee that the original investment will be returned, in summary this portfolio is not aimed at cash investors
  • Although we aim to provide a positive outcome, past performance is no guide to future performance and investments can fall as well as rise

Annual returns

The chart below shows the variability of annual returns. This is based on the performance of the underlying holdings between July 2007 and June 2017. This is purely to provide an indication of what the portfolio would have done during this period. You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as well as rise. The total return reflects performance without sales charges or the effects of taxation, but is adjusted to reflect all on-going fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced.

Over the period the portfolio would have returned 10.73% p.a. During the investment time frame the portfolio had 27 positive periods, and only 13 negative periods.

Please read the important notes at the bottom of the page.

Important notes – performance

The performance of the portfolios are based on the current holdings, and show how they would have performed over the last 10 years. Data for performance is sourced from Morningstar.

The performance figures take into account all fund / asset charges but do not reflect any additional charges, for example the cost of the investment plan and fees paid to LWM. These expenses may reduce the actual figures shown.

You should note that past performance is not a reliable indicator of future returns and the value of your investments can fall as fall as well as rise. LWM only invests in UK based investments although some funds / assets may have overseas holdings, the performance of funds / assets where some holdings are denominated in foreign currencies will also be subject to variations in currency rates.