LWM Balanced Growth

Aim of fund:

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.

Portfolio Review:

Quarterly Portfolio UpdateApril 2017
Quarterly Market UpdateApril 2017
Morningstar Quarter 1 2017 Portfolio OverviewApril 2017
Quarterly Portfolio UpdateJanuary 2017
Quarterly Market UpdateJanuary 2017
Morningstar Quarter 4 2016 Portfolio OverviewJanuary 2017
Quarterly Portfolio UpdateOctober 2016
Quarterly Market UpdateOctober 2016
Morningstar Quarter 3 2016 Portfolio OverviewOctober 2016
Quarterly Portfolio UpdateJuly 2016
Quarterly Market UpdateJuly 2016
Morningstar Quarter 2 2016 Portfolio OverviewJuly 2016

Risk and benchmark performance of fund:

We understand a balanced investor is looking for a balance of risk and reward, and therefore that this brings with it a higher level of risk and that the value of their investment may fluctuate in the short term. However, with that level of risk they would be unhappy if the overall value of their investments were to fall significantly over a short period and would not be happy to see capital eroded. The portfolio we have constructed reflects this and has a medium to high risk score of 6 out of 10.

Risk score (maximum 10)Upper returnAverage returnLower return
LWM Balanced Growth Portfolio631.40%6.69%-18.03%

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

Performance:

The Portfolio was launched on the 1 January 2009 and the total return up to 31 March 2017 is 160.00% (12.29% p.a.) against a benchmark return of 82.43% (7.56% p.a.). A detailed breakdown of the performance is shown below.

Standardised Performance


1 Yr to 31/03/131 Yr to 31/03/141 Yr to 31/03/151 Yr to 31/03/161 Yr to 31/03/17
Balanced15.05%5.16%13.24%-1.63%20.92%
Benchmark12.05%0.27%7.22%-2.51%19.10%

12 Months Total Return (bid to bid) Source: Morningstar, net income reinvested.
 201220132014201520162017
Balanced14.36%13.89%6.71%6.24%13.76%5.59%
Benchmark9.49%7.09%2.23%0.45%18.69%5.54%

Performance from 31 December 2008 to 31 March 2017. Source: Morningstar, on an bid to bid basis with net income reinvested.

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.

Split by funds:

Fund Name
Percentage Holding
Fixed Interest / Absolute Return26%
Invesco Perpetual Global Targeted Returns Fund3%FactsheetKIID
Standard Life Global Absolute Return Strategies Fund10%FactsheetKIID
Jupiter Absolute Return Fund5%
Factsheet
KIID
Threadneedle Dynamic Real Return Fund5%
Factsheet
KIID
Threadneedle Emerging Market Bond Fund3%
Factsheet
KIID
Property10%
First State Global Property Securities Fund5%FactsheetKIID
TR Property Investment Trust5%FactsheetDocuments
UK Equities
15%
Standard Life UK Smaller Companies Trust4%FactsheetDocuments
AXA Framlington UK Smaller Companies Fund4%FactsheetKIID
BlackRock UK Income Fund3%FactsheetKIID
Standard Life UK Equity Income Unconstrained Fund4%FactsheetKIID
US Equities
10%
AXA Framlington American Fund3%
FactsheetKIID
Artemis US Smaller Companies Fund3%
FactsheetKIID
L&G US Index Trust4%FactsheetKIID
European Equities
10%
Threadneedle European Smaller Companies Fund2%FactsheetKIID
Schroder European Alpha Income Fund3%FactsheetKIID
Artemis European Opportunities Fund3%FactsheetKIID
BlackRock Emerging Europe plc2%FactsheetKIID
Japanese Equities
5%
Neptune Japan Opportunities Fund2.5%FactsheetKIID
JPMorgan Investment Trust2.5%FactsheetDocuments
Far East (ex Japan) Equities
6%
Liontrust Asia Income Fund3%FactsheetKIID
Hermes Asia Ex Japan Equity Fund
3%FactsheetKIID
Emerging Markets Equities
6%
BlackRock Frontiers Investment Trust2%FactsheetDocuments
Templeton Emerging Markets Investment Trust2%FactsheetDocuments
Hermes Global Emerging Markets Fund2%FactsheetKIID
Global Equities
12%
Scottish Mortgage Investment Trust PLC5%FactsheetDocuments
Schroder ISF Global Recovery Fund3%FactsheetKIID
Standard Life Global Smaller Companies Fund4%FactsheetKIID

Important notes

 

Risk

The risk score is to provide a guide; risk is set between 0 and 10. The higher the number the higher the risk, so far example ten is the highest level of risk and zero is minimal i.e. cash. The upper return is the expected upper maximum return for the given level of risk. The average of all returns is the possible returns within a risk level over one year. The lower level return is the lowest expected level of return. These are not guaranteed but provide a benchmark to measure performance of the portfolio.

The Balanced Growth Portfolio has been given a rating of 6 out of 10 and aims to achieve annual average returns of around 5.96%, with a downside risk of -21.20% and upside growth potential of 30.79%. Although these returns are not guaranteed the investment committee will look to select assets which work within these boundaries.

Performance

The performance for the portfolio is based on the previous holdings for the portfolio. Data for performance is sourced from Morningstar. These figures are provided to give an indication of the performance of the portfolio. 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.

As an example of how this will impact on the performance, assuming the total gross cost of the portfolio is 0.66% p.a. (this is reflected in the performance figures shown), then after rebates and reflecting any fees payable to LWM Consultants the actual cost of this portfolio could be 2.06% p.a. (on a fund of £100,000 this would be £2,060 p.a.) This means that the drag on performance is around 1.40% p.a. (on a fund of £100,000 this would be £1,400 p.a.) So in 2016 the return was 13.76%, the net return after rebates and fees would have been 12.36%. This is an indication of costs as the assets and costs will move. The cost of accessing the funds may be higher via other routes and will include additional fees, the estimate is based on the highest charge via a SIPP and for other investments the charge will be lower. Charges may also reduce depending on the size of the assets held.

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. 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.

Factsheets

These factsheets are provided by third parties for information. LWM is not responsible for these factsheets, has not reviewed them, and accepts no liability in connection with your use of them or any of their content. These factsheets display the fund manager’s standard retail charges and please note that product charges and fees may replace the charges displayed.