Aim of Portfolio:
|Aim||Benchmark||Time frame||Risk / volatility||Exclusions||Capital at risk|
|Moderately Adventurous Portfolio||To deliver a return of between 6% and 8% gross over the long term. In a normalised environment, this should be above the higher rate of cash or inflation.||A basket of strategies that track an index (for example, the FTSE 100).||10-years plus||This is best suited for investors wanting greater exposure to UK and international assets but still requiring some exposure to defensive assets. The current weighting UK and international assets is 76.00%||Will not hold investment trusts.||Yes|
The Portfolio was launched on 1 January 2018. The chart shows the total return up to 30 September 2023.
|Total Return Since Launch||Annualised Return Since Launch|
|Bespoke Moderately Adventurous Portfolio||10.90%||1.82% p.a.|
|LWM Benchmark||19.54%||3.15% p.a.|
|Bespoke Moderately Adventurous Portfolio||19.63%||14.81%||8.67%||-18.41%||-2.10%||1.82% p.a.|
|LWM Benchmark||16.95%||8.43%||11.96%||-12.02%||2.67%||3.15% p.a.|
|1 Year to 30/06/19||1 Year to 30/06/20||1 Year to 30/06/21||1 Year to 30/06/22||1 Year to 30/06/23|
|Bespoke Moderately Adventurous Portfolio||1.00%||5.99%||19.85%||-18.87%||0.03%|
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 within the Portfolio (as at 1 July 2023):
What is the difference between the aim of the strategy and benchmark?
The target or aim is to deliver returns of 6% to 8% p.a. over ten years. This includes the fund charges but not our fees and platform charges.
How do we test these figures?
We follow the BlackRock Capital Market Assumptions https://www.blackrock.com/institutions/en-zz/insights/charts/capital-market-assumptions
These outline the long-term asset return expectations.
Would we review the expectations?
If the market expectations for returns were reduced, we would reduce our long-term return profile. We review this quarterly, and although the long-term expectations have come down, they are still within the 6% to 8% target.
Do we guarantee a return of 6% to 8% p.a. over a ten-year period?
This is our stated aim. We do not guarantee this.
Why do we have a benchmark?
The benchmark is a measure of performance vs a basket of passive funds. Passive funds follow a particular index. We aim to deliver a return of between 6% and 8% p.a. over ten years. In doing that over the same period, we should also outperform this basket.
In the short term, there will be periods where passive funds outperform, particularly in periods of extreme market volatility.
How do we measure performance?
We have several touchpoints when monitoring performance:
- We monitor performance monthly.
- We have an internal monthly investment risk matrix. Within this, we monitor the target return and compare the performance to a range of discretionary managed portfolios.
- We update the website quarterly with performance data and provide updates.
- From September to February, we conduct a comprehensive review of the portfolios and rebalance on 1 July each year (subject to your approval).
The primary focus of this work is to understand periods of underperformance and adjust where we see appropriate.
For example, we increased exposure to fixed income (debt) in 2023 to reflect higher interest rates and a more conducive environment for these investments.
At a minimum, we review all the funds within the portfolios once a year. We write up the notes from these reviews which are available on the website.
Although we consider more extended-term performance, we also look at short-term performance to understand the reasons for any underperformance or sudden spike. We may change the strategy where we feel that there is a long-term shift in the environment, where we think the investment will no longer be appropriate, if there are better opportunities, or where there has been a significant change to the operation of the strategy.
For example, with higher interest rates, the availability of cash will naturally be limited, meaning companies needing money to develop will find it harder. Therefore, we have increased our exposure to “quality” and reduced our exposure to strategies that carry higher risk with more innovative and cash-poor companies.
The performance data includes the fund charges but not the platform and LWM fees. Fees are fully disclosed. Below are the fund fees as of 30 September 2023 provided by Trustnet.
|Moderately Adventurous Portfolio||0.89%|
|Bespoke Moderately Adventurous Portfolio||0.89%|
|Cautious Positive Impact Portfolio||0.94%|
|Balanced Positive Impact Portfolio||0.91%|
|Adventurous Positive Impact Portfolio||0.91%|
|Positive Impact Income Portfolio||1.06%|
We review our charges within the Consumer Duty Fair Value Assessment. We also disclose under transparency on the website.
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.
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.