Aim of Portfolio:

 AimBenchmarkTime frameRisk / volatilityExclusionsCapital at risk
Cautious PortfolioTo deliver a return of between 6% and 8% gross over the long-term. This should, in a normalised environment, be above the higher rate of cash or inflation.  Basket of strategies that track an index (for example, the FTSE 100)10-years plusThis is our lowest risk strategy.   This is best suited to more risk-averse investors. It has a higher weighting to defensive assets such as fixed income (bonds), and real assets (infrastructure and property) and a lower exposure to traditional UK and international growth assets.  No specific exclusions.Yes

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Portfolio Review:

Quarterly Portfolio UpdateJuly 2023
Quarterly Market Update July 2023
FE Analytics Overview July 2023
Quarterly Portfolio Update April 2023
Quarterly Market UpdateApril 2023
FE Analytics Overview April 2023
Quarterly Portfolio UpdateJanuary 2023
Quarterly Market UpdateJanuary 2023
Morningstar Quarter 4 2022 Portfolio Overview January 2023
Quarterly Portfolio UpdateOctober 2022
Quarterly Market UpdateOctober 2022
Morningstar Quarter 3 2022 Portfolio OverviewOctober 2022


The Portfolio was launched on 1 January 2009. The chart shows the total return up to 30 June 2023.

 10-year Annualised ReturnTotal Return Since LaunchAnnualised Return Since Launch
Cautious Portfolio5.11% p.a.191.67%7.66% p.a.
LWM Benchmark3.82% p.a.108.72%5.21% p.a.
 20192020202120222023Since Launch
Cautious Portfolio16.75%8.25%10.35%-12.65%0.14%7.66% p.a.
LWM Benchmark12.18%6.53%5.91%-12.30%2.26%5.21% p.a.
 1 Year to 30/06/191 Year to 30/06/201 Year to 30/06/211 Year to 30/06/221 Year to 30/06/23
Cautious Portfolio4.27%0.11%21.15%-9.79%0.23%
LWM Benchmark4.09%2.63%11.86%-9.73%0.52%


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):

Read portfolio review 2023 summary.

Fund NamePercentage Holding
JPM Global Opportunities Bond Fund9.00%KIID
Premier Miton Strategic Monthly Income Bond Fund9.00%KIID
PIMCO GIS Income Fund9.00%KIID
Schroder Global Cities Real Estate Fund6.75%KIID
FP Foresight Global Real Infrastructure Fund6.75%KIID
AHFM Defined Returns Fund6.75%KIID
Rathbone Enhanced Growth Portfolio Fund6.75%KIID
Equity Exposure46.00%
Slater Growth Fund4.00%KIID
VT Castlebay UK Equity Fund4.00%KIID
AXA Framlington American Growth Fund4.00%KIID
L&G US Index Fund4.00%KIID
GS Japan Equity Partners Fund2.00%KIID
Scottish Mortgage Investment Trust PLC4.00%Documents
Morgan Stanley UK Global Brands Fund4.50%KIID
Heriot Global Fund4.50%KIID
Premier Miton European Opportunities Fund3.00%KIID
Abrdn Europe ex UK Equity Fund3.00%KIID
Matthews Asia ex Japan Total Return Fund4.00%KIID
Emerging Markets
FP Carmignac Emerging Markets Fund5.00%KIID

Important notes

What is the difference between the aim of the strategies 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

These outline the long-term asset return expectations. The current return expectations for the portfolios are:

Cautious Portfolio6.52% p.a.
Balanced Portfolio6.78% p.a.
Moderately Adventurous Portfolio7.11% p.a.
Adventurous Portfolio7.34% p.a.

Would we review the expectations?

Yes, if the market expectations for returns reduced then 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. The challenging market environment since 31 December 2021 has meant that we have missed the 6% target for the Cautious Portfolio. The table below only shows the portfolios with a ten-year track record.

 10-years (p.a.)Since launch (p.a.)
Cautious Portfolio5.22%7.60%
Balanced Portfolio6.10%8.35%
Moderately Adventurous Portfolio6.42%8.67%
Adventurous Portfolio6.62%8.85%

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. Our fundamental aim is to deliver a return of between 6% and 8% p.a. over a ten-year period. 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.

The table below shows performance vs the benchmarks over a 5-year period, 10-year period and since launch.

 5-years (p.a.)10-years (p.a.)Since Launch (p.a.)
Cautious Portfolio2.61%5.22%7.60%
Balanced Portfolio1.63%6.10%8.35%
Moderately Adventurous Portfolio1.51%6.42%8.67%
Adventurous Portfolio1.16%6.62%8.85%

How do we measure performance?

Portfolio Level

We have several touchpoints when monitoring performance:

  1. We monitor performance monthly.
  2. 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.
  3. On a quarterly basis we update the website with performance data and provide updates.
  4. From September to February, we carry out 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.

As an example, we increased exposure to fixed income (debt) in 2023 to reflect higher interest rates, and a more conducive environment for these types of investments.

Fund Level

As a minimum we look to review all the funds within the portfolios once a year. We write up the notes from these reviews and these are available on the website.

Although we consider longer term performance, we also look at short term performance to understand the reasons for any underperformance or sudden spike in performance. We may change the strategy where we feel that there is a long-term shift in the environment, where we feel 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.

As an example, with higher interest rates the availability of cash will naturally be limited meaning companies needing cash to develop will find it harder. We have therefore increased our exposure to “quality” and reduced our exposure to strategies which 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 31 August provided by Trustnet.

 Fund fees
Cautious Portfolio0.74%
Balanced Portfolio0.80%
Moderately Adventurous Portfolio0.89%
Adventurous Portfolio0.90%
Cautious Positive Impact Portfolio0.94%
Balanced Positive Impact Portfolio0.91%
Adventurous Positive Impact Portfolio0.91%
Income Portfolio0.99%
Positive Impact Income Portfolio1.06%

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.