LWM Cautious Risk 5

Aim of fund:

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.

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 cautious investor recognises that investment values will change but that they would feel very uncomfortable if investments rose and fell in value very rapidly. The portfolio we have constructed reflects this and has a low to medium risk score of 5 out of 10.

Risk score (maximum 10)Upper returnAverage returnLower return
LWM Cautious Risk 5 Portfolio526.19%5.40%-15.38%

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


The Portfolio was launched on the 1 January 2009 and the total return up to 31 March 2017 is 140.11% (11.21% p.a.) against a benchmark return of 77.69% (7.22% 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
Cautious Risk 513.24%2.64%13.38%-2.02%16.20%

12 Months Total Return (bid to bid) Source: Morningstar, net income reinvested.
Cautious Risk 512.89%10.00%7.49%3.52%12.42%3.73%

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 Return40%
Invesco Perpetual Global Targeted Returns Fund6%FactsheetKIID
Standard Life Global Absolute Return Strategies Fund27%FactsheetKIID
Threadneedle Emerging Market Bond Fund4%
Standard Life Global Focused Strategies Fund3%
First State Global Property Securities Fund2%FactsheetKIID
TR Property Investment Trust3%FactsheetDocuments
Schroder Global Property Income Maximiser Fund5%FactsheetKIID
UK Equities
BlackRock UK Income Fund5%FactsheetKIID
Standard Life UK Equity Income Unconstrained Fund5%FactsheetKIID
US Equities
Schroder US Mid Cap Fund2%FactsheetKIID
L&G US Index Trust5%FactsheetKIID
European Equities
Schroder European Alpha Income Fund2%
Baillie Gifford European Fund2%FactsheetKIID
Artemis European Opportunities Fund3%FactsheetKIID
Japanese Equities
JPMorgan Japanese Investment Trust2%FactsheetDocuments
Neptune Japan Opportunities Fund2%FactsheetKIID
Far East (ex Japan) Equities
Liontrust Asia Income Fund2%FactsheetKIID
Hermes Asia Ex Japan Equity Fund2%FactsheetKIID
Emerging Markets Equities
Templeton Emerging Markets Investment Trust2%
Utilico Emerging Markets2%FactsheetDocuments
Global Equities
Artemis Global Income Fund2%FactsheetKIID
Scottish Mortgage Investment Trust PLC3%FactsheetDocuments
Schroder ISF Global Recovery Fund3%FactsheetKIID
M&G Global Dividends Fund2%FactsheetKIID
Specialist Equities
3i Infrastructure Plc4%FactsheetDocuments

Important notes


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 Cautious Risk 5 Portfolio has been given a rating of 5 out of 10 and aims to achieve annual average returns of around 5.40%, with a downside risk of -15.38% and upside growth potential of 26.19%. Although these returns are not guaranteed the investment committee will look to select assets which work within these boundaries.


The performance for the portfolio is based on the previous holdings of the portfolio. Data for performance is sourced from Morningstar. These figures are provided to give an indication of the performance of the portfolio. The Cautious Portfolio has now been split into an Income Portfolio and Growth 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. (assuming 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. (assuming a fund of £100,000 this would be £1,400 p.a.) So in 2016 the return was 12.42%, the net return after rebates and fees would have been 11.02%. 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.


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.