Optimal Risk/Reward balances

Above all else, investment must aim to build upon initial capital after careful and diligent consideration of the risk of loss to or of the principal. Many of our clients acquire wealth after years of hard work and sacrifice and the prospect of losing it through a reckless deployment in the markets is understandably galling.

Lewis Bentley Group is wholly committed to the pursuit of profit for clients but not at the expense of unacceptable risk to the initial capital outlay. Sensible enough, most would say, but our advisers have often encountered portfolios where one or two stocks that may have represented exceptional value in years past still account for as much as 90% of the portfolio’s holding. This, in our view, is unacceptable risk and exposes the portfolio to what we call “risk of ruin”.

Asset allocation

Lewis Bentley Group’s advisers pride themselves on the attention they pay to details when it comes to prudent asset allocation and diversification. Put simply, in the overwhelming majority of instances, a portfolio that is well diversified should eclipse a portfolio comprised of holdings in only one or two assets.

Diversification is a cornerstone of our approach and, when teamed with active portfolio management and quantitative research, we believe that this philosophy stands the best chance of delivering the required results.

Diversification

Although there are no hard and fast minima and maxima, many of our clients are 80% invested in equities and 20% in fixed income and money market securities. These categories allow for significant diversification within sub-categories including market capitalization, industry sector and geography. Asset allocation focuses upon asset class rather than the diversification within.

Pinpointing the performance

Monitoring and ongoing administration

A Lewis Bentley Group client will always be kept apprised of the performance of their portfolio. This will aim to measure absolute return compared to target growth for funds allocated and it will evaluate the manager’s performance compared to relative benchmarks.

Business woman presenting the companies performance

Keeping you in the loop

Lewis Bentley Group provides comprehensive statements of the overall portfolio’s performance on a regular basis and can also, if you wish, make this vital information available to you in an online password-protected, private account. Regular client meetings or teleconferences with the Lewis Bentley Group team provide opportunities to collaboratively review the current portfolio relative to the target asset allocation.

Adjusting the balance

If necessary, we will rebalance your portfolio depending on circumstances ranging from your or your family’s cash flow needs right up to shifts in macro-economic trends. Clients should be aware that portfolio rebalancing cannot guarantee a profit or offer absolute protection against losses in declining markets.