The ability to take risk seems highly reliant on this. However there seems to be some ambiguity with the definition. How would you judge if they have a moderate/low asset base compared to size of portfolio. It definately doesn’t seem related to portfolio return required.
Another question - what portfolio return is deemed too high? The average on the portfolios (nominal before tax) is around 11% and (nominal after tax) seems to be around 8%.
Any advise much appreciated.