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Vanguard LifeStrategy 60% Equity
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Aminatidi
Posted: 13 March 2024 18:30:18(UTC)
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Vanguard offer a global cap weighted LifeStrategy range.

For some reason you can't buy it from platforms it seems to be something you have to go via an advisor to access.

Vanguard LifeStrategy MPS Global.
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Harry Trout on 14/03/2024(UTC)
TryingToAccumulate
Posted: 14 March 2024 11:36:21(UTC)
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Harry Trout;299343 wrote:


This prompts the question as to why LS60 is not simply a two fund portfolio, such as

Vanguard FTSE Global All Cap Index 60%
Vanguard Global Bond Index 40%



Hi,

I'm a long time lurker and this is my first post. I think I know the answer to this. There are FCA rules for Fund of Funds schemes and one of them is that no more than 20% of a Fund of Funds scheme should be invested in any one fund.

Have a look at point 3 here in the Fund of funds schemes: general section.
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Harry Trout on 26/06/2024(UTC)
Harry Trout
Posted: 14 March 2024 12:54:29(UTC)
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So a simple to understand actively managed fund with an OCF of 0.22%

With just 17 holdings it's easy to see what you are investing in, notwithstanding that I would prefer it to be a lot less holdings to conform more tightly to the concept.

No manager risk unlike Capital Gearing Trust. LS60 outperforms CGT over the last 5 years

When you cark it, LS60 is good to handover to a spouse that isn't interested in investing

It feels entirely reasonable to target this to do 6% per annum long term which would see us comfortably home. (8% * 0.6) + (4% * 0.4) = 6.4%. Since launch it's done 6.9%.

6% allows for some softening if you think the period since 2011 launch has been kind.

I'll continue to add on my Vanguard platform in a "win by not losing" stylee
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Dexi on 14/03/2024(UTC), Jed Mires on 14/03/2024(UTC), Julianw on 14/03/2024(UTC), mcminvest on 15/03/2024(UTC), downatthirdman on 15/03/2024(UTC), kim shillinglaw on 15/03/2024(UTC)
SF100
Posted: 14 March 2024 13:14:34(UTC)
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Harry Trout;299555 wrote:
No manager risk unlike Capital Gearing Trust.
at some point in the future, what's to stop the Vanguard management team deciding that an overweight position in say german stocks represents a better opportunity than an overweight in UK stocks?
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Harry Trout on 14/03/2024(UTC), kim shillinglaw on 15/03/2024(UTC)
Aminatidi
Posted: 14 March 2024 13:23:16(UTC)
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Isn't that where we're into what's possible v what's probable?

I'd have a lot more confidence in the processes and controls a company such as Vanguard have than I would smaller active fund managers.
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Cm258 on 14/03/2024(UTC), Harry Trout on 14/03/2024(UTC)
L.P.
Posted: 14 March 2024 13:41:07(UTC)
#31

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L60 (or any other 60/40) is still a one stop shop for the majority of investors regardless of experience and therefore it goes without saying, it is my largest holding.
However, I also hold a good chunk of CGT and I have recently been adding to HSBC Global Balanced.

Since I have been reminded yet again (during this recent bond/interest rates turmoil) that a rising tide lifts all ships (and the opposite of course), I have it in mind that my whole portfolio could comprise of just these three funds, and over the medium term, I will be more than happy with a 6% return per annum.

HSBC Global Balanced is a good alternative to run alongside L60 as it offers a little bit of exposure to alternatives/property and I believe the performance will ebb and flow alongside Vanguards.

As for CGT, I am pretty damn sure that they are better placed to add value by trading IT’s etc than I am or that I am intending to be very soon (planning a lot of travelling). I also expect CGT to outperform L60/HSBCGB as interest rates unwind and even if they don’t and we end up in that recession that is so obvious to everyone that governments cannot fudge the numbers for an election year.

If we charted all three we will more than likely find that they all revert to the mean (which I like) but I do not like the idea of a ‘one stop’ shop.

Disclosure: 57 - retired although not in drawdown yet - 3 years living expenses in cash (or close to cash) - Vanguards funds held on their own platform and the rest on HL.
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Harry Trout on 14/03/2024(UTC), Dexi on 14/03/2024(UTC), Guest on 14/03/2024(UTC), Cm258 on 14/03/2024(UTC), kim shillinglaw on 15/03/2024(UTC)
Jed Mires
Posted: 14 March 2024 15:25:50(UTC)
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[quote=Harry Trout;299555]So a simple to understand actively managed fund with an OCF of 0.22%

When you cark it, LS60 is good to handover to a spouse that isn't interested in investing

Yes thats my thinking too. A one fund portfolio is the better option to leave on the table when you pop your clogs.
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Harry Trout on 14/03/2024(UTC)
Jed Mires
Posted: 14 March 2024 15:33:06(UTC)
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SF100;299559 wrote:
Harry Trout;299555 wrote:
No manager risk unlike Capital Gearing Trust.
at some point in the future, what's to stop the Vanguard management team deciding that an overweight position in say german stocks represents a better opportunity than an overweight in UK stocks?



Its a pity they didnt do just that, FTSE all share up around 28% over 5 years , DAX up over 61% over 5 years.
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Harry Trout on 14/03/2024(UTC)
Rory Barr
Posted: 14 March 2024 15:47:56(UTC)
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Jed Mires;299578 wrote:

Its a pity they didnt do just that, FTSE all share up around 28% over 5 years , DAX up over 61% over 5 years.


The DAX is a total return index so includes dividends, the FTSE is not. You're comparing apples with pears (as many people do).
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SF100 on 14/03/2024(UTC)
Cm258
Posted: 14 March 2024 17:00:23(UTC)
#32

Joined: 30/07/2022(UTC)
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Oh I didn't realise. HSBC Global Strategy Balanced is only 34% US equities! Or am I reading this wrong?
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