Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Vanguard LifeStrategy 60% Equity
+ Reply to discussion
Options
Jed Mires
Posted: 14 March 2024 17:04:59(UTC)
#23

Joined: 04/04/2023(UTC)
Posts: 337
Rory Barr;299582 wrote:
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).

I have included dividends in both figures. The DAX figure should be 51% not 61% , problems of not using my reading glasses -:)
Back to top Quote
 |  Edit by user
Aminatidi
Posted: 14 March 2024 17:21:53(UTC)
#33

Joined: 29/01/2018(UTC)
Posts: 5,865

Thanks: 7149 times
Was thanked: 11412 time(s) in 3831 post(s)
Cm258;299594 wrote:
Oh I didn't realise. HSBC Global Strategy Balanced is only 34% US equities! Or am I reading this wrong?


There or there about but that's roughly what you'd expect for the US allocation in a roughly globally weighted roughly 60/40 fund.
Back to top Quote
1 user thanked Aminatidi for this post.
Cm258 on 14/03/2024(UTC)
Rory Barr
Posted: 14 March 2024 22:50:39(UTC)
#24

Joined: 18/11/2018(UTC)
Posts: 737

Thanks: 470 times
Was thanked: 2026 time(s) in 578 post(s)
Jed Mires;299596 wrote:
Rory Barr;299582 wrote:
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).

I have included dividends in both figures. The DAX figure should be 51% not 61% , problems of not using my reading glasses -:)


Yes you clearly have, and the figure for the FTSE makes that obvious; please accept my apols.
Back to top Quote
1 user thanked Rory Barr for this post.
Jed Mires on 15/03/2024(UTC)
Fife Clive
Posted: 15 March 2024 00:45:16(UTC)
#34

Joined: 01/12/2021(UTC)
Posts: 419

Thanks: 756 times
Was thanked: 1519 time(s) in 388 post(s)
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%

Interested to know if anyone has any insight as to why LS60 isn't simple like this, it would be very easy to understand?


Such a fund is simply not permissible under UCITS regulations. Specifically the 20/35 rule.

“An individual investment in another UCITS fund must not exceed 20 per cent of assets“.

You can see them managing to this rule in LifeStrat60 with *nearly* 20% “global bond index”, and the other 20% of bond exposure in random other bond funds.

No doubt Vanguard here would follow their US parent with a simpler approach, if they could.

Back to top Quote
8 users thanked Fife Clive for this post.
Guest on 15/03/2024(UTC), Lesley J on 15/03/2024(UTC), Jed Mires on 15/03/2024(UTC), Isaac J on 15/03/2024(UTC), bingo on 15/03/2024(UTC), Thrugelmir on 15/03/2024(UTC), Harry Trout on 15/03/2024(UTC), SF100 on 15/03/2024(UTC)
mcminvest
Posted: 15 March 2024 07:52:41(UTC)
#25

Joined: 22/02/2018(UTC)
Posts: 1,195
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?


what a nonsense comment that was!
Back to top Quote
Harry Trout
Posted: 15 March 2024 09:15:05(UTC)
#35

Joined: 08/06/2014(UTC)
Posts: 1,012
Fife Clive;299624 wrote:
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%

Interested to know if anyone has any insight as to why LS60 isn't simple like this, it would be very easy to understand?


Such a fund is simply not permissible under UCITS regulations. Specifically the 20/35 rule.

“An individual investment in another UCITS fund must not exceed 20 per cent of assets“.

You can see them managing to this rule in LifeStrat60 with *nearly* 20% “global bond index”, and the other 20% of bond exposure in random other bond funds.

No doubt Vanguard here would follow their US parent with a simpler approach, if they could.


Learned something there, thanks Clive

A feeling remains though that the 60:40 fund could be covered in significantly less than 17 funds. Maybe even 7

- Vanguard Global All Cap Index OEIC
- VWRL ETF
- Vanguard US Equity Index OEIC (weighted to retain US weighting % in a global index)
- FTSE UK All Share Index (tiny amount to ensure 20% rule not breached in the 3 larger equity holdings)
- Global Bond Index Fund Fund Hedged OEIC
- Global Aggregate Bond (VAGP) ETF
- UK Government Bond Index (tiny amount to ensure 20% rule not breached in the 2 larger bond holdings)

Simpler to understand, more elegant (to my mind anyway) and much reduced home bias

Hey ho, Vanguard will have their reasons !!!
Back to top Quote
 |  Edit by user
Aminatidi
Posted: 15 March 2024 09:22:36(UTC)
#36

Joined: 29/01/2018(UTC)
Posts: 5,865

Thanks: 7149 times
Was thanked: 11412 time(s) in 3831 post(s)
Must admit threads like this make me think stop trying to be smart and if I want 60/40 just get over the home bias.
Back to top Quote
2 users thanked Aminatidi for this post.
Harry Trout on 15/03/2024(UTC), L.P. on 26/06/2024(UTC)
SF100
Posted: 15 March 2024 11:11:11(UTC)
#26

Joined: 08/02/2020(UTC)
Posts: 2,250
mcminvest;299635 wrote:
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?

what a nonsense comment that was!

Thanks for feedback, always happy to listen to reasoning....?
Unlike you, it would seem?
Back to top Quote
 |  Edit by user
bingo
Posted: 15 March 2024 11:16:01(UTC)
#37

Joined: 28/10/2019(UTC)
Posts: 118
The VLS 60 has two classes - accumulation and income.

Both seem to hold accumulation versions of the underlying funds - how does the VLS 60 income fund accrue dividends and then distribute them ?

The yield of VLS 60 seems lower than the combined yield of the underlying funds (if the income equivalents were held, where possible, some funds have no income equivalent)
Back to top Quote
Collie
Posted: 03 May 2024 08:16:49(UTC)
#38

Joined: 09/04/2015(UTC)
Posts: 47
I last invested in VLS 60 about 15 months ago when the price was c.11% cheaper but ive just come in to a small inheritance, £18k. I'm wondering whether to just plough back in or would this be poor practice? I realise if i'd just drip fed in for the last 15 months, say £500 per month, things would have been better but..!
Ive also considered the HSBC balanced equivalent! Are the VLS and HSBC 60/40's at about a similar level cost and performance wise? I realise Vanguard lifestrategy is more UK biased! I'm just wondering which the better option is to avoid me spoiling any decent work my VLS 60 has done so for regarding personal rate of return, Thanks! Retired, age 62 and probably just happy to keep up with inflation for 10 years or so!
Back to top Quote
6 PagesPrevious page12345Next page»
+ Reply to discussion

Markets

Other markets