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Cm258
Posted: 19 May 2024 12:13:11(UTC)
#67

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Isaac J;306157 wrote:
Aminatidi;306150 wrote:
Still looking at de-risking a bit from 100% FTSE Global All Cap but pretty much all the multi-asset funds have something to not be entirely happy about.


Someone posted last year they held four different multi-asset funds in equal proportion.

It sounds like that could be a good strategy for you. In the very long run, the fund performances might not differ too much, but the variances along the way will be smoothed out so you don't second guess whether or not you picked the right one.

Might as well take advantage of the fact that you use a platform that has so many different options available, rather than being tied into a specific provider of a single fund.

multi asset performance
(chart performance from AJ Bell fund inception date)


I can definitely see the sense in an approach mixing different multi asset funds from different managers. Not necessary for me right now but as your portfolio goes, it seems sensible from a diversification of fund manager perspective.
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Isaac J on 19/05/2024(UTC)
Aminatidi
Posted: 22 January 2025 19:29:15(UTC)
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Saw something on Trustnet about AJ Bell re-aligning its range.

https://www.trustnet.com...onal-bonds-and-equities

Current asset allocations.

https://www.investcentre...d_Current_portfolios.pdf
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4 users thanked Aminatidi for this post.
Robert D on 22/01/2025(UTC), Helen L on 22/01/2025(UTC), Cm258 on 22/01/2025(UTC), Peanuts on 23/01/2025(UTC)
Cm258
Posted: 22 January 2025 21:16:25(UTC)
#73

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I'd always questioned the higher cost of the VT AJ Bell Balanced fund at 31bps Vs Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth, all at around ~20bps.

Looking at Trustnet, the AJ Bell fund has lower volatility over 5 years, and did better in 2022 to protect your wealth.

Food for thought.

25% equal allocation Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth / VT AJ Bell Balanced anyone??
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Rob B on 22/01/2025(UTC)
smg8
Posted: 23 January 2025 07:58:40(UTC)
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Cm258;331970 wrote:
I'd always questioned the higher cost of the VT AJ Bell Balanced fund at 31bps Vs Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth, all at around ~20bps.



Worth keeping in mind they are completely different products, so it's natural they wouldn't cost the same.
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Cm258 on 23/01/2025(UTC)
Cm258
Posted: 23 January 2025 10:59:59(UTC)
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smg8;331994 wrote:
Cm258;331970 wrote:
I'd always questioned the higher cost of the VT AJ Bell Balanced fund at 31bps Vs Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth, all at around ~20bps.



Worth keeping in mind they are completely different products, so it's natural they wouldn't cost the same.


So you mean the active Vs passive asset allocation? Although all looks to use passive vehicles to achieve their allocations.
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smg8
Posted: 23 January 2025 11:10:48(UTC)
#79

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Cm258;332014 wrote:
smg8;331994 wrote:
Cm258;331970 wrote:
I'd always questioned the higher cost of the VT AJ Bell Balanced fund at 31bps Vs Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth, all at around ~20bps.



Worth keeping in mind they are completely different products, so it's natural they wouldn't cost the same.


So you mean the active Vs passive asset allocation? Although all looks to use passive vehicles to achieve their allocations.


Yes, sorry my short reply wasn't overly helpful!

The AJB ones are to me an actively managed fund of funds, using underlying passive investments. Hence you get situations where the growth fund has 40% emerging markets, or where they've decided they no longer see any point in infra/real estate as a diversifier when you can get 5% risk free from cash.

These kind of asset allocation shifts are not what VLS/HSBC/Fidelity ones are about. VLS and Fidelity ones I believe have a fixed allocation, with frequent rebalancing. HSBC have a fixed starting point and tiny bits of overweight here and there, as in the odd 2-3% overweight on bonds, or on UK equities. Which aren't really enough to really move the dial and see drastic over or underperformance.

And that's why in 2022, which was cited as an interesting year for the AJB funds, they did exceptionally well relatively, due to the difference in allocation and the active decision to be away from long duration bonds or whatever it was that tanked the hardest.

On the flip side they aren't going to necessarily ever outperform a US led strong up market because they have say 25% US equity.

That's how I conclude they are a different product altogether, the other 3 are broadly much of a muchness. Holding an AJB one and an HSBC one to me offers far more diversification than holding the HSBC one and the Fidelity one.


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Cm258 on 23/01/2025(UTC), Helen L on 23/01/2025(UTC), OmegaMale on 23/01/2025(UTC), Aminatidi on 23/01/2025(UTC)
Cm258
Posted: 23 January 2025 11:44:00(UTC)
#80

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smg8;332016 wrote:
Cm258;332014 wrote:
smg8;331994 wrote:
Cm258;331970 wrote:
I'd always questioned the higher cost of the VT AJ Bell Balanced fund at 31bps Vs Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth, all at around ~20bps.



Worth keeping in mind they are completely different products, so it's natural they wouldn't cost the same.


So you mean the active Vs passive asset allocation? Although all looks to use passive vehicles to achieve their allocations.


Yes, sorry my short reply wasn't overly helpful!

The AJB ones are to me an actively managed fund of funds, using underlying passive investments. Hence you get situations where the growth fund has 40% emerging markets, or where they've decided they no longer see any point in infra/real estate as a diversifier when you can get 5% risk free from cash.

These kind of asset allocation shifts are not what VLS/HSBC/Fidelity ones are about. VLS and Fidelity ones I believe have a fixed allocation, with frequent rebalancing. HSBC have a fixed starting point and tiny bits of overweight here and there, as in the odd 2-3% overweight on bonds, or on UK equities. Which aren't really enough to really move the dial and see drastic over or underperformance.

And that's why in 2022, which was cited as an interesting year for the AJB funds, they did exceptionally well relatively, due to the difference in allocation and the active decision to be away from long duration bonds or whatever it was that tanked the hardest.

On the flip side they aren't going to necessarily ever outperform a US led strong up market because they have say 25% US equity.

That's how I conclude they are a different product altogether, the other 3 are broadly much of a muchness. Holding an AJB one and an HSBC one to me offers far more diversification than holding the HSBC one and the Fidelity one.




This is really helpful, thank you smg8. And I agree, it would make sense therefore pairing an actively managed MAF with one that isn't. So something like AJB Balanced and VS L60.

Thanks.
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smg8 on 23/01/2025(UTC)
Aminatidi
Posted: 23 January 2025 17:29:21(UTC)
#74

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Cm258;331970 wrote:
I'd always questioned the higher cost of the VT AJ Bell Balanced fund at 31bps Vs Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth, all at around ~20bps.

Looking at Trustnet, the AJ Bell fund has lower volatility over 5 years, and did better in 2022 to protect your wealth.

Food for thought.

25% equal allocation Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth / VT AJ Bell Balanced anyone??


I think with anything like that if you were aiming for a rough 60/40 or "balanced" sleep at night portfolio you'd be there or there about wouldn't you?

Quite reasonable average fees too IMHO.
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Cm258 on 23/01/2025(UTC)
Rory Barr
Posted: 23 January 2025 18:40:25(UTC)
#75

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Aminatidi;332053 wrote:
Cm258;331970 wrote:
I'd always questioned the higher cost of the VT AJ Bell Balanced fund at 31bps Vs Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth, all at around ~20bps.

Looking at Trustnet, the AJ Bell fund has lower volatility over 5 years, and did better in 2022 to protect your wealth.

Food for thought.

25% equal allocation Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth / VT AJ Bell Balanced anyone??


I think with anything like that if you were aiming for a rough 60/40 or "balanced" sleep at night portfolio you'd be there or there about wouldn't you?

Quite reasonable average fees too IMHO.


And 3 with unhedged global bonds, and one hedged I think. So a bit of further diversification there too.
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Cm258 on 23/01/2025(UTC)
Cm258
Posted: 23 January 2025 18:50:33(UTC)
#76

Joined: 30/07/2022(UTC)
Posts: 458

Thanks: 869 times
Was thanked: 712 time(s) in 298 post(s)
Rory Barr;332059 wrote:
Aminatidi;332053 wrote:
Cm258;331970 wrote:
I'd always questioned the higher cost of the VT AJ Bell Balanced fund at 31bps Vs Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth, all at around ~20bps.

Looking at Trustnet, the AJ Bell fund has lower volatility over 5 years, and did better in 2022 to protect your wealth.

Food for thought.

25% equal allocation Vanguard LS60 / HSBC Global Strategy Balanced / Fidelity Multi Asset Allocator Growth / VT AJ Bell Balanced anyone??


I think with anything like that if you were aiming for a rough 60/40 or "balanced" sleep at night portfolio you'd be there or there about wouldn't you?

Quite reasonable average fees too IMHO.


And 3 with unhedged global bonds, and one hedged I think. So a bit of further diversification there too.


This table has a good overview of what you're getting with each https://monevator.com/pa...und-of-funds-the-rivals/
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