Alternative to VLS80?
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Posts: 45 Forumite
Hello again - looking for some ideas please..
This time last year, following a good deal of help and guidance from this forum, I made the decision to come out of an old, under-performing and very expensive offshore investment, and go the DIY passive route - based around the VLS80.
Of the approx £250k, my plan was as follows:-
1. £50k to keep in cash (well, premium bonds actually as have little choice as currently non-UK resident)
2. £100k in VLS80
3. £50k in VLS60
4. £50k in VLS100
(The last two were intended to average the 80 but make future French tax reporting much simpler).
The first 3 have been in place for some time and doing nicely, and the final £50k is now sitting with the platform provider waiting for me to push the buy button but..
I'm wibbling..
The original plan was made a year ago - one or two things (!) have happened since then and the world is now a very different place. I'm not sure if VLS100 is now the best idea - VLS40 does not really appeal, and I'd rather not add to the other two.
Could I please ask for suggestions for one or two other low cost funds I could look at, possibly with a slightly different mix?
Any comments welcome.
This time last year, following a good deal of help and guidance from this forum, I made the decision to come out of an old, under-performing and very expensive offshore investment, and go the DIY passive route - based around the VLS80.
Of the approx £250k, my plan was as follows:-
1. £50k to keep in cash (well, premium bonds actually as have little choice as currently non-UK resident)
2. £100k in VLS80
3. £50k in VLS60
4. £50k in VLS100
(The last two were intended to average the 80 but make future French tax reporting much simpler).
The first 3 have been in place for some time and doing nicely, and the final £50k is now sitting with the platform provider waiting for me to push the buy button but..
I'm wibbling..
The original plan was made a year ago - one or two things (!) have happened since then and the world is now a very different place. I'm not sure if VLS100 is now the best idea - VLS40 does not really appeal, and I'd rather not add to the other two.
Could I please ask for suggestions for one or two other low cost funds I could look at, possibly with a slightly different mix?
Any comments welcome.
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Comments
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if you want VLS80 why not invest it all in VLS80?0
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I dont see the point of your original plan since all the VLS's will hold the same shares in the same ratios and (except for VLS100) the same bonds in the same ratios. Why not put it all in VLS80?
Why do you want a different fund? There is no point in getting yet another which invests in the same things. A sensible reason would be one that invests in things the VLS's dont, or are arguably deficient. Far East/EM or Small Companies are a possibility for equity. For safer investments property would be an obvious option.0 -
I dont see the point of your original plan since all the VLS's will hold the same shares in the same ratios and (except for VLS100) the same bonds in the same ratios. Why not put it all in VLS80?
At some point I am likely to sell to take advantage of CG allowances. This would be much simpler if there was only one single buy point and currency conversion rate to justify to a local, rural French Tax Inspector.Why do you want a different fund? There is no point in getting yet another which invests in the same things. A sensible reason would be one that invests in things the VLS's dont, or are arguably deficient. Far East/EM or Small Companies are a possibility for equity. For safer investments property would be an obvious option.
This is another reason I have lost a bit of confidence in the VLS100 - I was just hoping for some pointers to which funds might achieve this.0 -
Why have you lost confidence in VLS100? Compared with what? Over what time period? It is a weighted average of most equity sectors in the world and wont perform very differently to any other passive fund that invests 100% in a broad range of global equity. That's what passive funds are meant to do. If it's too volatile one can suggest safer types of fund, if you want something spicier with higher volatility, again sectors can be suggested.
It would be strange to find a fund based portfolio that isnt significantly invested in much the same things as VLS100. The items that VLS100 omits can be filled with niche funds, but these would only form a relatively small part of most portfolios.0 -
Why have you lost confidence in VLS100? Compared with what? Over what time period? It is a weighted average of most equity sectors in the world and wont perform very differently to any other passive fund that invests 100% in a broad range of global equity. That's what passive funds are meant to do. If it's too volatile one can suggest safer types of fund, if you want something spicier with higher volatility, again sectors can be suggested.
It would be strange to find a fund based portfolio that isnt significantly invested in much the same things as VLS100. The items that VLS100 omits can be filled with niche funds, but these would only form a relatively small part of most portfolios.
I think I'm currently a bit nervous of the 100% aspect, and taking the chance for a quick rethink of this part, and particularly your point about plugging a couple of gaps that VL might have.
I guess I'm thinking of a mainstream equivalent to VLS80 which has a slight difference - some property for example. I seem to remember mention of Blackrock and L&G in the same breath as VLS, but don't as yet know which particular funds might fit the bill. I'll do some searching over the weekend - just thought I might get a couple of hints here.
Thanks again.0 -
You could look on www.trustnet.co.uk in the "mixed investment 40-85% shares" sector. Useful funds may have names that include "multi-asset", "mixed investment", "balanced" , "multi-index". Select a fund and under the breakdown tab you will see the assets, sectors and countries the fund invests in.0
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2. £100k in VLS80
3. £50k in VLS60
4. £50k in VLS100
Why would you do that?At some point I am likely to sell to take advantage of CG allowances. This would be much simpler if there was only one single buy point and currency conversion rate to justify to a local, rural French Tax Inspector.
If you are trading annually to use CGT allowances then its still easy. Plus, most platforms have a CGT calculator.
If you still want multiple funds then at least buy different funds within the same volatility range.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I think I'm currently a bit nervous of the 100% aspect, and taking the chance for a quick rethink of this part, and particularly your point about plugging a couple of gaps that VL might have.
I guess I'm thinking of a mainstream equivalent to VLS80 which has a slight difference - some property for example. I seem to remember mention of Blackrock and L&G in the same breath as VLS, but don't as yet know which particular funds might fit the bill. I'll do some searching over the weekend - just thought I might get a couple of hints here.
Thanks again.
I think what you need is a rethink of your asset allocation. Cash,Stocks, Bonds, Property. Each asset class has it's own pros and cons in terms of investing and learning about them will give you a better idea of what percentage of them to hold in your overall portfolio is appropriate for your peace of mind.
Seeing that you are nervous about Vanguard LS 100%, you should think about downscaling your stocks allocation. The way you are putting into different allocations of funds are haphazard and makes it more complicated than neccessary to track you overall holdings, unless you seem to have some cunning plan for making it worthwhile.
L&G multiasset funds contains some property holding as far as I can remember.
Save 12K in 2020 # 38 £0/£20,0000 -
Presumably, to sidestep bed-and-breakfasting rules when selling purely to use a capital gains tax allowance. Mathematically, 0.5 * VLS60 + 0.5 * VLS100 = VLS80.Why would you do that?
After one year, realise gains up to £11k in VLS80 and immediately buy equal amounts of VLS60 and VLS100 with the proceeds. Next year, reverse. Repeat annually. The asset allocation remains completely constant, cash stays fully invested throughout, and capital gains tax allowance is used. Achieving all three of these together in any other way is awkward at best. It's a good way to manage this situation, and makes perfect sense to me. But only if followed through, which seems to be the issue here.
(No idea how it interacts with French taxes, though. Might be fine; might be a tax nightmare.)0 -
Presumably, to sidestep bed-and-breakfasting rules when selling purely to use a capital gains tax allowance. Mathematically, 0.5 * VLS60 + 0.5 * VLS100 = VLS80.
After one year, realise gains up to £11k in VLS80 and immediately buy equal amounts of VLS60 and VLS100 with the proceeds. Next year, reverse. Repeat annually. The asset allocation remains completely constant, cash stays fully invested throughout, and capital gains tax allowance is used. Achieving all three of these together in any other way is awkward at best. It's a good way to manage this situation, and makes perfect sense to me. But only if followed through, which seems to be the issue here.
(No idea how it interacts with French taxes, though. Might be fine; might be a tax nightmare.)
Thanks very much, this is exactly the idea.
I will be dealing with complex and ever-changing French CGT rules and allowances, variable exchange rate handling, and different taxable year ends. The simpler I can keep things now the better, even though it seems that I am likely to bend the rules of fixed asset allocation somewhat.If you still want multiple funds then at least buy different funds within the same volatility range.
Yes I completely agree, that's why I am asking for suggestions..I think what you need is a rethink of your asset allocation. Cash,Stocks, Bonds, Property. Each asset class has it's own pros and cons in terms of investing and learning about them will give you a better idea of what percentage of them to hold in your overall portfolio is appropriate for your peace of mind.
Seeing that you are nervous about Vanguard LS 100%, you should think about downscaling your stocks allocation. The way you are putting into different allocations of funds are haphazard and makes it more complicated than neccessary to track you overall holdings, unless you seem to have some cunning plan for making it worthwhile.
L&G multiasset funds contains some property holding as far as I can remember.
The cunning plan is to avoid falling foul of the fearsome French fisc
I agree about the allocation and realise that I need to do a general assessment - I do have other assets although very light on property - but this will take some time to do properly, and I just want to get the last £50k back into the market pronto.
At the moment I am trying to find my way around Trustnet, as per Linton's helpful suggestion. I am sure ease of use comes with familiarity but I am finding it a bit confusing. There seem to be dozens of funds for given criteria, and I don't know yet how to make a logical selection. I'll keep trying - particularly L&G and property - and see how I get on.
Thanks very much for responses.0
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