Vanguard Life Strategy

ColdIron

block10 wrote: »

Ok so HL platform charge is 0.45% (Max £45 ISA or £200 on SIPP)
& Vanguard fund AER is 0.32%. Overall AMC = 0.77%

So in a £5k portfolio, CSD works out £9.50 cheaper.

Seems hardly worth the bother of switching, considering the exit fees and that in the long-term i will benefit from HL upper cap on platform fees (just £45 on ISA).

The caps you quote are for shares, for funds such as the VLS there is no such cap I'm afraid

badger09

block10 wrote: »

Ok so HL platform charge is 0.45% (Max £45 ISA or £200 on SIPP)
& Vanguard fund AER is 0.32%. Overall AMC = 0.77%

So in a £5k portfolio, CSD works out £9.50 cheaper.

Seems hardly worth the bother of switching, considering the exit fees and that in the long-term i will benefit from HL upper cap on platform fees (just £45 on ISA).

I'll admit I'm a bit lost with exactly what you are quoting - or rather, what the quote was responding to

However, there is no £45 cap on HL's new 0.45% platform charge which applies to funds (and this thread is about Vanguard Lifestrategy Funds) held in an ISA

Freecall

There is no cap on a VLS fund, it is open ended.

On a £5k pot though 0.45% is only £22.50 so less than the previous £24 figure.

Or have I misunderstood your question?

block10

Thanks all for the clarifications. I obviously have much to learn when it comes to investing.

Shark

I have about £10k in this years ISA in HL all VLS 80/20.
Am I best off leaving this in here and starting new 80/20 somewhere else come new ISA in April?

Bit !!!!ed off with all this RDR stuff makes me want to come out of shares completely as this is more hassle than I need.

musashi10

Hi this is a rather long thread. Could someone summise why this is a good fund to invest in. It says the yield is 1.4%

Gaaraz

Have a read of this: http://monevator.com/cheap-vanguard-index-funds/

musashi10

Thank you gaz

macgyver

I have been reading through this site and recommended sites as well and am convinced that I am going to dip in and invest £11,200 in the Vanguard Life Strategy fund 100% S&S ISA for this year. I am in full time employment and 40 years old and am investing for 20 years or so. My risk profile is Moderately aggressive. I do not have any credit (mortgage paid off) and have savings for emergency. I have about 30000 in cash ISA which I might transfer to stocks and shares once the fixed term is over after 3 years. But I do not think I will be able to maintain a portfolio of individual stocks or funds on my own.As per the comparisons, CS comes the cheapest platform for less than 25K. I will transfer it to another platform once the fund grows.
Should I consider other platforms like II or Best Invest which might be better for larger sums?
Thank you

smoulder

smoulder wrote: »

Thanks for drawing attention to this. Cost reduction is always welcome, but I wonder if anyone knows more about the changes they are making to the asset allocation?

I guess a reduction in UK equity is on the cards, but it's curious they will be changing the asset allocation given that they describe these as "well-defined, static portfolios!"

I uncovered a little more information on the asset allocation changes. In the "Financial Adviser" section of the Vanguard website there's a press release titled "New enhanced LifeStrategy Funds – more diversification at even lower cost" dated 9-Jan-2014 which states the following:

"We’re enhancing the funds’ diversification by reducing their UK focus and raising their weightings in global equities and bonds, providing investors with broader exposure to stock markets and fixed income securities from across the world.

What’s more, the global bond exposure will be hedged back to sterling, so investors can be confident that the risk-dampening advantages of global bonds won’t be outweighed by unpredictable currency effects."

And on the "Individual Investor" section of their website, their Mutual Funds list now contains these new entries:

• Euro Government Bond Index Fund (Accumulation-Hedged)
• Euro Investment Grade Bond Index Fund (Accumulation-Hedged)
• Japan Government Bond Index Fund (Accumulation-Hedged)
• U.S. Government Bond Index Fund (Accumulation-Hedged)
• U.S. Investment Grade Credit Index Fund (Accumulation-Hedged)

I still don't see info on exactly which of those funds they will include in their LifeStrategy funds or in what proportions...