Vanguard Life Strategy

bluebell321

ColdIron wrote: »

They are called Corporate Actions in some places on HL's site but technically these payments aren't true CAs. The gain/loss is still accurate as the amount you really paid into the fund has been adjusted, it's usually paid into your income account not the capital one

When HL takes charges from you they debit your accounts in a particular order and I suspect that it was used and reduced your charge. You should be able to track it down under the Income tab on the Transaction History tab

BTW how did you get HL to take charges by debit card without it counting towards your ISA allowance? I thought that with the new charges they sell some of your holdings if there is not sufficient cash in your accounts or Fund and Share account

Thanks again. No, income account showing as nil so I can't see anywhere where it balances out.

Under account admin, there is an option to pay fees online by debit card which is what I tend to do.

Any ideas on my question re a fund and share account? Any way of calculating what the income would have been rather than capital gain? the factsheet just gives a yield figure and says it is variable.

ColdIron

Details of income and dividends, along with a tax statement for the F&S account, are provided in your bi annual Investment Report. They've just produced the Spring 2014 one for last year, find it on the Portfolio History tab

PS not to alarm but I'd double check with them that that option doesn't contribute towards ISA subscriptions

bluebell321

ColdIron wrote: »

PS not to alarm but I'd double check with them that that option doesn't contribute towards ISA subscriptions

I've taken a look and can't find anything conclusive. It offers the possibility to take cash from a F&S account so I can't see the difference between that and taking from a debit card.
Why do you think it might be a problem?

gadgetmind

ColdIron wrote: »

I'd double check with them that that option doesn't contribute towards ISA subscriptions

ISTR we've thrashed this out before. Paying fees for ISAs and SIPPs from unwrapped would not see to form a contribution to these wrappers, but I've never seen anything 100% conclusive regards this.

Opinions varied on whether paying ISA/SIPP fees from unwrapped made sense and people used arguments each way for both.

luke222010

Can someone help me understand how investing in the LS 80% Equity Fund works in terms of fees?
The key investor information document states there is a 0.17% fee for "Entry Charge", and a 0.29% fee ongoing charge "taken from the fund over a year".

Say I put in £500 and thereon invested £50 per month, is the 0.17% fee taken off each amount invested, i.e. the initial £500 and then each £50 afterwards?
If so, say I invest £1098.13 in year one, and for ease of calculation sake, there was a 10% increase in price (£1098.13 * 10% = £109.81), my investment would then be worth £1207.94, would there then be a 0.29% charge, so £3.50 decrease from the £1207.94, making my first years investment of £1098.13 then worth £1204.44.

Or are all my calculations above a load of rubbish and I need to have a proper read ?

grey_gym_sock

luke222010 wrote: »

The key investor information document states there is a 0.17% fee for "Entry Charge", and a 0.29% fee ongoing charge "taken from the fund over a year".

Say I put in £500 and thereon invested £50 per month, is the 0.17% fee taken off each amount invested, i.e. the initial £500 and then each £50 afterwards?

yes.

If so, say I invest £1098.13 in year one,

i.e. £1100 minus the 0.17% entry charge.

and for ease of calculation sake, there was a 10% increase in price (£1098.13 * 10% = £109.81), my investment would then be worth £1207.94, would there then be a 0.29% charge, so £3.50 decrease from the £1207.94, making my first years investment of £1098.13 then worth £1204.44.

more or less. they actually deduct a fraction of the 0.29% charge every day, not all at the end of the year; and this is reflected in the daily prices for the fund. but the end result is very similar.

hennerz

I currently have my ISAs split 50-50 between VG LS 100% Equity and the FTSE UK Equity Index tracker, is this diversified enough? Or am I over weighted in the FTSE?

rpc

hennerz wrote: »

I currently have my ISAs split 50-50 between VG LS 100% Equity and the FTSE UK Equity Index tracker, is this diversified enough? Or am I over weighted in the FTSE?

Well that rather depends on your desired asset allocation.

You have almost 70% of your investments in the UK. Is that what you want?

dunstonh

hennerz wrote: »

I currently have my ISAs split 50-50 between VG LS 100% Equity and the FTSE UK Equity Index tracker, is this diversified enough? Or am I over weighted in the FTSE?

its high risk and well above the average UK consumer risk profile. Not sure what you are trying to achieve by using a single sector fund with a multi-asset fund. On paper, you seem to believe the UK is going to be the best place to invest going forward given the UK bias you are creating.

hennerz

rpc wrote: »

Well that rather depends on your desired asset allocation.

You have almost 70% of your investments in the UK. Is that what you want?

All I want is to invest in cheap trackers that will give average performance.

dunstonh wrote: »

its high risk and well above the average UK consumer risk profile. Not sure what you are trying to achieve by using a single sector fund with a multi-asset fund. On paper, you seem to believe the UK is going to be the best place to invest going forward given the UK bias you are creating.

I do believe that, but I don't know much. I'm investing for the long-run and happy to take on some variance along the way (I'm 24). The returns from the VG LS fund seem to be on the lower side, so I felt like I might be able to put money in that and be diversified to a degree, then put more in a fund that has may have a better chance of higher returns.

Is this flawed? Not really sure what else to do other than plunge money into the VG LS and be content with the lower risk and lower returns.