Vanguard Life Strategy

adewalton

Don't mind a bit a volatility?
How do you apply the loss that you are ok with to the right type of fund?

Carpi09

gadgetmind wrote: »

For what it's worth (debatably not much!) this is the strategic bond fund that I've tended to use as my default.

http://citywire.co.uk/money/pound-faces-quiet-crash-warns-cowley/a658769

As I say, only time will tell, but this fund has always chugged away, never shooting out the lights, and never dropping like a stone. This is how I like my fixed interest allocation!

In more ordinary times for gilts, I'd just use the LS 80% and be done with it.

I currently hold the VLS 80 and some Tesco shares, not many but needed to test something out for my confidence on fees. Silly but in my eyes worth it.

Would you recommend having that Global Bond fund running alongside it, or if I correctly read your last statement, just stick with the VLS?

principa

adewalton wrote: »

Don't mind a bit a volatility?
How do you apply the loss that you are ok with to the right type of fund?

well - there is no loss (or gain for that matter) until you sell. this is very important psychology.

do you have an exit strategy?

Is the sell a fixed point in the future or is it very flexible? how far off is it?
If it is very flexible and long term then go with more equities.

in my view:
100/80 would be minimum 10yr.
60/40 possibly minimum 5-10yr
20 - minimum, 5 yr

and in all cases, prepare for a negative outcome as much as a positive one!

ozzage

gadgetmind wrote: »

I finally decided that the gilt market has currently been distorted well away from being efficient so added active fixed interest alongside my trackers. Only time will tell ...

I've been active for fixed interest for about two years (I invest passively for most other classes) because I simply don't feel that I know enough about gilts, index-linked gilts, corporate bonds, high-yield bonds etc. I used to use a corporate bond tracker, but that only covered one part of the fixed income universe and I didn't feel that I was getting value out of the sector.

Now I use the M&G Optimal fund and it has served me well. Most of my equity investments are still passive, except frontier markets and commodities which I feel benefit from active management.

And, to my own annoyance as it seems to go against my principals, I recently switched my entire large-cap emerging market holding out of ETFs and into Aberdeen EM (just before the 2% announcement...). I simply came to the conclusion based on years of data that they do a better job than my trackers, even after costs. Now I'm having to reassess that.

ozzage

I've also just set up an ISA and a SIPP for somebody else. One is using Jupiter Merlin Income Portfolio, and the other the 80% Lifestrategy.

It'll be interested to see what wins in the long run. I'll let you guys know after 18 years :P

gadgetmind

Carpi09 wrote: »

Would you recommend having that Global Bond fund running alongside it, or if I correctly read your last statement, just stick with the VLS?

Most people should just stick with VLS. My wife holds a lot of UK shares directly so I just wanted to trim our overall UK exposure.

takesyourchances

gadgetmind wrote: »

Vanguard have a global small cap tracker, which I use on BestInvest. As BI have an "eat all you like" £60 pa charge for an ISA, I use various trackers and funds to boost my exposure to small/mid caps, value/income, EM, Asia Pac, and (with naughty market timing!) Europe, property and financial debt.

I looked at the Vangaurd Global Small Cap tracker and it looks interesting although not on HLs range, you certainly have a range of coverage held. Good quote on the naughty timing in Europe etc, bit to many woes with the Euro and troubles for me at the momemt, cheeky timings could be used I have done this with buying currency when buying overseas property.

Bestinvest looks good for fees on lots of holdings.

As I am with HL, what is your opinion on the Standard Life Global Small Cap fund on it?

I could be interested in having a smaller holding of a global small cap fund some stage starting with 500, to diverse a bit from large cap global holding in the VLS 60%. I added it to my watch list.

Interested to hear any thoughts on this.

Great posts and topic this.

Best regards.

gadgetmind

takesyourchances wrote: »

Bestinvest looks good for fees on lots of holdings.

Yup, lots of flexibility *but* you can't hold individual corporate bonds or gilts with them.

As I am with HL, what is your opinion on the Standard Life Global Small Cap fund on it?

Sl and Henderson are both good for small/micro cap but I prefer Investment Trusts (ITs) for these kinds of areas.

Regards my Euro timing, it played out well. I bought JEO and HEFT (both ITs) on big discounts during the depths of Eirozone melt down and then sold out for very tasty gains. Of course, they have continued to soar, but I have other European holdings so I was really just reducing my exposure.

adewalton

Well done it now!
All sorted!!!
Went for the 60/40 VLS Fund
Lump to sort with then after April 6th 2013 add more to it.
Its in a S&S ISA.
Already used up Cash ISA allowance for 2012/2013.
Very pleased and hope to see it do ok over the coming years!!
Don't think I will set up drip feed into it just invest larger lumps when available etc.
There you go!!!
Thanks

takesyourchances

adewalton wrote: »

Well done it now!
All sorted!!!
Went for the 60/40 VLS Fund
Lump to sort with then after April 6th 2013 add more to it.
Its in a S&S ISA.
Already used up Cash ISA allowance for 2012/2013.
Very pleased and hope to see it do ok over the coming years!!
Don't think I will set up drip feed into it just invest larger lumps when available etc.
There you go!!!
Thanks

Well done with starting your new VLS fund and I also have recently started the VLS 60% which I am sure you have read

I felt that was the biggest step, actually deciding on which fund and going for it!

Good luck with it all and holding long term I am sure things will work out

Best regards.