Vanguard Life Strategy

takesyourchances

Carpi09 wrote: »

It's the first time I am seeing negative now but that is only because I have decided to add added risk by having an Asian fund. I bought just before the fall, I am not worried at all. Think that fund is at -9% now

At the start of the week my Aberdeen Asian Small Cap was sitting at about +1% at best it was 12% in a matter of a few months. I am not worried at all, I am actually drip feeding that fund on the 7th next month along with others.

I am not checking my account now until I need to change drip feed amounts, will be drip feeding the same regardless. Movement this week, next week or next month is nothing to worry about for those of us in for the long term

Actually it is good training not to get used to rises all the time and this is our first exam this year so to speak and will buy as normal and get some of the lower prices for when the better times come around

Glen_Clark

bowlhead99 wrote: »

I only use the 100% equity version at the moment as I'm just as happy with cash as government bonds at current prices.

Does anyone know if Vanguard only have UK Government Bonds in their funds? Or do they have other bonds that you wouldn't get exposure to through cash?

A_Flock_Of_Sheep

It has Government Bonds I think
James Bond
Brooke Bond
and Corporate Bonds and I think some overseas bonds.

badger09

They do have a Global Bond Index Fund.

https://www.vanguard.co.uk/uk/mvc/investments/mutualfunds#mf_fundstab

bowlhead99

Glen_Clark wrote: »

Does anyone know if Vanguard only have UK Government Bonds in their funds? Or do they have other bonds that you wouldn't get exposure to through cash?

If you get the 80% version of the fund you have ~6.2% in a UK investment grade bond tracker; with the 60% version it goes up to ~12.5%. The rest is UK gilts (although some of them are index linked).

I tend to think that while investment grade bonds might yield a bit more than gilts they are still overpriced to a similar extent. The average retail investor can get a couple of percent or more in a bank account or ISA with close to zero risk of loss of principal. I accept that's harder to do if we are talking about inside a pension or S&S ISA where you can't just go in to a local branch and add the account into your Sipp - but if you were going to invest 10k in Vanguard 60% S&S ISA I would be minded to put 6k into the 100% equities and 4k into a cash ISA to transfer later as part of a 'rebalance' further down the line.

If you are looking for bond exposure, higher higher yield can be found in non-investment grade bonds, or shorter dated bonds or gilts are less risky than buying an entire index. So basically the Vanguard Lifestrategy bond exposure doesn't do it for me. Without trying to recommend any, there are some decent strategic bond funds out there (or other specialist corporate bond funds) which I think can navigate this unusual set of economic conditions rather better than an index, even though you obviously pay a fee for the privilege.

A_Flock_Of_Sheep wrote: »

It has Government Bonds I think
James Bond
Brooke Bond
and Corporate Bonds and I think some overseas bonds.

Wrong on the James and the Brooke:rotfl: and the Overseas. 2 bits of comedy in one answer is good value but one plain incorrect fact out of three is not particularly good going. Good job these threads are only a basis for research rather than expected to be relied upon for wealth generation. Probably best not to answer if you don't know the answer.

badger09 wrote: »

They do have a Global Bond Index Fund.

https://www.vanguard.co.uk/uk/mvc/investments/mutualfunds#mf_fundstab

That's true, "This market-weighted Index is designed to reflect the total universe of the major investment-grade and government bond markets with maturities greater than one year".

It's not part of the Lifestrategy but is something you could buy if you wanted to do your own thing and manually rebalance it with the equities yourself. I still wouldn't trust an index for bond exposure in these unprecedented times but each to their own.

esmecullen

elantan wrote: »

my vanguard is running at a loss just now .. but it got me a bit excited as i finally managed to save another £250 to add to it, so when it eventually rises i will have made just that wee bit extra on the amount i just bought

its keeping in mind this is a long term strategy thats important i reckon

had a bit of a :eek: moment myself when the fund price dropped............but taking peeps advice from here treated it as a "sale" dripped in £250 more last week:)

Carpi09

Another £1000 added, good price at the moment

stardust09

Carpi09 wrote: »

Another £1000 added, good price at the moment

I'm not so flush - but I've bought one more unit @ c. £119! Every little counts... :think:

nufc_fan

I am planning on starting to invest £200 per month into the Life Strategy 80% fund, I am 27 at the moment. Hopefully able to increase monthly payments in the future.

Confused about the different providers to open the ISA with. Who is currently the best bet for starting with a small pot and regularly adding by Direct Debit?

JohnRo

nufc_fan wrote: »

I am planning on starting to invest £200 per month into the Life Strategy 80% fund, I am 27 at the moment. Hopefully able to increase monthly payments in the future.

Confused about the different providers to open the ISA with. Who is currently the best bet for starting with a small pot and regularly adding by Direct Debit?

https://www.charles-stanley-direct.co.uk/