BlackRock Consensus vs. Vanguard LifeStrategy

marlowko

Hi,

Have just noticed the BlackRock Consensus tracker. Looks like it is similar to the Vanguard LifeStrategy trackers, however it is free of platform fee through HL (atmo).

What do you guys think about this tracker? I was thinking of going into LifeStrategy 80%, however might add the BR Consensus, as it's with no platform fee at the moment...

Thanks

Ing

ccbrowning

Well, you can chart the two yourself and see:

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/b/blackrock-consensus-85-accumulation/charts

On the bottom right, add a fund and select the Vanguard 80% equity accumulation. The timeframe seems quite limited due to how long they've been around in the UK I think, but Vanguard has performed better on that chart.

One thing to keep in mind is that the Vanguard fund does have a montly platform fee, yes. But, the Blackrock fund has a .6% annual charge compared to the Vanguard one of .32% - so if you keep a large amount of money in the Vanguard fund it will end up cheaper. In between meetings, but if you plug numbers in to Excel it should be fairly easy to calculate.

marlowko

Thanks cc, that helped a lot... The regular savings will be in quite low amounts, therefore I am quite inclined to go for the BlackRock one, might even be the 100 one...

SavingFish

On the plus side, BlackRock's initial charge is reduced to nothing by HL.

Vanguard funds typically include a small initial charge, which discourages dipping in and out of them.

That means if you do eventually invest enough to pass the annual-charge/platofrm-charge break even point, you won't be effectively penalised for moving the money out of BlackRock and into Vanguard.

takesyourchances

Anyone else hold the Blackrock Consensus 85 or others in the range?

In my S&S ISA I have the Vanguard LS 60% as a core at present 65% and 5 managed side funds and will be filling my ISA limits in cash and S&S.

I have a pension but deciding still if I should transfer it elsewhere or leave it, I pay into it along with my employer..

I have been thinking of a very simple SIPP as well as I also want to put a bit extra away for my pension and also when I use up my ISA limits to add a bit extra to rather than keeping more in cash so I decided to open an SIPP and simple from scratch.

As I am already paying a platform fee for my VLS of £2 per month on HL and using it as a good core base I decided for a simple SIPP to start a small monthly drip feed to the Blackrock Consensus 85 after looking over them and other various ideas.

As I am starting the SIPP from scratch and not with a lump sum I didn't want the second platform fee related to the VLS as I will start off with £80-£100 per month into this and build it up. I am 33 so got time to build it up but at the same time want to start adding more for the long term as well.

I can either leave the Blackrock 85 sole as this in the SIPP or add a few tilts in time when the pot would grow.

While I am planning on using my ISA limits I decided on this rather than managed core funds and higher managed fees and also not having the platform fee again twice for a VLS as considered a sole 80%.

Basically I would like to build another long term pot up with a bit more control and options and to start it simply like this along side my S&S ISA which I have a long term view with.

Interested if anyone else is using the Blackrock Consensus range etc.

Thanks

robatwork

I'm in the Consensus 100 in my S&S ISA.

So far so average.

takesyourchances

robatwork wrote: »

I'm in the Consensus 100 in my S&S ISA.

So far so average.

Thanks for the reply, how long have you had the 100 and is it on its own?

talexuser

I wonder if the 4% difference in return just over a year is party due to compounding of the difference in annual or other transaction charges? Over 10 years it might add up to quite a loss in comparison?

takesyourchances

talexuser wrote: »

I wonder if the 4% difference in return just over a year is party due to compounding of the difference in annual or other transaction charges? Over 10 years it might add up to quite a loss in comparison?

Not sure on that one to be honest are you comparing to the Vangaurd LS?

talexuser

takesyourchances wrote: »

Not sure on that one to be honest are you comparing to the Vangaurd LS?

see post #2.

jimmyjones_2

I was looking at the BlackRock Consensus until I noticed the buy / sell spread of ~5% which is essentially a 5% initial fee if I understand correctly. Maybe that could explain the performance difference if HL take the spread into account.

I will stick to Vanguard Lifestrategy