Vanguard Lifestrategy funds - performance?

krish123

Hi all,


I just wanted to get a feel of how well the different lifestrategy funds have performed but using real examples.


Iv only recently invested in the LS 80 fund and am currently just trying to build up some funds in there.


if anyone is willing to share I would just like to know how you have done investing in either the LS 40/60/80/100 funds, so how much you have put in, how much your portfolio has grown, what dividends you have received etc.


Basically im after real life examples of how well or bad these funds have performed.


thanks.

Kendall80

krish123 wrote: »

Hi all,


I just wanted to get a feel of how well the different lifestrategy funds have performed but using real examples.


Iv only recently invested in the LS 80 fund and am currently just trying to build up some funds in there.


if anyone is willing to share I would just like to know how you have done investing in either the LS 40/60/80/100 funds, so how much you have put in, how much your portfolio has grown, what dividends you have received etc.


Basically im after real life examples of how well or bad these funds have performed.


thanks.

Can you not add them as comparators to the same chart? That can give a good visual cue.

Then you can use a monthly or lump savings calc to estimate growth based on interest over certain periods (ie 1 yr, 3 yr, 5 yr etc.)

Linton

suggest you wander over to Trustnet and look under tools/charting. You can get nice graphs comparing their performance. Trustnet will also give you performance over each of the past 5 years.

dunstonh

Past performance wont be much use to you any way as they have yet to cover a full economic cycle and no significant downturn period.

Kendall80

dunstonh wrote: »

Past performance wont be much use to you any way as they have yet to cover a full economic cycle and no significant downturn period.

In addition - they are heavily US weighted so their gains are at present magnified over the likes of the more UK-centric L&G multi-index funds. Just something to consider for when the US market drops.

krish123

Kendall80 wrote: »

Can you not add them as comparators to the same chart? That can give a good visual cue.

Then you can use a monthly or lump savings calc to estimate growth based on interest over certain periods (ie 1 yr, 3 yr, 5 yr etc.)

Where exactly can you do this?


it would be great to see what you have described above with real figures etc.

Kendall80

krish123 wrote: »

Where exactly can you do this?


it would be great to see what you have described above with real figures etc.

This is money have a useful savings calc.

You can add other funds as comparators on most platforms and sites such as trustnet, morningstar etc.

ExMugPunter

The graphs will only show you so much though and actual investors performance will differ depending on when and how you fund the accounts.

So here are my real life figures according to my screen on HL.

In my ISA I started with lump sums into the 60% LS during Jan 2013 and have been paying a set amount per month after. Its actual performance is showing as +14.77%

I have the 80% in my pension and that is showing as +16.13%. That is made up of a lump sum in Feb 13 and then regular amounts each month since.

These are only short time spans so dont really mean anything but hope that helps.

krish123

ExMugPunter wrote: »

The graphs will only show you so much though and actual investors performance will differ depending on when and how you fund the accounts.

So here are my real life figures according to my screen on HL.

In my ISA I started with lump sums into the 60% LS during Jan 2013 and have been paying a set amount per month after. Its actual performance is showing as +14.77%

I have the 80% in my pension and that is showing as +16.13%. That is made up of a lump sum in Feb 13 and then regular amounts each month since.

These are only short time spans so dont really mean anything but hope that helps.

yes you get exactly what I mean im looking for real investors experiences.


if you don't mind how much did u lump in initially and how much do you invest monthly. 14.77% is pretty good over a year

Ryan_Futuristics

Just to offer my usual word of caution ...

Past performance often has less to do with future performance than tossing a coin (partly because markets and assets tend to run somewhat cyclically - and with a semi-passive fund, this would be anticipated)

Vanguard LS80 has 36% of its assets in US equities, and 19% in bonds

Much of the recent performance has been down to the US booming since 2009 ... Now this is likely to continue in the near-term (partly because bond yields are so low, US investors have had fewer options in where to invest, and partly because the US is experiencing solid growth)

But this is very much priced in ... US equities are trading at about double their long-term average valuation, and throughout the 20th century, whenever the US had traded this high, 10-year returns have been about 0.5%/annum in real terms

The other risk is that with interest rates rising next year, *some* investors are worried about bond funds (which comprise almost 20% of this fund)

Now many will say you can't predict anything - the only practical solution is to buy-and-hold, maintain your asset distribution, and ignore the news ... There's certainly a good argument for that, but investing is all about balancing risk and return - and these are two potential headwinds that are likely to have *some* impact on a fund like this over the next few years

The diplomatic thing to say may be: Manage your expectations ... We may get another year of strong returns, but over half of this fund is looking expensive by long-term averages ... Don't forget you're investing in two of riskiest asset classes there are

In_For_A_Penny_2

krish123 wrote: »

yes you get exactly what I mean im looking for real investors experiences.

I still don't see how this is useful. My monthly investment placed last week (by chance) is doing a lot better than if I'd placed it yesterday. I could extend that to last month or last year but it really doesn't help you decide if this is the right investment for you.