Vanguard core-satellite advice pls

Kendall80

I'd rather not give precise amounts but my current rough % allocations are as follows; 30% VLS 100, 15% Woodford, 10% FS AP Leaders, 10% JPM Japan hgd, 10% JPM europe hgd, 7.5% axa fram man. income, 7.5% Henderson UK prop, 10% BG Global Discovery (small caps). Minimum 20 yr time horizon. Upto 1k monthly top-ups.

cuthbertlilly

Kendall80 wrote: »

I'd rather not give precise amounts but my current rough % allocations are as follows; 30% VLS 100, 15% Woodford, 10% FS AP Leaders, 10% JPM Japan hgd, 10% JPM europe hgd, 7.5% axa fram man. income, 7.5% Henderson UK prop, 10% BG Global Discovery (small caps). Minimum 20 yr time horizon. Upto 1k monthly top-ups.

interesting asset allocations there. why do you think Woodford complements my VLS80 well then?

Kendall80

cuthbertlilly wrote: »

interesting asset allocations there. why do you think Woodford complements my VLS80 well then?

Gives a little boost on the up and is quite a conservative fund so offers some downside protection. You've 20% bonds which should assist with market dips too. He holds different shares to the FTSE 100 tracker funds so there is probably little duplication with the VLS.

cuthbertlilly

Kendall80 wrote: »

Gives a little boost on the up and is quite a conservative fund so offers some downside protection. You've 20% bonds which should assist with market dips too. He holds different shares to the FTSE 100 tracker funds so there is probably little duplication with the VLS.

Cool, i'm sticking with Woody on a steady drip-feed alongside VLS80 then . Fiddlesticks to the naysayers I say. I've realised that VLS is just tracking the markets (upwards/donwards) anyway, so IMO some active % is good.

bigadaj

Kendall80 wrote: »

Gives a little boost on the up and is quite a conservative fund so offers some downside protection. You've 20% bonds which should assist with market dips too. He holds different shares to the FTSE 100 tracker funds so there is probably little duplication with the VLS.

Given the size of his fund then there is inevitably duplication with any other fund that holds large cap uk stocks. A brief review of his holdings shows nine of the top 10 being ftse 100 stocks, representing nearly half of the fund value.

Kendall80

bigadaj wrote: »

Given the size of his fund then there is inevitably duplication with any other fund that holds large cap uk stocks. A brief review of his holdings shows nine of the top 10 being ftse 100 stocks, representing nearly half of the fund value.

You're of course right in that his main holdings are FTSE 100 stocks. However, the advantage over a tracker is that he omits tracker heavy energy/mining stocks along with bank stocks and also isn't limited to just the UK. He can obviously vary the allocation to each stock too whereas a tracker cannot. Therefore, in admittedly a short time since its inception the fund has remarkably outperformed a standard FTSE100 tracker (+20% : -2%) and also its IA sector UK Equity Income (5%). Of course it remains to be seen how the fund will fare/compare when energy stocks recover. I've a feeling trackers may well make up some ground on it during that part of the cycle.