Vanguard inv uk lt ftse uk equity income index

username12345678

And to put the fund in to context it is a part of a 20+ fund portfolio.

Lokolo

http://www.fundlistings.com/index.aspx?unittype=U&format=tabloid&managercode=Vanguard%20Investments%20UK%20Ltd

I can see the valuations of the different classes here

Vanguard FTSE UK Equity Income Index A........................................
0.40250.210.394.31
Vanguard FTSE UK Equity Income Index A Inc........................................
0.40175.870.274.47
Vanguard FTSE UK Equity Income Index Plus Acc............................................
0.40113.940.184.31
Vanguard FTSE UK Equity Income Index Plus Inc............................................
0.40101.20

Looks like you want the Income version of the UK Equity Income Index Plus

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000UDZ9

£101.20.

Well Linton, nevermind you got there well before me *keep up Lokolo - 2 days behind*

bigadaj

username12345678 wrote: »

And to put the fund in to context it is a part of a 20+ fund portfolio.

Equity income is one area in which actives seem to outperform passives in most scenarios, being forced to hold shares when they have bad news, increased yield coming from a collapse in the share price rather than increased earnings, news about dividend cuts not being included, it's a tough market for a tracker.

username12345678

bigadaj wrote: »

Equity income is one area in which actives seem to outperform passives in most scenarios, being forced to hold shares when they have bad news, increased yield coming from a collapse in the share price rather than increased earnings, news about dividend cuts not being included, it's a tough market for a tracker.

It's 1 of 5 UK Equity Income funds - the other 4 are active.

I also have an active UK large cap and active UK flex cap.

MPN

username12345678 wrote: »

It's 1 of 5 UK Equity Income funds - the other 4 are active.

I also have an active UK large cap and active UK flex cap.

Is there a particular reason why you would want to hold 5 different UK Equity Income Funds?

username12345678

MPN wrote: »

Is there a particular reason why you would want to hold 5 different UK Equity Income Funds?

They are part of a DFM portfolio.

I did ask the DFM chap yesterday in a meeting why there were so many UKEI funds (I x-rayed the portfolio and many equities were coming up 6 times). His argument was that it was based on guidance from the WMA and as my retirement income would be in £ then it made sense to overweight in these types of funds.

I did argue that I was many years from needing to start drawing down and perhaps fishing in an expensive pool where yield hungry investors have pushed up prices wasn't necessarily a strategy I could understand.

MPN

username12345678 wrote: »

They are part of a DFM portfolio.

I did ask the DFM chap yesterday in a meeting why there were so many UKEI funds (I x-rayed the portfolio and many equities were coming up 6 times). His argument was that it was based on guidance from the WMA and as my retirement income would be in £ then it made sense to overweight in these types of funds.

I did argue that I was many years from needing to start drawing down and perhaps fishing in an expensive pool where yield hungry investors have pushed up prices wasn't necessarily a strategy I could understand.

I agree, I don't understand the strategy especially if there is a big holdings crossover between the 5 funds. In the past, I have used two advisors and in both cases when they constructed my portfolio I only held 1 UK Equity Income fund and 1 UK All Companies fund as my UK holdings but maybe I had a different risk scale to you but nevertheless 5 UK Equity Income funds seems excessive to me.

bigadaj

username12345678 wrote: »

It's 1 of 5 UK Equity Income funds - the other 4 are active.

I also have an active UK large cap and active UK flex cap.

Depending on the weightings then that seems a heck of a concentration in uk equity income, historically maybe more understandable as the uk paid higher dividends and people were probably more susceptible for home bias.

There are now plenty of global equity income funds, and regional funds covering Asia, South America etc, so six out of twenty in one country in one sector doesn't look like great investing.