Defensive investing!!

Audaxer

Alexland wrote: »

Or L&G Multi Index 5 (if its on your platforms) which is 54% equities, 34% bonds and the remainder invested in other assets and cash. 0.09% higher fee than VLS but might be worth it as it has a risk management approach.

I agree that's another option. The only thing I don't like about the L&G Multi Index funds is that they are dual priced, which seems to me like you are paying an initial fee which can be quite substantial if you are investing a large lump sum in the fund.

Alexland

I guess it's an incentive to hold on for the long term and at least your value isn't being erroded by others switching in and out. I am in VLS at the moment but given market conditions would much prefer to be in L&G but it's not on Halifax. Counting the months down until I have enough in my employer pension that it makes sense to do another transfer out to II to get into L&G. Then I will have both!

Audaxer

Alexland wrote: »

I am in VLS at the moment but given market conditions would much prefer to be in L&G

Alex, is it because it's risk targeted and actively managed that you think it may do better than VLS in an equity crash?

Have you considered the HSBC Global Strategy funds which I'm sure are on Halifax SD and are also actively managed allocations of mainly passive indexes?

Alexland

Yes the L&G shares have lower P/E ratios and less US exposure than VLS. But it also has lower credit ratings on the bonds (which seems to be an approach currently followed by the M&G Optimal fund as this may be offering better value at the moment). So it depends on the nature of the next correction as to which fund does better. Still they are similar and I intend to hold both and not trade them.

On the HSBC fund I prefer a bit of home bias (to dampen currency movement) so would only hold it alongside a UK fund or trust. I have always wanted to own City of London IT which might complement the HSBC fund.

Alan5

Really useful information. Thank you!
For comparison, what would be your thoughts on HL 'Conservative' ready made portfolio or Bestinvest 'Growth' ...I assume some additional cost but bearing in mind my lack of understanding of investing?

Alan5

Audaxer

Alan5 wrote: »

Really useful information. Thank you!
For comparison, what would be your thoughts on HL 'Conservative' ready made portfolio or Bestinvest 'Growth' ...I assume some additional cost but bearing in mind my lack of understanding of investing?

Alan5

The HL Ready Made Portfolios are expensive. The Conservative one shows ongoing fund costs of 1.36%. If you add the 0.45% platform charge that is 1.71% total costs which most people would consider pretty expensive, and the gains are not going to be high with a conservative fund.

Alan5

Thank you, Audaxer. Actually, I meant 'Balanced' portfolio. Forgot the name! ...But I guess the same comment about cost will apply.

Audaxer

Alan5 wrote: »

Thank you, Audaxer. Actually, I meant 'Balanced' portfolio. Forgot the name! ...But I guess the same comment about cost will apply.

I looked at these portfolios earlier this year when I joined this forum as at first it seemed a good ready made solution, but after I was advised and then learned a bit more myself, I realised they were too expensive. I like global passive multi asset funds with really low charges, but I have also chosen some active funds for my income portfolio. For active funds I personally wouldn't pay over 1% for an ongoing charge - preferably no more than 1% in total including platform charges.

BLB53

For comparison, what would be your thoughts on HL 'Conservative' ready made portfolio or Bestinvest 'Growth' ...I assume some additional cost but bearing in mind my lack of understanding of investing?

Both are way to expensive for you to get much return so avoid the 'ready made' route and go for the low cost index funds such as Vanguard Lifestrategy or L&G fund or HSBC Global all with charges of well below 0.5%.

OldMusicGuy

Audaxer wrote: »

I looked at these portfolios earlier this year when I joined this forum as at first it seemed a good ready made solution, but after I was advised and then learned a bit more myself, I realised they were too expensive. I like global passive multi asset funds with really low charges, but I have also chosen some active funds for my income portfolio. For active funds I personally wouldn't pay over 1% for an ongoing charge - preferably no more than 1% in total including platform charges.

Agree. They are expensive. All my passive funds are around .5 to .6% including the HL platform charge, and my active managed fund is only just over 1% including the platform fee.