VLS not on Halifax SD?

Audaxer

Alexland wrote: »

Yes HSBC GS Balanced seems to be between VLS60 and VLS80. It had 63% equities and the bonds carry greater correlation with equities and potential return.

I'm surprised then that the HSBC GS Balanced performance has had more or less the same performance as the VLS60 over the past 5 years. As they have slightly more equities and higher performing bonds I would have thought the HSBC performance would exceed the VLS60 in a bull market.

I agree the VLS40 sounds very cautious but we are at different stages of life and I know you are very cautious about the FSCS limits - although £50k is also the value at which the Halifax SIPP charges double from £90 to £180 per year which I guess you are keen to avoid.

I didn't know that, but the SIPPs we have are not with Halifax, just our S&S ISAs.

I don't get the feeling that Jane Davies takes a very active approach and from what I read online she had a fairly static asset allocation and sees the HSBC Open Funds series as solutions. Definitely no stock picking going on.

Maybe it's just the Corporate Bond part of the fund that is actively managed and that the fund's equity allocations remain the same.

Alexland

Audaxer wrote: »

I'm surprised then that the HSBC GS Balanced performance has had more or less the same performance as the VLS60 over the past 5 years. As they have slightly more equities and higher performing bonds I would have thought the HSBC performance would exceed the VLS60 in a bull market.

Although the 5 year annualised returns are similar at 9.7% the HSBC GS Balanced has done better on the 1 and 3 year annualised returns. The main difference seems to be in 2013 when VLS60 did about 1.5% better for some reason.

Audaxer wrote: »

Maybe it's just the Corporate Bond part of the fund that is actively managed and that the fund's equity allocations remain the same.

There is more information about the HSBC Tactical Asset Allocation 'TAA' in the fund brochure:

http://www.assetmanagement.hsbc.com/uk/attachments/advisers/fund-range/hsbc_global_strategy_portfolios_brochure.pdf

Audaxer

Alexland wrote: »

There is more information about the HSBC Tactical Asset Allocation 'TAA' in the fund brochure:

http://www.assetmanagement.hsbc.com/uk/attachments/advisers/fund-range/hsbc_global_strategy_portfolios_brochure.pdf

That's interesting - I hadn't seen that brochure before. They look to be well managed funds, and you would think if they have the Strategic Asset Allocations right and manage the Tactical Asset Allocations like they say they do, you would think it would do well to minimise losses in an equity crash.

Alexland

Audaxer wrote: »

That's interesting - I hadn't seen that brochure before. They look to be well managed funds, and you would think if they have the Strategic Asset Allocations right and manage the Tactical Asset Allocations like they say they do, you would think it would do well to minimise losses in an equity crash.

Maybe but they have to respect the investors appetite for taking risk for potential return. It all gets a bit layered when applying your own TAA and SAA ontop of the multi asset fund's decisions. Still the more we understand these things the more confident we are when we see movements. What I really don't like is unexpected movements that don't match my understanding of the underlying market movements.

Alex.