Core-Satellite Portfolio

Prism

bcfclee27 wrote: »

I'm pretty happy however that I understand VLS to a degree.
I'm also aware VLS as you say is light to non existent on global small caps and I think others have said it's also light on emerging markets ?

Would I therefore be better off investing in as you say a global small cap tracker and maybe an emerging markets tracker both on the VLS platform ?

Thanks again for all your help.

To answer this you have to decide WHY you want a satellite of other funds. Nobody can say if you would be better off with extra small caps and EM. The three global funds you have picked are all you need. If you personally decide that you more more small caps than those funds give you then that would be a reason. If you decide that emerging markets is likely to out perform developed markets then thats a reason. History tells us that small caps tend to do well. Most people assume that emerging markets will grow faster than developed markets but will big developed companies eat up all the profits or will the small local companies become the mega corps of the future? Who knows

As an example, I have decided that companies that make money from automation, robotics and AI will grow faster than other companies. I have invested in an automation ETF as a satellite fund. Its my opinion. I could very well be totally wrong so you shouldn't listen to me. You need your own opinions on the future of the world economy if you are going to go off script.

bcfclee27

A_T wrote: »

60 and 80 invest in the same things except 60 has 60% equities.

You could go 70% Vanguard FTSE Global All Cap Index fund then you'd have small cap as well. 30% could go in Vanguard Global Bond Index fund. This would be the simplest way to get to what you seem to be trying to achieve.

Thanks, to be honest regrading what I want to achieve.
I have 125k to invest and in 20 - 25 years I want to double or treble that number. As much money as possible basically

bcfclee27

Prism wrote: »

To answer this you have to decide WHY you want a satellite of other funds. Nobody can say if you would be better off with extra small caps and EM. The three global funds you have picked are all you need. If you personally decide that you more more small caps than those funds give you then that would be a reason. If you decide that emerging markets is likely to out perform developed markets then thats a reason. History tells us that small caps tend to do well. Most people assume that emerging markets will grow faster than developed markets but will big developed companies eat up all the profits or will the small local companies become the mega corps of the future? Who knows

Well the only reason I would want to addi it in is that others think that small caps and emerging markets are 2 things underweight in VLS.
That seems to be one of the few criticisms of the product.

My goal is just to return as much money as possible for retirement in 20-25 years time.

pinkllama

All regional equities apart from the U.K. are approx 20% underweight in the Lifestrategy funds.

I!!!8217;d suggest going to Morningstar or Trustnet and create a 5 year chart of LS80 vs HSBC Dynamic and LS60 vs HSBC Balanced to look at how differently (or not) they have performed.
This will hopefully give you a better idea of which to go for.

firestone

You are hopefully heading in the right direction but if you can guarantee the answer to the question in your last line then everybody will be asking you for advice next:)

rathernot

Remember there's nothing implicit that means an investment trust will give you better returns because it's an investment trust.

Lindsell Train Global Equity and Fundsmith and many other funds that have been on good runs lately are OEICs and I think Terry Smith has gone on record saying he's never do Fundsmith as an Investment Trust (though the smaller FEET is an IT).

OEICs have one arguable benefit which is that they are just a basket of goods, they don't depend on borrowing and they don't depend on the "personality" surrounding someone like Terry Smith for value, the value is the things they hold.

capital0ne

Look, no one knows, anything could happen so just go with your own research and outcome you want or just throw it all into your core and VLS/HSBC.

Everyone knows, it's time in the market, not timing the market so just get on with your chosen strategy, whatever that is because it just won't matter