BlackRock launches rival to Vanguard LifeStrategy funds

The_Accumulator

dunstonh wrote: »

Same as the regulatory position.

So what does it mean? What I'm really asking you is: why is this a great feature? Who would benefit from it? You described Consensus as fixed allocation when its asset allocation can move across a significant range which is obviously a way of controlling risk. Perhaps you're using the terms to refer to some precise, technical mechanism that makes all the difference to your view?

dunstonh wrote: »

The VLS funds are relatively stable in asset allocation but not constant.

VLS also has the remit to change allocations at the discretion of the fund managers. They only have to keep the equity content at its chosen level. The underlying assets can move around within that at the managers discretion.

So, both mymap and VLS (and L&GMI, HSBC GS and Architas MAP amongst others) are transparent.

This is like saying that because I play football on a Wednesday night I'm a footballer just like Lionel Messi.

One fund says it's managers have absolute discretion to achieve their goals - this is active. The other fund explicitly rejects tactical asset allocation and has published the rules that govern the portfolio:

"the LifeStrategy™ Funds invest approximately 25% of their portfolios in UK equities and the remaining equity portfolio in
unhedged market cap-weighted equities outside the UK. Vanguard believes these allocations represent a reasonable trade-off between investor preferences and ensuring that investors gain
exposure the potential of global investing."

dunstonh wrote: »

They all have an element of active decisions. How much to hold in each sector. How often to rebalance and with what tolerance. How much to include a home bias (which is actually a significant active decision). The active nature is low on all of them because they all use underlying passives.

Whilst the risk targetted ones are slightly more active, they are all relatively low management in that respect. They are all active passives.

See previous reply. What does active passive mean? Using index trackers to market time is no different from using shares to try to improve returns / lower risk. It's active management all day long. I disagree that committing yourself to a 25% fixed UK allocation transforms you into an active investor. Yes, it's deviating from the global market cap but then the vast majority of US passive investors have been doing that for decades.

dunstonh wrote: »

If you prefer the management decisions of VLS to have a home bias and a more rigid asset allocation with less frequent changes then that is your choice. If you prefer a less rigid allocation but targetting a volatility range then that is your choice. Personally, the lower risk end of the scale is better served with risk targetting. Those at the higher risk end of the scale probably better with returns focused versions.

I don't at this stage as not enough is known about the funds to make an informed decision. I would rather wait and see what the facts are before being critical about them.

However, there is now a good selection of multi-asset funds with underlying passives and there is more to life than Vanguard. It is time to accept that maybe some of the others are now more viable than Vanguard.

Yes, a stable asset allocation is exactly what I'm advocating but that's twice now you've accused me of having a Vanguard bias. Vanguard happen to provide the product which is the closest fit I can find to the passive investing ideal. It's not perfect by any means but it's the closest fit, that's why it gets my vote. I've explained my reasons in an extensive post.

I'm genuinely interested to hear your reasons for preferring the alternative.

firestone

been unable to to do the link but from an article in the Telegraph called - Vanguard were nudging investors away from a UK bias which should be easy to search for.Is the quote from Vanguard " There's a asset allocation committee that meets periodically to decide on appropriate allocations and weightings between asset classes.Typically those weights would be modified very infrequently"
So sort of active in their eyes

jaybeetoo

Does anyone know when the MyMap funds will be available to invest in?

london.cidade

jaybeetoo wrote: »

Does anyone know when the MyMap funds will be available to invest in?

i also wonder that!

TCA

Some info on MyMap fund holdings:

MyMap 3 (64% bonds, 34% equity, 2% alternative): https://www.sharesmagazine.co.uk/funds/fund/QD4E/holdings

MyMap 4 (46% bonds, 52% equity, 2% alternative): https://www.sharesmagazine.co.uk/funds/fund/QD4K/holdings

MyMap 5 (33% bonds, 67% equity): https://www.sharesmagazine.co.uk/funds/fund/QD4M/holdings

MyMap 6 (18% bonds, 82% equity): https://www.sharesmagazine.co.uk/funds/fund/QD4A/holdings

[Deleted User]

How do these differ from their Consensus funds?

TCA

newbinvestor wrote: »

How do these differ from their Consensus funds?

Consensus are not risk targetted. Page 1 of this thread.

barnstar2077

I haven't read the rest of the thread, but these funds are on HL now.

A_T

TCA wrote: »

Consensus are not risk targetted. Page 1 of this thread.

And in terms of content:

- the equity holdings are more in line with global market cap
- no corporate bonds
- bond holdings are mostly short-dated (less than 5 years) and only UK and US

Lois_and_CK

Looks like the MyMap funds are now available to buy via HL:

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results?investment=mymap&companyid=2075&lo=0&page=1&tab=prices




Edited to add: oops sorry, I just saw someone else posted the same above.