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Multi Asset Funds

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  • A_T
    A_T Posts: 975 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Alexland wrote: »
    Passive investment strategies have been available to retail investors since Bogle launched his first US tracker in 1976. Although some ITs predate this they are likely to have had changes in their investment strategy along the way.

    Alex

    Passive funds have been available in the UK but not low cost multi-asset (i.e. equity/bond) funds that the provider rebalances - like Lifestrategy, Consensus, HSB Global Strategy, etc. It would be interesting to know how, for example, Lifestrategy 20 would have performed during the credit crunch.
  • pinkllama
    pinkllama Posts: 119 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    If you’re interested in seeing how Lifestrategy funds performed during 2008, look at their U.S versions.
  • danm
    danm Posts: 541 Forumite
    Part of the Furniture 100 Posts
    edited 27 July 2019 at 7:53PM
    Aminatidi wrote: »
    the passives haven't been around long enough to know how they'll cope in a full on shitstorm IMO.

    What do you mean by cope? I would fully expect them to reflect the shitstorm, or am I missing something?
  • Audaxer
    Audaxer Posts: 3,547 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    A_T wrote: »
    It would be interesting to know how, for example, Lifestrategy 20 would have performed during the credit crunch.
    I would think it would have probably performed very similar to a portfolio containing a 20% global tracker and a 80% global bond fund.
  • Alexland
    Alexland Posts: 10,183 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    A_T wrote: »
    Passive funds have been available in the UK but not low cost multi-asset (i.e. equity/bond) funds that the provider rebalances - like Lifestrategy, Consensus, HSB Global Strategy, etc. It would be interesting to know how, for example, Lifestrategy 20 would have performed during the credit crunch.

    Multi asset funds are just an implementation of modern portfolio theory which goes back further to 1952.

    Alex
  • A_T
    A_T Posts: 975 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Audaxer wrote: »
    I would think it would have probably performed very similar to a portfolio containing a 20% global tracker and a 80% global bond fund.

    So how would that have performed? Including the rebalancing?
  • Alexland
    Alexland Posts: 10,183 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    A_T wrote: »
    So how would that have performed? Including the rebalancing?

    A quick skim read of the below PDF suggests that a 20% stock and 80% bonds portfolio would have returned the US investor an average of 6.7% nominal or 3.6% real above inflation in the period 1926 to 2009. Vanguard have provided loads of data if you want want to dig through it all...

    https://www.vanguard.co.uk/documents/adv/literature/portfolio-rebalancing.pdf
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    A_T wrote: »
    Passive funds have been available in the UK but not low cost multi-asset (i.e. equity/bond) funds that the provider rebalances - like Lifestrategy, Consensus, HSB Global Strategy, etc. It would be interesting to know how, for example, Lifestrategy 20 would have performed during the credit crunch.

    Why would that be interesting? Unless you knew before the cc happened in which case you wouldn't need such an investment anyway.
  • A_T
    A_T Posts: 975 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Alexland wrote: »
    A quick skim read of the below PDF suggests that a 20% stock and 80% bonds portfolio would have returned the US investor an average of 6.7% nominal or 3.6% real above inflation in the period 1926 to 2009. Vanguard have provided loads of data if you want want to dig through it all...

    https://www.vanguard.co.uk/documents/adv/literature/portfolio-rebalancing.pdf

    US data so a rough guide only. Thanks anyway.
  • A_T
    A_T Posts: 975 Forumite
    Part of the Furniture 500 Posts Name Dropper
    AnotherJoe wrote: »
    Why would that be interesting? Unless you knew before the cc happened in which case you wouldn't need such an investment anyway.

    Believe it or not some people position their portfolios very defensively in case of a stock market crash.
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