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Multi Asset Funds
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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.1 -
If you’re interested in seeing how Lifestrategy funds performed during 2008, look at their U.S versions.1
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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.
Alex1 -
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.pdf2 -
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.1 -
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.1 -
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.1
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