HSBC Global Strategy Vs Vanguard LifeStrategy

Albermarle

Is having a SIPP also with Vanguard a case of "eggs in 1 basket"?

Has the Vanguard pension actually been launched yet ?
In any case it is not a SIPP as you can only access Vanguard funds .
It is more similar to a traditional personal pension , with a limited choice of in house funds .

simoningram

Albermarle wrote: »

Has the Vanguard pension actually been launched yet ?
In any case it is not a SIPP as you can only access Vanguard funds .
It is more similar to a traditional personal pension , with a limited choice of in house funds .

No Vanguard haven't launched their SIPP yet, but you can open a SIPP with other providers and invest in Vanguard. I'm doing exactly that with Cavendish who charge a flat 0.25% platform fee, and then you just pay the standard Vanguard charge on top. It works for me, as it doesn't limit me on one providers funds.

Potboiler

My SIPP is invested 50:50 HSBC Global Eq/VLS60 (to reduce remote risk of fund failure)via iWeb so no platform fee, although offset by periodic SIPP charges.
Over the last three years, virtually nothing in it between the two funds, though it amuses me to watch them compete and diverge according to events.

fronty

Potboiler wrote: »

My SIPP is invested 50:50 HSBC Global Eq/VLS60 (to reduce remote risk of fund failure)via iWeb so no platform fee, although offset by periodic SIPP charges.
Over the last three years, virtually nothing in it between the two funds, though it amuses me to watch them compete and diverge according to events.

How have they performed? I'm quite interested in taking a similar approach.

JohnWinder

Hard to quibble with much of that. Haven’t read so much that rang true and sounded sensible for ages. So a couple observations:
Having a state pension, any investment isn’t ‘all eggs in one basket’, otherwise some people might baulk at having all their investments in one business, at the mercy of one computer system, under the care of one custodian etc.
Having a single multi-asset fund has lots of appeal. But if you’re regularly drawing from it in retirement at a time when equities are down but bonds are up you’re selling equities when you might prefer to sell bonds. This shortcoming is mitigated by the constant rebalancing that the fund managers will be doing - selling (up) bonds to buy (down) equities.
Having foreign bonds, particularly govt bonds, for a UK resident wouldn’t seem to me to be adding risk, rather it offers some protection against UK sovereign risk (or do UK citizens think that’s zero!).

[Deleted User]

Having a single multi-asset fund has lots of appeal. But if you’re regularly drawing from it in retirement at a time when equities are down but bonds are up you’re selling equities when you might prefer to sell bonds

That’s timing the market. If you want to time then VLS type funds are the wrong vehicle.

[Deleted User]

Having foreign bonds, particularly govt bonds, for a UK resident wouldn’t seem to me to be adding risk, rather it offers some protection against UK sovereign risk (or do UK citizens think that’s zero!).

When the currency isn’t pegged and the monetary policy isn’t delegated to another country and the debt is in the currency your government controls then sovereign risk while not zero, is pretty close to zero.

Some foreign bonds will have higher risk countries. For example countries within the Euro zone which have no control over currency and may be forced to default. Also, hedging is a drag on long term returns

Sally57

OldMusicGuy wrote: »

FWIW I hold both VLS and HSBC, plus another low cost multi-asset fund.

Would you mind me asking what the other low cost multi asset fund is?

Audaxer

waveydavey48 wrote: »

Thanks for those informative replies folks - helpful as ever.

Can I just ask if there's any need to go with more than 1? We are building up S&S with VLS. Is having a SIPP also with Vanguard a case of "eggs in 1 basket"?

Apologies to OP if I've gatecrashed your thread!

There is no need to go with more than one, but if you have a significant amount like OP's £380k I personally would spilt between the 2 multi asset funds, and also maybe hold on separate platforms, rather than have all my eggs in the one basket.

Audaxer

Deleted_User wrote: »

"Having a single multi-asset fund has lots of appeal. But if you’re regularly drawing from it in retirement at a time when equities are down but bonds are up you’re selling equities when you might prefer to sell bonds"

That’s timing the market. If you want to time then VLS type funds are the wrong vehicle.

I don't think that is timing the market - it makes sense not to sell equities if possible in an equity crash. If you were to sell bonds rather than equities in that situation it would also help in rebalancing back to your original weightings. I agree that VLS type funds is the wrong type of funds if that is your strategy.