Investment management

kinger101

RobHT said:

Regarding all the others, we may argue in a different way , show me the problem there.

Start by telling us what you're trying to achieve.  

ColdIron

Keeping the thread running for as long as possible I would imagine

[Deleted User]

Looks like you are using a bucketing strategy (sort of)
How long are you to retirement (sorry if this has been mentioned before) - if you are 20 years from retirement I wouldn't bother with the buckets
Or are you investing for money available in the buckets you have for purchases for before retirement but within say 3,5,7,10 years, if so I understand where you are coming from. But it is a complicated way of doing it

csgohan4

op where have you done your research?

monevator is a good start, but what is your investment strategy? your funds are all over the place and so much overlap it aint funny anymore

barnstar2077

If you were in drawdown then owning two LS funds at the opposite ends of the risk spectrum might make sense.  You could have a few years worth in LS20 (which has relatively little volatility) and then have the bulk in LS60/80/100 for instance.

You could also use an LS fund as your base and add satellite funds into sectors/geographical regions where you see the most potential.  That is not as easy as it sounds however.  This time last year I picked between an insurance fund, which had a solid track record, and a healthcare fund that was not performing quite as well.  I went with the insurance fund as I saw it as the safer option in the long run.  The insurance fund is down eight percent now due to covid, and the healthcare fund is up twenty percent.  I only diverted a fraction of what I put into my pension last year into the insurance fund thankfully.  My point being though, that as a novice, what I should have done was just put everything in one global, diversified fund, like the LS funds, until I knew what I was doing.

csgohan4

barnstar2077 said:

If you were in drawdown then owning two LS funds at the opposite ends of the risk spectrum might make sense.  You could have a few years worth in LS20 (which has relatively little volatility) and then have the bulk in LS60/80/100 for instance.

You could also use an LS fund as your base and add satellite funds into sectors/geographical regions where you see the most potential.  That is not as easy as it sounds however.  This time last year I picked between an insurance fund, which had a solid track record, and a healthcare fund that was not performing quite as well.  I went with the insurance fund as I saw it as the safer option in the long run.  The insurance fund is down eight percent now due to covid, and the healthcare fund is up twenty percent.  I only diverted a fraction of what I put into my pension last year into the insurance fund thankfully.  My point being though, that as a novice, what I should have done was just put everything in one global, diversified fund, like the LS funds, until I knew what I was doing.

issue is, OP has 3 VLS funds, which suggests either not able to choose between the three or unsure of strategy or both

Perhaps the Vanguard target retirement funds would be better

Thrugelmir

RobHT said:

Different VLS were for different funds and level of risk, despite the differences seemed to be very limited in terms of funds diversification.

That's the whole purpose of the VLS range. You are paying the manager to determine the most appropriate level of weighting and tolerance to risk and volatility. If you wish to invest in frontier markets (as an extreme example) then add a specialist fund. Don't add another highly diversified fund which holds frontier markets within it. 

Thrugelmir

csgohan4 said:

barnstar2077 said:

If you were in drawdown then owning two LS funds at the opposite ends of the risk spectrum might make sense.  You could have a few years worth in LS20 (which has relatively little volatility) and then have the bulk in LS60/80/100 for instance.

You could also use an LS fund as your base and add satellite funds into sectors/geographical regions where you see the most potential.  That is not as easy as it sounds however.  This time last year I picked between an insurance fund, which had a solid track record, and a healthcare fund that was not performing quite as well.  I went with the insurance fund as I saw it as the safer option in the long run.  The insurance fund is down eight percent now due to covid, and the healthcare fund is up twenty percent.  I only diverted a fraction of what I put into my pension last year into the insurance fund thankfully.  My point being though, that as a novice, what I should have done was just put everything in one global, diversified fund, like the LS funds, until I knew what I was doing.

Perhaps the Vanguard target retirement funds would be better

Funnily enough I had the same thought when I initially read the post yesterday. 

Albermarle

There could be some sense in having VLS 60 and also a similar fund from a different provider , such as HSBC global strategy or Fidelity multi asset allocator or others . VLS has quite a significant home bias whilst the other two mentioned do not. Regardless of your views on home bias , it could be sensible to diversify in this way .

RobHT

Thanks for all the replies.

As I said, I'm a beginner, so... The evaluation I've done is based on target funds, type, allocation etc... I'm quite sure that my analysis, at the eyes of an expert is just silly and therefore wrong, but... I had to start, right? I'll fix issues on the way, and acquiring better knowledge as well.
The first thing that come up in my mind is why should I have only one VLS, the percentage I pay to Vanguard is almost always the same, and I wish to perform in all them + having the security that they are different level of risk due to the funds/bonds percentage, the very simple 1st reasoning on it.
Concentrate all my funds to only one VLS doesn't make me feel safe (emoctions !!!-_-!!!), and in general, I consider it a good move anyway.
If I also consider past performance (I know I shouldn't trust them), VLS 60-80 perform quite similarly, different is VLS40, considered to balance eventual losses on the other 2.
I know what you want to say: "man, they are supposed to succeed".
I say: if not? How do I recover from that loss over the time, or over short term like 1-2 years.
The worst can always happen and I may need to cash out, right? I'll work hard do not make it happen, with income insurance and all the kind of coverage I may need for my life style.

I'm not planning to invest in pension, I'm in my 20s yes , joking, I should do it from now, I just need to evaluate such investment first of all, then I'll post my considerations, these things take time, I'll take mine and let you know.

Sorry for delay in the most important thing, I wish you a nice weekend