Deleted Thread

Linton

[Deleted User] said:

Linton said:

AnotherJoe said:

Looking at its performance, why would you want something similar ?

"Value" generally has performed poorly in recent years, being eclipsed by the boom in "Growth" but the situation has been rather different in the past and could be again. Also Value could provide some protection against major economic fluctuations. For a diversified portfolio I think it would be wrong to ignore it. 

Using the Morningstar Fund Screener the only mainstream fund I can find with a broad sector allocation that seems to tick the same boxes as VVAL is Liontrust Global Income.  The Screener is not able to select ITs or ETFs on the necessary factors.

Thanks, that's right, I want more small cap value exposure as I don't expect growth outperformance to continue forever. However the expense ratio on the Liontrust Global Income fund is 1.65%, which I think is too steep.

The 1.65% is for the highest charging class, R, which I believe only applies if you buy direct from Liontrust..  You should find that your platform allows you to buy Class I at 0.9%, II certainly does.

aroominyork

Although it's in the large cap space, the paradoxically named Artemis Global Growth is about as value-focused as you can get. I owned it briefly to balance the growth funds I held, but then decided to put a global index fund at the core of my holdings which is where I now get most of my exposure to value. That is a benefit of index funds which is rarely mentioned. 

ossian

Linton said:

Deleted_User said:

The iShares alternative IWFV

It doesnt have a small cap tilt which seems to be a major requirements

ossian said:

I have to say that this could be the worst time imaginable for closing a UK value fund.  I get that value has been out of fashion for a long time and so has the FTSE100 however a return of the style is inevitable and it seams unlikely that one will have to wait long given the way everyone buys growth and the eyewatering valuations that result.  Growth has been running on momentum for quite a long time but when things switch to value there will be little to hold value back given the relative valuation of value to growth.

As ever there is no way of knowing when the growth momentum will peter out but it will.  I can remember when nobody could imagine growth ever performing and pointed to the historic returns of growth funds and said why would anyone buy them.  I can also remember buying UK large caps because they had better historic growth than  everywhere except the US.  As ever when the market turns most investors are caught on the wrong side of the trade and it takes a lot of assets to ride out the market being against you.

VVAL is a global fund.  As regards timing - surely one of the best times to buy into a sector is when it is out of favour.

You are right I clearly had too much beer last night.  Regarding timing, buying low is a good thing although timing the bottom is guesswork.  Personally I would be tempted to buy when there were signs of a value recovery.  I have bought a FTSE 100 tracker as a holding position until I select my own Value tilted vehicle.  I am as surprised as anyone else by this move

coastline

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poppy10_2

Ah, hadn't heard about the closure. Shame, I've got a slice of my portfolio in VVAL and VMOM.

poppy10_2

Closure Notice:
After careful consideration and with the long-term interests of investors in mind, the Directors have resolved that it is in the best interest of each Sub-Fund and its investors as a whole to effect a total redemption of all remaining Shares in each Sub-Fund as at the Compulsory Redemption Date (as defined below), in accordance with the applicable provisions of the Constitution and the Prospectus.

Rationale: VMOM, VLIQ, VMVL -The Directors have been advised by Vanguard Global Advisers, LLC (“VGA”), the investment manager of the Sub-Funds, that the Sub-Funds each currently have a low level of assets under management and accordingly the Sub-Funds are not covering their proportion of fixed costs of the Company, and in order to do so the Sub-Funds would need to increase their level of assets significantly in the future. The Prospectus provides that the Company may redeem all the Shares of a Sub-Fund if its net asset value (“NAV”) falls below US$100 million or its equivalent in another currency. Therefore, it has been determined that the Sub-Funds will be closed as each Sub-Fund’s NAV has fallen below this level.

Rationale: VVAL - The Directors have been advised by VGA that the assets of the Sub-Fund have not grown to a level that would provide the Sub-Fund with the economies of scale that would best serve it and, as such, the Directors believe this would cause a significant administrative disadvantage to the Fund and so the Directors believe it would be in the best interests of investors to close the Sub-Fund. The Prospectus provides that the Company has the discretion to compulsorily redeem all shares in a fund because  of  material  administrative  disadvantage  or  adverse  political,  economic,  fiscal, regulatory  or  other change of circumstances affecting the Sub-Fund. Therefore it has been determined that the Sub-Fund will be closed.

coyrls

What about Schroder QEP Global Active Value Fund?  It seems to have more small cap exposure.

Another_Saver

VHYL is the closest to VVAL.

Frequentlyhere

Sorry if I've missed this somewhere, but I can't find any reports of VVAL closing down - can someone provide a link? I had heard that Vanguard were closing some other value-related funds, (value factor) rather than VVAL.
edit: I should add, I'd be sad to see it go - up 13% in the month since I've bought it!

bowlhead99

Frequentlyhere said:

Sorry if I've missed this somewhere, but I can't find any reports of VVAL closing down - can someone provide a link? I had heard that Vanguard were closing some other value-related funds, (value factor) rather than VVAL.
edit: I should add, I'd be sad to see it go - up 13% in the month since I've bought it!

If you look at Vanguard's own website it's flagged as CLOSING on the funds list and if you click into it, says in red that it will close in Feb.