Vanguard Lifestrategy - UK bias issue

barnstar2077

Vanguard's FTSE Global All Cap Index and their Global Bond Index funds would seem like a good place to start your investigations.

My strategy is pretty aggressive, so I just use the former.  I'm not sure how I would feel about trying to pick the right bond fund to go with it though.  Should it be a short term bond fund, or UK gilts instead etc. 

eastmidsaver

hi ....  thanks for all your comments.    it is interesting to see different perspectives on the matter.
i think looking back when i invested in it - i guess i just wanted to keep things simple. trying to individualize things,  would just complicate matters. 
also,  having researched some other mixed investment category funds that have done reasonably well.... you can see that many of them do hold large bearings in the UK (up to 30%). 

steampowered

Vanguard does have global funds without a UK bias, so you can just buy one of those instead.

Personally I don't see the problem. 22% in the UK markets is not excessive, particularly when you consider how international the UK markets are - there are many companies listed in the UK whose business is entirely overseas.

Thrugelmir

eastmidsaver said:

also,  having researched some other mixed investment category funds that have done reasonably well.... you can see that many of them do hold large bearings in the UK (up to 30%). 

What matters is how the investments you make fare. The outcome of which will only be determined over time.  In rising markets it's difficult not to make a reasonable return. What matters more is how the investments perform when there's increased levels of volatility. 

ChilliBob

I think the UK bias could work in your favour if some of the stuff I have read and watched us to be believed, as people have said above.

eastmidsaver

thanks for all the comments.   i have taken on board what people have said above,  and will stick with it for now as it keeps things much simpler.  

bostonerimus

eastmidsaver said:

thanks for all the comments.   i have taken on board what people have said above,  and will stick with it for now as it keeps things much simpler.  

You are just starting out so take it easy for a few years and see where things go. You can do that because your VLS fund gives you a diversified portfolio. Remember that investing is a long term thing. You will be doing it for 30 or 40 years when you are working and then for maybe another 30 after you retire.

talexuser

I have a similar choice. The hype at the moment is a bounce in UK because of poor valuations and low values and the success of the vaccines. Unfortunately I don't see much evidence of the great trade deals and investment available with the pandemic debt, just lots or words of sunny uplands and few actions. I dropped most of my UK  funds in ISA and unbundled after the referendum and have done very well out it. The question is whether to rebalance now. I did have the (baby) grandkids money in Lifestrategy 100%, but dumped that in 2016 for FTSE World ex UK, and that was a good call since have gained an extra 20% since.

Thrugelmir

talexuser said:

 The hype at the moment is a bounce in UK because of poor valuations and low values and the success of the vaccines. 

That trade has been and gone. Rerating started last November as investors bought in. Now it's question of finding companies with potential for real growth and identifying those that flatter to deceive. 

aroominyork

Thrugelmir said:

talexuser said:

 The hype at the moment is a bounce in UK because of poor valuations and low values and the success of the vaccines. 

That trade has been and gone. Rerating started last November as investors bought in. Now it's question of finding companies with potential for real growth and identifying those that flatter to deceive. 

The UK may have performed a few points better than Global averages since November but that does not constitute a re-rating. Below are one year (top) and three year (bottom) views of UK All Companies against Global - see also the five year and ten year cumulative performance stats. There is still a lot of catching up to do, and P/E ratings support the UK market still being 'cheap'.