Where to put the rest of this years ISA allowance?

masonic

tebbins said:

I am not sure either figure is correct, between HL and Vanguard, V FTSE GAC is 3.93-4.1% UK. The HSBC fund holds funds classed as int'l or European which may suppress the apparent UK weighting so I suspect is about the same.

Edit: Apologies, I didn't notice I switched to the non-all cap fund when looking at UK %, so it is about 4.1%

The HSBC fund holds HSBC EUROPEAN INDEX INSTITUTIONAL ACC for its Europe exposure (taken from its provider fact sheet via Trustnet) and this fund is ex-UK.

Agree wholeheartedly that this is not a useful thing to be putting under the microscope however.

Annie1612

tebbins said:

I am not sure either figure is correct, between HL and Vanguard, V FTSE GAC is 3.93-4.1% UK. The HSBC fund holds funds classed as int'l or European which may suppress the apparent UK weighting so I suspect is about the same.
In any event, like-for-like the Vanguard Lifestrategy and HSBC Global Strategy have behaved almost identically since inception.

 Most in the forum upweight the UK more than a standard index fund would but that's a matter of individual opinion and preference.

Personally depending on your age and financial situation I would consider sticking with a single fund, VLS 80, HSBC Dynamic or something comparable, for the lot. But that's just me and I know nothing about you, your risk tolerance etc (although there isn't a huge difference in risk between 60% and 80% equity).

Thanks! I kind of like spreading my savings about, rather than all in one pot. I feel a bit more secure doing this, just in case…I think it is just a psychological thing. When I started out, I couldn’t decide between the two funds, because there was nothing for me to base a decision on, so I decided I would do both.

Billycock

masonic said:

Billycock said:

masonic said:

Billycock said:

Therefore Vanguard GA is more globally diversified 

That's not true either, HSBC GS Dynamic currently has 1% UK exposure while Vanguard GAC has 6.5% UK exposure.

The most similar Vanguard fund to HSBC GS Dynamic is probably their FTSE Developed World ex-U.K. Equity Index Fund, but even that is quite different (not multi-asset, no EM) and would be no substitute for the former.

Hmm, regardless of percentages, which in your mind is more globally diversified, HSBC GS Dynamic or Vanguard GAC?

HSBC GS Dynamic. It has the lower allocation of the two funds to the home market, the Vanguard fund has some home bias (index is 4% UK, fund is 6.5% UK). I fail to see the relevance of "which is more globally diversified". One would pick a fund with the asset allocation they desire, which, if considering multi-asset funds, Vanguard GAC would be immediately excluded by virtue of not in fact being a multi-asset fund.

You're bringing three points into play here
Diversification
Multi-assets 
Weightings
If you note from my earlier post I said broadly similar, 
Your suggestion in post # 2 namely VLS100 blows both the HSBC GS and Vanguard GAC out of the water on all three points

Albermarle

I am hoping that 50k or so in ISAs will give me a small monthly amount on top of my other modest pension income. 

If you are looking for retirement income , then it is normally better to invest more in a pension rather than a S&S ISA, due to the tax relief/benefit .

However this depends largely whether you are currently working , as the amount you can add to a pension and gain tax relief is limited by how much your earn . Although even non earners can add a certain amount .

masonic

Billycock said:

masonic said:

Billycock said:

masonic said:

Billycock said:

Therefore Vanguard GA is more globally diversified 

That's not true either, HSBC GS Dynamic currently has 1% UK exposure while Vanguard GAC has 6.5% UK exposure.

The most similar Vanguard fund to HSBC GS Dynamic is probably their FTSE Developed World ex-U.K. Equity Index Fund, but even that is quite different (not multi-asset, no EM) and would be no substitute for the former.

Hmm, regardless of percentages, which in your mind is more globally diversified, HSBC GS Dynamic or Vanguard GAC?

HSBC GS Dynamic. It has the lower allocation of the two funds to the home market, the Vanguard fund has some home bias (index is 4% UK, fund is 6.5% UK). I fail to see the relevance of "which is more globally diversified". One would pick a fund with the asset allocation they desire, which, if considering multi-asset funds, Vanguard GAC would be immediately excluded by virtue of not in fact being a multi-asset fund.

You're bringing three points into play here
Diversification
Multi-assets 
Weightings
If you note from my earlier post I said broadly similar, 
Your suggestion in post # 2 namely VLS100 blows both the HSBC GS and Vanguard GAC out of the water on all three points

The preference for a second multi-asset fund was only really cemented after that post.

I don't consider the two funds you are comparing even broadly similar, they are very different under the hood.

Billycock

Whatever, for some even when they're wrong they're right. You'd be a bloody awesome politician masonic unless you're already a politician.  

masonic

Billycock said:

Whatever, for some even when they're wrong they're right. You'd be a bloody awesome politician masonic unless you're already a politician.  

I'd be a terrible politician, I'm too honest and have the courage of my convictions.

masonic

Deleted_User said:

masonic said:

Yes you allowed to put the £15k into a cash ISA and transfer to a S&S ISA next tax year. If you really don't want to buy more VLS60, then this might be the best option.

A slightly different approach could be to transfer your whole Vanguard ISA to another platform, one on which you can hold both VLS and HSBC GS funds. Then you could add £15k into the new ISA, and use it to buy HSBC GS, without waiting for the end of the tax year.

Though you would have to wait for the transfer to complete. Hopefully, that would be less than 7 months ...

Yes, this could be a better option than a second S&S ISA. The other factor to consider would be charges, as it is relatively cheap to hold £20k in VLS on Vanguard's platform. A £35k investment might not be at the tipping point where a flat fee provider makes sense, and most (all?) other percentage fee platforms are more expensive. That could all be outweighed by the opportunity cost of 7 months out of the market of course! Edit: I suppose Halifax Sharedealing is probably cheap enough as a flat fee provider to save on costs overall

Annie1612

Albermarle said:

I am hoping that 50k or so in ISAs will give me a small monthly amount on top of my other modest pension income. 

If you are looking for retirement income , then it is normally better to invest more in a pension rather than a S&S ISA, due to the tax relief/benefit .

However this depends largely whether you are currently working , as the amount you can add to a pension and gain tax relief is limited by how much your earn . Although even non earners can add a certain amount .

Thank you! Not currently working, we are retired but as I am 52, I am not bringing much to the retirement party at the moment. I am putting the max I can in a pension but there is only about 12k in that and I have added a couple of voluntary years to my state pension to bring it up to 30 full years. Mostly I have cash savings which is largely due to saving most of my income over the years. I am late to wake up to pensions and the fact that I am probably going to outlive my husband by about 18 years if we both make it to the average life span. Though I know anything can be just around the corner, I am planning to get to at least 95 if possible! Any small amount I can add via investments may mean I could afford to run a car or have a holiday if I end up on my own.

Annie1612

Deleted_User said:

masonic said:

Yes you allowed to put the £15k into a cash ISA and transfer to a S&S ISA next tax year. If you really don't want to buy more VLS60, then this might be the best option.

A slightly different approach could be to transfer your whole Vanguard ISA to another platform, one on which you can hold both VLS and HSBC GS funds. Then you could add £15k into the new ISA, and use it to buy HSBC GS, without waiting for the end of the tax year.

Though you would have to wait for the transfer to complete. Hopefully, that would be less than 7 months ...

Thanks! This is another option I will consider. I was not at all sure about isa transfer rules etc. And I am hopeless when it comes to working out charges. Just knew that vanguard was cheap for vanguard funds.