Vanguard SIPP - invest or cash?

Albermarle

k_man said:

LS 40 and 20 are both down since June by a few %.

But they were never going to be super growers.

Due to the pressure on bonds, the higher bond % multi asset funds have not been doing so well.
By coincidence I did a quick check yesterday and since the start of the year when markets have been under pressure, VLS 60 had performed better than VLS 40 & 20 , which is the other way around from what would be normally expected ,

k_man

I was surprised too.
Does raise the question (again) of the benefits of lower equity/higher bond ratios.

Albermarle

k_man said:

I was surprised too.
Does raise the question (again) of the benefits of lower equity/higher bond ratios.

Or whether some of your bond allocation should be changed to something else like , cash ; gold; property funds ; infrastructure funds etc 

k_man

Indeed.
But VLS was supposed to do this for us, we just pick the relevent numbered fund.

dunstonh

k_man said:

Indeed.
But VLS was supposed to do this for us, we just pick the relevent numbered fund.

No its not.    VLS is a managed fund range but only in respect of the weightings that Vanguard choose and they are rigid.  The VLS range is not risk targetted.   If you want a more fluid allocation with risk targeting then you should look at HSBC GS funds.

k_man

Thanks @dunstonh, this also highlights the risk of using just bond/equity ratio as part of targeted derisking