Vanguard LifeStrategy Funds

zagfles

Altior said:

Can anyone explain this:
 
Vanguard U.K. Inflation-Linked Gilt Index Fund (Inc) price as at date 14 Oct 2022 £125.13

Vanguard U.K. Inflation-Linked Gilt Index Fund (Acc) price As at date 14 Oct 2022 £125.68

Distributing and accumulation versions are practically the same price, but they were incepted over 10 years ago ? 

Probably because most current index linked gilts have a very low coupon eg 0.125%, plus the reinvestment of that 0.125% or whatever would likely mostly have been when the gilt prices were much higher, so would have sustained a capital loss.

Not sure if that fully explains it though...

adindas

JohnWinder said:

 I think his advice was to hold between 25% and 75% as stocks, ‘“The sound reason for increasing the percentage in common stocks [beyond 50%] would be the appearance of ‘bargain price’ levels created in a protracted bear market. Conversely, sound procedure would call for reducing the common-stock component below 50% when in the judgment of the investor the market level has become dangerously high.”.

https://www.investopedia.com/articles/basics/07/grahamprinciples.asp Benjamin Graham's Timeless Investment Principles

Remember, Graham's philosophy was first and foremost, to preserve capital, and then to try to make it grow. He suggested having 25% to 75% of your investments in bonds and varying this based on market conditions. With regard to market condition, keep in mind we are currently in the bear market.

His other suggestion is to take advantage of DCA to take advantage of dips in the price. In the past if a person dare to beg a difference you would get a fierce attack by the same group of vocal people here on MSEs. Just learn the hard lessons from the guys who threw lump sum a few hundred thousands pound early this year while those who were telling people to do so have never done that themselves.

Altior

zagfles said:

Altior said:

Can anyone explain this:
 
Vanguard U.K. Inflation-Linked Gilt Index Fund (Inc) price as at date 14 Oct 2022 £125.13

Vanguard U.K. Inflation-Linked Gilt Index Fund (Acc) price As at date 14 Oct 2022 £125.68

Distributing and accumulation versions are practically the same price, but they were incepted over 10 years ago ? 

Probably because most current index linked gilts have a very low coupon eg 0.125%, plus the reinvestment of that 0.125% or whatever would likely mostly have been when the gilt prices were much higher, so would have sustained a capital loss.

Not sure if that fully explains it though...

Yes it wouldn't have been a great deal of income on the low coupon rates, but the distribution should accommodate inflation compensation as well.  

zagfles

Altior said:

zagfles said:

Altior said:

Can anyone explain this:
 
Vanguard U.K. Inflation-Linked Gilt Index Fund (Inc) price as at date 14 Oct 2022 £125.13

Vanguard U.K. Inflation-Linked Gilt Index Fund (Acc) price As at date 14 Oct 2022 £125.68

Distributing and accumulation versions are practically the same price, but they were incepted over 10 years ago ? 

Probably because most current index linked gilts have a very low coupon eg 0.125%, plus the reinvestment of that 0.125% or whatever would likely mostly have been when the gilt prices were much higher, so would have sustained a capital loss.

Not sure if that fully explains it though...

Yes it wouldn't have been a great deal of income on the low coupon rates, but the distribution should accommodate inflation compensation as well.  

But likely outweighed by capital loss on all reinvestments over the last 10 years.