HSBC GS vs VLS80

NannaH

Currently have 40% of £100k sipp in VLS80 and thinking about swapping to Global strategy Dynamic. 
This is for use  at SP age in 10 years time so growth + less volatility is needed. 

The rest of the sipp is 100% equities for long term investment, 40% HSBC Ftse AWI,  20% Fundsmith,  not to be touched for at least 15 years.  The Sipp is not having further contributions and may be transferred if possible - it’s part crystallised,  with Charles Stanley. 

Another Sipp (Hargreaves) has £25k in HSBC GS Balanced and is having £300 a month contributions, currently into Royal London Short term MM - this will be the one funding early retirement in 5-6 years.  

Is there a compelling reason for sticking with VLS80? 

Linton

NannaH said:

Currently have 40% of £100k sipp in VLS80 and thinking about swapping to Global strategy Dynamic. 
This is for use  at SP age in 10 years time so growth + less volatility is needed. 

The rest of the sipp is 100% equities for long term investment, 40% HSBC Ftse AWI,  20% Fundsmith,  not to be touched for at least 15 years.  The Sipp is not having further contributions and may be transferred if possible - it’s part crystallised,  with Charles Stanley. 

Another Sipp (Hargreaves) has £25k in HSBC GS Balanced and is having £300 a month contributions, currently into Royal London Short term MM - this will be the one funding early retirement in 5-6 years.  

Is there a compelling reason for sticking with VLS80? 

No. There is no compelling reason for sticking with VLS80. The HSBC funds are considered better by some people for technical reasons but the difference in practice will probably be relatively small.

najan49

Vanguard Lifestrategy funds are overweight UK vs HSBC Global Strategy, so that might be either a reason to stick or twist, depending on your view.

older_and_no_wiser

I have the bulk of my SIPP invested in the GS Dynamic fund. Very happy with it's performance over the last few years considering the market volatility we've been through. I see it as more diversified than the LS funds due to their UK bias. 

NannaH

That’s whats pushing me towards changing tbh.
We have the Dynamic fund in an ISA that was switched around 12 months ago and is slowly recovering the losses from a ‘safe’ RL fund that dropped 20% as soon as I bought it in late 2021, the one and only time I used a lump sum instead of drip feed. 🙄

dunstonh

We have the Dynamic fund in an ISA that was switched around 12 months ago and is slowly recovering the losses from a ‘safe’ RL fund that dropped 20% as soon as I bought it in late 2021

Do be aware that the dynamic, like VLS80, is capable of an 40% loss.    So, while the period since late 2021 has favoured higher equities content, the reverse will happen eventually.

NannaH

What would be an alternative fund for the mid term then , to provide growth, lower volatility and perhaps a decent-ish yield.   Or am I asking for the impossible?
What’s realistic for the £40k to grow in 9 years in a lower volatility realm?  25%?  

That portion of the Sipp will be used from SP age - December 2032.  Income taken will be around £3-4k per year, if needed, to top up 2 x SP and a DB of around £7k. 
So ideally that ‘bucket’ will last 10 years+,  giving the 100% equities bucket a good chance to grow significantly before needing it,  although the income will also build up a cash pot in the next 22 years.  I’ve just put a large chunk of the cash already built up into the STMM fund whilst interest rates are rising. 

Bostonerimus1

People get paralyzed  by choice sometimes. There are thousands of funds that are essentially the same, and even more that have differences that are mostly for asset allocation nerds. You can never know which fund will be the "best" and so don't worry about it. Your goal is to have a portfolio that is good enough to meet your financial goals, not the "best" portfolio as that's a unicorn.

handful

I've got some of my SIPP invested in LS funds and 6 months ago transferred another pension in and bought GS Dynamic with that and in that 6 months it has underperformed LS by a good 2-3% but clearly only a very small investment window to judge it!

Albermarle

What would be an alternative fund for the mid term then , to provide growth, lower volatility and perhaps a decent-ish yield.   Or am I asking for the impossible?
What’s realistic for the £40k to grow in 9 years in a lower volatility realm?  25%?

The simple answer would be something with a lower % of equities, but not too low. Like HSBC GS Balanced.

Or put a bit less into the Dynamic and keep the rest as cash.

NannaH

I get that.
I just want a sensible choice,  minded by the fact of the horrible ‘bonds episode’ that made so called ‘safe’ funds tank. 

If a crash is to happen again, it will be just our luck to happen in December 2032 😉
Short term, I feel fairly confident of my choices,  ditto for very long term as we could buy an annuity for certainty at say 70.  

If I could buy a deferred annuity now for £60k that would pay £3k, + inflation proofed, at 70, that was fully joint life,   I’d probably go for it.   I don’t know if such a product even exists or what the cost would be.  

Our life insurance stops at 70, which was bought as a cushion against lost income should one of us die young.