HSBC GS vs VLS80

Bostonerimus1

handful said:

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!

Yes it's a small window of comparison, but always be careful to compare funds with the same asset allocations and management style and as long as your fund is inexpensive and isn't an outlier amongst it's peers don't worry. If you buy trackers then there won't be outliers and the thing you should really focus on is whether your funds are meeting your requirements for financial success. The comparison you should be making is whether or not your gains and contributions are going to get you to "your NUMBER" at the time you want.

A lot pf portfolio construction is BS, keep it simple and put in as much as you can.

QrizB

NannaH said:

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 😉

If you're looking for a bond-y investment to compliment a 100% equities fund, and you want to know what the value will be in 2032, you could buy an index-linked gilt that matures then (or near enough). If you hold it to redemption it won't matter what happens to the price between now and then.

You could partially de-risk each year, selling part of the equity fund and buying more gilts.

NannaH

So, if I understand correctly,  an IL Gilt maturing in 2032 will still be worth the equivalent of the amount you paid now for it , so it keeps up with inflation?  

Does that include the yield or do you get the yields ‘on top’ so to speak?   When I’ve seen a yield of 5%,  is that yearly or in total?   

Bostonerimus1

Both the maturing principal and the regular coupon payments will be index linked.

https://www.dmo.gov.uk/media/0ltegugd/igcalc.pdf

NannaH

I’ve seen two IL gilts , one that matures in 2030,  T301 (4.125%)
the other T32 (1.25%) matures 2032

I have no idea what that means,  is one ‘better’ than the other.
Basically,  if I buy £40k ,  for simplicity the rpi stays the same at 4%, what is the end result?

Yearly coupons of £ ??
Maturity payout of £ ??

I can’t quite get my head around it

handful

Bostonerimus1 said:

handful said:

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!

Yes it's a small window of comparison, but always be careful to compare funds with the same asset allocations and management style and as long as your fund is inexpensive and isn't an outlier amongst it's peers don't worry. If you buy trackers then there won't be outliers and the thing you should really focus on is whether your funds are meeting your requirements for financial success. The comparison you should be making is whether or not your gains and contributions are going to get you to "your NUMBER" at the time you want.

A lot pf portfolio construction is BS, keep it simple and put in as much as you can.

Thanks but I'm absolutely not worried about the performance in this short window. I agree with your comment about portfolio construction though!