VLS 20 as a proxy bond fund?

NithyaH

Aside from the fact that it only holds 80% bonds, and given that I want a fire and forget bond fund to complement an all-world equity fund, is this a reasonable choice?

I would rebalance periodically.

Thanks!

dunstonh

Aside from the fact that it only holds 80% bonds, and given that I want a fire and forget bond fund to complement an all-world equity fund, is this a reasonable choice?

Why not get a multi-asset fund to begin with?  e.g. VLS80 or HSBC GS adventurous or dynamic?

NithyaH

I’d like to have control over the asset allocation and avoid overweighting any particular jurisdiction.  I’d also like to end up with two funds so I can pick which one I sell at any point in time during drawdown.

MallyGirl

Vanguard do have pure bond funds too

NithyaH

MallyGirl said:

Vanguard do have pure bond funds too

Yes, but not one that I think is a good single bond fund to hold over the long term….

dunstonh

NithyaH said:

MallyGirl said:

Vanguard do have pure bond funds too

Yes, but not one that I think is a good single bond fund to hold over the long term….

I agree.  In our portfolio, we use five bond funds.

Beddie

I have a preference for active bond funds rather than trackers - they more than cover the extra fees by being more selective about what they buy. Just a thought, though many on here will be spluttering their tea just reading that!

NithyaH

Beddie said:

I have a preference for active bond funds rather than trackers - they more than cover the extra fees by being more selective about what they buy. Just a thought, though many on here will be spluttering their tea just reading that!

Which active bond funds do you use?

engagedandopen

NithyaH said:

Beddie said:

I have a preference for active bond funds rather than trackers - they more than cover the extra fees by being more selective about what they buy. Just a thought, though many on here will be spluttering their tea just reading that!

Which active bond funds do you use?

I've been wondering about that for a while, too - what's the (active) bond equivalent of the global tracker - is it something like IA Jupiter Strategic Bond or Standard Life's Mixed Bond pension fund?

Can I de-risk my Aviva Stakeholder Pension from Liontrust Sustainable Future Global Growth by using Liontrust Sustainable Future Corporate Bond on its own - as Nest and Aviva seem to do (with their Ethical fund and Stewardship lifestyle glidepaths), or isn't it diversified enough?

Grateful for any thoughts about this.

Beddie

NithyaH said:

Beddie said:

I have a preference for active bond funds rather than trackers - they more than cover the extra fees by being more selective about what they buy. Just a thought, though many on here will be spluttering their tea just reading that!

Which active bond funds do you use?

Man GLG Dynamic Income & Man GLG Sterling Corporate Bond (short track record but the manager previously did very well at Schroders)

Royal London Sterling Extra Yield Bond - good long term track record.

Edited to say these are at the higher risk end of bond funds and you'd probably add another bond fund with more investment grade bonds for balance. None of this is a recommendation, of course.

leosayer

NithyaH said:

MallyGirl said:

Vanguard do have pure bond funds too

Yes, but not one that I think is a good single bond fund to hold over the long term….

What are you looking for from a bond fund that Vanguard doesn't provide?