Drawdown return and future investment

downshifted

My annual return in my IFA managed drawdown account lat year was 18%. I’m wondering what it would have been if I’d just put it in say Vanguard Lifestyle 60 or 80, or similar accounts? Where should I look for quick comparisons like this?

Going forwards the recommendation is to reduce UK and US holdings and move to Asia. I understand the UK bit, but isn’t the outlook positive for business returns-under Trump?

kempiejon

downshifted said:

My annual return in my IFA managed drawdown account lat year was 18%. I’m wondering what it would have been if I’d just put it in say Vanguard Lifestyle 60 or 80, or similar accounts? Where should I look for quick comparisons like this?

Going forwards the recommendation is to reduce UK and US holdings and move to Asia. I understand the UK bit, but isn’t the outlook positive for business returns-under Trump?

https://www.trustnet.com/factsheets/o/acdt/vanguard-lifestrategy-80-equity
I don't use a lifestrategy but understand it over-weights towards the UK.
Do you have much UK/US just now? I have a global view and tend not to specifically overweight or avoid any sector or region because I know I can't know the future with any certainty.

dunstonh

My annual return in my IFA managed drawdown account lat year was 18%. I’m wondering what it would have been if I’d just put it in say Vanguard Lifestyle 60 or 80, or similar accounts? Where should I look for quick comparisons like this?

Is your drawdown portfolio invested with the same equity ratio as VLS60 or VLS80?
Does your drawdown portfolio using a yielding strategy or total return strategy? (VLS is total return)
Does your drawdown portfolio use bucketing or cash floats to reduce the impact of sequencing risk?  (VLS does not).  The use of bucketing or cash floats would reduce returns in positive periods but reduce losses in negative.

For 2024, excluding the platform charge and adviser charge (so you would need to deduct those) you have the following:

VLS80 Global (IFA version) - 15.21%
VLS80 OEIC (multi-asset version) - 13.20%
VLS60 Global (IFA version) - 11.79%
VLS60 OEIC (multi-asset version) - 9.65%

Going forwards the recommendation is to reduce UK and US holdings and move to Asia. I understand the UK bit, but isn’t the outlook positive for business returns-under Trump?

VLS OEICs have a higher UK weighting.  So, using VLS OEICs wouldn't achieve that objective.   VLS global  would but that is only available via IFAs.
Under Trump's first term, the stockmarket performed worse than Biden and Obama.   That doesnt mean the same will happen this time around as events tend to dictate market returns more than anything else.

Albermarle

downshifted said:

My annual return in my IFA managed drawdown account lat year was 18%. I’m wondering what it would have been if I’d just put it in say Vanguard Lifestyle 60 or 80, or similar accounts? Where should I look for quick comparisons like this?

Going forwards the recommendation is to reduce UK and US holdings and move to Asia. I understand the UK bit, but isn’t the outlook positive for business returns-under Trump?

There are many market commentators  who recommend investing strategies, many saying different ways. In reality nobody knows what the future will bring.
The Trump effect is also unknown. I think the only thing we do know is that recent returns from the US stock markets have been very good and valuations are high. At some point the market will come down, but nobody knows when or how much it will go up further before it comes down.

Linton

downshifted said:

My annual return in my IFA managed drawdown account lat year was 18%. I’m wondering what it would have been if I’d just put it in say Vanguard Lifestyle 60 or 80, or similar accounts? Where should I look for quick comparisons like this?

Going forwards the recommendation is to reduce UK and US holdings and move to Asia. I understand the UK bit, but isn’t the outlook positive for business returns-under Trump?

You can find performance data for any fund you are likely to meet on a SIPP/ISA in trustnet.com.  Just google your chosen fund adding trustnet.com at the end of the search string. Trustnet also provide graphs to show one fund against a range of others over a period of up to about 30 years.  However when in drawdown I would question whether past performance should be the major factor in choosing investments. In any case 1 year's data means very little. 

Who is recommending to reduce UK/USA and move to Asia?  Investing on the basis of trying to predict the future is quite likely to be counter productive.  Much better to choose an allocation and stick with it.  Mine is 40% US, 30% Europe, and 30% SE Asia/Emerging markets.  You also should ensure a wide range of sectors and other factors..

downshifted

Thank you for all your very helpful comments. I guess Im really looking for a view on whether I’ve had a good rate of return over the past year, or how to find that out as well as a view on what geographical distribution is generally acceptable.

My risk rate is 7, I don’t draw down in advance because my other pensions are sufficient for general living and I can stop drawdown when we have a collapse. I’ve started drawdown and started giving with warm hands from income only since the budget to reduce inheritance tax idc.