Investment strategy 25/26

AL2022

I've spent a few weeks reading 'Investing Demystified' by Lars Kroijer - what are people's thoughts on the simple portfolio of World equity index tracker + UK Gilts at this time? And appropriate splits for a 5+ year timeframe.

InvesterJones

alexthomas89 said:

I've spent a few weeks reading 'Investing Demystified' by Lars Kroijer - what are people's thoughts on the simple portfolio of World equity index tracker + UK Gilts at this time? And appropriate splits for a 5+ year timeframe.

Fine, but what is the investment for (do you need high performance), and how resistant to stress are you (would you be better with lower performance and less stress)?

Hoenir

In reality differs little to Jack Bogle's concept when Vanguard launched the Life Strategy range (60/40 at it's core). Which in itself came from the work of Harry Markowitz who coined the phrase 'modern portfolio theory' back in the 50's.  In the 2020's. It's now possible to hold an even greater diversified risk adjusted portfolio's with a broader range of asset classes. 

Lars Kroijer wrote his book on the back of his experience as a hedge manager in the GFC. World equity index tracker 's have changed in that 15 year period with greater and greater concentration. Also a very different bond market following the QE era.

I keep reading. 

Tim Hale - Smarter Investing

Harriman's New Book of Investing Rules: The do's and don'ts of the world's best investors 

Are books I've had on my bookshelf for a very long time. 

Eyeful

You can make investing as simple or as complex as you like.
 Simple puts you in control, is easier to understand and monitor. Simple can also produce good results.

1. How well do you understand the gilts market?
2. What share/ gilt split, are you thinking of getting?
3. Do you know, there are low cost Global Multi- Asset Funds that do it for you?.

4. The following may be of interest to you:-
https://monevator.com/passive-fund-of-funds-the-rivals/
https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

Watch on You Tube 
(a)  https://www.kroijer.com/
(b)  The James Shack video:
 Vanguard LifeStrategy Funds Explained the only fund you will ever need (Investing for beginners)

AL2022

Eyeful said:

You can make investing as simple or as complex as you like.
 Simple puts you in control, is easier to understand and monitor. Simple can also produce good results.

1. How well do you understand the gilts market?
2. What share/ gilt split, are you thinking of getting?
3. Do you know, there are low cost Global Multi- Asset Funds that do it for you?.

4. The following may be of interest to you:-
https://monevator.com/passive-fund-of-funds-the-rivals/
https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

Watch on You Tube 
(a)  https://www.kroijer.com/
(b)  The James Shack video:
 Vanguard LifeStrategy Funds Explained the only fund you will ever need (Investing for beginners)

Thanks.

Between my fiancée, myself and toddler we are heavily invested into Vanguard LifeStrategy 100. I hadn't really thought of that range of funds as mutli-asset, I guess because LS100 isn't! We do have a smaller amount in LS80 so do have some fixed income exposure there.

I'm having an internal debate whether to keep adding to our existing LS holdings or look for a multi-asset fund with a lower home bias.

Any recommendations very welcome! 

Albermarle

AL2022 said:

Eyeful said:

You can make investing as simple or as complex as you like.
 Simple puts you in control, is easier to understand and monitor. Simple can also produce good results.

1. How well do you understand the gilts market?
2. What share/ gilt split, are you thinking of getting?
3. Do you know, there are low cost Global Multi- Asset Funds that do it for you?.

4. The following may be of interest to you:-
https://monevator.com/passive-fund-of-funds-the-rivals/
https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

Watch on You Tube 
(a)  https://www.kroijer.com/
(b)  The James Shack video:
 Vanguard LifeStrategy Funds Explained the only fund you will ever need (Investing for beginners)

Thanks.

Between my fiancée, myself and toddler we are heavily invested into Vanguard LifeStrategy 100. I hadn't really thought of that range of funds as mutli-asset, I guess because LS100 isn't! We do have a smaller amount in LS80 so do have some fixed income exposure there.

I'm having an internal debate whether to keep adding to our existing LS holdings or look for a multi-asset fund with a lower home bias.

Any recommendations very welcome! 

The usual alternative suggested to Life Strategy is the HSBC global strategy range.
The difference is that the equity % are not fixed but move around within a range. Also there is no UK bias.
In recent years they have outperformed Lifestrategy by a small amount, maybe not in recent months.

AL2022

Albermarle said:

AL2022 said:

Eyeful said:

You can make investing as simple or as complex as you like.
 Simple puts you in control, is easier to understand and monitor. Simple can also produce good results.

1. How well do you understand the gilts market?
2. What share/ gilt split, are you thinking of getting?
3. Do you know, there are low cost Global Multi- Asset Funds that do it for you?.

4. The following may be of interest to you:-
https://monevator.com/passive-fund-of-funds-the-rivals/
https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

Watch on You Tube 
(a)  https://www.kroijer.com/
(b)  The James Shack video:
 Vanguard LifeStrategy Funds Explained the only fund you will ever need (Investing for beginners)

Thanks.

Between my fiancée, myself and toddler we are heavily invested into Vanguard LifeStrategy 100. I hadn't really thought of that range of funds as mutli-asset, I guess because LS100 isn't! We do have a smaller amount in LS80 so do have some fixed income exposure there.

I'm having an internal debate whether to keep adding to our existing LS holdings or look for a multi-asset fund with a lower home bias.

Any recommendations very welcome! 

The usual alternative suggested to Life Strategy is the HSBC global strategy range.
The difference is that the equity % are not fixed but move around within a range. Also there is no UK bias.
In recent years they have outperformed Lifestrategy by a small amount, maybe not in recent months.

Thanks - do you know where is the cheapest platform to buy the HSBC funds for the first time?

They don't appear to be available to purchase on any of the existing platforms I invest with.

Many thanks 

InvesterJones

AL2022 said:

Albermarle said:

AL2022 said:

Eyeful said:

You can make investing as simple or as complex as you like.
 Simple puts you in control, is easier to understand and monitor. Simple can also produce good results.

1. How well do you understand the gilts market?
2. What share/ gilt split, are you thinking of getting?
3. Do you know, there are low cost Global Multi- Asset Funds that do it for you?.

4. The following may be of interest to you:-
https://monevator.com/passive-fund-of-funds-the-rivals/
https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

Watch on You Tube 
(a)  https://www.kroijer.com/
(b)  The James Shack video:
 Vanguard LifeStrategy Funds Explained the only fund you will ever need (Investing for beginners)

Thanks.

Between my fiancée, myself and toddler we are heavily invested into Vanguard LifeStrategy 100. I hadn't really thought of that range of funds as mutli-asset, I guess because LS100 isn't! We do have a smaller amount in LS80 so do have some fixed income exposure there.

I'm having an internal debate whether to keep adding to our existing LS holdings or look for a multi-asset fund with a lower home bias.

Any recommendations very welcome! 

The usual alternative suggested to Life Strategy is the HSBC global strategy range.
The difference is that the equity % are not fixed but move around within a range. Also there is no UK bias.
In recent years they have outperformed Lifestrategy by a small amount, maybe not in recent months.

Thanks - do you know where is the cheapest platform to buy the HSBC funds for the first time?

They don't appear to be available to purchase on any of the existing platforms I invest with.

Many thanks 

For lump sum then platforms like iWeb.

Eyeful

1. With VLS you decide the share /bond split you want at the start and Vanguard maintains that % split.
With the HSBC Global Strategy you chose the level of risk you want at the start & they maintain that level of risk.

2. VLS are both low cost but VLS is passive, while HSBC is not passive.

3. https://moneytothemasses.com/saving-for-your-future/investing/iweb-share-dealing-review
https://monevator.com/compare-uk-cheapest-online-brokers/

4. The following may be of help or interest to you:
https://monevator.com/passive-fund-of-funds-the-rivals/
https://meaningfulmoney.tv/2022/09/26/how-much-investment-risk-should-i-take/
https://www.biglawinvestor.com/meet-the-gotrocks-family/

dunstonh

Between my fiancée, myself and toddler we are heavily invested into Vanguard LifeStrategy 100. I hadn't really thought of that range of funds as mutli-asset, I guess because LS100 isn't! We do have a smaller amount in LS80 so do have some fixed income exposure there.

VLS100 is the odd one out in the range and the least attractive.    Whilst the others are multi-asset, VLS100 is a global managed fund.   

2. VLS are both low cost but VLS is passive, while HSBC is not passive.

VLS is not passive.  It has active decisions just like the HSBC GS funds. Notably home bias (on the classic version) and the use of a rigid equities ratio.  

Eyeful

dunstonh said:

2. VLS are both low cost but VLS is passive, while HSBC is not passive.

VLS is not passive.  It has active decisions just like the HSBC GS funds. Notably home bias (on the classic version) and the use of a rigid equities ratio.  

I understand the point you are making but feel it is a useful short hand way of describing the fund.
Probably no global asset fund, takes a completely passive passive approach..
Can you think of one?