Investment strategy 25/26

Albermarle

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 

Can you list your current platforms ?

dunstonh

Eyeful said:

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?

With so many different benchmarks and funds that follow those different benchmarks, technically, none of them are free of some management decision, as you say.    

IanManc

Eyeful said:

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?

I don't agree with you. 

The VLS funds are managed tied funds of funds, not passive funds.

Passive funds follow the makeup of a chosen index. VLS funds don't do that at all, and I think it is unhelpful and confusing - and not "useful" - to call them passive when they just aren't.

LHW99

Albermarle said:

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 

Can you list your current platforms ?

If the VLS investments are with Vanguard, they only offer their own funds. You can look at HL, II, AJBell, iWeb or another. Platform costs will vary (% or fixed per month) so it depends how much you have in, which type would be cheaper.

Most platforms offer Vanguard funds, so you could always transfer the existing if you want an HSBC fund to run alongside in the same place.

Hoenir

IanManc said:

Eyeful said:

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?

I don't agree with you. 

The VLS funds are managed tied funds of funds, not passive funds.

Passive funds follow the makeup of a chosen index. VLS funds don't do that at all, and I think it is unhelpful and confusing - and not "useful" - to call them passive when they just aren't.

Vanguard do not benchmark the VLS range against any index. The  sub portfolio weightings being determined by an investment committee. 

jimjames

Eyeful said:

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?

Fidelity World Index
Vanguard Global All Cap
L&G international Index

All are global asset funds that are completely passive

dunstonh

jimjames said:

Eyeful said:

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?

Fidelity World Index
Vanguard Global All Cap
L&G international Index

All are global asset funds that are completely passive

You are correct.   However.....

Fidelity World Index is MSIC World (net total return)
Vanguard Global All Cap is FTSE Global All Cap Index
L&G international Index is FTSE World Ex UK TR GBP

So, each is a totally passive approach to a different benchmark and style.

Albermarle

IanManc said:

Eyeful said:

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?

I don't agree with you. 

The VLS funds are managed tied funds of funds, not passive funds.

Passive funds follow the makeup of a chosen index. VLS funds don't do that at all, and I think it is unhelpful and confusing - and not "useful" - to call them passive when they just aren't.

However it  would be useful to have a definition that sets them apart from true actively managed funds.
In previous threads that have touched on the subject, the phrase 'passively managed' or similar has been suggested.