Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • rathernot
    • By rathernot 9th Aug 18, 8:26 PM
    • 334Posts
    • 85Thanks
    rathernot
    Multi-Asset Funds - Differences?
    • #1
    • 9th Aug 18, 8:26 PM
    Multi-Asset Funds - Differences? 9th Aug 18 at 8:26 PM
    I'm looking to put some money away into a LifeStrategy type multi-asset fund, around 40-50% equities maximum.

    From looking around the options seem to be:
    • LifeStrategy
    • HSBC
    • L&G
    • Blackrock consensus
    • Architas Passive

    LifeStrategy seems the most often mentioned as it's pretty much "fire and forget" which is the point.

    Are there any specific situations in which you'd be looking at the others in preference to LifeStrategy?
Page 2
    • dunstonh
    • By dunstonh 10th Aug 18, 10:40 PM
    • 96,058 Posts
    • 63,875 Thanks
    dunstonh
    That seems to me a good reason for have at least a couple of multi asset funds for a large portfolio (if not using single sector funds) rather than putting it all in one multi asset fund, as some other people on the forum have previously recommended.
    Originally posted by Audaxer
    If you are not going single sector then upto 85k (the new FSCS limit coming) in each would be fine. Variations of a theme. Under FSCS limits, no knowing which will be best...... why not
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Audaxer
    • By Audaxer 10th Aug 18, 11:11 PM
    • 1,491 Posts
    • 920 Thanks
    Audaxer
    If you are not going single sector then upto 85k (the new FSCS limit coming) in each would be fine. Variations of a theme. Under FSCS limits, no knowing which will be best...... why not
    Originally posted by dunstonh
    My thinking was having a multi asset fund portfolio split between two funds, say VLS60 and HSBC Global Strategy Balanced, would also give added diversification. As you say, in one period of time one will perform better and in another period the other will perform better. I assume that would help reduce the volatility a bit rather than having a large investment all in the one multi asset fund?
    • dunstonh
    • By dunstonh 11th Aug 18, 12:07 AM
    • 96,058 Posts
    • 63,875 Thanks
    dunstonh
    My thinking was having a multi asset fund portfolio split between two funds, say VLS60 and HSBC Global Strategy Balanced, would also give added diversification. As you say, in one period of time one will perform better and in another period the other will perform better. I assume that would help reduce the volatility a bit rather than having a large investment all in the one multi asset fund?
    Originally posted by Audaxer
    its a marginal diversification in volatility. Very little in volatility. The main gain is hedging your bets.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • rathernot
    • By rathernot 11th Aug 18, 8:39 AM
    • 334 Posts
    • 85 Thanks
    rathernot
    So not to put words in your mouth but it sounds like essentially between the ones I've mentioned, I may notice a difference between going with say LS40 v LS80 or MyFolio III v MyFolio V, but the differences between comparing say LS40 to MyFolio III should be more subtle i.e. I won't wake up one morning in the poorhouse thinking "If only I'd gone with LifeStrategy over Standard Life or Architas"?
    • A_T
    • By A_T 11th Aug 18, 9:17 AM
    • 566 Posts
    • 392 Thanks
    A_T
    My thinking was having a multi asset fund portfolio split between two funds, say VLS60 and HSBC Global Strategy Balanced, would also give added diversification. As you say, in one period of time one will perform better and in another period the other will perform better. I assume that would help reduce the volatility a bit rather than having a large investment all in the one multi asset fund?
    Originally posted by Audaxer
    For me the best way to diversify if you want to hold 2 multi assets is to go with VLS and Fidelity Multi Asset Allocator. The Fidelity funds use unhedged overseas bonds for their fixed income element whereas VLS uses GBP bonds and sterling hedged overseas bonds.
    • rathernot
    • By rathernot 12th Aug 18, 7:57 PM
    • 334 Posts
    • 85 Thanks
    rathernot
    Leaning towards HSBC Global Strategy Balanced as it appears to have a slightly more global spread than Vanguard which, as people have pointed out, has a bit of a UK bias.

    I suspect it's small enough margins to make little difference as Dunstonh points out so I may just do 50/50 between both and stop worrying about 0.1%
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

328Posts Today

1,469Users online

Martin's Twitter