first purchased this fund earlier this year following a review of my investing strategy. The initial purchase was made in May/June and a top up in September at a lower price which helped to average down the overall purchase price per unit. It currently accounts for ~25% of my shares/collectives portfolios combined.
The VLS range of funds were used as the basis for my latest book “DIY Simple Investing”.
Vanguard have recently announced half-year results to 30th September 2015. The report covers all 5 index funds but I will pick out the relevant figures for the fund I hold which is the LifeStrategy 60 (acc) - which consists of a mix/blend of Vanguard’s stand-alone index funds - 60% equities and 40% bonds.
Over the 6 month period the fund returned a loss of -6.5% compared to the composite benchmark of -6.1%. Average annualised returns since inception of June 2011 has been 6.85% p.a.
The fund is widely diversified -
Global Bond 19.4%,
UK Gilts 6.2%
UK Corporate Bonds 3.6%
UK Index Linked Bonds 3.1%
European Corporate Bonds 0.9%,
European Government Bond 1.9%,
Japan Government Bond 1.3%
US Corporate Bonds 1.9%
US Government Bond 1.9%
N. American Equities 26.4%
UK Equities 15.0%
European ex-UK Equities 7.8%
Japan Equities 4.2%
Asia ex-Japan Equities 2.4%
Emerging Markets Equities 4.0%
The above percentage figures are of the whole fund combining bonds and equities. As a percentage of the equity element, the UK accounts for 25% and US is 44% - therefore a significant home bias towards UK equities.
Ongoing charges are 0.24% p.a. - the 0.10% dilution levy on the fund was scrapped from July. In addition to the fund charges, I pay a platform fee to Halifax Share Dealing of £12.50 p.a. which adds a further ~0.08% to overall charges.
More on this following the full-year results next June.