Tuesday, 1 August 2017
AJ Bell Passive Funds - New Purchase
I have been taking things easy over the past month or so and getting into holiday mode. I enjoyed the two weeks of the tennis and had a small (£1 e/w) wager on Cilic getting to the Wimbledon final so the return from the bookies made up for a rather disappointing men's final. I was also fortunate to back Jordan Spieth to win the golf at Royal Birkdale at good odds before the start so its been a rewarding couple of weeks.
I have also been catching up on reading - just finished 'A Place Called Winter' by Patrick Gale which is based upon actual events from the author's family history and which I can thoroughly recommend. Secondly I have just started Andrew Craig's best seller 'How to Own the World - A Plain English Guide to Thinking Globally and Investing Wisely'...I will write a review when finished.
As we are in between Test matches, I have time to update on just one new portfolio purchase. Earlier this year I flagged up the range of new passive funds from AJ Bell.
For some time now I have been looking to reinvest some of the cash which has remained on the sidelines following various sales and redemptions. In July, I decided to take advantage of the offer of no platform fees on these funds and purchased the 'moderately cautious' version for my ISA with AJ Bell.
I had been also looking at the Vanguard Lifestrategy 40 as another option but the property element of the AJ Bell fund worked in its favour.
This version holds a mix of equities (33%), bonds (52%), property (11%) and cash (4%) via a range of ETFs and passive funds from several providers. It seems to be a mirror image of the moderately adventurous fund which holds 52% in equities and 33% in bonds. Here's a link for the latest factsheet (pdf)...
The equity element is held in :
iShares Core S&P 500 ETF
iShares UK Equity Index Fund
Vanguard Dev. Europe ex UK Fund
The bonds are held via :
SPDR Barclays Sterling Corp. Bond ETF
iShares GBP Corp. Bond ETF
iShares Global High Yield ETF
Vanguard UK Govt. Bond Fund
Vanguard Index-linked Gilt Fund
The property element is :
iShares UK Property ETF
AJ Bell will not levy their platform charges (0.25%) until 2019 and there are no transaction charges for sale/purchase. Therefore the costs of ownership are merely the ongoing charges of the fund at 0.50 % which includes the charges of the underlying funds/ETFs - these range between 0.07% for the iShares S&P ETF to 0.4% on their Property ETF.
The funds were launched in April and the purchase price was 100.3p - just a tad over the launch price so nothing lost by waiting few months.
The only option currently on offer is the accumulation fund - I assume they will introduce an income version at some point however as there are no charges for selling units it does not make much of a difference to me.
The price of the Vanguard LS 40 (acc) at the time of this purchase was £158.50 so it will be interesting to compare progress.
Enjoy the rest of the Summer!