Best Multi Asset Funds

Рет қаралды 21,832

Күн бұрын

Multi Asset Funds offer a one-fund solution to investing because they are diversified across asset types and regions. They provide a simple way of investing for beginners. Unfortunately, the fees for multi asset funds tend to be high, but when Vanguard released its UK LifeStrategy funds in 2011 the landscape changed. This video gives an overview of UK multi-asset funds and pitfalls to avoid when choosing the best multi-asset funds.
Sign up to our free weekly market roundup to get news and views about what's going on in the stock market and wider economy pensioncraft.com/market-roundup/
Why not join our membership on Patreon where you can learn via our Slack chat forum, take part in our regular members-only live Q&A webinars and gain access to a library of exclusive videos and resources. To find out more about this click here / pensioncraft
We rely on your support to keep producing free content via KZfaq. Please help us to remain independent and producing new content by supporting us on KZfaq kzfaq.info...
This is what else PensionCraft Offers:
- Book a Power Hour with Ramin so he can answer your questions in a one-to-one coaching session via a video call: pensioncraft.com/register/pow...
- Understand investment in more depth with my online courses pensioncraft.com/courses-we-o...
Recommended PensionCraft KZfaq Playlists
- There are many different types of investment strategies. In this playlist we look at a number of these so that you decide what is right for you. • Investment Strategies
- Bewildered by investment? Start with this playlist • Investing for Beginners
- Building blocks for your portfolio • Portfolio Building Blocks
If you like our content and want us to continue to produce it, you can support us with a one-off payment here paypal.me/pensioncraft
#PensionCraft #MultiAssetFunds #InvestmentEducation

Пікірлер: 73

@reecemccullough4829 4 жыл бұрын

what a fantastic video that has clearly taken alot of effort. I very much appreciate the time you have taken to do this. Thanks

@Flying_Scotsman_1921 4 жыл бұрын

The home bias response can also be found in a paper vanguard did on their UK target retirement funds. I think they followed recommendations from the pensions and investment industry which did surveys on people's preferences. There is also an interesting telegraph article from a year or 2 ago about the vanguard lifestrategy funds and how they were waiting for brexit to resolve itself before dialing down on the home bias. The article suggested there would be a definite reduction in home bias going forward, and I believe the the funds have already had a reduction around 2014-16 time as they used to be over 30% UK weighted. Also Ben Felix did a good video a few months ago about home bias and how Canada had a 30% weighting. His conclusion was that it didn't really impact on returns too greatly.

@johnc8627 4 жыл бұрын

Love the channel great detail, I was looking to set up a pension fund in Ireland. The pension funds won’t let me buy America domiciled ETF’s or index funds. So I’am wondering if there is any Uk or Ireland domiciled ETF’s or index funds that have Small Cap Value. I want to add Small Cap Value as an asset class but can’t seem to find it any where. I have searched vanguard, Blackrock but they don’t offer small cap value. Do you know off any where I can find Small Cap value for my pension fund. Any advice would be greatly appreciated

@normanbutley5910 4 жыл бұрын

HSBC Global Strategy Portfolios, cheaper, better performing, truly global allocation and extremely low transactions costs. This fund range needs to be reviewed! Thanks Norman.

@0tispunkm3y3r 4 жыл бұрын

Thanks! I bank with HSBC, so presume it's easy to get in to this?

@MrBhojpur 4 жыл бұрын

It doesn't look cheaper than Vanguard

@normanbutley5910 4 жыл бұрын

@@MrBhojpur where are you looking? 16-21bp is the charge across the 5 portfolios.

@Pensioncraft 4 жыл бұрын

Hi Norman thanks for pointing out the HSBC Global Strategy funds. They fall into the Investment Association's "Volatility Managed" sector not the Multi Asset sectors. But I'll talk about them in future. Ramin.

@rajs3114 3 жыл бұрын

Hi there, great video, some key points highlighted which was good to take note off. I have a quick question am hoping you can help answer for me. I had a look at the Baillie Gifford Managed fund and seen it costs almost £1,700 to purchase. Firstly is this the price for a full share of the fund? Secondly would it matter if you continuosly bought less shares of this fund if you couldn't afford the full price (i.e. say £250 per month as opposed to the full £1,700 price advertised)? Would buying fewer shares over so many years impact upon recieving the full benefits of the fund performance as say someone who could afford the full listed price? Many thanks

@0tispunkm3y3r 4 жыл бұрын

Thoughts on vanguard FTSE global all cap?

@lorenzwlf 4 жыл бұрын

Hi Mate, I would really appreciated your help. where can you buy a MSCI ACWI here in the UK?

@sandeepksharma5775 3 жыл бұрын

Any thoughts on the Vanguard Global Balanced Fund. 0.48% OCF, but actively managed.

@Mouxbar 4 жыл бұрын

Another excellent video. How about looking at multi-asset trusts such as Caledonia, Alliance and Witan etc? (which aren't all truly multi-asset but if you get my drift... they've been about a lot longer as well)

@kennethadams1398 4 жыл бұрын

Great video thank you. Out if interest, I’m currently in a 2040 target retirement fund which doesn’t have quite the amount of uk weighting, with the U.S being a tad overpriced at the moment would it make more sense to switch to LS 40 (very similar allocation) as UK stocks look more appealing right now. I appreciate you can’t offer actual advice but would be interested to hear your thoughts? Many thanks in advance and have a great Christmas.

@Pensioncraft 4 жыл бұрын

Hi Oliver, in fact that's what we discussed on Sunday's call (December 22nd 2019) so if you pay $5 you could watch the replay! Recreating LifeStrategy with alternative weights isn't difficult but you'll have to rebalance once in a while patreon.com/pensioncraft Thanks, Ramin

@stevo728822 4 жыл бұрын

I prefer to make up my own multi asset portfolio because 1) I can track on a daily basis how each asset class is performing, 2) gain access to areas of the market these multi asset funds will ignore and 3) tweak the amount of currency risk I feel comfortable with.

@gerry2345 4 жыл бұрын

I like this vid. Good insight..

@Pensioncraft 4 жыл бұрын

Hi GerrysPlace, thank you! Ramin.

@misfit2022 3 жыл бұрын

I looked at Black Rock but I chose a non multi Ishares and went with VG LS for the multi.

@LondonReps 4 жыл бұрын

Thanks Ramin

@Pensioncraft 4 жыл бұрын

My pleasure LJSE, thank you! Ramin.

@---li4yn 4 жыл бұрын

Thanks for the video! I have a couple of suggestions if you revisit this subject in future... More risk-targeted fund ranges can be found in the IA volatility managed category so look there as well as in the "old" percentage range categories. Have you heard of the HSBC Global Strategy Portfolio funds? Charges lower than LifeStrategy, no UK bias and equity holdings are partially hedged. Surprised you didn't include them in the roundup; they have been around for a few years. BMO's Universal MAP funds are actively managed but have OCF 0.29%, which is low for actively-managed funds. (But check fund transaction/dealing charges which the OCF doesn't include.) Some of them haven't been around very long, will be interesting to see how they perform in future.

@Pensioncraft 4 жыл бұрын

Hi -- thanks for pointing that out, I'll talk about the volatility managed funds including HSBC's Global Strategy Portfolio funds too. BMO has recently announced that it's shutting down many of its funds, are they going to shut those multi asset funds down too? Thanks, Ramin.

@---li4yn 4 жыл бұрын

@@Pensioncraft If the Vanguard Lifestrategy funds were introduced today, they would probably be put in the IA Volatility Managed category rather than splitting the range with each fund in a different category. BMO closed their European ETFs, not OEICs. They recently expanded the Universal MAP range, adding Defensive and Adventurous to the older Cautious, Balanced and Growth funds. In addition to those five there is an Income fund.

@Jalleur14325 2 ай бұрын

Do you have a more recent video on these? Or other safe mixed asset investments?

@Pensioncraft 2 ай бұрын

Hi @Jalleur14325 I created this one earlier this year "Vanguard LifeStrategy vs HSBC Global Strategy Portfolios" kzfaq.info/get/bejne/d75gqrya1uDQYWw.html

@TheCustomer 4 жыл бұрын

Hi. What do you think about 80% Amundi MSCI World index and 20% Amundi Emerging Market index. Is it enough diversofication and risk-spreading? Thanks

@jononeill2008 4 жыл бұрын

Are there any Vanguard multi asset funds with less of a UK home bias? thanks

@Pensioncraft 4 жыл бұрын

Hi Jon you can always choose your own country by country funds. In my video "Portfolio Inspiration" I show how to emulate LifeStrategy so that you can tweak the allocations any way you like kzfaq.info/get/bejne/fNuZl8dhzpfPlYk.html Thanks, Ramin.

@Peakwanderer 3 жыл бұрын

Choices choices choices, currently I'm considering transferring out of Royal London to Blackrock, Vanguard or AJ Bell where my fund used to be until I received advice to transfer which I now realise was only of benefit to the advisor who charged me a big fee and no doubt got commision from RL.

@cooper8t 4 жыл бұрын

I'm genuinely waiting for vanguard to make an enhanced version of its Global and European SRI funds that is more environmentally friendly. I hope one day they will! Glad I've got the Vanguard 80% Equity Fund based on this video, (although watered down due to 1/3 in Value Factor and 1/3 in Emerging Markets funds)

@leestauber5187 4 жыл бұрын

Daniel Cooper Check VESGX

@rodeo9 4 жыл бұрын

On home bias, one point might be it can be a risk mitigating position if you consider currency movements?

@Pensioncraft 4 жыл бұрын

Hi 405 Brigade, Homie that can work both ways i.e. home bias is good if your domestic currency strengthens but damaging if your domestic currency weakens. Thanks, Ramin.

@rodeo9 4 жыл бұрын

@@Pensioncraft That's true, but my point was more against the fact that home bias necessarily makes an inefficient portfolio, which I believe was one of your central points. If we ignore currency denominations then it would make sense to form a portfolio that purely reflects the global equity market in structure. However, when we consider currency, adding another foreign asset introduces currency risk (as well as idiosyncratic risk), which is correlated to those other foreign assets already in the portfolio. How many of those foreign assets you add depends on how volatile your domestic currency is to the dollar. So the end point of diversification wouldn't necessarily be where the portfolio = international market. Just trying to explain why Vanguard includes such a large UK position for UK (£) traded multiasset funds. Let me now if wrong.

@markfogel3682 2 жыл бұрын

Thanks for the video, since this was released the Bailly Gillford Managed fund dropped in value probably around 30% what are your thoughts on this? I have not stopped paying into the fund, probably increased my contributions with hope that it will eventually recover. Thanks

@Pensioncraft 2 жыл бұрын

Hi Mark I'm sorry to hear about that. I have spoken to someone who lost more than you with Baillie Gifford funds. They outperformed as growth as an investment style "worked". It stopped working at the end of last year and they didn't reallocate away from that style of investment and their investors have paid the price. If the fund is advertised as being a "growth" fund then they can't move away from this style of investment but if it's not advertised as that then they should have tilted away from growth to justify their fee. But their fees remain high - Baillie Gifford Managed B has an ongoing fee of 0.42% whereas most passive funds are 0.2% or lower. That's why I seldom invest in active funds and that was the point of this video. Thanks, Ramin.

@markfogel3682 2 жыл бұрын

@@Pensioncraft yes I have been trying to move away from active funds by selling off where possible. Can't sell this one thought... It's high risk but I am hoping it will recover eventually so I could sell it when it bounces back and invest the money into a low cost index instead. In the meantime I am still paying into it to take advantage of the lower costs. Thanks for the reply, love your videos :-)

@michaelrichmond3137 4 жыл бұрын

There is talk on MarketWatch of the markets, by which I assume it's the US markets, experiencing the 'Minsky Effect' a collapse after a long bull market. How would UK LifeStrategy or other UK held Multi Asset Funds fair if this were to happen.....crystal ball I know but a ballpark view would be good.

@Pensioncraft 4 жыл бұрын

Hi Michael that would be a good video! But when equities crash the usual pattern of LifeStrategy 100 performing best and LifeStrategy 20 worst it would be the other way around. The "typical" crash for equity every decade or so is around 50% so LifeStrategy 100 would lose 50% and LifeStrategy would lose 10% on its equity and probably gain on its bonds a bit, so maybe break even or lose a little bit. I doubt this will happen soon, but who knows! Thanks, Ramin.

@LondonReps 4 жыл бұрын

Could you do a video on REITs?

@Pensioncraft 4 жыл бұрын

Hi LJSE, we've covered REITs several times in our Sunday evening calls for Patreon supporters. It doesn't cost much to subscribe ($5 per month) and you get access to all the previous calls patreon.com/pensioncraft Thanks, Ramin.

@garylewis6657 4 жыл бұрын

Is vanguard lifestrategy 100 a sensible way to invest a workplace pension through vanguard SIPP when they arrive in early 2020 - (30 year time horizon) Or 40 years should IDS get his way 🙄

@Pensioncraft 4 жыл бұрын

Hi G L LifeStrategy 100 is a fairly standard global equity fund. My only concern with it is its overweighting of the UK. That's something we discussed on our Sunday evening call recently (for Patreon supporters who pay $5 per month) www.patreon.com/posts/live-q-call-15th-32371586 Thanks, Ramin.

@garylewis6657 4 жыл бұрын

@@Pensioncraft great, I will be sure to check it out. I have been auto enrolled into a 'NOW: Pensions' workplace pension and feel that their investment strategy is a bit too defensive for my time horizon. I suspect that this was done for my employer's benefit rather than my own. Thanks for your response. Keep up the great work 👍

@ianseward9928 4 ай бұрын

Very low yield on all of these funds , doesn’t that mean selling units during income . The royal London map look interesting. Have you seen them

@UhhTurk 4 жыл бұрын

what do you think about Robin hood coming to the UK? will you be making any videos about it?

@Pensioncraft 4 жыл бұрын

Hi James, I think it's great as it will make the UK market even more competitive for low fees which is great for investors. I will definitely be making videos about it! Thanks, Ramin.

@UhhTurk 4 жыл бұрын

@@Pensioncraft brilliant! thanks for the reply, huge fan of the channel!

@___JJ 4 жыл бұрын

not sure about the shoe analogy. the topshop ones look way better

@Pensioncraft 4 жыл бұрын

Hi JJ I'm with you there. I'm more of a fluffy slipper man than a Prada man. Thanks, Ramin.

@alfieseddon7910 4 жыл бұрын

I personally don't like the thought of having 55% of my equity exposure in USA. It seems like an overexposure and the SP500 seems to be overextended. To me a 30% exposure to America is about the max I'd want.

@stevo728822 4 жыл бұрын

50% US is about right because the US markets are about 50% of the global market. And historically they perform better than non-US markets.

@nickcompton4772 4 жыл бұрын

Hey Ramin, I have a question about investing when young. I’m 17 years old and have a part time job with around £2000 savings. My question is what would be the most simple and easy rout to investing my money.

@vengefulavenger1510 4 жыл бұрын

Vanguard all world equity tracker

@Pensioncraft 4 жыл бұрын

Hi Nick, I suggest you take a look at my video on how to build a two fund portfolio pensioncraft.com/how-to-build-two-stock-portfolio/ The most important things are to keep your fees low, find a level of risk you're happy with and diversify. At 17 you have _ages_ to invest and typically that means you can take a higher level of risk. But that doesn't apply to everyone because some people are more cautious than others. Oh, another thing, don't sell when markets crash! Thanks, Ramin.

@petearmstrong2778 4 жыл бұрын

I guess Vanguard have enough low cost funds to build your own portfolio to reduce UK & US share if you wanted but Lifestrategy has home bias - and kept simple - for those folk who want an easy solution. It does reduce currency risk which may be a factor? No one can predict the future nor which is best so just hold that which you are comfortable with.

@Pensioncraft 4 жыл бұрын

Hi Pete I agree - if you want to increase the allocation for any region you could just buy a fund for that region e.g. the US. Having the UK overweight in LifeStrategy is good if sterling strengthens but bad if sterling weakens. But over the long term foreign exchange is fairly stable compared to equity returns which is why most equity funds don't bother to currency hedge. Thanks, Ramin.

@stevo728822 4 жыл бұрын

Low cost funds tend to be low cost because they invest heavily in domestic markets where the costs are cheaper due to things like avoiding currency exchange.

@stevo728822 4 жыл бұрын

Phew....you didn't have to make that video about survivng a Corbyn/McDonnell government.

@Pensioncraft 4 жыл бұрын

8-) Thanks, Ramin.

@rsmickeymooproductions4877 4 жыл бұрын

Having a UK bias is a positive rarer than a negative. UK stocks according to CAPE is far cheaper than the USA.

@astrobiker4348 4 жыл бұрын

Yeah but with limited growth

@___JJ 4 жыл бұрын

my UK stocks this last week 🔥🔥

@vengefulavenger1510 4 жыл бұрын

EL MAGNIFICO A low CAPE implies higher than average future growth. A high CAPE implies lower than average future growth.

@---li4yn 4 жыл бұрын

Personally, I prefer to have no UK bias, since I can then add however much UK exposure separately. With a built-in UK bias, if at some point you don't want to be overweight on UK, it's hard to reverse that.