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Vanguard LifeStrategy 20% Equity Accumulation (GBP)

Sell:16,337.41p Buy:16,337.41p Change: 3.28p (0.02%)
Prices as at 12 July 2024
Change: 3.28p (0.02%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 12 July 2024
Change: 3.28p (0.02%)
Prices as at 12 July 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

Our view on the sector

The Mixed and Flexible Investment sectors could be the answer for investors who want to leave the asset allocation decisions to an expert. Funds in these sectors invest a certain amount of their portfolio in shares, from 0% to 35% in the case of the Mixed Investment 0-35% Shares Sector, 20% to 60% for the Mixed Investment 20-60% Shares Sector, 40% to 85% for the Mixed Investment 40-85% Shares Sector, and 0% to 100% for the Flexible Investment Sector. Any proportion of the fund not invested in shares can be invested in bonds, cash, currencies, commodities or property. Funds within these sectors can be very different from each other so they'll perform differently too. Each should be looked at on its own merits, taking account of your investment objectives and the amount of risk you want to take.

Performance Analysis

Vanguard LifeStrategy funds don't have an explicit benchmark that they aim to either track or outperform. Their goal is to maintain the various splits between shares and bonds and ensure that those are kept too tightly. The funds with the most investments in shares may perform best as global stock markets perform strongly over this time. The funds with more in bonds may not grow as much, but they serve their purpose of reducing volatility and falling less when markets are rocky. We wouldn't expect the funds with more invested in shares to hold up so well when markets fall.

Investment Philosophy

Tracker funds are one of the simplest ways to invest. They aim to match the performance of an index, rather than beat it. They usually do this by investing in every company in the index. This means they don't need analysts to research individual companies, which keeps costs to a minimum. If the fund's costs are low, it's likely to track the index more closely.

Process and Portfolio Construction

Each LifeStrategy fund is made up of several passive funds. The asset allocation of the underlying funds is decided by the internal committee and the Equity Investment Group ensure it's maintained. The team has controls in place to keep the funds close to their benchmarks, including ensuring the right amount is invested in each stock or bond. There are five LifeStrategy funds, ranging from 20% shares (equities) up to 100%. A higher allocation in shares will increase risk, as they're subject to more extreme price movements than bonds. Vanguard's global CIO (Chief Investment Officer) chairs a committee that reviews the funds' allocation to different markets annually and meet four times a year to discuss any trends, issues or concerns. The funds also invest into emerging markets. These companies have greater potential for growth over the long term but can increase the risk of the funds. Global bonds' price movements and income can fluctuate alongside foreign currency movements, adding an extra layer of risk to UK investors. To tackle this issue, the team use hedging to convert these bonds back to sterling. This involves using derivatives to offset some of the volatility of currency price movements, which adds risk when used. The process allows the bond portion of the funds some stability during more turbulent markets. Vanguard will also lend some of their investments in the underlying funds out to other providers in order to increase returns which can reduce their costs for investors, though this adds risk.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

12/07/19 to 12/07/20 12/07/20 to 12/07/21 12/07/21 to 12/07/22 12/07/22 to 12/07/23 12/07/23 to 12/07/24
Annual return 5.87% 3.85% -10.30% -4.10% 8.19%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Vanguard Equity Index Group
Manager start date: 23 June 2011
Manager located in: TBC


Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account