Vanguard: changes to LifeStrategy including new Global range

[Phooey]

Vanguard are cutting UK equity / bond exposure, reducing the fee to 0.2%, and adding a new Global range...

https://www.vanguardinvestor.co.uk/investment-info...

https://www.thisismoney.co.uk/money/diyinvesting/a...

Edited by Phooey on Thursday 22 January 15:13

[ooid]

Finally, a decent option without home-bias.

Vanguard life strategy global will have only 3% UK equities.

[Hippea]

That's good news, I've stuck with LifeStrategy 100 for a while and was considering changing but think I'll stick now

[ooid]

Lifestrategy 100 - UK allocation, 20%
Lifestrategy Global 100 (New product) - UK allocation, 4%

Pretty much aligned with MSCI AWI

https://www.msci.com/indexes/index/892400

[Phooey]

Bit more info..

https://www.vanguard.co.uk/professional/what-we-of...

[okgo]

Why would one choose the 100% equities product over one of their existing global offerings?

[ooid]

Probably ideal for people who also owns bonds too (like LS80, LS60), it was a good choice as a one stop shop, but now it will probably be better for them as the global has not more than 4% UK.

[Phooey]

okgo said:

Why would one choose the 100% equities product over one of their existing global offerings?

LS Global is actively managed as opposed to something like FTSE All-World (VWRL/P) or Global All-Cap which are both passive. So basically, if they want too, Vanguard can adjust the weightings within the basket of (passive) funds which make up Global. I guess you have to make your own mind up if you want to add a layer of active management to a passive fund.

I will be sticking to the regular LS100 in my daughter's JISA. I want the overweight to the UK.

[rdjohn]

I have always been with LS 80 and pretty happy with performance for perceived risk. Trustnet show the current asset allocation as this





The UK exposure looks to be where they say they are headed. Am I missing something significant?

[Phooey]

rdjohn said:

The UK exposure looks to be where they say they are headed. Am I missing something significant?

Yes. Of the 80% equity allocation within LS80, 25% of that is UK = 20% UK (25% of 80)

LS80 now -
"The pre-defined asset allocation for the Fund means that it is intended that the Fund will invest: (1) approximately 80% of its assets by value in Associated Schemes which provide exposure to shares of companies worldwide. Approximately 25% of such investments (by value) will be in UK listed companies; and (2) approximately 20% of its assets by value in Associated Schemes which provide exposure to government and corporate bonds and other similar fixed income investments worldwide. Approximately 35% of such investments (by value) will be in Sterling-denominated investments (including UK government bonds (gilts), government related bonds, index-linked gilts and investment-grade bonds), which may include Sterling-denominated bonds issued by companies outside the UK."

Allocation to underlying Vanguard funds
As at date 31 Dec 2025

Percentage
FTSE U.K. All Share Index Unit Trust GBP Acc 19.5%
U.S. Equity Index Fund GBP Acc 19.2%
FTSE Developed World ex-U.K. Equity Index Fund GBP Acc 19.1%
Global Bond Index Fund GBP Hedged Acc 14.0%
S&P 500 UCITS ETF (USD) Accumulating 6.9%
Emerging Markets Stock Index Fund GBP Acc 6.4%
FTSE Developed Europe ex-U.K. Equity Index Fund GBP Acc 4.7%
U.K. Government Bond Index Fund GBP Acc 3.4%
Japan Stock Index Fund GBP Acc 2.4%
U.K. Investment Grade Bond Index Fund GBP Acc 1.4%
U.K. Inflation-Linked Gilt Index Fund GBP Acc 1.3%
Pacific ex-Japan Stock Index Fund GBP Acc 1.0%
FTSE 100 UCITS ETF (GBP) Accumulating 0.7%
FTSE 250 UCITS ETF (GBP) Accumulating 0.1%
Total 100%

LS80 upcoming change -

We’re reducing the home bias.
"The proportion of shares in each fund that are UK-listed will decrease from 25% to 20%
The proportion of bonds in each fund that are GBP-denominated will decrease from 35% to 20%"

LS100 now -
"The pre-defined asset allocation for the Fund means that it is intended that the Fund will invest approximately 100% of its assets by value in Associated Schemes which provide exposure to shares of companies worldwide. Approximately 25% of such exposure will be in UK listed companies."

Allocation to underlying Vanguard funds
As at date 31 Dec 2025

Percentage
FTSE U.K. All Share Index Unit Trust GBP Acc 19.5%
U.S. Equity Index Fund GBP Acc 19.4%
FTSE Developed World ex-U.K. Equity Index Fund GBP Acc 19.2%
S&P 500 UCITS ETF (USD) Accumulating 16.7%
Emerging Markets Stock Index Fund GBP Acc 8.0%
FTSE Developed Europe ex-U.K. Equity Index Fund GBP Acc 6.6%
FTSE 100 UCITS ETF (GBP) Accumulating 5.1%
Japan Stock Index Fund GBP Acc 3.4%
Pacific ex-Japan Stock Index Fund GBP Acc 1.5%
FTSE 250 UCITS ETF (GBP) Accumulating 0.5%
Total 100%

LS100 upcoming change -

We’re reducing the home bias.
"The proportion of shares in each fund that are UK-listed will decrease from 25% to 20%
The proportion of bonds in each fund that are GBP-denominated will decrease from 35% to 20%"

[Dashnine]

Bumping this to ask if anyone has invested in the new Global LifeStrategy funds as a comparison to the 'old' fund and compared the performance?

[Phooey]

Dashnine said:

Bumping this to ask if anyone has invested in the new Global LifeStrategy funds as a comparison to the 'old' fund and compared the performance?

It's pointless comparing performance in such a short timeframe, but if you really want to then just compare the fund prices from each as they are published daily. FWIW I have kept the 'old' LS100 in my daughters JISA as I didn't mind the overweight to UK, however I am waiting for the volatility to calm down so I can switch her LS100 into VWRP (I prefer ETF's).


eta - since inception (22nd January) LS100 global has done +2.51% and LS100 +3.3% to last price

Edited by Phooey on Friday 17th April 18:56

[ooid]

Dashnine said:

Bumping this to ask if anyone has invested in the new Global LifeStrategy funds as a comparison to the 'old' fund and compared the performance?

My son JISA has this only now. I will check next year but it should be pretty close to MSCI world index, the weightings were quite similar. It is a cheap world tracker.