- Yield History-
- 3 Year sharpe0.45
- 3 Year alpha0.69
- Distribution Typeaccumulation
- BenchmarkNot Benchmarked
- Legal StructureOpen Ended Investment Company
- Fund Size (month end)Open Ended Investment Company
- IA SectorMixed Investment 40-85% Shares
- Manager GroupVanguard
- DomicileUnited Kingdom
The Vanguard Life Strategy 60% Equity Fund provides 60% exposure to global equities and 40% exposure to global bonds via several index-tracking funds run by Vanguard. The bond content is spread globally, with 13% of assets in the UK. In terms of equity exposure, the US is the biggest country weighting followed by the UK. The non-UK exposure within bonds is hedged back to sterling but equities are not hedged. Index funds held within the fund are automatically rebalanced to static target weights. The fund only holds a selection of Vanguard index funds and ETFs, which helps reduce costs.
The fund is part of the wider Vanguard Life Strategy range of funds that offer five pre-determined mixes of equities and bonds in order to meet a range of risk and return profiles among investors. Equities offer higher potential returns than bonds – but are riskier. If you are a more cautious investor you might want to choose a LifeStrategy fund with less equities and more bonds. An adventurous investor on the other hand might want to choose a LifeStrategy fund with more equities.
Managed by highly experienced and well-resourced team at Vanguard, the range stands out with a clear and well-defined investment process and consistently produced strong risk adjusted returns relative to peers. With an ongoing charge of just 0.22%, these funds are the ultimate, globally diversified one stop shop. Spreading risk across equities and bonds, they are the ideal way for beginner investors who are taking a medium risk approach to get started investing.