Fund manager Vanguard has today launched two model portfolio ranges called Vanguard LifeStrategy MPS Classic and Vanguard LifeStrategy MPS Global with ‘all-in’ costs between 0.21% and 0.33%.
The firm says the ranges are aimed at advisers with a preference for model portfolio access to Vanguard’s LifeStrategy offerings.
Advisers can hold Vanguard LifeStrategy in either mutual fund or model portfolio formats. LifeStrategy has more than £36 billion invested.
The Vanguard LifeStrategy MPS Classic range includes five model portfolios that mirror the design of the Vanguard LifeStrategy mutual funds, providing exposure to global equity and fixed income markets via a portfolio of underlying index funds. The model portfolios target a risk profile (from 20% to 100% equity) and pursue a strategic allocation strategy.
The Vanguard LifeStrategy MPS Classic range has a tilt to the UK in both the equity (25%) and fixed income (35%) segments. The rest of the portfolio is market-capitalisation weighted.
The Vanguard LifeStrategy MPS Global range is market-capitalisation weighted without a tilt to the UK.
Neil Cowell, head of UK intermediary distribution, Vanguard, said: “Since its launch in 2011, LifeStrategy has formed the bedrock of many financial advisers’ centralised investment propositions, resulting in over 4,000 adviser firms using the range to deliver low cost, broadly diversified, uncomplicated, multi-asset investing to their clients. We are delighted to be able to now offer the range in model portfolio format as part of our ongoing commitment to supporting financial advisers.”
The LifeStrategy MPS Classic and the LifeStrategy MPS Global ranges are available at launch via the Transact, Aviva and StandardLife platforms, alongside Vanguard’s existing LifeTarget model portfolio range, and will be rolled out to other adviser platforms over the coming 12 months. Both ranges have been rated by Dynamic Planner, Defaqto, and Oxford Risk. Further ratings will be completed after launch.
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Product Name
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Strategy
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All-in costs
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Vanguard LifeStrategy 20% MPS Classic
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Target allocation
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0.23%
|
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Vanguard LifeStrategy 40% MPS Classic
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Target allocation
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0.22%
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Vanguard LifeStrategy 60% MPS Classic
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Target allocation
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0.22%
|
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Vanguard LifeStrategy 80% MPS Classic
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Target allocation
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0.21%
|
|
Vanguard LifeStrategy 100% MPS Classic
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Target allocation
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0.21%
|
|
Vanguard LifeStrategy 20% MPS Global
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Target allocation
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0.23%
|
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Vanguard LifeStrategy 40% MPS Global
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Target allocation
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0.23%
|
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Vanguard LifeStrategy 60% MPS Global
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Target allocation
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0.23%
|
|
Vanguard LifeStrategy 80% MPS Global
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Target allocation
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0.22%
|
|
Vanguard LifeStrategy 100% MPS Global
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Target allocation
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0.22%
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Vanguard LifeTarget Defensive Model Portfolio
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Target return
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0.33%
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Vanguard LifeTarget Cautious Model Portfolio
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Target return
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0.33%
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Vanguard LifeTarget Moderate Model Portfolio
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Target return
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0.32%
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