Vanguard unveils range of LifeStrategy Model Portfolios

by | Jun 6, 2022

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For advisers with a preference for model portfolios, Vanguard’s popular LifeStrategy range is now available with both “Classic” and “Global” asset allocations

Vanguard today launches two new ranges of model portfolios; Vanguard LifeStrategy MPS Classic and Vanguard LifeStrategy MPS Global. These ranges are designed to give advisers with a preference for model portfolios access to Vanguard’s LifeStrategy offering. Vanguard LifeStrategy is one of the UK’s most popular fund ranges, with investors having entrusted more than £36 billion (Source: Vanguard as at 31/05/22). Advisers can now choose to hold Vanguard LifeStrategy in either mutual fund or model portfolio formats.

The Vanguard LifeStrategy MPS Classic range are five model portfolios that mirror the design of the Vanguard LifeStrategy mutual funds, providing broadly diversified, high-quality exposure to global equity and fixed income markets, via a portfolio of underlying index funds. The model portfolios target a set risk profile (from 20% to 100% equity), and pursue a strategic allocation strategy, aiming to give investors the best chance of investment success over the long-term. 

The success of the Vanguard LifeStrategy mutual fund range indicates that many UK investors continue to have a preference for their home market. As such, the Vanguard LifeStrategy MPS Classic range follows the same design; the portfolios have a tilt to the UK in both the equity (25%) and fixed income (35%) segments. The rest of the portfolio is market-capitalisation weighted.

Vanguard also recognises that some investors prefer a truly global approach. To meet this need, Vanguard is delighted to be launching the Vanguard LifeStrategy MPS Global range. These portfolios are 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. Our LifeStrategy MPS Classic and LifeStrategy MPS Global model portfolios are designed to give advisers the choice of wrapper and asset allocation that best meet their needs and preferences.”

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 a select number of adviser platforms over the coming 12 months. The classic range has been rated by Dynamic Planner, Defaqto and Oxford Risk. Further ratings for both ranges will be completed after launch.

Vanguard manages circa £750 billion[1] in multi-asset solutions on behalf of investors across the world. Including today’s launches, Vanguard’s line-up of high-quality, low-cost index model portfolios for UK financial advisers consists of the below. Vanguard will continue to develop the range in response to the evolving needs of financial advisers in the UK.

 

Product Name Strategy All-in costs[2]
Vanguard LifeStrategy 20% MPS Classic Target allocation 0.23%
Vanguard LifeStrategy 40% MPS Classic Target allocation 0.22%
Vanguard LifeStrategy 60% MPS Classic Target allocation 0.22%
Vanguard LifeStrategy 80% MPS Classic Target allocation 0.21%
Vanguard LifeStrategy 100% MPS Classic Target allocation 0.21%
Vanguard LifeStrategy 20% MPS Global Target allocation 0.23%
Vanguard LifeStrategy 40% MPS Global Target allocation 0.23%
Vanguard LifeStrategy 60% MPS Global Target allocation 0.23%
Vanguard LifeStrategy 80% MPS Global Target allocation 0.22%
Vanguard LifeStrategy 100% MPS Global Target allocation 0.22%
Vanguard LifeTarget Defensive Model Portfolio Target return 0.33%
Vanguard LifeTarget Cautious Model Portfolio Target return 0.33%
Vanguard LifeTarget Moderate Model Portfolio Target return 0.32%

 

[1] Source: Vanguard as at 31 December 2020

[2] Source: Vanguard, as at 31 May 2022. All-in costs include Ongoing Charges Figures (OCF) and an annual portfolio management fee that covers the discretionary management of the managed portfolio service, ongoing oversight, and regular rebalancing of the portfolios.  The portfolio management fee is exclusive of VAT and any adviser, platform, or dealing charges. The OCF covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees

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