Vanguard  

Vanguard launches Lifestrategy model portfolios

Vanguard has expanded its Lifestrategy brand with the launch of two model portfolio ranges.

The Vanguard Lifestrategy MPS Classic and Vanguard Lifestrategy MPS Global are designed to provide access to Lifestrategy for advisers who prefer model portfolios.

The classic range includes five MPS that mirror the Lifestrategy mutual funds, with a set risk profile of between 20 per cent and 100 per cent equity.

The MPS will invest across global equity and fixed income markets through underlying index funds.

The classic portfolios will all have a focus on the UK market in both the equities (25 per cent) and fixed income (35 per cent). The rest of the portfolio is market-capitalisation weighted.

The global MPS will be wholly market-capitalisation weighted.

Neil Cowell, head of UK intermediary distribution, Vanguard, said since its launch in 2011, Lifestrategy has formed the “bedrock” of many financial advisers’ investment propositions.

He said: “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 new ranges are available at launch on Transact, Aviva and Standard Life platforms, and will be rolled out to a selected number of adviser platforms over the next 12 months.

Vanguard’s Lifestrategy currently manages £36bn.

Last year, Vanguard also moved into the UK advice space. The company launched its restricted advice proposition, charging just 0.79 per cent "all in", in April 2021, though it has confined itself to investment advice rather than financial planning for now.

New MPS launching

Product Name

Strategy

All-in costs

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%

Source: Vanguard

sally.hickey@ft.com