Vanguard’s low-risk UK strategies upended in 2022 market rout
Vanguard’s £35bn UK Life Strategy funds range has been wrongfooted by simultaneous falls in bonds and stocks this year, leaving supposedly low risk portfolios nursing heavier losses than racier options.
The investment behemoth offers a range of funds that aim to provide passive exposure to global markets, and it encourages investors to select a higher allocation to bonds if they have a lower tolerance for losses.
So far this year, however, a lower-risk fund with a 20 per cent equity weight has lost 16 per cent, whereas a more adventurous option with 80 per cent stocks is only down 9 per cent, according to Morningstar data.
This story originally appeared on: Financial Times - Author:Joshua Oliver
