Vanguard LifePlan Model Portfolio Strategies
Vanguard’s LifePlan model portfolio strategies (MPS) allow advisers to reduce time spent on portfolio construction without losing control. They also grant full access to the investment expertise of Vanguard as a global leader in multi-asset solutions.
Why Vanguard?
45 years’ experience
Our expertise in portfolio construction and asset allocation goes back to 1976.
Flexibility
Choose from up to 5 different risk profiles with ESG preferences.
Low-cost building blocks
Gain global exposure to equities and bonds with transparent, low-cost ETF and fund building blocks.
Adding value for advisers
Advisers have many strengths but the area they particularly excel at is their holistic understanding of each of their clients and therefore the ability to advise them. Building robust financial plans that remain fit for purpose while delivering the desired investment outcomes as clients circumstances change and move through key life stages takes considerable time and effort.
As one of the world’s largest asset managers, Vanguard has the portfolio construction and research expertise needed to alleviate some of the pressures advisers are under. Our LifePlan MPS can add value for advisers and their clients in several ways:
Time
Frees up time spent researching and refining asset allocation decisions so that advisers can spend it on their clients – getting to know them better, building strong and long-lasting relationships and helping them to get the most out of their money – and their life.
Control
Unlike outsourced investment solutions, our LifePlan MPS allow advisers to retain full control of their clients’ portfolios. They can decide how and when to use our model portfolios – to fulfil either all or part of a client’s investment needs – and when to rebalance.
Cost
Our scale means that we can offer our LifePlan MPS to advisers without adding an additional layer of fees for clients. The only costs are the cost of the underlying building blocks with ongoing charges and fees (OCF’s) ranging from 0.12% to 0.15%, depending on the model.1
1 Weighted management expense ratios rounded to the nearest basis point and based on portfolio allocations as at 31 December 2022. Source: Vanguard. The ongoing charges figure (OCF) covers administration, audit, depository, legal, registration and regulatory expenses incurred in respect of the funds.
"With LifePlan MPS, you outsource the effort of portfolio construction, oversight and maintenance to experienced specialists. This means: more time for you to focus on financial planning and advice."
Head of Multi-Asset Solutions Europe
Principles for investment success
Our model portfolio strategies draw on Vanguard’s expertise as one of the world’s largest asset managers and are built upon our four principles for investment success:
Clear goals: the investment process begins by setting measurable and attainable investment goals and developing plans for reaching those goals. The LifePlan MPS are set to meet a wealth accumulation objective, taking into account a client’s capacity and appetite for taking risks.
Balance: a successful investment strategy starts with an asset allocation suitable for its objective. Our LifePlan MPS provide broad market diversification across global equity and bonds markets to allow investors to participate in stronger-performing markets and sectors, while offsetting the negative impact of weaker-performing ones.
Low cost: Vanguard research shows that low-cost solutions offer a higher chance for investment success. LifePlan MPS are exclusively based on low-cost Vanguard ETF and fund building blocks.
Discipline: Vanguard believes that maintaining discipline is a key tenet for achieving long-term investment outcomes. Rebalancing portfolios back to their target allocations on a regular basis provides the greatest chance for investment success. For our LifePlan MPS, allocation updates are provided on a 3-monthly basis allowing for regular rebalancing.
Important risk information:
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Past performance is not a reliable indicator of future results.
For further information on risks please see the “Risk Factors” section of the prospectus on our website.