Difference in fairness dwelling bias between Lifestrategy UK and EUR : eupersonalfinan…

by akoloy


Hi everybody, I hope my query might be of curiosity for this subreddit.

I used to be trying out the allocations of Vanguard Lifestrategy UCITS funds and confronting them with the identical merchandise for the UK buyers.

What I discovered is that the Lifestrategy merchandise for UK have a heavy fairness dwelling bias. Check out for instance the 100% equity or the 40% equity: greater than 25% of equities are allotted in UK, a share far larger than the one given by capitalization weights.

Instead, the identical Lifestrategy merchandise for the European buyers have a basic capitalization weight allocation for the fairness half, as it may be seen in web page 4 of this pdf and thus the European a part of equities is < 15% of equities portfolio.

Why do you suppose there may be such a distinction? Why there’s a fairness dwelling bias for the UK however not for the European investor?

I’m not evaluating the bond elements as it’s identified that the fastened revenue a part of the portfolio needs to be hedged within the dwelling forex.



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