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LifeTarget Model Portfolios

Plan for a better future

When it comes to retirement, investors like to know they are working towards a robust financial plan, and that their investments align with their long-term goals for spending or growth. But keeping the plan on track can be a challenge when market conditions change, and bond and equity valuations shift.

That is why LifeTarget Model Portfolios use Vanguard’s sophisticated forecasting and modelling capabilities to help keep track of, and adapt to, the changing condition of the markets each year. Each portfolio is managed in a way that aims to maximize risk-adjusted returns whilst giving investors the best chance of achieving at least the minimum return target over the long term.

How they deliver value to investors

Flexible

Aim to generate sufficient long-term return for advisers to draw on as part of a personalised spending or growth plan

Targeted

Managed around realistic long-term minimum return expectations

Intelligent

Allocations adapt each year or after major market events according to Vanguard’s latest models

Low-cost

An all-in cost of just 0.32% to 0.33% per year means investors keep more of their returns.*

Our LifeTarget Model Portfolios put advisers at the centre of their clients' retirement plans, providing more control over their investments, income and legacy needs.

Jessica Clancy, Head of Model Portfolios, Europe


Choosing a LifeTarget Model Portfolio

LifeTarget Model Portfolios are currently available on the Transact platform. If you would like to know more about the models, please contact our sales team who will be happy to help.

Vanguard LifeTarget Defensive Model Portfolio

Minimum long-term return target: 2%**

Cost: 0.33% all-in charges*

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Vanguard LifeTarget Cautious Model Portfolio

Minimum long-term return target: 3%**

Cost: 0.33% all-in charges*

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Vanguard LifeTarget Moderate Model Portfolio

Minimum long-term return target: 4%**

Cost: 0.32% all-in charges*

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*Costs are as of 31 December 2020. 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. **Minimum long-term return targets are not guaranteed and are subject to the performance of the bonds and equities in which the model invests.

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Why Vanguard for Model Portfolios?

Vanguard has been working with advisers for over 45 years. We have over £740bn*** invested across our multi-asset range globally, all supported by a team of experienced portfolio and investments specialists.

We are passionate about the role financial advisers play in helping investors navigate their financial future. Used as part of a clear retirement framework, LifeTarget Model Portfolios are designed to help advisers create personalised retirement plans based on the individual needs of each investor.

£740bn

in multi-asset fund solutions globally***

30+

strategists and analysts in our Investment Strategy Group develop and maintain our portfolio strategies***

1976

When our expertise in both portfolio construction and asset allocation began***

***Source: Vanguard. Data as at December 30, 2020.

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.

Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.

Investments in smaller companies may be more volatile than investments in well-established blue chip companies.

Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.

The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.

Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.

The model portfolio aims to achieve at least the minimum target return on an annualized basis over a rolling 5-year period. Achieving the minimum target return is not guaranteed and is subject to the performance of the underlying bonds and equities in which the model invests. In any given year the performance of the model may be higher, or lower than the minimum target return and an investor may not get back the full amount invested

For further information on risks relating to the underlying funds please see the “Risk Factors” section of the prospectus on our website at https://global.vanguard.com.