Who has my money?

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Zippeh
Zippeh Posts: 108 Forumite
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in Savings & investments
I have money invested in Vanguard Lifestrategy (amongst others, but just this one will do for the sake of illustration), and I use Hargreaves Landsdown to administer my portfolio.

My question is, who has my money?

Does HL hold it?
Does Vanguard hold it?
Or is it actually invested in the companies that Lifestrategy invests in?

The reason I'm asking is I'm interested to know what happens should HL or Vanguard go under.

Thanks in advance.
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  • le_loup
    le_loup Posts: 4,047 Forumite
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    The money is in the Vanguard fund.
    If HL or Vanguard go bust your money is safe.
    .......... unless one or both of these organisation are involved in fraud.
  • sebthered
    sebthered Posts: 43 Forumite
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    Interested to know why you chose HL as a platform for this fund as they are one of the more expensive?
  • StevieJ
    StevieJ Posts: 20,174 Forumite
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    How does the govt bank/investement protection apply here?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Linton
    Linton Posts: 17,173 Forumite
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    There is £50K of cover for each financial company involved - eg HL and Vanguard. But it is difficult to see realistic circumstances when it may apply - massive fraud perhaps as suggested by le loup. All your investments are still owned by you. If a platform or fund manager goes bust your investments cant be used to pay their debts. Someone else will probably take over the management. If not, the fund's underlying assets will be sold and your money will be returned to you. With a bank you pay in money and they give you a promise to pay it back. In the meantime it's their money to do what they wish with it and if they go bust what was your money can be used to pay their debts.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
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    So what happens if fraud is involved?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • TrustyOven
    TrustyOven Posts: 746 Forumite
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    edited 7 March 2017 at 7:28PM
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    A (perhaps offtopic?) question:
    Vanguard Lifestrategy 80 and 100 (and many many other funds) are available as OEICs.

    OEICs are separate companies.
    (Edited to add: I am fairly sure there was a thread last year where one of the highly-rated and respected posters here replied saying that the funds are their own separate companies and are totally independent of the platform, even if the fund name and fund platform have the same name (i.e. Fidelity Investments as the platform company and Fidelity Index World Acc the fund).
    Is this correct, is my understanding correct?).

    I'm sure I tried searching them at Companies House but failed to find them.

    So does each OEIC fund get the £50k protection independently? (I suspect the answer is "no" but I wanted to get confirmation in case my thinking was wrong.)
    Thanks!
    Goals
    Save £12k in 2017 #016 (£4212.06 / £10k) (42.12%)
    Save £12k in 2016 #041 (£4558.28 / £6k) (75.97%)
    Save £12k in 2014 #192 (£4115.62 / £5k) (82.3%)
  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    Investment Trusts are companies, unit trusts are not. They are products offered by the asset manager

    Like cash deposits you are protected across all your investments with an organisation not per product
  • TrustyOven
    TrustyOven Posts: 746 Forumite
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    But I thought that OEICs are not ITs nor UTs.
    Goals
    Save £12k in 2017 #016 (£4212.06 / £10k) (42.12%)
    Save £12k in 2016 #041 (£4558.28 / £6k) (75.97%)
    Save £12k in 2014 #192 (£4115.62 / £5k) (82.3%)
  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    Unit Trusts and Open Ended Investment Companies use trustees to ring fence your assets so if the fund manager fails to meet its obligations they are protected by the FSCS
  • Zippeh
    Zippeh Posts: 108 Forumite
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    They dont seem too bad for my portfolio size according to this:

    http://www.telegraph.co.uk/investing/isas/tables-the-cheapest-and-most-expensive-places-to-buy-an-isa/
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