Vanguard UK Platform

I have been wondering this for a while and I would like people's opinions since I received some good advice here before.

I am currently investing with Hargreaves Landsdown. I am mainly investing in the Lindsell Train Global Equity fund. I have smaller sums invested also in Baring Europe Select, JP Morgan Emerging Markets, First State Global Listed Infrastructure and Rathbone Global Equity (the latter mainly because I know the companies in that fund as I am a gamer.)

These funds should have very little overlap and don't have a high correlation, although at least 60% of my ISA is invested in Lindsell Train Global Equity.

Now I am not fixated with passive funds. Vanguard Lifestrategy 100 has been doing worse than the Lindsell Train fund for example. The Vanguard Lifestrategy fund is more diversified, but I feel that with their substantial stake in Unilever, the Lindsell Train fund should do okay even if markets are not doing great. But the difference in platform charges between Hargreaves Landsdown and Vanguard UK are substantial (0.45% vs 0.15%).

The problem with Vanguard is that I wouldn't have access to the Lindsell Train fund (which is the main one I care about) and I also wouldn't have access to the other funds.

I do like Vanguard's managed Global Equity fund, which, in the last year, has outperformed Lindsell Train. However I fear that their fund might be a bit less successful in a bearish market. Vanguard has a fair amount invested in Amazon, which is still expanding as we saw with their acquisition of Whole Foods. But do I trust that to be more stable than Unilever in Lindsell Train?

I am just conscious that I can't do any cyclical investing with Vanguard, where some sectors do better at certain times, unless I use their passive funds. So I would be investing mainly in their Global Equity fund. While most active funds don't outperform their index, I feel Lindsell Train Global Equity has performed really well, and the added extra fund choice I get with HL is nice.

So I am at a cross road here. Do I stick with HL and pay the higher fees (which would hinder some returns), or do I go with Vanguard UK and invest in just the one Global Equity fund?

Comments

  • TCA
    TCA Posts: 1,530
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    edited 28 June 2017 at 12:36PM
    Lindsell Train Global Equity has less than 9% Unilever so you can't really assess how the fund will perform based on that single holding. That aside, your decision is probably more an active v. passive one, than anything based on platform charges. e.g. you could use iWeb, pay a one-off £25 fee and hold any of the funds you mentioned without paying any further platform fees. Not sure if iWeb has Vanguard Global Equity but you get the gist of it.
  • bostonerimus
    bostonerimus Posts: 5,617
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    Go with the platform that allows you to invest the way you want. Your investing style and philosophy is not well suited to the current Vanguard UK platform.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Do what i do and hold both. I use vanguard direct for passives HL for activez

    Everytime i try to move to a cheaper platform than hl for managed funds, i realise how superior and easy go use their platform is and worth the extra for % personally
  • Trinityx
    Trinityx Posts: 20 Forumite
    Thanks all. I don't think I was very clear, but I am not interested in the passive indexes at the moment :)

    The Vanguard Global Equity fund is managed. It isn't a matter of active VS passive but a matter of accessing one active fund VS several.

    As it was pointed out though my investing style is different from the Vanguard offering.

    Also it is interesting to hear how others think HL is a lot easier to use and find what you need. I found the same, and the fact that someone else tried other platforms and came back to HL is actually reassuring to me – you know, that I am not being silly with fees. I do try to keep fees below 1% (including both fund and platform charges) but I am always trying to cut them.
  • seacaitch
    seacaitch Posts: 272
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    TCA wrote: »
    Lindsell Train Global Equity has less than 9% Unilever so you can't really assess how the fund will perform based on that single holding. That aside, your decision is probably more an active v. passive one, than anything based on platform charges. e.g. you could use iWeb, pay a one-off £25 fee and hold any of the funds you mentioned without paying any further platform fees. Not sure if iWeb has Vanguard Global Equity but you get the gist of it.

    You cannot buy Lindsell Train Global Equity on IWeb's platform.

    Otherwise, your point stands: find the cheapest broker/platform to hold whatever it is you wish to hold, and if that requires more than one broker/platform then split your holdings accordingly.
  • badger09
    badger09 Posts: 11,128
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    Trinityx wrote: »
    I have been wondering this for a while and I would like people's opinions since I received some good advice here before.

    I am currently investing with Hargreaves Landsdown. I am mainly investing in the Lindsell Train Global Equity fund. I have smaller sums invested also in Baring Europe Select, JP Morgan Emerging Markets, First State Global Listed Infrastructure and Rathbone Global Equity (the latter mainly because I know the companies in that fund as I am a gamer.)

    These funds should have very little overlap and don't have a high correlation, although at least 60% of my ISA is invested in Lindsell Train Global Equity.

    Now I am not fixated with passive funds. Vanguard Lifestrategy 100 has been doing worse than the Lindsell Train fund for example. The Vanguard Lifestrategy fund is more diversified, but I feel that with their substantial stake in Unilever, the Lindsell Train fund should do okay even if markets are not doing great. But the difference in platform charges between Hargreaves Landsdown and Vanguard UK are substantial (0.45% vs 0.15%).

    The problem with Vanguard is that I wouldn't have access to the Lindsell Train fund (which is the main one I care about) and I also wouldn't have access to the other funds.

    I do like Vanguard's managed Global Equity fund, which, in the last year, has outperformed Lindsell Train. However I fear that their fund might be a bit less successful in a bearish market. Vanguard has a fair amount invested in Amazon, which is still expanding as we saw with their acquisition of Whole Foods. But do I trust that to be more stable than Unilever in Lindsell Train?

    I am just conscious that I can't do any cyclical investing with Vanguard, where some sectors do better at certain times, unless I use their passive funds. So I would be investing mainly in their Global Equity fund. While most active funds don't outperform their index, I feel Lindsell Train Global Equity has performed really well, and the added extra fund choice I get with HL is nice.

    So I am at a cross road here. Do I stick with HL and pay the higher fees (which would hinder some returns), or do I go with Vanguard UK and invest in just the one Global Equity fund?

    Apologies if I've missed it (ageing eyes on small iPhone screen in sunlight:o) but I didn't see any mention SIPP or annual ISA allowance. In which case, depending on frequency of trades, why not use Vanguard or IWEB for Vanguard funds, and stick with HL if you're happy with their fees, for Lindsell Train.
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