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  • FIRST POST
    • edinburgher
    • By edinburgher 16th May 17, 8:21 AM
    • 10,673Posts
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    edinburgher
    Vanguard direct to customer offering confirmed
    • #1
    • 16th May 17, 8:21 AM
    Vanguard direct to customer offering confirmed 16th May 17 at 8:21 AM
    Looks like Vanguard are taking the wraps off their new direct to customer offering - wonderful

    https://www.ft.com/content/6821ce50-3976-11e7-821a-6027b8a20f23

    I know that this has been on the cards for some time, but it's nice to see some specifics confirmed (0.15% admin costs for £500+)

    Another article:

    https://www.theguardian.com/business/2017/may/16/vanguard-funds-investment-isa-uk-fees-hargreaves-lansdown-fidelity
    Last edited by edinburgher; 16-05-2017 at 8:24 AM.
Page 1
    • SnowMan
    • By SnowMan 16th May 17, 8:23 AM
    • 3,113 Posts
    • 5,781 Thanks
    SnowMan
    • #2
    • 16th May 17, 8:23 AM
    • #2
    • 16th May 17, 8:23 AM
    Ha ha you beat me to it by seconds
    Link to the new platform

    https://www.vanguardinvestor.co.uk/
    Last edited by SnowMan; 16-05-2017 at 8:25 AM.
    I came, I saw, I melted
    • fun4everyone
    • By fun4everyone 16th May 17, 8:29 AM
    • 818 Posts
    • 1,358 Thanks
    fun4everyone
    • #3
    • 16th May 17, 8:29 AM
    • #3
    • 16th May 17, 8:29 AM
    Looks good, hope it sparks a price war.
    Last edited by fun4everyone; 16-05-2017 at 8:35 AM.
    • edinburgher
    • By edinburgher 16th May 17, 8:31 AM
    • 10,673 Posts
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    edinburgher
    • #4
    • 16th May 17, 8:31 AM
    • #4
    • 16th May 17, 8:31 AM
    Ha ha you beat me to it by seconds
    Link to the new platform

    https://www.vanguardinvestor.co.uk/
    Originally posted by SnowMan
    Excellent - JISAs as well - DD's account will be getting moved promptly unless my current provider decides to match them.
    • ian-d
    • By ian-d 16th May 17, 8:32 AM
    • 367 Posts
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    ian-d
    • #5
    • 16th May 17, 8:32 AM
    • #5
    • 16th May 17, 8:32 AM
    I'm not switching my providers already, but this is good news, and hopefully they will branch out into other funds so others, like HL and Fidelity have to react. I might message HL requesting a reduced admin fee otherwise I'll start moving money.
    • fun4everyone
    • By fun4everyone 16th May 17, 8:34 AM
    • 818 Posts
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    fun4everyone
    • #6
    • 16th May 17, 8:34 AM
    • #6
    • 16th May 17, 8:34 AM
    Ohhh Hargreaves Lansdown shares down 4.5%!
    • JohnRo
    • By JohnRo 16th May 17, 8:54 AM
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    JohnRo
    • #7
    • 16th May 17, 8:54 AM
    • #7
    • 16th May 17, 8:54 AM
    I don't see what incentive Vanguard will have to branch out and offer investment products from others, does any one have info that's their intent?

    As an outfit that pride themselves on keeping costs as low as possible I suspect all they're doing is offering direct affordable access to their own products and in house services, without the need to stump up a six figure lump sum.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • edinburgher
    • By edinburgher 16th May 17, 9:00 AM
    • 10,673 Posts
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    edinburgher
    • #8
    • 16th May 17, 9:00 AM
    • #8
    • 16th May 17, 9:00 AM
    I agree completely JohnRo - this move just brings their UK offerings more in to line with the services they offer to US investors.
    • ian-d
    • By ian-d 16th May 17, 9:01 AM
    • 367 Posts
    • 87 Thanks
    ian-d
    • #9
    • 16th May 17, 9:01 AM
    • #9
    • 16th May 17, 9:01 AM
    Has certainly shook the share price of HL though.
    • EdSwippet
    • By EdSwippet 16th May 17, 9:03 AM
    • 545 Posts
    • 509 Thanks
    EdSwippet
    Meh.

    The 0.15% platform fee might look tempting to HL customers, but to most people who would benefit from a flat-fee platform -- Interactive Investor, Alliance Trust, Halifax Sharedealing, etc -- it isn't compelling. Also, only Vanguard funds offered. Trading accounts and ISAs but no SIPPs.

    Maybe they'll widen and improve it in future. For now, though, it falls quite a way short of their direct-to-customer offering in the US.
    • edinburgher
    • By edinburgher 16th May 17, 9:05 AM
    • 10,673 Posts
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    edinburgher
    The 0.15% platform fee might look tempting to HL customers, but to most people who would benefit from a flat-fee platform -- Interactive Investor, Alliance Trust, Halifax Sharedealing, etc -- it isn't compelling. Also, only Vanguard funds offered. Trading accounts and ISAs but no SIPPs.
    Fees are also capped at £375 - does this change your opinion at all?

    Edit: and they allow transfers in (although I'm unsure if anyone doesn't these days).
    • AndyT678
    • By AndyT678 16th May 17, 9:05 AM
    • 713 Posts
    • 956 Thanks
    AndyT678
    The Vanguard ISA is a flexible ISA, which means you can take money out for emergencies and put it back in later in the same tax year without affecting your ISA allowance. [...] maybe you need to spend some of your ISA funds to carry out some home repairs. You fix your roof, then later in the year you receive a bonus from work. With Vanguard’s flexible ISA you can use that money to replenish your tax-efficient portfolio.
    by Vanguard
    Unusual to find that level of flexibility on an S&S ISA. Not sure if that's good or bad.

    One of their examples sort of suggests that it's aimed at someone who really needs a cash emergency fund and shouldn't be in S&S anyway.
    • JohnRo
    • By JohnRo 16th May 17, 9:08 AM
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    JohnRo
    Yes, understandable given Vanguard's platform fee is 0.15% on the first £250,000 with no dealing or transfer fees. It's like they've just lobbed a hand grenade into the fray.

    I wonder what percentage of customer assets at HL, and elsewhere, are Vanguard products.

    Unusual to find that level of flexibility on an S&S ISA. Not sure if that's good or bad.
    Originally posted by AndyT678
    It's good
    Last edited by JohnRo; 16-05-2017 at 9:10 AM.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • edinburgher
    • By edinburgher 16th May 17, 9:09 AM
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    edinburgher
    I thought flexible ISAs were becoming more common? Charles Stanley Direct offer flexibility (my current broker)
    • mgarl10024
    • By mgarl10024 16th May 17, 9:10 AM
    • 584 Posts
    • 392 Thanks
    mgarl10024
    I'm not sure this is such a great deal - unless I am missing something.

    If Vanguard are charging 0.15%, this doesn't work well for larger investors. For example, if you had over £10k, you would be better to own the Vanguard investments through say Halifax at £12.50/yr? Even cheaper through iWeb once you've paid the account opening fee?

    What am I missing?
    Last edited by mgarl10024; 16-05-2017 at 9:20 AM.
    • isasmurf
    • By isasmurf 16th May 17, 9:15 AM
    • 1,719 Posts
    • 738 Thanks
    isasmurf
    Has certainly shook the share price of HL though.
    Originally posted by ian-d
    Or perhaps something else has. If investors holding funds with HL were price conscious they wouldn't be holding their funds with HL in the first place.
    • cloud_dog
    • By cloud_dog 16th May 17, 9:16 AM
    • 3,168 Posts
    • 1,698 Thanks
    cloud_dog
    No platform charge if £250k or more invested.

    Unsure if the free dealing (at end of day) is only applicable to their OIEC offerings or also includes ETFs. Immediate dealing available for £7.50.

    Was hoping they might venture in to the SIPP world.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • JohnRo
    • By JohnRo 16th May 17, 9:17 AM
    • 2,424 Posts
    • 2,178 Thanks
    JohnRo
    What am I missing?
    Originally posted by mgarl10024
    no dealing costs?
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • Audaxer
    • By Audaxer 16th May 17, 9:17 AM
    • 405 Posts
    • 166 Thanks
    Audaxer
    Fees are also capped at £375 - does this change your opinion at all?
    Originally posted by edinburgher
    Still nowhere near as low as Halifax Share Dealing fixed fee platform charge of £12.50 per annum.
    • EdSwippet
    • By EdSwippet 16th May 17, 9:18 AM
    • 545 Posts
    • 509 Thanks
    EdSwippet
    Fees are also capped at £375 - does this change your opinion at all?
    Originally posted by edinburgher
    Not really. Flat-fee platforms operate in the £40-£120 range.

    Most have separate trading charges, so if you're a hyperactive fund switcher then those costs could add up. But then, if you're a hyperactive fund switcher then you probably aren't interested in Vanguard's passive tracker funds in the first place.
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