Vanguard Lifestrategy Fund

bongoali

Hi,

I invest in this fund via S&S ISA on a monthly basis through H&L.

I was told today that I can invest direct with Vanguard.

I've tried to compare the 'costs' to me of investing with Vanguard direct and H&L to see which is cheaper but I'm tying myself in knots and also have no confidence I'm doing the comparison correctly. :eek:

If anybody knows how to do the compare and would be kind enough to show me how to do it I'd be very gratful !

Thanks in advance :T

kharne

First off, if you go direct to Vanguard, the minimum subscription is £100,000 per fund. If you have this much, then the fees will work out cheaper than HL who charge £2/month, but that is going to be pretty insignificant on £100k anyway.

bongoali

kharne wrote: »

First off, if you go direct to Vanguard, the minimum subscription is £100,000 per fund. If you have this much, then the fees will work out cheaper than HL who charge £2/month, but that is going to be pretty insignificant on £100k anyway.

Thank you kharne.. I didn't realise there was a £100K min sub.. I don't have anywhere near that so pretty much answers this question - thanks

dunstonh

Also remember that the charges are going to change soon anyway as the FSAs platform review will ban backhanders and hidden commissions from fund houses to platforms. The current position (which is subject to change as the review is not complete) is that all investments should be treated the same by the distributor (apart from dealing costs obviously). i.e. they cannot retail commission paying funds no explicit charges but then charge non commission paying funds.

So, you need to keep an eye on what is happening. Most platforms have either moved to an unbundled charging method or plan to do so. HL is still a bundled platform but with the odd charge here and there.

The platform review was originally planned to take affect at the start of 2013. However, it has been put back, probably around a year.

kharne

dunstonh wrote: »

they cannot retail commission paying funds no explicit charges but then charge non commission paying funds.

So would this mean a blanket platform charge for all funds or no more paying for Vanguard and others trackers? Also, did you get my pm?

jamesd

It means no more payments out of the annual management charge to advisers and platforms like HL. It doesn't have to mean a single platform charge. Companies could do what HL has started to do and charge per fund per month or in some other way if they want to.

oldtoolie

I use Alliance which charges £25+VAT @ year for an ISA.
Here's a recent story comparing ISA platform fees.
http://www.thisismoney.co.uk/money/investing/article-1718291/Pick-best-cheapest-investment-Isa-platform.html

Porcupine

Read the first post in the Best S&S ISA thread. You can buy Vanguard funds in an ISA from Alliance, HL, Sipdeal and Bestinvest.

Basically you won't get cheaper than HL unless you a) hold more than one 'platform fee' fund (eg 2x Vanguard funds or trackers), b) hold more than £50K, or c) are prepared to pay £10 per transaction.

bongoali

Thanks a lot for your reply Porcupine - that is very clear.

Enjoy the rest of your evening.