Tracker Fund - Go direct or via platform?

Perdu

Thanks to this forum, I have realised that an Offshore Bond fund I have had for 15 years is not only a bit rubbish now, but has been costing a furtune in fees.

I've decided to dump it finally and opt for a cheap tracker - probably VLS-80 or similar.

I had assumed cheapest is best by going direct, but could someone point out if I'm missing something by not using a platform?

I am finding many options are not open to me at the moment as I'm currently in France - although I rang Vanguard and they have indicated in principle that it may not be a problem.

Would welcome any comments and suggestions and happy to provide further info.

Merci!

Rollinghome

Be aware that Vanguard say:

"The minimum initial investment of (Investor) Income and Accumulation shares or for anyone approaching Vanguard directly is £100,000."

So if you wanted to invest less than that in their LS 80 fund you would probably need to go through an intermediary.

Linton

If you go direct you wont be able to easily move the money to another company's funds. With a platform you have 1000's of options.

dunstonh

I've decided to dump it finally and opt for a cheap tracker - probably VLS-80 or similar.

Remember that this will create a tax bill.

I had assumed cheapest is best by going direct, but could someone point out if I'm missing something by not using a platform?

Do you have more than £100k?

I am finding many options are not open to me at the moment as I'm currently in France - although I rang Vanguard and they have indicated in principle that it may not be a problem.

Are you returning to the UK in the future? In which case, the offshore bond wrapper may prove more effective.

Perdu

Yes, sorry - I should have mentioned that it's about £ 250k.

I'd thought to put £200k into something like VLS80 to "stay in the market" while I sort out other finances and do some research.

Linton, I take your point but I was looking for a "fit & forget" for the time being, as I have a lot of learning to do and/or advice to take before I'm ready for anything else.

dunstonh wrote: »

Remember that this will create a tax bill.

Yes, thanks - because I've held it so long then (French) tax will be about £4k. I have this month only to take this option, as if I leave it until after 1 Jan 2016 then tax charge is likely to be over £12k.

dunstonh wrote: »

Are you returning to the UK in the future? In which case, the offshore bond wrapper may prove more effective.

Yes, likely to return to UK in next couple of years or so.

I understand about the favourable 5% pa taxation, but as I've recently discovered the real charges and fees for this bond currently amount to £7k+pa, I feel that this, coupled with the French tax saving, should make it worth while to switch now.

I'm likely to be a very low UK tax payer (basic SP + couple of bits and pieces), and thought the CGT allowance would be useful here.

Many thanks for responses so far.

Perdu

Well, the first choice has been made for me - I rang Vanguard only to find that their UK-based funds, including the LS range, are only available to UK residents. There would be no problem with any of their Irish-based funds, and I'll have a quick look later, but suspect I would be very much out of my depth.

So, a platform is the next thing to try. If anyone could give a hint as to which ones might be OK with non-UK residents - and/or best value for a single lump sum with minimal trading, I'd be very grateful.

Meanwhile, back to Monevator and Google..

jimjames

Not sure about non UK residents but iWeb charge a one off fee of £200 with no ongoing charges if you aren't trading.

Rollinghome

On costs, you should find SnowMan's spreadsheet useful. Look at both annual costs and the charges for moving elsewhere. http://forums.moneysavingexpert.com/showpost.php?p=64540489&postcount=15 . Whether those listed are available for ex-pats is something else. You might find more knowledge on that on an ex-pat's board.

While using a single fund gives ultimate simplicity with larger sums it's likely to be a nightmare for CGT management. Unless you're sure you fully understand the tax implications it might be necessary to bite the bullet and pay for advice on a one-off basis.

Perdu

Rollinghome wrote: »

On costs, you should find SnowMan's spreadsheet useful. Look at both annual costs and the charges for moving elsewhere. http://forums.moneysavingexpert.com/showpost.php?p=64540489&postcount=15 . Whether those listed are available for ex-pats is something else. You might find more knowledge on that on an ex-pat's board.

Thanks for the link - I'll take a look. Over the years I've found most ex-pat forums slightly worse than useless on financial matters - browsing them in parallel with you knowledgeable people on MSE is the reason I'm here.

wrote:

While using a single fund gives ultimate simplicity with larger sums it's likely to be a nightmare for CGT management. Unless you're sure you fully understand the tax implications it might be necessary to bite the bullet and pay for advice on a one-off basis.

Very good point. I'll go and reflect a bit on this. Thanks again.

Perdu

Rollinghome wrote: »

While using a single fund gives ultimate simplicity with larger sums it's likely to be a nightmare for CGT management. Unless you're sure you fully understand the tax implications it might be necessary to bite the bullet and pay for advice on a one-off basis.

I think you're right, and I'll probably seek proper advice particularly with regard to UK tax planning when I know if and when I'm likely to return. At the moment, though, life and circumstances are changing so fast I think I'd be an indecisive headache for some poor IFA..

Meanwhile, I'm grabbing the tiny window of opportunity to move the bulk of investments "sideways" out of the poorly performing very expensive place it's in, and into a tracker. Then take some time learning and asking silly questions on here to try and formulate a strategy.

Perdu

Well that Snowman's an absolute star.

I've now phoned 12 platforms and it would seem my options are limited. I'll list them here in case it helps others in similar financial exile..:o

UK residents only:
IWeb
AJ Bell
Charles Stanley
Cavendish
Halifax
X-O
BestInvest

AllianceTrust I have tried to reach 6 times over 2 days and a total of 35mins holding. I hate giving in so even tried their main number who just said " Cust Services very busy probably due to Christmas :huh: and just keep trying..." Hmm..

I have found four so far who said they will open an account for non-UK residents - I think I have their charges right but will have to check:-

Hargreaves Lansdown - at .45% is v pricey on large lump sum.
TD Direct - slightly better but .3% still more than the VLS itself.
III - dirt cheap at £ 80 pa (?), but I've noticed the threads!
Trustnet Direct - seems to be .25% capped at £200pa plus £10 per trade.

If I've made an error or if there are any more (fixed fee or low capped) I'd be most grateful for the heads up, otherwise I'll probably follow up on Trustnet.