Vanguard direct to customer offering confirmed

edinburgher

Looks like Vanguard are taking the wraps off their new direct to customer offering - wonderful :beer:

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

SnowMan

Ha ha you beat me to it by seconds :beer:
Link to the new platform

https://www.vanguardinvestor.co.uk/

fun4everyone

Looks good, hope it sparks a price war.

edinburgher

SnowMan wrote: »

Ha ha you beat me to it by seconds :beer:
Link to the new platform

https://www.vanguardinvestor.co.uk/

Excellent - JISAs as well - DD's account will be getting moved promptly unless my current provider decides to match them.

ian-d

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

Ohhh Hargreaves Lansdown shares down 4.5%!

JohnRo

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.

edinburgher

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

Has certainly shook the share price of HL though.

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

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).