Vanguard direct to customer offering confirmed

cloud_dog

Redski69 wrote: »

Also, guidance here for you should be NOT to sell all your Vanguard holidings ! Keep them invested in the market but instead request HL to Re Register them across to your new Vanguard account.

I've seen the term 're-register' holdings across from HL to Vanguard (for example) but does this negate the HL transfer out per holding charge and therefore you would only incur the closure costs (assuming you only hold Vanguard, and assuming you actually closed your HL account(s))???

Redski69

cloud_dog wrote: »

I've seen the term 're-register' holdings across from HL to Vanguard (for example) but does this negate the HL transfer out per holding charge and therefore you would only incur the closure costs (assuming you only hold Vanguard, and assuming you actually closed your HL account(s))???

On the Hargreaves site, you'll see it referenced as Transfer Out (as stock) - meaning you keep the assets invested in the market but they transfer ownership administration to your new ISA provider.

They charge you £25 per asset line for the privilege too. They're an expensive Platform and put additional fees like this in place too, to deter people from leaving.

However, what you will find is that many new Providers processing the Re-Registration of the assets to them for you will pay the Exit Fees on your behalf ... it is always worth asking as I've seen this as market practice historically.

Hope this helps ...

Audaxer

dunstonh wrote: »

I seem to manage it regularly. As do many other investors in the UK. Mainly as they are not blinkered to the passive bias that some people like you have. Where passive is best, it should be used. Where managed is best, it should be used.

How do we know which actively managed funds are best, as I thought we can't really use past performance as a guide? Seems even more difficult to know what selection of active funds to pick for a portfolio to beat a good multi-asset passive fund. For instance, can you list a portfolio of actively managed funds (or a mixture of active and passive) for a £100k investment with an overall 40/60 equity/bond allocation, that can better a VLS40 over the long term. I'm not saying there isn't one, but if it's that easy to identify such funds I'd be interested in knowing what would be the best active and passive funds to include in such a portfolio.

ColdIron

cashbackproblems wrote: »

Also will be selling all of my vanguard holdings from hl in the coming days and transferring

I hope that isn't an ISA unless your investment is small

Pincher

Registered my interest months ago, and got this e-mail at 16:52, on Tuesday.

http://view.e-vanguard.com/?j=fec411777367017c&m=fe911372756c077577&ls=fe1f15777d6701747c1072&l=ff6a167076&s=fe511177736c0d7d7311&jb=ffce15&ju=fe4e157573620c7b7c1c&r=0

A little miffed. Everybody else already opened an account by 16:52. So, the people who are keen and waited come last, heh?

Instead of getting account number 00000001, I'll be 00009999 now.

BananaRepublic

edinburgher wrote: »

The Citywire article quotes Vanguard as wanting to provide a SIPP soon

Excellent. They will be getting money from me once the SIPP is launched, assuming similar charges to the ISA, presumably a bit more as it involves more work.

Redski69

Pincher wrote: »

Registered my interest months ago, and got this e-mail at 16:52, on Tuesday.

http://view.e-vanguard.com/?j=fec411777367017c&m=fe911372756c077577&ls=fe1f15777d6701747c1072&l=ff6a167076&s=fe511177736c0d7d7311&jb=ffce15&ju=fe4e157573620c7b7c1c&r=0

A little miffed. Everybody else already opened an account by 16:52. So, the people who are keen and waited come last, heh?

Instead of getting account number 00000001, I'll be 00009999 now.

I'd manage your own expectations accordingly as to the level of Customer Service you're expecting here Pincher !

Vanguard will quickly feel the pain of launching this, in terms of increased regulatory demands, customer service requirements, ongoing platform / product enhancements etc etc etc. And all they are getting for all that extra work is 15bps ? Good luck to them with that !

You not be might be account number 00000001, but you might be complaint number 00000001 !

cashbackproblems

Redski69 wrote: »

On the Hargreaves site, you'll see it referenced as Transfer Out (as stock) - meaning you keep the assets invested in the market but they transfer ownership administration to your new ISA provider.

They charge you £25 per asset line for the privilege too. They're an expensive Platform and put additional fees like this in place too, to deter people from leaving.

However, what you will find is that many new Providers processing the Re-Registration of the assets to them for you will pay the Exit Fees on your behalf ... it is always worth asking as I've seen this as market practice historically.

Hope this helps ...

yes this is why I wont be doing this due to the £25. However luckily my holdings in Vanguard with HL are relatively small e.g. 10k and I realise I lose the ISA allowance for this year but I wont be able to use the full 20k anyway.. so makes sense to just sell cash out and buy back in. I already have opened my account so process wont take more than few days.

cloud_dog

Redski69 wrote: »

On the Hargreaves site, you'll see it referenced as Transfer Out (as stock) - meaning you keep the assets invested in the market but they transfer ownership administration to your new ISA provider.

They charge you £25 per asset line for the privilege too. They're an expensive Platform and put additional fees like this in place too, to deter people from leaving.

However, what you will find is that many new Providers processing the Re-Registration of the assets to them for you will pay the Exit Fees on your behalf ... it is always worth asking as I've seen this as market practice historically.

Hope this helps ...

Yes, I understand that. It was the use of the term 're-register' which threw me as opposed to transferring out; perhaps the re-registration term is the more business appropriate but not one I (as a layperson) was familiar with.

So, your assertion that you should not sell and just re-register cannot be held as absolutely appropriate, i.e. the full costs of transfers and the risk of being out of the market needs to be considered; also, the probability that a transfer involving lines of stocks "generally" appear to take longer than an account transfer of just cash (historically has tended to be the case). Although the timewilltell recent experience has cast a significant doubt over my above comment about transfer times.

Perhaps the investment industry have implemented 'Faster Transfers' just like the banking industry implemented 'Faster Payments'...:question:

Redski69

cloud_dog wrote: »

Yes, I understand that. It was the use of the term 're-register' which threw me as opposed to transferring out; perhaps the re-registration term is the more business appropriate but not one I (as a layperson) was familiar with.

So, your assertion that you should not sell and just re-register cannot be held as absolutely appropriate, i.e. the full costs of transfers and the risk of being out of the market needs to be considered; also, the probability that a transfer involving lines of stocks "generally" appear to take longer than an account transfer of just cash (historically has tended to be the case). Although the timewilltell recent experience has cast a significant doubt over my above comment about transfer times.

Perhaps the investment industry have implemented 'Faster Transfers' just like the banking industry implemented 'Faster Payments'...:question:

Apologies Cloud_Dog and makes sense, thanks for calling it out ... the term was used on me when going through the process myself and has since just stuck I guess !

In my experience, the cost of transferring the stock was nil because the new provider covered the Exit Fee costs with HL for me - so made sense to stay in the market rather than taking cash out ... and the timing factor against the backdrop of the longer term goal of better ROI wasn't greater to make me want to expedite it by using the cash route.

The timing difference between Cashing Out & Transferring Stock these days isn't vastly different either I believe.

Just didn't make sense to me ... and if its outside an ISA there are Capital Gains implications too.