Vanguard Dividend Payment

Rheumatoid

Mine from FTSE U.K. Equity Income Index Fund - Income always go into my HL account on the payment date but not into my VG a/c until a few days later!

bowlhead99

Rheumatoid wrote: »

Mine from FTSE U.K. Equity Income Index Fund - Income always go into my HL account on the payment date but not into my VG a/c until a few days later!

Well, you do pay an extra 0.3% a year for the privilege of a faster-updating statement

Rheumatoid

True but not for much longer as I am getting things organised to shift all my VG stuff over to them from HL

bowlhead99 wrote: »

Well, you do pay an extra 0.3% a year for the privilege of a faster-updating statement

EthicsGradient

FWIW, my dividend for Vanguard FTSE Developed World ex-U.K turned up in my Interactive Investor account today - not withdrawable yet, since that usually takes one more working day.

learningmoneybasics

Quick update - Mine has now appeared in my Vanguard account during the course of this afternoon.

lopsyfa

I don't understand why Vanguard can be so slow. My holdings with Vanguard have payable date of 24-Jun-2020 and the dividend are still not showing on my Vanguard account whereas other Vanguard funds I have in my AJ Bell account are already deposited the money on 24-Jun-2020. I understand a difference of 2-3 days but 5 days later? I have sent them an email to ask why and when to expect the dividend.

It seems the Vanguard UK platform has some limitations - the choice of funds are limited compared to the US version especially looking at mid cap funds, the value of portfolio is 24 hours out of date and no mobile app. I do understand compromise need to be made to make the platform cheap but some things can be improved. For ETF investing, they can be more expensive than AJ Bell and HL who capped the annual platform fees at lower amounts.

bowlhead99

lopsyfa said:

My holdings with Vanguard have payable date of 24-Jun-2020 and the dividend are still not showing on my Vanguard account whereas other Vanguard funds I have in my AJ Bell account are already deposited the money on 24-Jun-2020. I understand a difference of 2-3 days but 5 days later? I have sent them an email to ask why and when to expect the dividend.

Two of those days are a weekend; so 29 June is only 3 business days after 24 June, and you understand a difference of 3 days

 the value of portfolio is 24 hours out of date and no mobile app. I do understand compromise need to be made to make the platform cheap but some things can be improved.

You wouldn't expect the value to have today's prices of open-ended funds, which haven't been published yet. Todays fund prices aren't available on anyone else's platform either.  If your complaint is just for ETFs, which would have a live market price - they are just trying to offer a simple cheap service for long term investors to grow their wealth. and they don't charge you any transaction fees to place orders - many people will think that's just fine.

For ETF investing, they can be more expensive than AJ Bell and HL who capped the annual platform fees at lower amounts.

True, HL caps the annual platform fees for ETFs but doesn't cap their transaction fees for ETFs, and it charges triple the amount for OEIC investing. So people will pick based on whether something is overall suitable for their needs, or not.  If not having an App is a dealbreaker because your phone or tablet's web browser doesn't work on their website, and you need to monitor your portfolio in real time for some reason, I guess you would look to HL or AJ B who both have apps, but charge more to hold OEICs.

lopsyfa

bowlhead99 said:

lopsyfa said:

My holdings with Vanguard have payable date of 24-Jun-2020 and the dividend are still not showing on my Vanguard account whereas other Vanguard funds I have in my AJ Bell account are already deposited the money on 24-Jun-2020. I understand a difference of 2-3 days but 5 days later? I have sent them an email to ask why and when to expect the dividend.

Two of those days are a weekend; so 29 June is only 3 business days after 24 June, and you understand a difference of 3 days

 the value of portfolio is 24 hours out of date and no mobile app. I do understand compromise need to be made to make the platform cheap but some things can be improved.

You wouldn't expect the value to have today's prices of open-ended funds, which haven't been published yet. Todays fund prices aren't available on anyone else's platform either.  If your complaint is just for ETFs, which would have a live market price - they are just trying to offer a simple cheap service for long term investors to grow their wealth. and they don't charge you any transaction fees to place orders - many people will think that's just fine.

For ETF investing, they can be more expensive than AJ Bell and HL who capped the annual platform fees at lower amounts.

True, HL caps the annual platform fees for ETFs but doesn't cap their transaction fees for ETFs, and it charges triple the amount for OEIC investing. So people will pick based on whether something is overall suitable for their needs, or not.  If not having an App is a dealbreaker because your phone or tablet's web browser doesn't work on their website, and you need to monitor your portfolio in real time for some reason, I guess you would look to HL or AJ B who both have apps, but charge more to hold OEICs.

I never said it was 5 business days and I didn't say I understand 3 business days . Maybe you accept the delay is acceptable but I think it can be better. The money is not reflected yet so it may take more days. I am not talking about paying the money to my bank account but crediting it to my Vanguard account.

I am talking about ETF and yes I understand they are trying to make the platform as cheap as possible - I mentioned that in my post. Plus, how difficult or expensive do you think it is reflect the live price of ETFs in displaying a portfolio's value? I already mentioned in my post that I understand some compromise need to be made to make the platform cheaper. I know some of these compromises before opening account with them but I am entitled to my opinion on how I think the platform can be better. Will having an app be good, yes but I never mentioned in my post that it is a deal-breaker so I don't understand where you inferred that from. I have AJ Bell account to buy other things that are not suitable/available for the account Vanguard and you can buy most ETFs and OEICs for just £1.50 using AJ Bell regular investing service. My point about the platform fee is to point out that the fees are not considerably cheaper than other rivals who don't have some of these limitation.

If I want to nitpick like you, I could say Vanguard charge fees for buying and selling ETFs but don't charge if you are using their bulk dealing service but I understand what you meant. To have any reasonable discussion on these platform, we need to stop nitpicking and second guessing what people meant.

bowlhead99

lopsyfa said:
I never said it was 5 business days and I didn't say I understand 3 business days . Maybe you accept the delay is acceptable but I think it can be better. .

You did say 'I understand 2-3 days', and I assumed you wouldn't expect them to be doing much on a Sunday  ...   I agree it could be better (as I use AJ Bell, who are fine), although I would generally only do my reinvestment on a monthly basis, so a few days here or there is not too much to worry about. 

Other platforms have their own flaws.  AJ Bell sometimes displays a mid price or last price or some other garbage price (rather than closing bid price) for stocks when you look at their portfolio summaries out of hours, and they don't show a day-on-day change for most foreign stocks (and can sometimes be a day stale on foreign market prices in the portfolio tables).  HL is sometimes still showing Thursday prices for OEICs when you look at their site on a Saturday.

I know some of these compromises before opening account with them but I am entitled to my opinion on how I think the platform can be better. Will having an app be good, yes but I never mentioned in my post that it is a deal-breaker so I don't understand where you inferred that from.  

I didn't infer that you thought it was a deal-breaker not to have an App when anything that would run the App would also have a web browser. I just commented that it wasn't a big deal not to have it, given the purpose of the service (long term accumulation of wealth on a multi year timescale).  Of course, extra bells and whistles are nice, whether they're essential or not. 

My point about the platform fee is to point out that the fees are not considerably cheaper than other rivals who don't have some of these limitation

You're right, it may not be any cheaper to buy and hold ETFs on a platform that charges you on a percentage basis to hold them compared to a platform that has a low transaction fee and a small capped custody charge.

A reasonably low overall fee of 0.15% and having the same charging basis for both investment types is nice and simple for investors to get along with, but they are not claiming to be the cheapest - if you want to just buy ETFs in real time and hold them without custody fees there are plenty of stockbrokers that let you do that, and you woudn't need a 'funds platform' at all. 

If you were doing one ETF purchase a month (£18 a year) in a £50k ETF SIPP with AJ Bell, your 'capped' fee would be £118, while Vanguard would only charge you £75.  So YMMV depending on the exact portfolio and pattern of your trading. Large portfolios could definitely find a cheaper place than Vanguard. 

Not to labour the point, but if you were the sort of person who would really only be adding to their investment portfolio by buying an ETF once a month on the tenth of every month (e.g. to access the £1.50 regular investing transaction charges at AJ Bell), you're probably not the sort of investor for whom it's much of a big deal whether the platform updates its displayed ETF prices once per day or once per second with a rolling delay.

Plus, how difficult or expensive do you think it is reflect the live price of ETFs in displaying a portfolio's value? 

Unlike AJ Bell or HL, Vanguard are not offering a brokerage service where you can trade all the different assets available on the London stock exchange.  They are simply facilitating your purchase of their own branded ETFs through the same platform as they offer their open-ended, priced-once-per-day funds.

As a keen 'trader' is not going to be using them for running an actively traded portfolio, it seems to me that there's no need for them to integrate on to the side of their portfolio reporting, a real-time data feed from the stock market. 

How difficult or expensive would it be to subscribe to a live pricing feed and integrate it into a once-per-day portfolio reporting system?  I don't know, but guess the effort and expense would not be 'zero', so then it comes down to will customers really need or want this and would they be willing to pay 0.16% instead of 0.15% to get these extra features.    I'm not saying what they currently have is good for all customer types and I can see why you would prefer them to do it differently.

lopsyfa

bowlhead99 said:

lopsyfa said:
I never said it was 5 business days and I didn't say I understand 3 business days . Maybe you accept the delay is acceptable but I think it can be better. .

You did say 'I understand 2-3 days', and I assumed you wouldn't expect them to be doing much on a Sunday  ...   I agree it could be better (as I use AJ Bell, who are fine), although I would generally only do my reinvestment on a monthly basis, so a few days here or there is not too much to worry about. 

Other platforms have their own flaws.  AJ Bell sometimes displays a mid price or last price or some other garbage price (rather than closing bid price) for stocks when you look at their portfolio summaries out of hours, and they don't show a day-on-day change for most foreign stocks (and can sometimes be a day stale on foreign market prices in the portfolio tables).  HL is sometimes still showing Thursday prices for OEICs when you look at their site on a Saturday.

I know some of these compromises before opening account with them but I am entitled to my opinion on how I think the platform can be better. Will having an app be good, yes but I never mentioned in my post that it is a deal-breaker so I don't understand where you inferred that from.  

I didn't infer that you thought it was a deal-breaker not to have an App when anything that would run the App would also have a web browser. I just commented that it wasn't a big deal not to have it, given the purpose of the service (long term accumulation of wealth on a multi year timescale).  Of course, extra bells and whistles are nice, whether they're essential or not. 

My point about the platform fee is to point out that the fees are not considerably cheaper than other rivals who don't have some of these limitation

You're right, it may not be any cheaper to buy and hold ETFs on a platform that charges you on a percentage basis to hold them compared to a platform that has a low transaction fee and a small capped custody charge.

A reasonably low overall fee of 0.15% and having the same charging basis for both investment types is nice and simple for investors to get along with, but they are not claiming to be the cheapest - if you want to just buy ETFs in real time and hold them without custody fees there are plenty of stockbrokers that let you do that, and you woudn't need a 'funds platform' at all. 

If you were doing one ETF purchase a month (£18 a year) in a £50k ETF SIPP with AJ Bell, your 'capped' fee would be £118, while Vanguard would only charge you £75.  So YMMV depending on the exact portfolio and pattern of your trading. Large portfolios could definitely find a cheaper place than Vanguard. 

Not to labour the point, but if you were the sort of person who would really only be adding to their investment portfolio by buying an ETF once a month on the tenth of every month (e.g. to access the £1.50 regular investing transaction charges at AJ Bell), you're probably not the sort of investor for whom it's much of a big deal whether the platform updates its displayed ETF prices once per day or once per second with a rolling delay.

Plus, how difficult or expensive do you think it is reflect the live price of ETFs in displaying a portfolio's value? 

Unlike AJ Bell or HL, Vanguard are not offering a brokerage service where you can trade all the different assets available on the London stock exchange.  They are simply facilitating your purchase of their own branded ETFs through the same platform as they offer their open-ended, priced-once-per-day funds.

As a keen 'trader' is not going to be using them for running an actively traded portfolio, it seems to me that there's no need for them to integrate on to the side of their portfolio reporting, a real-time data feed from the stock market. 

How difficult or expensive would it be to subscribe to a live pricing feed and integrate it into a once-per-day portfolio reporting system?  I don't know, but guess the effort and expense would not be 'zero', so then it comes down to will customers really need or want this and would they be willing to pay 0.16% instead of 0.15% to get these extra features.    I'm not saying what they currently have is good for all customer types and I can see why you would prefer them to do it differently.

In an AJ Bell ISA, the fees for ETF is capped at £30 per year, so in a £50000 portfolio, the 'capped' fee will be £48 not £118. The £100 capped is for SIPP. I would have thought only offering their own branded ETF will make it easier to implement live pricing feed but what do I know.

I get the your point. But if you look at the previous posts on this thread where people are already complaining after not receiving the dividend after 1 day (1st of January being a bank holiday), I think waiting 5 days (or 3 business days) before asking the question is not too hasty. More so when Vanguard managed to remit it to AJ Bell who credited it to my account on the same day.