Vanguard iWeb Switcheroo

Aylesbury_Duck

Last night I initiated my annual transfer of funds built up in Vanguard to iWeb.  Quick question: Is it still necessary to print, sign and post the paper transfer form?  Something flashed up on the iWeb screen about Vanguard being one of the providers that offers an automatic/electronic transfer (I didn't catch the words exactly) and then it took me to the pdf of the form.  I've had the acknowledgement message on Vanguard's secure messaging system today.

retiringtoosoon

Aylesbury_Duck said:

Last night I initiated my annual transfer of funds built up in Vanguard to iWeb.  Quick question: Is it still necessary to print, sign and post the paper transfer form?  Something flashed up on the iWeb screen about Vanguard being one of the providers that offers an automatic/electronic transfer (I didn't catch the words exactly) and then it took me to the pdf of the form.  I've had the acknowledgement message on Vanguard's secure messaging system today.

no need to complete or submit a separate form when i did an in specie transfer in December.

skycatcher

I have an isa with vanguard for thier LS60 product. I cannot seem to find out what annual charges I am paying them? Would I be right in thinking any charges would be for the "hosting" of the ISA and their I should move it to my iWEB account? I also have an ISA with HSBC and have just for out they are charging me £100/yr for it. Again, should I move this?

Sorry for seeming so dim!

Alexland

skycatcher said:

I have an isa with vanguard for thier LS60 product. I cannot seem to find out what annual charges I am paying them? Would I be right in thinking any charges would be for the "hosting" of the ISA and their I should move it to my iWEB account? I also have an ISA with HSBC and have just for out they are charging me £100/yr for it. Again, should I move this?

You will be paying Vanguard Investor's 0.15% platform fee plus 0.22% VLS60 fund manager fee so 0.37% total per year so for example on a £10,000 account valuation that would be £37 pa. Vanguard Investor does not charge for trading (unless you want live ETF trading) such as buying and selling fund units. Such a pricing model is best suited to small accounts with regular trades.

If you transferred the investment to iWeb then you would still be paying the 0.22% fund manager fee but you would not be paying the 0.15% ongoing as iWeb have no ongoing charge so it would save you £15 pa on a static investment of £10,000. However if you place buy or sell orders then iWeb would charge you £5 per trade so for example £60 pa for someone that trades once per month. Such a pricing model is best suited to large accounts with infrequent trading. Also if your account is not big enough to qualify for the cashback incentive then it's a £100 setup cost to consider.

On the HSBC ISA then you would need to look at the breakdown of charges to see how much is platform and how much is the fund manager as they have several different products aimed at different levels of investor.

GeoffTF

https://www.vanguardinvestor.co.uk/what-we-offer/fees-explained

skycatcher

Alexland said:

skycatcher said:

I have an isa with vanguard for thier LS60 product. I cannot seem to find out what annual charges I am paying them? Would I be right in thinking any charges would be for the "hosting" of the ISA and their I should move it to my iWEB account? I also have an ISA with HSBC and have just for out they are charging me £100/yr for it. Again, should I move this?

You will be paying Vanguard Investor's 0.15% platform fee plus 0.22% VLS60 fund manager fee so 0.37% total per year so for example on a £10,000 account valuation that would be £37 pa. Vanguard Investor does not charge for trading (unless you want live ETF trading) such as buying and selling fund units. Such a pricing model is best suited to small accounts with regular trades.

If you transferred the investment to iWeb then you would still be paying the 0.22% fund manager fee but you would not be paying the 0.15% ongoing as iWeb have no ongoing charge so it would save you £15 pa on a static investment of £10,000. However if you place buy or sell orders then iWeb would charge you £5 per trade so for example £60 pa for someone that trades once per month. Such a pricing model is best suited to large accounts with infrequent trading. Also if your account is not big enough to qualify for the cashback incentive then it's a £100 setup cost to consider.

On the HSBC ISA then you would need to look at the breakdown of charges to see how much is platform and how much is the fund manager as they have several different products aimed at different levels of investor.

Thank you for the detailed reply. I already have got my £100 refunded on opening three account with the offer. 

I haven't been able to find the breakdown of the £25/qtr on the HSBC!

Alexland

skycatcher said:

Thank you for the detailed reply. I already have got my £100 refunded on opening three account with the offer. 

Aah yes thats done then. I miss my old iWeb ISA but having needed to withdraw the money I am back to percentage based platform fees making most sense.

skycatcher said:

I haven't been able to find the breakdown of the £25/qtr on the HSBC!

If you bought the product through their retail channel there may just be a single fee expressed as a percentage of the valuation on the fund data sheet. At a simple level you could work out what percentage of the account valuation £100 pa represents for comparison with your options at iWeb.