Vanguard "switch" is sloooow

kipsterno1

Alistair31 said:

I have just initiated a switch from their income STMMF to the accumulation version, presumably it will go through the same process, and timeline, as described in the replies above? 

I made the same request on 12th. Sale was completed next day and the accumulation fund purchased on the 14th.

Hoenir

hallmark said:

What are they doing with the money in between?

That's how the platforms make their money and are able to keep fee levels down as a result. 

GeoffTF

Hoenir said:

hallmark said:

What are they doing with the money in between?

That's how the platforms make their money and are able to keep fee levels down as a result. 

The platforms do not have the money.

hallmark

I did an MMF INC to MMF ACC switch this week too, with interestingly / inexplicably different results to the MMF INC to LS switch:

MMF INC > LS I initiated early Monday.  The sale went through that day and the funds showed as cash on Tuesday.  However the LS purchases didn't happen until Thursday.

MMF INC > LS I initiated Wednesday evening. The sale went through Thursday morning and showed as cash then the MMF ACC purchase cleared today.

The suggestion earlier was that the delay moving from MMF > LS was the funds clearing, but that doesn't make much sense now, since in both cases the funds showed as cleared cash the next day.   But the LS purchase took 3 days whereas the MMF purchase took 1.

Either something different takes place when doing a switch from MMF into LS, or it's just random and it happened to be a much quicker process switching MMF to MMF.

Either way if I'm selling MMF to buy LS in future I'd just sell then buy, which gives me control and might very well actually be quicker.

GeoffTF

hallmark said:

I did an MMF INC to MMF ACC switch this week too, with interestingly / inexplicably different results to the MMF INC to LS switch:

MMF INC > LS I initiated early Monday.  The sale went through that day and the funds showed as cash on Tuesday.  However the LS purchases didn't happen until Thursday.

MMF INC > LS I initiated Wednesday evening. The sale went through Thursday morning and showed as cash then the MMF ACC purchase cleared today.

The suggestion earlier was that the delay moving from MMF > LS was the funds clearing, but that doesn't make much sense now, since in both cases the funds showed as cleared cash the next day.   But the LS purchase took 3 days whereas the MMF purchase took 1.

Either something different takes place when doing a switch from MMF into LS, or it's just random and it happened to be a much quicker process switching MMF to MMF.

Either way if I'm selling MMF to buy LS in future I'd just sell then buy, which gives me control and might very well actually be quicker.

Yes, just sell and buy manually. I have no idea why your switches took so long. Vanguard quotes long times for switches. I thought that was just bum covering in case something goes wrong, but perhaps there is more to it than that. Vanguard has always taken the view that investors should buy and hold, and not trade. Nonetheless deliberately delaying switches to discourage people from trading would be a bit much.

AlwaysLearnin

Just to share my experience; I requested a switch from the Inc MMF to Acc on Sunday evening.  Inc units sold Monday, and Acc units bought on Tuesday.  Pretty impressed to be honest.

Swipe

Does the accumulation fund still make you wait until the end of the following month for the dividend payout and reinvestment?

AlwaysLearnin

Swipe said:

Does the accumulation fund still make you wait until the end of the following month for the dividend payout and reinvestment?

I'm assuming not - I believe it will just keep accumulating past each month end.  That's my assumption though, as I didn't look in to that point specifically.

threlkeld53

The experience that I've had with switching funds on my Vanguard platform account is this...

During summer 2022 I switched some VLS60 to Vanguard FTSE Dev World ex UK. It was very early on a Monday morning. All completed by Wednesday evening, with a confirmation email from Vanguard.

About 6 weeks ago I did the same thing, again on a Monday morning & received email on the Wednesday confirming my request had completed.

So again this Monday morning just gone, around 7am I requested another switch, same funds, but this time the email I received last night confirmed that my request to sell some VLS60 is complete, but my account shows the money into the index one is still pending.

GeoffTF

AlwaysLearnin said:

Swipe said:

Does the accumulation fund still make you wait until the end of the following month for the dividend payout and reinvestment?

I'm assuming not - I believe it will just keep accumulating past each month end.  That's my assumption though, as I didn't look in to that point specifically.

My understanding is that the dividend will be reinvested on the pay date. The accumulating and distributing versions of OEICs always have the same total return graph on Morningstar in my experience.