Vanguard "switch" is sloooow

Kaizen917

I dont know what to say really...it seems a bit like generally switching pensions is hit and miss (but with the latter prevailing).

But next to my workplace provider (Mercer), while not ideal, Vanguard actually appears as state of the art when it comes to transfers.

AlwaysLearnin

Swipe said:

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

Looks like the price will just keep growing as suspected:

Acc price history - https://www.vanguardinvestor.co.uk/investments/vanguard-sterling-short-term-money-market-fund-a-gbp-accumulation/price-performance

Inc price history - https://www.vanguardinvestor.co.uk/investments/vanguard-sterling-short-term-money-market-fund-investor-gbp-income-shares/price-performance

Hoenir

GeoffTF said:

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.

Where's the cash held between the date that the purchase is initiated (leave the account)  and the settlement date (platform pays). 

GeoffTF

Hoenir said:

GeoffTF said:

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.

Where's the cash held between the date that the purchase is initiated (leave the account)  and the settlement date (platform pays). 

I have used platforms where I pay on the settlement date, but most retail stock brokers nowadays hold your money between selling and settling. The do, however, usually let you buy immediately after selling, i.e. they do not wait until settlement. Vanguard does that for real time ETF trades.

Trading open ended funds is not as favourable for us. IIRC when I bought OEIC units directly from Vanguard the fund managers (as opposed to Vanguard's platform), I was allowed to pay on the settlement date. I believe most platforms trade through a middleman rather than directly with all the fund managers. That middleman has to be paid.