Vanguard or Orbis

Mitalapopita

Hey, 

I currently have an account with Orbis, which I opened a few years ago based on a recommendation.

Recently, I've been hearing positive testimonials about Vanguard so now, I'm in a bit of a dilemma about whether to stick with Orbis or switch to Vanguard.

Since I'm not particularly knowledgeable about investments, it would be beneficial to hear from people with more experience and expertise in this area.

Any advice or insights would be greatly appreciated
 

boingy

You need to give a bit more info.

What sort of account? Pension? ISA? GIA?
What investments do you have and how much is invested? 
Are you adding to it regularly or ad hoc or never?
Is it for growth or income?

cloud_dog

yaronengler said:

Hey, 

I currently have an account with Orbis, which I opened a few years ago based on a recommendation.

Recently, I've been hearing positive testimonials about Vanguard so now, I'm in a bit of a dilemma about whether to stick with Orbis or switch to Vanguard.

Since I'm not particularly knowledgeable about investments, it would be beneficial to hear from people with more experience and expertise in this area.

Any advice or insights would be greatly appreciated
 

What aspect of Orbis is it that you no longer like, or feel Vanguard would be better at/with?

Mitalapopita

Thanks for the questions. 

boingy - I'm not sure how to answer your question "Is it for growth or income?" so it'll be great to understand the difference. 

I have £25k in Stocks & Shares ISA with Orbis and I want to start making monthly payments of £400 into the account with the intention of growing the money towards later years (i'm currently 48). 

With Orbis and Vanguard having a different fee structure I find it hard to understand where I'll see a better return over a long period so looking for help with that. 

Albermarle

Mitalapopita said:

Thanks for the questions. 

boingy - I'm not sure how to answer your question "Is it for growth or income?" so it'll be great to understand the difference. 

I have £25k in Stocks & Shares ISA with Orbis and I want to start making monthly payments of £400 into the account with the intention of growing the money towards later years (i'm currently 48). 

With Orbis and Vanguard having a different fee structure I find it hard to understand where I'll see a better return over a long period so looking for help with that. 

Within a S& S ISA, you hold investment(s). It is how these investments perform ( and if you have picked suitable ones) that is the key factor. The fees are a secondary issue.

Orbis is rarely mentioned on this forum, so I had a quick look.
Only two investments available, and a very complicated fee structure which I did not understand.
For this reason a transfer to a more well known platform, with a better choice of investments and a clearer fee structure could be a good idea. Could be Vanguard, or another similar type more well known platform.
There would be no guarantee you would get better investment performance though.

Hoenir

Had a quick browse. One stand out dislike for me is the outperformance fee. 40% if they beat the benchmark they are tracking. Whose interests are they actually working in?  Should be remunerated sufficiently just for managing the fund. 

JohnWinder

I wasn’t quite as ready to condemn the fees as there seemed to be rebates, but it was opaque.
More significantly, Orbis is a stock picking active manager fund, as measured by 93% active which means it is almost totally unlike the index composition it’s comparing itself with. That’s brave on the part of the managers, and investors, because it means they can do much better or much worse than the index (and thus a comparable index tracking fund). Lo and behold, that’s what they’ve done. If that suits your mindset it could be a good choice. But most of the research points to there being little chance that such funds as Orbis will do as well for investors as trackers. Commonly they do well for the managers, until the fund closes.

jamesperrett

It may also be worth saying that Orbis position themselves as contrarian investors so you may find they invest in slightly unusual companies. I had a small investment with them when they came up with some ludicrously good introductory offers (basically doubling your investment) but their performance at the time wasn't great. I think they have improved subsequently though.