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Vanguard: New Minimum Monthly Account charge
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eskbanker said:boingy said:MeteredOut said:boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.
I do agree that Vanguard will have done the modelling and will know exactly what percentage of their customer base will pay more under the new fees, and in turn they'll have estimated the size of the subset of those who'll actually be motivated enough to take their business elsewhere, but the thread is full of vague terms about 'some', 'a lot', 'many', 'the majority', etc, and so it's not unreasonable to ask if posters can actually quantify any of these by reference to verifiable statistics, especially one asserting that "The vast majority of folks are unaffected by the change"....0 -
Slinky said:Hoenir said:Albermarle said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now. For those that have changed platform, have you stuck with Vanguard funds or made changes? As Vanguard have annoyed me with this move, I feel I might stop giving them preferential treatment when it comes to fund / ETF choice.
Vanguard made a simple business decision about their UK investment platform. In that it was costing too much to service their smaller customers.
As said in another post, T212, Invest Engine ( currently losing £5Million Pounds a year) will most likely eventually do something similar.
It is just business.
I think you underestimate the level of apathy and the CBA factor that a lot of people demonstrate. There's millions, billions probably languishing in exceedingly low paying bank accounts. I for one CBA to move my Vanguard account elsewhere for the sake of the extra couple of pounds it might cost me per month.1 -
boingy said:MeteredOut said:boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.1
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eskbanker said:boingy said:MeteredOut said:boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.Here are some numbers:The is no date on the article, but I believe that the numbers quoted are the latest ones released by Vanguard. The article said that Vanguard's UK platform had £24bn of assets under management and 640,000 customers. The mean account size was therefore £37,500. The median account size would have been less than that, because the mean account size will be pushed up by some very large accounts. I expect that the median is less than £32K, i.e. that a majority of customers will be facing increased charges. Not all these customers will leave, but it is clear that Vanguard is prepared to accept that a large slice of its customer base could leave. I expect that Vanguard's UK platform is losing money and the platform's management has been told to do something about it.9
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GeoffTF said:eskbanker said:boingy said:MeteredOut said:boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.Here are some numbers:The is no date on the article, but I believe that the numbers quoted are the latest ones released by Vanguard. The article said that Vanguard's UK platform had £24bn of assets under management and 640,000 customers. The mean account size was therefore £37,500. The median account size would have been less than that, because the mean account size will be pushed up by some very large accounts. I expect that the median is less than £32K, i.e. that a majority of customers will be facing increased charges. Not all these customers will leave, but it is clear that Vanguard is prepared to accept that a large slice of its customer base could leave. I expect that Vanguard's UK platform is losing money and the platform's management has been told to do something about it.Thursday 18 July 2024 at 10:38
Thanks for the figures, which confirm my suspicions that the assertion about the vast majority being unaffected wouldn't be supported by the actual facts....
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boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.The day that Invest Engine increase their fees, I will again consider the options available to me in the market and see what constitutes the best value and switch if necessary. This is what I do with every financial product I have, try and find the one which best suits my needs. Do you think I should stay put with Vanguard and pay the higher fees because Invest Engine might increase their fees in the future? That would be a pretty dumb thing to do.2
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jbrassy said:boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.The day that Invest Engine increase their fees, I will again consider the options available to me in the market and see what constitutes the best value and switch if necessary. This is what I do with every financial product I have, try and find the one which best suits my needs. Do you think I should stay put with Vanguard and pay the higher fees because Invest Engine might increase their fees in the future? That would be a pretty dumb thing to do.
In this case the upside is you save money , but for me the downside is that you are moving from a massive global asset manager, to a UK fintech company losing £5 million Pounds a year on a turnover of £350 K.
Most likely there will be no problems, but it is something that should at least be kept in mind.
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Albermarle said:jbrassy said:boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.The day that Invest Engine increase their fees, I will again consider the options available to me in the market and see what constitutes the best value and switch if necessary. This is what I do with every financial product I have, try and find the one which best suits my needs. Do you think I should stay put with Vanguard and pay the higher fees because Invest Engine might increase their fees in the future? That would be a pretty dumb thing to do.
In this case the upside is you save money , but for me the downside is that you are moving from a massive global asset manager, to a UK fintech company losing £5 million Pounds a year on a turnover of £350 K.
Most likely there will be no problems, but it is something that should at least be kept in mind.0 -
MeteredOut said:Albermarle said:jbrassy said:boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.The day that Invest Engine increase their fees, I will again consider the options available to me in the market and see what constitutes the best value and switch if necessary. This is what I do with every financial product I have, try and find the one which best suits my needs. Do you think I should stay put with Vanguard and pay the higher fees because Invest Engine might increase their fees in the future? That would be a pretty dumb thing to do.
In this case the upside is you save money , but for me the downside is that you are moving from a massive global asset manager, to a UK fintech company losing £5 million Pounds a year on a turnover of £350 K.
Most likely there will be no problems, but it is something that should at least be kept in mind.
If there was some kind of maladministration and your £10K did not exist or had been 'redirected' , then you would have to wait for FSCS to pay out.
For the record ( again) there is no indication of any problems with IE.1 -
Albermarle said:MeteredOut said:Albermarle said:jbrassy said:boingy said:TheLastMongoose said:I'm guessing a lot of us have left Vanguard now.The day that Invest Engine increase their fees, I will again consider the options available to me in the market and see what constitutes the best value and switch if necessary. This is what I do with every financial product I have, try and find the one which best suits my needs. Do you think I should stay put with Vanguard and pay the higher fees because Invest Engine might increase their fees in the future? That would be a pretty dumb thing to do.
In this case the upside is you save money , but for me the downside is that you are moving from a massive global asset manager, to a UK fintech company losing £5 million Pounds a year on a turnover of £350 K.
Most likely there will be no problems, but it is something that should at least be kept in mind.
If there was some kind of maladministration and your £10K did not exist or had been 'redirected' , then you would have to wait for FSCS to pay out.
For the record ( again) there is no indication of any problems with IE.
And are there allowaces in place to ensure the funds can stay within the same wrapper (ISA or SIPP) with any new provider the funds are transferred to? Although getting the monies back would be good, it'd be a kicker to lose the tax shielding benefits.0
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