Transferring SIPP from HL to Vanguard

solidpro

Has anyone on here specifically transferred their SIPP from HL to Vanguard and what was your experience?

marlot

I did a couple of years ago.  I transferred the HL assets into Vanguard funds, then transferred as funds.

The main transfer went OK.

But then some dividends were paid to HL.  HL correctly transferred those to Vanguard.  But vanguard put them in a sub account that I didn't have access to.  After a bit of too and fro, I had to raise a formal complaintto get my hands on my own money.  To their credit, the 2nd tier vanguard team sorted it out quickly and paid me a bit of compensation which I donated to the local homeless charity.

If I were doing it again, I'd make sure I bought accumulation funds (rather than income) before the transfer, so the dividend issue wouldn't come up.

marlot

Just to add, there are some aspects of the vanguard drawdown service I prefer.  Instead of getting my payment on one fixed day each month (the 28th?), Vanguard give a choice of days. 

And if I do an adhoc drawdown, it arrives in my bank account 10 days later.  So I can make a big purchase on my credit card, then draw down in time to pay the bill.

dunstonh

If I were doing it again, I'd make sure I bought accumulation funds (rather than income) before the transfer, so the dividend issue wouldn't come up.

You should never let a provider or their software dictate changes to your investment strategy.   

Residual income from interest and dividends is normal and most platforms will send it on to the new provider, who will apply it correctly (as per original instructions).  The fact Vanguard messed up on that occasion isn't a reason to change strategy.

The biggest issue with Vanguard is that it only offers a range of Vanguard funds. It's not a whole-of-market solution and strangely doesn't offer the full Vanguard range of funds.

No single fund house is the best fund house.  So, limiting yourself to Vanguard means making a compromise.   I say that as someone who has Vanguard funds in my portfolio but I also have others where Vanguard is more expensive or doesn't have a suitable offering.