Rebalancing My SIPP Portfolio

Cbjroms

In the process of drawing-down a lump of tax free cash to spend on a number of specifics in February 2026. 

Although my SIPP is already balanced 60/40 in favour of equities, I have large sums (eg £300,000) in particular Vanguard funds.Although the specific funds are hugely diversified, my whole portfolio is with one provider (Vanguard).    

I appreciate that the risk of Vanguard failing is extremely low, but my question is whether I should be splitting my funds across providers? What is best practice out there on this? 

fizio

I think if vanguard went out of business, there would be bigger problems to worry about 

Steve_s1

If you are with Vanguard I honestly wouldn't worry, they are massive! However you could use something like justetf.com to find an equivalent with another provider. There are filters for age and fund size, so you could make sure the ETF is well established and large enough not to worry about liquidity, bid-offer spread etc. You can also check the cost (TER p.a.), you might find something a bit cheaper than Vanguard. 
Personally I have a mix of providers in my ISA / SIPP, but not really because I was worried about them failing, just because they offered features I liked.

Steve_s1

fizio said:

I think if vanguard went out of business, there would be bigger problems to worry about 

LOL....that was my first thought!

Albermarle

Steve_s1 said:

fizio said:

I think if vanguard went out of business, there would be bigger problems to worry about 

LOL....that was my first thought!

Vanguard UK investor platform is often mentioned on this forum for poor customer service/slow responses.
I would be much more concerned about that, than the miniscule chance of them getting into financial difficulties.

phlebas192

There is next to no chance that Vanguard might fail. But there is a definite non-zero chance they could be hit by a cyber-attack that could take weeks or months to fully resolve. In today's world it makes sense to at least insulate your essential income from the temporary disruption of a single provider.

Aylesbury_Duck

phlebas192 said:

There is next to no chance that Vanguard might fail. But there is a definite non-zero chance they could be hit by a cyber-attack that could take weeks or months to fully resolve. In today's world it makes sense to at least insulate your essential income from the temporary disruption of a single provider.

That's precisely my approach with my pensions and investments.  I sacrifice a bit of % fees by spreading around rather than consolidating with just the one cheapest provider, but the prospect of not being able to access funds for an indeterminate period in the event of a cyber attack is of much greater concern.

westv

phlebas192 said:

There is next to no chance that Vanguard might fail. But there is a definite non-zero chance they could be hit by a cyber-attack that could take weeks or months to fully resolve. In today's world it makes sense to at least insulate your essential income from the temporary disruption of a single provider.

In an ideal world all companies would have reliable back ups to help mitigate the affects of an attack and strong defences to reduce the chances of it happening.