Managed Funds vanguard australia

One would hope the product does last the distance also. Earlier news suggested this would also become a Super platform. Vanguard had local Super funds years ago but they weren’t that successful so they got flogged off to BT from memory. However indexing is a lot more popular nowadays.

 

Covered.

 

There's this now in the UK from Vanguard; a sign of things to come?

Britain’s cheapest pension can boost your savings by £7,000

Vanguard now offers Britain's cheapest pension – but investors must buy the firm's own funds

Vanguard, an American fund firm, has opened Britain’s cheapest self-invested personal pension (Sipp), charging 0.15pc as long as investors only buy the company's own funds.

The firm has launched the Vanguard Personal Pension after unveiling plans in December. It already offered an Isa with the same charge – a move with dramatically undercut rival fund shops.

Investors face three distinct charges when investing in funds via a pension – the "account fee", which goes to the Sipp provider, the "fund fee" which is paid to the fund manager and "transaction costs" which cover the charges involved with buying and selling investments.

Vanguard's pension account charge is an new low and the firm also said an investor would never pay more than £375 in fees across any Isas, pensions or trading accounts held with the firm....

 

0.20% plus you still pay the fund fee (i.e VAS at 0.10%)

Not very "Bogle-ish" and the fees matter mantra

 

However the cash account charge is cancelled out by the 0.5% interest earned in the cash account an d the MER would not come directly out of your cash account.

 

DRP not active yet on the new Vanguard personal platform:-

Dividends and distributions from ETFs and shares Dividend payments received from the shares you hold or distribution payments received from the ETFs you hold, will be paid into your Vanguard Cash Account. We are working towards offering the ability to reinvest these payments.

 

Also not able to open a joint account as yet from what I could see. Makes the decision for me to be lazy and make no change.

 

Saw a flyer in my inbox about this going forward. In future phases they plan to incorporate the ability to use it as a wrap account for super (including SMSF's). Should provide some good competition for the likes of Macquarie, BT and MLC wrap accounts

 

I also can't see a way to add existing Vanguard Wholesale holdings.

 

The fund is capped at $600 a year vs selfwealth to ETF $10 per transaction. If you're doing less than 100 transactions a year, it seems like you'd be better off with the ETF.

 

Yeah - that was my thought too. stay as is for now.

I am still eagerly waiting the super product from Vanguard tho.

 

I think the win here is that the VAS equivalent wholesale fund can be accessed for a fee of roughly equivalent to 0.36% (and less if balance is over $300K) and with only $5000 initial investment.

This is a significant win compared to the 0.75% MER of the equivalent retail fund (which also only pays distributions bi-annually) or the prohibitive initial deposit for wholesale funds of $500K/$100K.

Sure, the platform can probably be dismissed by seasoned investors with large balances, however it is a vast improvement in fees from the old Retail offerings. I see it as worthy of mention for the vast majority of my friends and their partners who will never be interested in being hands on with their $, or even folks looking for simplicity and happy to pay the $600 per year for that.

Edit typos

 

It's a great step forward, but I don't want to pay 0.2% for the platform. I'll stick with equally cheap ETFs in a low-cost brokerage account.

 

I've opened an account just so I can snoop (and the daughters are asking questions too). I am happy with my direct Wholesale account at the moment, however when the platform also offers Super, then my interest will be piqued depending on the conditions/fees etc etc.

 

May I ask if you reinvest divis in wholesale fund? I am reading to find a best option as will have little.more than approx 200K as part of debt recycling.....

I will be calling Vanguard tomorrow to understand their costing model as ETF VAS/VGS seems cost effective option bcoz I want to drip feed this 200K based on price fluctuation (to get benefit of market going down) 5k to 9k parcels with Nabtrade (considering Selfwealth for flat rate of $9.50 under new chess account)


Edit: Found your reply re Divi Reinvestment- all good

Q: if in Wholesale fund (given they allow 100K) how regularly one need to put money in as we are pulling equity so that will be the only money for sometime before we build our cash bufferband payinto our PPOR loan to refraw to.invest again.

 

There is no requirement to add anything to Vanguard wholesale investments that I am aware of.

 

@DoggaPP - thank you..

I will call tomorrow to Vanguard and ask about the following:-

Vanguard Australian Shares Index Fund van0002au (wholesale) and Van0010au (tetail)

I think 0003au wholesale of vgs and 0011 retail