Individual Investors
INDIVIDUAL INVESTORS

Detailed below are questions that we are often asked about investing with us.

Dealing information

Details on trade timings and transactions for our funds can be found on our dealing information page.

Investing with us

New custodian and administrator for Vanguard Investment Series plc

A communication has been sent to all investors in Vanguard Investment Series plc (VIS) to let them know that we are changing the custodian and administrator of VIS on or around the 2nd May 2016. Please find a guide summarising all the practical changes such as where to find new subscription forms; wire instructions; bank details; reporting and a full list of the VIS funds including ISINs etc.

The changes to the custodian and administrator of VIS will have no impact on the way the funds themselves are managed.

Do you offer advice?

No, we do not offer advice. We encourage investors to speak to a financial adviser if they are unsure of their requirements. If you need a financial adviser www.unbiased.co.uk/find-an-independent-financial-adviser helps you search details of independent financial advisers (IFAs) close to where you live or work.

Can private investors invest in your funds directly?

Yes. However, the minimum investment for anyone investing with us directly is £100,000 per fund. Our funds are also available on a number of platforms (fund supermarkets who sell our products along-side other providers). For investment via a platform, the minimum investment is determined by the platform. Vanguard Asset Management, Limited only provides information on its products and services and does not offer investment advice. We encourage investors to consult a Financial Adviser before investing.

What is the minimum investment into your funds?

The minimum investment for anyone who invests with us directly is £100,000 per fund. However, if an investment is made through a platform (a fund supermarket who sells our products along-side other providers), the minimum investment is determined by the platform.

Are your funds available for ISA and SIPP investment?

Yes, all funds are UCITS products and qualify for inclusion within a tax wrapper - but Vanguard Asset Management, Limited does not offer an ISA or SIPP wrapper.

Investing through a platform

What is a platform?

A platform is a fund supermarket that sells our funds alongside other providers. Platforms also provide a range of services which may include tax wrappers1, fund and risk analytics tools, brokerage, etc.

If you are an individual investor looking to hold our funds in a tax wrapper such as an ISA (Individual Savings Account) or SIPP (Self Invested Personal Pension), or if you wish to invest less than the £100,000 minimum direct investment detailed on our 'Investing with Us' section, you can do this through the consumer platforms listed here.

Please speak to your financial adviser if you wish to invest via a platform that is not listed. When you invest via a platform, the minimum investment is determined by the individual platform. The platform may apply their own charges for the service they provide.

1Tax wrapper: an investment account that provides protection from tax - typically income tax or capital gains tax. In the UK there are many types of wrapper available, including pensions and ISAs. For further definitions of investing terms, see our glossary.

Which platform is right for me?

The platform you use for your ISA or SIPP is down to your personal choice and individual circumstances. Most platforms currently offer the full universe of Vanguard mutual funds and exchange-traded funds (ETFs). However, there are differences in the range of tools offered by each platform as well as the cost. Please contact the platforms directly to discuss what is available to you.

Can Vanguard advise me on which platform I should use to invest in Vanguard funds?

Unfortunately we are unable to advise on which platform might be appropriate for you. We only give information on our products and do not give investment advice based on individual circumstances. Therefore, we always recommend that you consult a financial adviser before investing.

What costs are involved in investing via a platform and how do they structure their charges?
  • From April 2014 all platforms charge an administration fee for new clients. Some charge a percentage of the amount held, while others charge a flat fee. Platforms may also charge per transaction or per account type.
  • Fees and/or charges will vary across the platforms; investors will always end up paying more than the initial fund price. For example, fund trading costs and stamp duty are the costs of buying and selling the shares and other investments that make up the fund. They are equivalent to the costs you would incur if you decided to buy shares independently of the platform and are not included in the administration fee. Some but not all platforms levy additional trading fees. Most charge approximately £10 for trading a share, whilst some charge for buying and selling funds, but these figures vary from one platform to another. For details of these costs, please contact the platform provider directly.
  • If you are investing in an ISA or SIPP, it is worth doing a little research around the extra associated costs. Some platforms have a shopping list of extra fees – others have a flat fee or a percentage fee which includes everything. Again, contacting them directly will provide further clarity.
  • You will also need to assess exit fees. It's worth considering what you'll have to pay should you change your mind about the platform you have chosen, or if your circumstances change. Most platforms don't charge for closing your account, but some might. If you'd like to transfer to another platform provider (i.e. move your investments without selling them) most platforms charge per holding, and the charge for this can vary depending on the platform.

Fund specifics

Who manages your funds and from where?

Management of our funds is delegated to VGI (The Vanguard Group Inc) our parent company and is conducted out of our offices globally.

Why are some of your funds UK domiciled and others Ireland domiciled?

We select our fund domiciles based upon a number of criteria including tax efficiency, costs, economies of scale, and the ability to implement our investment strategy. Given these factors, we have selected a combination of UK-domiciled OEICs and Ireland domiciled UCITS funds.

Does it make any difference if a fund is a UK or an Irish fund?

As an investor, the domicile of the fund should not have an impact on you. Please speak to your financial adviser to discuss your personal circumstances.

How have you selected which indices your funds track?

Vanguard chooses each index that our passively managed funds will track based on how accurately the index tracks the returns of the designated market segment. We use major market indices which have been developed by long-established index providers.

Why is there no information on the website about Vanguard's US domiciled funds and US domiciled exchange traded funds?

For our European clients, Vanguard's business model is centred on providing a broad array of low cost investment funds and exchange-traded funds ("ETFs") through our European domiciled UCITS products. In addition, the Alternative Investment Fund Managers Directive ("AIFMD"), which entered into force throughout the European Union on 22 July 2013, limits the ability to market US domiciled funds and US domiciled ETFs in the European Economic Area ("EEA"). In order to comply with the AIFMD Vanguard does not market Vanguard's US domiciled funds or US domiciled ETFs to investors in the EEA. Please note that this does not mean that Vanguard's US domiciled funds or US domiciled ETFs are "unsuitable" products for investors in the EEA. It does not prevent an investor in the EEA from investing in Vanguard US domiciled funds and/or US domiciled ETFs on their own initiative (for example, through a broker or an exchange).

Costs and charges

What are the charges on your funds?

Please refer to our funds section for full details.

What are preset dilution levies?

Preset dilution levies are collected to offset some of the costs of trading the underlying securities in a fund. These levies ensure that the costs are borne by the investors making the transaction and not by other investors in the fund. All such fees are paid directly to the relevant fund for the benefit of the fund's investors, not Vanguard Asset Management, Limited.

How is your OCF the same as your Annual Management Charge (AMC)?

When you invest with any fund manager, you will have to pay a number of charges. These include an Annual Management Charge (known as the AMC) which covers the fund manager's own costs of managing the fund over the year.

However, with most managers you will also typically pay additional running costs. These are likely to include administration fees, audit fees (where an independent auditor checks that all accounts are fair and honest), custody fees (the cost of holding securities in a secure and legal manner) and other operational expenses. The AMC and these additional running costs make up the fund's OCF.

Our approach is different as we pay all running costs out of our AMC, therefore we expect that our AMC will be the same as our OCF. This helps us to be more transparent and gives you a better understanding of the cost of your investment.

Will your OCF/Annual Management Charges (AMCs) change?

We may revise our OCF/AMC from time to time where the total costs of administering the fund change.

Why do investors have to pay Stamp Duty Reserve Tax?

Stamp duty reserve tax, often abbreviated to SDRT, is a duty set by the government on all purchases of UK shares. Our funds have to pay this duty when they invest in the UK stock market. We pass some of the charge on to new investors so that existing fund holders aren't burdened with unfair costs. It's covered in the pre-set dilution levy on the funds in question. You'll pay SDRT on UK equity funds with other providers too – it's just that it's not always clear.

HAVE ADDITIONAL QUESTIONS?

Our Client Services Team is available Monday-Friday, from
09.00-17.00

Ireland domicled funds:
+353 1 2417144

UK domiciled funds:
+ 0800 408 2065