Vanguard has launched what it is hailing a “new straightforward, online investment service” for individual investors in the UK.
The new service provides direct access to the firm’s low-cost index and active funds range. It is designed to make investing simple through a new website www.vanguardinvestor.co.uk. Investors can open accounts and manage investments at any time using their smartphones, tablets and other connected devices.
To access the funds directly, investors will pay an account administration fee of 0.15% per annum in addition to the fund Ongoing Charge Figure (OCF). There is no account fee above the first £250,000 invested, meaning the maximum account fee payable is just £375 each year. Investors can invest with a minimum lump sum amount of £500 and/or a minimum monthly savings contribution of £100.
The new service gives investors access to Vanguard’s suite of funds including its LifeStrategy range, index funds, Exchange Traded Funds (ETFs), Target Retirement Funds (TRFs) and actively managed funds. All of the funds are available via an ISA, Junior ISA or general account. A SIPP will be added in due course.
Sean Hagerty, head of Vanguard’s European business, said: “Vanguard’s new online investment service is designed to help simplify and lower the cost of investing in the UK. Only recently, the FCA’s interim asset management market study report stressed asset managers’ obligation to act in the best interests of investors, including requiring the industry to show how it delivers value for money. It also highlighted that fees have not decreased enough based on the economies of scale achieved by the industry. Vanguard agrees with these conclusions.
“This is why we are launching our new service – we want to offer investors the value for money they deserve. We aim to offer investors the highest value investment products and services available with an unwavering commitment to lowering the cost of investing in the UK.”
Ryan Barrows, head of personal investing for Vanguard, added: “Vanguard believes there are four simple and straightforward principles that lead to long-term investment success. These include creating clear, appropriate investment goals, developing a suitable asset allocation using broadly-diversified funds, minimising cost and maintaining perspective and long-term discipline.
“Vanguard’s focus is on helping more investors harness these principles with clear information and education so they can keep more of their investment returns.”