Vanguard is in negotiations with over 15 fund platforms, following last week’s announcement of the launch of 11 British and Irish domiciled index tracking funds.
The total expense ratios (TERs) and annual management fees of the 11 funds, which launch this week, will range from 0.15% to 0.55%. The two British equity funds – Vanguard FTSE UK Equity Index and FTSE UK Equity Index Income – also carry a 0.5% initial purchase fee to cover stamp duty tax costs.
Minimum investment into the funds is £100,000, but Peter Robertson, the head of retail services at Vanguard, says this is only for direct investment. He says he expects the majority of money into the funds to come from platforms.
Raymond James Investment Services last week announced it will add the Vanguard range onto its funds platform, and Robertson says the group is looking to be on another 10 to 12 in “the reasonable future”. But given the low TERs, he says the funds will not be added onto the rebate or commission-based platforms.
Reaction among users of passive funds to the Vanguard range has so far been broadly positive.
“The range seems to cover most bases and the fees look competitive,” says Ian Shipway, managing director at Bluefin Wealth Management. “It also comes across as transparent and cost effective, and warrants a much closer look. I can see them being part of our portfolios going forward.”