Vanguard adds £4 monthly fee to SIPP

Investment manager Vanguard is adding a £4 monthly fee to most accounts - including SIPPs - for balances up to £32,000 as it strives to meet rising costs. The charge will apply to the Vanguard ISA, SIPP and General Accounts. From 31 January the minimum account fee will be £4 a month. The account percentage charge for balances over £32,000 will remain unchanged at 0.15% per annum, capped at £375 a year. Vanguard says the minimum fee will not apply to its Junior ISA or managed service offer. For Vanguard’s Managed ISA service the management fee on the Vanguard Managed ISA will be cut by a third, from 0.3% to 0.2%. Total fees will be 0.51%, consisting of a 0.15% platform fee, 0.2% management fee, and 0.16% in fund fees. There will be no minimum account fee on the service, the firm said. Fees for individual funds will average 0.2% across its range, the firm said. Ben Summers, head of personal investor services, UK, said the company needed to take account of rising costs. He said: “The introduction of the minimum fee is necessary to help us cover the rising cost of serving our clients. It will also enable us to continue investing in new features, products, and services. “For our Managed ISA service, we have carefully considered the benefits of lowering the cost to entry. Through serving 700,000 people in the UK, we have seen there are many first-time investors that need a helping hand to manage and grow their money. “We’ve found that once people have made the important decision to start investing, they can lack confidence in the management of their investments, hold too much cash, and have trouble constructing portfolios with the right funds and level of risk. We are therefore cutting the management fee on our Vanguard Managed ISA by a third. This service selects and manages investments on a client’s behalf, and a team of Vanguard investment experts are on hand to give guidance.”

Vanguard adds £4 monthly fee to SIPP

Related items

News from Twitter