ISAsDec 23 2022

Vanguard launches 'managed Isa' for retail investors

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Vanguard launches 'managed Isa' for retail investors
Credit: Leeloo Thefirst/Pexels
ByJane Matthews

Vanguard has extended its client offering with the launch of a managed stocks and shares Isa.

The service will see Vanguard offer clients a discretionary portfolio management service, with 'investment experts' on hand to provide guidance - not advice -  and an investment plan based on the user’s appetite for risk.

Pre-sign up, the guidance offered will include support around the practicalities of signing up and how the system works, and then once a user is set up they will be offered guidance on market conditions and investment performance.

Clients will be matched with one of five portfolios, each made up of low-cost index funds with the portfolio then managed by Vanguard who will check in on the investments on a monthly basis.

Speaking to FTAdviser, a spokesperson for Vanguard said the managed ISA is currently available to new investors on the Vanguard UKPI platform.

It will be made available to existing customers next year.

“For investors that want a bit more help investing, we will establish the level of investment risk they’re comfortable with, align that with a portfolio of index funds, and manage it every step of the way. Investment experts are on hand throughout to help guide clients through the process," the spokesperson said.

They added: “We will continue to develop the Vanguard Managed ISA, and the Vanguard UKPI service, in response to feedback from clients and prospects.”

A minimum initial investment of £500, or a monthly direct debit of £100 is required.

A management fee of 0.30 per cent applies, along with an account fee of 0.15 per cent and a fund fee of 0.15 per cent.

Earlier this year, Vanguard further expanded its managed portfolio range with the launch of two ranges in its Lifestrategy brand.

Last year, Vanguard also moved into the UK advice space. T

he company launched its restricted advice proposition, charging just 0.79 per cent "all in", in April 2021, though it has confined itself to investment advice rather than financial planning for now.