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.
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.
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.
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.