Passive fund provider Vanguard has stormed into the UK broker arena with the launch of a low cost investment platform that undercuts established rivals such as Hargreaves Lansdown. But this platform has some major limitations and it's not necessarily as cheap as it seems, reports deputy personal finance editor Kate Beioley. She explains why this is, as well as how a number of other brokers can be cost effective.
If you're interested in passive funds, also check out tomorrow's magazine and the website for the newly updated version of the IC Top 50 ETFs, our list of preferred exchange traded funds (ETFs).
OTHER STORIES IN THIS ISSUE
Earlier this year star manager Neil Woodford launched his third fund since setting up his own asset management business and now he has revealed which 50 investments make up its initial portfolio. We look at what these are and how they compare to those in his slightly older CF Woodford Equity Income fund (GB00BLRZQB71).
We also look at why Mr Woodford has recently sold out one of the largest holdings in CF Woodford Equity Income – a company he has invested in for more than 15 years but now thinks has a sub-optimal business strategy and might cut its dividend.
The ability of FTSE 100 comapnies to pay dividends seems increasingly questionable so a good way to mitigate this risk could be this week's tip. This highlights a fund which provides an attractive level of income but hunts for revenues beyond the usual suspects, which could also make it a good way to mitigate currency fluctuations.
Former Investment Association head Daniel Godfrey left the asset management industry trade body on bad terms after his attempts to increase the transparency of fund costs. But far from leaving the industry he's now launching his own fund which he says will offer investors an alternative model to the short-termism in the fund industry. He tells personal finance writer Emma Agyemang what the fund's aims are, what it will invest in and who's going to run it.
Investors may not be bond fans at the moment but this area is better than they think, argues Jim Leaviss, head of fixed interest at M&G. He tells Emma Agyemang why the bond market still has legs and highlights some areas of this market that look attractively valued, as well explaining why with Brexit looming the UK outlook is not good.
Perpetual Income and Growth Investment Trust (PLI), run by Neil Woodford protégé Mark Barnett, has axed its performance fee and raised its basic fee. We look at what its costs for investors might be going forward, as well as highlighting an even cheaper way to access Mr Barnett's stock picking skills.
In our latest podcast Ben Yearsley, director at Shore Financial Planning, joins the team to assess some significant changes Neil Woodford has made to CF Woodford Equity Income fund. Kate Beioley considers the implications of the takeover of an ETF provider, and Emma Agyemang looks at whether it is a good idea to manage your portfolio via your smart phone.
Our podcast is now available across five different distribution channels to allow you to access it in the most convenient way. Find us on Soundcloud, Acast, Audioboom, Stitcher and iTunes.
This week's Portfolio Clinic features an investor who wants to quit his job to look after his child, so is looking to supplement his wife's salary with income from their portfolio. Our experts explain why he might need to make some fundamental changes to make sure his income is sustainable, and suggest some funds to ditch and add.
Do you have a personal finance problem? Or want to know more about something in this week's personal finance pages? If so let us know by getting in touch with leonora.walters@ft.com, kate.beioley@ft.com or emma.agyemang@ft.com.
