Vantage Fund Account - frequently asked questions

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How can I apply for the Vantage Fund Account?

By post: Send an application form and cheque.

Online: Complete our online application form using a debit card.

Once the account is set up, you can add money to the account by telephone using a debit card. If you have internet access, you can add money online by logging in to your account.

What is the minimum I can invest as a lump sum?

We generally ask for a minimum opening subscription of £3,000. However, if you already hold a Fund Account you can top up by less.

What is the minimum I can invest on a monthly basis?

For regular saving investments we ask for a minimum of £50 per fund per month. We cannot accept regular saving instructions for equities or investment trusts.

How do I set up a regular saving investment?

By completing the direct debit mandate at the base of the printed Vantage Fund Account application form, we can set up a regular transfer of money from your bank account to your Vantage ISA account. We will transfer the money on the 7th of each month (or the next working day if the 7th is a weekend or Bank Holiday) and then invest it on the 10th of each month (or the next working day if the 10th is a weekend or Bank Holiday).

How do I change my regular saving instructions?

If you wish to change the amount of money we transfer from your bank account or wish to cancel the direct debit, simply complete a Regular Savings - Change to Contribution form and return it to us.

If you wish to change the investment instruction, please complete a form to Change your Fund Choice and return it to us. We can also take the instruction in by telephone with confirmation of your password.

Can I hold more than one fund manager's funds in the Vantage Fund Account?

The Vantage service is a fund supermarket so you can invest in nearly all fund managers funds alongside each other within any of our Vantage accounts.

How often is income paid?

If you have an income producing fund in your Vantage Fund Account and you opt to have this income paid out to your bank account, we will sweep up any income you have received and pay it directly into your bank account within the first 10 working days of each month. You can only choose one income instruction across all holdings in your Vantage Fund Account.

What is automatic reinvestment?

Automatic reinvestment is where we use the income payments to buy more units or shares in the stock from which the income has derived. If you hold Unit Trusts or OEICs, this will be when they reach £50 per holding. You can only choose one income instruction across all holdings in your Vantage Fund Account.

What is the loyalty bonus?

Hargreaves Lansdown receives a renewal (annual) commission from some fund managers. We share this renewal commission with our clients in the form of an annual saving, which we call the loyalty bonus. It is credited to a separate account within your Vantage portfolio. Please note for the few funds for which we do not receive renewal commission, the Vantage annual management fee will apply. This is 0.5% + VAT (up to a maximum of £200 + VAT) per year.

What is the difference between income and accumulation units?

With income units, income is paid out to investors. With accumulation units, income is reinvested within the fund increasing the price of each unit.

How is the interest calculated?

The interest on cash holdings in the Vantage account is calculated on a daily basis and credited to your Vantage account shortly after the ninth of each month (or the next working day if the ninth is a weekend or bank holiday).

How can I withdraw money from the account?

In order to withdraw cash from the Vantage Fund Account all you need to do is write to us with your instructions.

Is there any charge to hold funds in the Vantage Fund Account?

No. We do not currently charge to hold funds in the Vantage Fund Account. Please note for the few funds for which we do not receive renewal commission, the Vantage ISA annual management fee will apply. This is 0.5% + VAT (up to a maximum of £200 + VAT) per year

How can I deal on the account?

Telephone: Call our stockbrokers on 0845 345 0801 or our fund dealers on 0845 365 0802; you will be asked to quote your password.

Post: Send a signed letter of instruction to Kendal House, 4 Brighton Mews, Clifton, Bristol. BS8 2NX.

Online: If you have online access for your Vantage account, you can also deal online

If I place a trade, how long is the settlement period?

The settlement period for unit trusts and OEICs held in the Vantage Fund Account is four working days. Please note that any investments you make will not show in your account until the deal has settled.

What is equalisation?

When a fund is purchased in your Vantage Fund Account, it may be purchased between payment dates. During this period the price of the fund will reflect any increased net asset value (NAV) of the fund arising from the dividend building up in this period. Therefore the fund is purchased at an inflated price. In order to compensate you for this inflated price, the fund manager will return some capital to you in the form of an equalisation payment on the same date as your first dividend payment. This return of capital is then deducted from the amount you originally invested to reflect the true cost of the purchase.

Can I re-register a fund into the Vantage Fund Account?

Yes, most funds can be transferred to the Vantage Fund Account. Please complete our Fund Account Transfer Form. To check transfer terms for the funds you hold please call our Helpdesk on 0845 345 0800.