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Effective January 31st, Vanguard will implement a minimum monthly fee of £4, amounting to £48 annually, for UK investors with total investments under £32,000 across its various accounts. This update replaces the previous flat 0.15% annual charge which was more beneficial for smaller accounts. For instance, an investor with £10,000 previously paid £15 a year; under the new fee schedule, they will now incur the £48 charge — making it a significant increase for those with smaller portfolios.
Conversely, investors with balances exceeding £32,000 will remain unaffected, continuing to pay the existing 0.15% annual fee structure. Thus, as investors with larger portfolios are not impacted, the brunt of these changes primarily affects those with less capital invested.