Vanguard has announced that it has removed the preset dilution charges on its entire Vanguard LifeStrategy fund range.
Since launching in June 2011, the family of five all-in-one portfolios has grown to more than £2bn (€2.8bn) in assets under management (AUM) as investors have embraced their low cost, diversified approach.
Nick Blake, head of UK Retail, commented: “As our funds grow in size and we broaden our presence in the UK, we will continue to leverage operating efficiencies and use our increasing scale to lower costs for investors. Vanguard’s LifeStrategy funds address the growing need from investors for low-cost, diversified fund solutions. The fund range combines investment best practices such as strategic asset allocation, broad diversification and automatic rebalancing.”
Vanguard’s LifeStrategy funds are well-defined, fund of funds with different levels of potential risk and return. They offer diversified blends of equities and bonds using Vanguard’s index funds and ETFs as components.
Historically, Vanguard charged investors an upfront 0.10% levy when they purchased shares in the LifeStrategy™ funds. The levy was designed to offset transaction costs such as those generated by local taxes or wide dealing spreads in illiquid underlying assets. All fees were paid directly to the relevant fund for the benefit of existing investors.
The funds will continue to be available at an ongoing charge figure of 0.24%.
Vanguard LifeStrategy™ Fund Range
|Fund Name||Ongoing charge||Additional costs|
|Vanguard LifeStrategy™ 20% Equity Fund
|Vanguard LifeStrategy™ 40% Equity Fund
|Vanguard LifeStrategy™ 60% Equity Fund
|Vanguard LifeStrategy™ 80% Equity Fund||0.24%||—|
|Vanguard LifeStrategy™ 100% Equity Fund||0.24%||—|