Vanguard Asset Management has lowered the ongoing charges on a broad range of index mutual funds and ETFs, as well as the entire family of LifeStrategy funds.
The new fund charges will be effective from Monday 1 September 2014 and are available across all major UK distribution platforms to both new and existing investors.
The ongoing charges for Vanguard’s index mutual funds, A GBP and Pound sterling Income/ Accumulation share classes will now range from 0.08% to 0.38% and the firm’s ETF line-up will now range from 0.07% to 0.29%.T he entire LifeStrategy fund range, which comprises five target-weighted and regularly rebalanced portfolios with different levels of potential risk and return, will see ongoing charges lowered to 0.24%.
Over the past year, Vanguard, who currently holds $85bn AUM, has implemented a series of changes aimed at cost savings on a range of funds, including reducing charges on 23 equity and fixed income index mutual funds; launching a low-cost Global Short-Term Bond Index Fund; lowering the cost to access Vanguard FTSE Emerging Market ETF from 0.45% to 0.29%.
Tom Rampulla, managing director for Vanguard in Europe, commented, “As a pioneer of high value, low-cost investing, Vanguard has a near 40-year history of reducing the fees investors pay for its mutual funds and ETFs. As we broaden our presence in Europe, we will leverage operating efficiencies and use our increasing global scale to keep costs to a minimum for investors. Importantly, existing investors will automatically benefit from the new charges, as they always do when we lower the cost of our funds. These fee reductions are business as usual for Vanguard.”