The TRFs invest in Vanguard’s low-cost equity and bond index funds and Exchange Traded Funds (ETFs).
They are aimed at helping investors take control of their retirement savings by simply choosing one of Vanguard’s 11 TRFs based on their expected retirement date. The TRF automatically adapts the asset mix for different stages of the investor’s journey to and through retirement.
Vanguard believes the TRFs are likely to appeal to a broad range of investors.
They can be included in a tax-efficient pension wrapper, and increasingly investors are considering using an Individual Savings Account (ISA) to save for their retirement. Additionally, the company believes the funds may appeal to individuals just starting out in their career.
Rapidly changing environment
James Norton, senior investment planner, Vanguard said: “The UK public is facing an increasingly complicated route to retirement. Investors have more flexibility and choice, but they often face difficult decisions on how to save and invest in a rapidly changing pensions and investment environment.
“Vanguard’s Target Retirement Funds are designed to help address these challenges, by offering a straightforward fund solution based on investment best practices and managed by experienced investment professionals.”
