Vanguard has announced it is cutting the fees across its £52bn LifeStrategy funds range and reducing the funds’ bias towards UK assets.
The firm will slash the fees on its flagship multi-asset funds from 0.22% to 0.2% on 27 January this year. Meanwhile, the funds’ allocation to both UK equities and bonds will be reduced to 20% between March and June.
The fee reductions, which will also be made to its model portfolio solutions, are estimated to return around £10 million to investors.
Alongside the fee cuts and allocation shifts, Vanguard is launching a new range of five LifeStrategy Global mutual funds, which will cater to investors “seeking a fully global market capitalisation approach, without a home bias”.
Vanguard’s Gillian Hepburn said the tweaks to reduce UK bias come in response to feedback from advisers. “We felt we had to listen to what advisers were saying and think how we could reshape the portfolios that reflects how they want to invest,” she said.
Ben Summers, head of UK, Vanguard, added: “For over 15 years, [LifeStrategy] has become a trusted foundation for many investors’ portfolios, and a benchmark for simplicity and accessibility.
“We’re building on that legacy by going a step further; reducing fees, broadening choice, and adapting to the changing needs of advisers and their clients.”
