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Vanguard cuts fees on multi-asset trackers

Vanguard cuts fees on multi-asset trackers

Vanguard has reduced the charges for its range of LifeStrategy multi-asset index funds, and tweaked their investment policies.

From 31 January, the funds’ annual management charges and pre-set dilution levies (PDL) will change as shown below.

Fund Current AMC / TER New AMC / TER Current PDL New PDL
Vanguard LifeStrategy™ 20% Equity Fund 0.29% 0.29% 0.27% 0.18%
Vanguard LifeStrategy™ 40% Equity Fund 0.30% 0.29% 0.25% 0.17%
Vanguard LifeStrategy™ 60% Equity Fund 0.31% 0.29% 0.24% 0.17%
Vanguard LifeStrategy™ 80% Equity Fund 0.32% 0.29% 0.24% 0.17%
Vanguard LifeStrategy™ 100% Equity Fund 0.33% 0.29% 0.22% 0.16%

The funds, which blend equity and bond exposure, will adjust their asset allocation policy on the same date by adding global bonds to their fixed income component. They will retain a marginal overweight to UK securities, though.

The products will also convert from a non-Ucits retail scheme structure to a Ucits format.

Vanguard will bear all the costs of the conversion, including the dealing costs incurred in transitioning to the new asset allocation policy.

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