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.