Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Vanguard enters UK retail market with low cost fund range

US group Vanguard Investments will launch an 11-strong range of passive funds into the UK retail market next week, providing investors with exposure to all the major geographic regions at a low cost.

Five of the range will be domiciled in the UK with the remaining six domiciled in Dublin. They will be available to UK investors across a host of advisory and retail platforms.

Vanguard said the new funds - which will cover most of the world's geographic regions and the UK - were designed to offer  building blocks for a diversified equity and bond portfolio by enabling UK investors and their advisers to allocate across global markets as desired.

Tom Rampulla, managing director of Vanguard Investments UK, said that the asset manager will continue focusing on costs.

He said:'Vanguard’s index funds offer investors broadly diversified exposure to equity and fixed income markets, at  very low cost. Costs matter, as each pound of cost is a pound taken out of your investment. We are confident that these funds have among the lowest total expense ratios in their peer groups.'

The fee structure of the funds is set to range from 0.15% on Vanguard's UK Government Bond Index fund to 0.55% on Vanguard's most expensive Emerging Markets Stock Index fund. Most of its equity funds will charge between 20 and 30 basis points.

Rampulla said that Vanguard will be focusing mainly on the IFA community, which is moving away from commission to fee-based systems. He said it will also be working with wealth managers and family offices.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter