Vanguard has launched five LifeStrategy index funds in the UK, offering different risk profiles and exposure to a range of asset classes.
The launch comes as the market moves towards the Retail Distribution Review, as advisers seek simple products at a low cost. The annual charges of the five funds range from 0.29% to 0.33%.
The five LifeStrategy funds use a broadly diversified asset allocation process with automatic rebalancing to avoid drift and ensure the funds stay in line with the investment objectives.
The range includes a mix of global equities and UK bonds, ranging from 20% to 100% in equities. The range gains this exposure by investing in existing Vanguard index funds.
Tom Rampulla, Managing Director of Vanguard UK, said: ‘We are launching this range of LifeStrategy Funds to help UK financial advisers provide exceptional value, straightforward and transparent products that meet a range of different client needs.
'We’ve observed that these types of products have been well-received in markets that have already moved to predominantly fee-based models.'