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Vanguard halves some tracker fees in price push

Vanguard halves some tracker fees in price push

The ongoing charges of 25 Vanguard funds have been lowered as the group seeks to remain competitive.

Among the principal moves, Vanguard has halved the cost of its US equity tracker from 0.2% to 0.1% and slashed fees on its UK equity fund from 0.15% to 0.08%.

‘As we broaden our presence in Europe, we will leverage operating efficiencies and use our increasing global scale to keep costs to a minimum for investors,’ commented Tom Rampulla, managing director for Vanguard in Europe.

‘Importantly, existing investors will automatically benefit from the new charges, as they always do when we lower the cost of our funds. These fee reductions are business as usual for Vanguard.’

The new charges will be effective from 1 September 2014 and affect the following funds:

UK and Irish Domiciled Index Mutual Fund Range
Fund Name Former Ongoing Charge New Ongoing Charge
Vanguard FTSE U.K. Equity Index Fund 0.15% 0.08%
Vanguard FTSE U.K. Equity Income Index Fund 0.25% 0.22%
Vanguard FTSE U.K. All Share Index Unit Trust 0.15% 0.08%
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 0.30% 0.15%
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 0.25% 0.12%
Vanguard U.S. Equity Fund 0.20% 0.10%
Vanguard SRI Global Stock Fund 0.40% 0.35%
Vanguard Global Small-Cap Index Fund 0.40% 0.38%
Vanguard SRI European Stock Fund 0.35% 0.30%
Vanguard Emerging Markets Stock Index Fund 0.40% 0.27%
Vanguard Japan Stock Index Fund 0.30% 0.23%
Vanguard Pacific Ex-Japan Stock Index Fund 0.30% 0.23%
Vanguard U.K. Investment Grade Bond Index Fund 0.20% 0.15%
Vanguard U.K. Short Term  Inv. Grade Bond Index Fund 0.20% 0.15%
Vanguard Global Bond Index Fund 0.20% 0.15%
Vanguard Global Short-Term Bond Index Fund 0.20% 0.15%
 
Exchange Traded Fund Range
Fund Name Existing Ongoing Charge New Ongoing Charge
Vanguard S&P 500 UCITS ETF 0.09% 0.07%
Vanguard FTSE 100 UCITS ETF 0.10% 0.09%
Vanguard FTSE Developed Europe UCITS ETF 0.15% 0.12%
Vanguard FTSE Emerging Markets UCITS ETF 0.29% 0.25%
 
LifeStrategy Fund Range
Fund Name Existing Ongoing Charge New Ongoing Charge
Vanguard LifeStrategy 20 % Equity Fund 0.29% 0.24%
Vanguard LifeStrategy 40 % Equity Fund 0.29% 0.24%
Vanguard LifeStrategy 60 % Equity Fund 0.29% 0.24%
Vanguard LifeStrategy 80 % Equity Fund 0.29% 0.24%
Vanguard LifeStrategy 100 % Equity Fund 0.29% 0.24%

The Investment Management Association yesterday reported that tracker funds enjoyed net retail sales of £532 million in July, the highest level since its records began in January 1992.

Tracker funds now hold £83 billion in the UK in total, equivalent to an overall share of funds under management of 10.2%.

Earlier this yearFidelity cut the cost of its passive range, with its tracker available for 0.07% via its platform or 0.09% from other platforms. The US tracker’s fees are 0.08% from the Fidelity platform or 0.10% elsewhere.

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