Vanguard Asset Management will slash the fees on a selection of its LifeStrategy funds at the end of the month.
Starting 31 January 2014, the family of five ‘all-in-one’ portfolios, which are built from Vanguard’s low-cost index funds, will have an annual management charge of 0.29%.
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The Vanguard LifeStrategy 20% Equity fund already has an AMC of 0.29%. However, Vanguard LifeStrategy 40% Equity, Vanguard LifeStrategy 60% Equity, Vanguard LifeStrategy 80% Equity and Vanguard LifeStrategy 100% Equity currently charge between 0.30% and 0.33%.
Additionally, the firm will also reduce the pre-set dilution levies (PDLs).
The asset manger has also decided to change its asset allocation policy. The policy will offer greater diversification by adjusting the exposure to developed and emerging market equities.
AS part of the alloctaion policy change, the firm will also introduce global bonds within the exposure to fixed income securities.
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By GlobalDataNick Blake, head of retail at Vanguard Asset Management, said: "By reducing cost and broadening opportunities for global diversification, we believe the funds will continue to help investors grow their wealth, commensurate with their capacity for risk in 2014 and beyond."
