Effective immediately, the removal of the 0.10% pre-set dilution levy means that all funds on the five-strong equity suite – which ranges from 20-100% equity – carry an ongoing charge of 0.24%.
Intended to counterbalance transactions costs, the levy was deemed to be disposable by Vanguard as it seeks to remain competitive in an increasingly low-cost passives environment.
Nick Blake, head of UK retail, said: “As our funds grow in size and we broaden our presence in the UK, we will continue to leverage operating efficiencies and use our increasing scale to lower costs for investors.
“Vanguard’s LifeStrategy funds address the growing need from investors for low-cost, diversified fund solutions.”
The price slash is the latest in a series of industry cost-cutting initiatives, following on from BlackRock lowering the charges on its Collective Investment Funds range and Fidelity dropping the AMC on its Asian Values trust.
