The risk-rated range offers exposure to a mix of global equities and UK bonds ranging from 20% to 100% equity. Each offering is constructed using existing Vanguard index funds.
Vanguard UK managing director Tom Rampulla says the range has been designed with one eye on RDR.
“We’ve observed that these types of products have been well-received in markets that have already moved to predominantly fee-based models.
“With automatic rebalancing to a preset asset allocation both investors, and their advisers, have peace of mind that their objectives are being maintained. Using index funds as the underlying building blocks reduces volatility relative to using active funds, while also providing a low-cost, transparent and broadly diversified portfolio.”
The five funds are the 20% Equity Fund, the 40% Equity Fund, the 60% Equity Fund, the 80% Equity Fund and the 100% Equity Fund. Separately, Vanguard’s AUM has now passed the £2bn mark, two years after the business launched in the UK.
