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Vanguard enters with 11 index tracker funds

Vanguard has made its first move into the UK market with the launch of 11 index trackers.

Five of the passively man- aged funds will be run from the UK, with the remainder domiciled in Ireland.

The UK-based index funds include a UK equity, UK equity income, developed world-ex UK equity, developed Europe ex-UK equity and US equity index fund.

The six Irish-domiciled stock index funds are the Japan, Pacific ex-Japan, emerging markets, UK investment-grade bond, UK government bond and global bond index funds.

Launched on June 23, the funds are also available on a number of platforms.

The total expense ratio/annual management charge varies from 0.15 per cent on the Vanguard FTSE UK equity index fund to 0.55 per cent for the emerging markets stock index fund.

The firm is looking to challenge active managers in the UK, many of which have TERs in excess of 1.5 per cent.

Vanguard manages a total of £320bn in equity and bond index mandates globally, having launched the first mutual tracker fund in the US in 1976.

Vanguard announced plans to launch in the UK in February 2009, with the initial focus being on the UK advisory market.

Vanguard Investments UK managing director Tom Rampulla notes: “Vanguard’s index funds offer investors broadly diversified exposure to equity and fixed-income markets, at very low cost.

“Costs matter and we are confident that these funds have among the lowest total expense ratios in their peer groups.”


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