View more on these topics

Vanguard reveals fund line-up

Vanguard has announced the launch of 11 British and Irish-domiciled funds in which the total expense ratio (TER) will range from 0.15% to 0.55% per year.

The range of index tracking funds includes regional equities products such as Developed World ex UK, Emerging Markets and Japan, as well as three fixed income offerings.

The Vanguard FTSE UK Equity Index fund and UK Government Bond funds, both of which are UK-domiciled, carry the lowest TERs at 0.15%. However, both also include purchase fees, which for the equity fund is 0.5% and for the government bond fund is 0.1%.

The Vanguard Emerging Markets Stock index fund, which is Irish-domiciled, carries the highest TER at 0.55%. It also has a 0.4% purchase fee and costs 0.4% to redeem.

Tom Rampulla, the managing director, says he is confident the funds have the lowest TERs within their peer groups.

Vanguard has said in the past that it believes the compounding effect of higher charges can detract significantly from fund performance, and makes a real difference to investors.

The group also emphasises the importance of a transparent fee structure.

The funds will be available on a number of advisory and retail platforms, and will begin accepting investments on June 23.

Vanguard is an American firm with more than £320 billion under management in equity and bond index mandates.

Related Articles:
Vanguard appoints head of retail
Tracker devotees welcome launch of Vanguard UK

Recommended

All Greek

Psychometric” – from the Greek “metron”, meaning “measure”, and “psycho”, meaning “insane”. OK, so that second bit isn’t true but it sometimes feels as if it should be. I’ve always seen psychometric testing as a bit of a copout – a way to abdicate responsibility for a decision and an excuse not to trust one’s own judgement – although no doubt psychologists would find that revealing.

FSA should have avoided panic over Keydata

Following the administration of Keydata last week, a number of concerns need to be raised regarding the way the news was communicated to advisers and the public.

Trivial pursuits

Those seeking financial advice as they approach retirement will generally have a substantial pension provision built up and the challenge is to find the best way of using it to provide an income. However, advisers will occasionally come across clients with very little invested in a pension, perhaps because their assets have come largely from an inheritance or they have been a non-working spouse for many years.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment