Effective immediately, the removal of the 0.1% pre-set dilution levy means that all funds in the five-strong suite – which range from 20% to 100% equities – carry an ongoing charge of 24 basis points.
Intended to counterbalance transactions costs, the levy on these funds was deemed to be disposable by Vanguard as it seeks to remain competitive in an increasingly low-cost passives environment.
“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,” said Nick Blake, head of UK retail at Vanguard.
The Lifestrategy funds hold a mixture of bond and equity ETFS in a range of risk-rated portfolios.
“Vanguard’s LifeStrategy funds address the growing need from investors for low-cost, diversified fund solutions,” Blake said.
The price drop 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 annual management charge on its Asian Values trust.