Vanguard is set to reduce fees across its LifeStratey offering, including to its mutual fund range and model portfolio service, which it claims could save investors £10mn.
It will make changes over the next six months and fee reductions are planned for the mutual fund range, classic model portfolio service and global MPS.
Vanguard said the reductions are estimated to return more than £10mn to UK investors.
The changes come after £16.5mn in fee cuts made to Vanguard’s European ETF range in 2025.
“Up to and including the current LifeStrategy fee reductions, Vanguard has delivered more than 90 fee reductions across our funds and ETFs since the opening of our London office in 2009,” said Vanguard.
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Vanguard has also announced an updated asset allocation will be introduced for the LifeStrategy mutual fund range and the LifeStrategy Classic MPS range.
Ben Summers, head of UK at Vanguard, called the changes a “new chapter” for LifeStrategy.
“For over 15 years, it has become a trusted foundation for many UK investors’ portfolios, and a benchmark for simplicity and accessibility.
“We’re building on that legacy by going a step further; reducing fees, broadening choice, and adapting to the changing needs of advisers and their clients.
“Significantly, the qualities people value most remain unchanged; transparency, simplicity, and an unwavering focus on giving investors the best chance of investment success.”
Fees for the LifeStrategy mutual fund range will fall from 0.22 per cent to 0.20 per cent, effective from 27 January 2026.
While total fees for the LifeStrategy Classic MPS range and the LifeStrategy Global MPS range will be reduced from June 2026.
This will be done by switching to institutional share classes for some funds in the underlying portfolios, which Vanguard projects will result in a drop from 0.2-0.23 per cent to 0.17-0.18 per cent, excluding transaction costs.
And Vanguard said LifeStrategy investors have become more confident investing internationally, so will change its home bias approach.
Vanguard said: “Today, our UK adviser clients express a clear preference for international diversification alongside a strong commitment to their home market.
“Reflecting this need, the allocation to global markets will be increased further in both the LifeStrategy mutual funds and the LifeStrategy Classic MPS range.”
In equity holdings UK exposure will be reduced from 25 per cent to 20 per cent and in fixed income holdings UK exposure will drop to 20 per cent from 35 per cent.
These changes are set to be rolled out in phases between March and June.
tara.o’connor@ft.com
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