Vanguard launches fund of index fund range

Vanguard has launched the LifeStrategy range, a suite of five fund of index funds with low annual management charges.

The funds are constructed using a pre-set broadly diversified asset allocation with automatic rebalancing to ensure they stay in line with investors’ objectives, the group said. The products are a targeted mix of global equities and UK bonds ranging from 20% to 100% equity and built using existing Vanguard index funds. The annual charges range from 0.29% to 0.33%, and the total expense ratios will be broadly similar, as expenses incurred will be paid out of the AMC rather than funds’ assets, the firm added. Tom Rampulla, managing director, said: “We are launching this range of fund...