Vanguard has reduced the fees across its Exchange Traded Fund (ETF) and mutual fund ranges, lowering the charges on 36 funds available to UK retail investors.

The investment management company has reduced fees on 13 ETFs and 22 index funds, as well as the Vanguard Sterling Short-Term Money Market Fund – which comes after changes made in June earlier this year, when Vanguard cut the fees on its UK domiciled actively managed fund range.

The investment manager said the new fee reductions are driven by Vanguard’s commitment to give investors the value for money they deserve.

Vanguard, the world’s second-largest investment manager, manages £4.7trn in assets under management for its investors worldwide – as of the end of September 2019.

Head of Vanguard for Europe, Sean Hagerty, commented: “For too long, investors have been poorly served with high-cost, complex investments. Since 1975, Vanguard has led the way in giving investors a fair deal through good-value, straight-forward and high-quality investments.

“However, more work needs to be done to ensure investors understand the impact of costs on investment returns.”

Vanguard’s full line-up in the UK – including ETFs, index funds and its actively managed fund range –now has an average ongoing charges figure (OCF) of 0.20%. The investment manager’s index mutual fund line-up in the UK now carries an average OCF of 0.15%, and the ETF index line-up has an average OCF of 0.10%.

“There is still a misconception that the more you pay for an investment, the better it performs,” Hegarty added. “In reality, costs really impact the returns investor make – every pound paid in fees is a pound off investors’ returns. Investors cannot control the markets, but they can control the fees they pay.”

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