Vanguard has announced changes to its LifeStrategy offering, to be implemented over the next 6 months.
The changes include fee reductions across the LifeStrategy mutual fund range, the LifeStrategy Classic model portfolio service (MPS) range, and the LifeStrategy Global MPS range.
An updated asset allocation will also be introduced for the LifeStrategy mutual fund range and the LifeStrategy Classic MPS range, reflecting changing client needs and preferences.
In addition, a new range of LifeStrategy Global mutual funds will be launched, expanding choice for investors.
Ben Summers, head of UK, Vanguard, said the 15-year-old LifeStrategy offering had 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.”
The fee cuts announced are:
- Fees for the LifeStrategy mutual fund range will fall from 0.22% to 0.20% effective from 27 January 2026.
- Total fees for the LifeStrategy Classic MPS range and the LifeStrategy Global MPS range will be reduced from June 2026. This will be achieved by switching to institutional share classes for certain funds held in the underlying portfolios. Vanguard projects a reduction in the all-in cost (excluding transaction costs) from 0.20-0.23% to an estimated 0.17-18%.
Changes to ‘home bias’ for the LifeStrategy mutual funds and Classic MPS
Vanguard said that LifeStrategy is designed to encourage investors to hold diversified portfolios and over time, as UK investors have grown more confident investing internationally, LifeStrategy has evolved to have a more global focus.
The asset manager added that their UK adviser clients were expressing a clear preference for international diversification alongside a strong commitment to their home market. This si being reflected by an increased asset allocation to global markets in both the LifeStrategy mutual funds and the LifeStrategy Classic MPS range:
- Of the funds’ equity holdings, the portion exposed to the UK will be reduced from 25% to 20%.
- Of the funds’ fixed income holdings, the portion exposed to the UK will be reduced from 35% to 20%.
These changes will be implemented in phases from 27 March to June 2026.
New fund range announced
In addition, Vanguard announced the launch of a new range of five funds called LifeStrategy Global.
This new range caters for the growing number of investors seeking a fully global market capitalisation approach, without a home bias. Like the existing LifeStrategy solutions, each fund is aligned to a distinct risk level through a strategic mix of equities and bonds.
The funds have an OCF of 0.20%, are available in both Accumulation and Income share classes, and are domiciled in the UK. LifeStrategy Global is already available as a Model Portfolios solution and the fund equivalent are available now across all UK financial adviser platforms and is intended for use either as a “one stop” solution or as a core building block in a portfolio.
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The writer’s views are their own and do not constitute financial advice.
This information should not be relied upon by retail clients or investment professionals. Reference to any particular investment does not constitute a recommendation to buy or sell the investment.
Main image: benjamin-wong-WoViiJWKLik-unsplash
