Vanguard, which was responsible for starting a price war when it brought its passive investment products to the UK nine years ago, is to more aggressively promote its funds that aim to beat the market in Britain. The move is likely to shake-up an even broader segment of the investment industry, where fund managers who charge more for the promise of outperformance have been criticised by investors and regulators for failing to deliver. ...
Asset manager Vanguard is stepping up its promotion of active investment products in the UK market. The US-based firm began a price war when it brought its passive funds to the UK nine years ago, and will now become more vocal about promoting its active lineup. It has around 100 active funds on its growing UK platform, and says it wants to lower the cost of the active sector in the country. Vanguard charges up to 80 bps in management fees on its UK-domiciled active products, compared with a UK average of five bps for comparable funds.