As the price war from passive providers rages on Vanguard has removed the dilution levy on their LifeStrategy range, which has more than £2bn in assets under management.
The range, which consists of five multi asset funds, formerly charged a 0.1 per cent dilution levy on all purchases and covered the funds’ transaction costs.
The funds will continue to be available at an ongoing charge figure of 0.24 per cent.
Earlier this week BlackRock slashed its fees on its UK, US and continental Europe tracker funds.
Adam Laird, head of passive investments at Hargreaves Lansdown said the announcement was “more evidence of providers battling for position in this rapidly growing market”.
“There is a real dearth of options for passive mixed asset funds, with few contenders beyond Vanguard’s Lifestrategy range and Blackrock’s Consensus funds,” he added.
