Vanguard Asset Management
Vanguard has claimed victory in this category for the second year running, beating off competition from other high-profile passive providers all trying to compete in the burgeoning space.
The group, launched in the US by John Bogle in 1975, claims its ownership structure is what sets it apart. The company is owned by its member funds, so there are no outside owners. This client-owned structure means it operates in the interests of its funds’ shareholders only and allows it to pass on lower expenses.
Vanguard first ventured beyond the US in 1996 when it opened offices in Australia, followed with the launch of its UK entity in 2009. It brought out its first mutual funds in the middle of that year.
The group has continued to offer UK retail investors competitively priced passive fund ranges as its peers have also cut costs to meet ongoing demand for passive products.
In July this year, Vanguard removed the pre-set dilution charges on its entire LifeStrategy fund range, available at an ongoing charge of just 0.24 per cent.
In August 2014, Vanguard cut the price of 25 of its trackers, with ongoing charges on certain index mutual funds ranging from 0.08-0.38 per cent.
What the judges say
The panel declared Vanguard the winner because of its combination of low prices, low tracking error and an admirable investment culture.
In numbers
2009
Vanguard launches UK entity in London
$3.3trn
Global assets under management for all companies within
Vanguard Group
0.07%
Lowest ongoing charge for certain Vanguard ETF products
Club members
BlackRock
Fidelity
iShares
L&G
