Vanguard's European profits increase to more than £5m

Vanguard's European profits increase to more than £5m

Vanguard’s European business has posted increased profits of more than £5m for 2016.

Vanguard Asset Services, the London-based holding company for Vanguard’s UK, French, Dutch and Swiss businesses, saw its profits increase from £3.9m to £5.2m.

Meanwhile its revenues increased from £76.1m to £102.2m.

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The low-cost asset management caused waves earlier this year after it launched its direct-to-consumer proposition in the UK.

Sean Hagerty, the company’s European head, said: “In 2016 the group continued to broaden and deepen its intermediary and institutional business in its target markets.

“In particular, the group increased its footprint with fee-based IFAs, defined contribution clients, pensions, platforms and wealth managers.

“In 2017 the company and its UK affiliates will primarily continue many of the same efforts, including growing its existing business, expanding its service capabilities, launching additional products and focusing on risk management.”

Earlier this year Vanguard, which manages $4trn (£3.1trn) globally, launched its direct-to-consumer online investment service, charging an annual account fee of just 0.15 per cent.

In the US, Vanguard does not charge a platform fee, meaning investors only pay for the funds but Mr Hagerty has previously said that whether the British service reaches this point depends on how assets under management grow.