Vanguard has further reduced the fees on its LifeStrategy funds after their collective assets under management reached £5bn.
The US-headquartered asset manager - known for applying downward pressure on passive fund fees - has cut the ongoing charges figure across the five-strong multi-asset range from 0.24 per cent to 0.22 per cent.
This is the third such cut since the funds' inception in 2011 and comes after rival passive providers such as HSBC Global Asset Management and Fidelity applied fee reductions to single-asset class funds over the last 18 months.
The LifeStrategy range offers five strategies of varying equity allocations rising from 20 per cent to 100 per cent - whose popularity has grown among both retail and institutional investors.
Robyn Laidlaw, head of UK distribution for the firm, said: "As our funds grow in size and we broaden our presence in the UK, we will continue to use the resulting operating efficiencies to lower costs for investors."
In 2015, the company removed pre-set dilution charges on the funds, which invest in Vanguard trackers, following a fee cut carried out in 2014.
The reductions form part of a trend which has seen other fund houses, including Fidelity and HSBC Gam, apply aggressive cuts to fees on passive vehicles, with many predicting a race to the bottom.
In the last year, facing the growing pressure of passive competition, active vehicles adopted a similar approach.
