Vanguard reduces cost of investing for five funds
Vanguard has lowered the cost of investing in Australia, announcing reductions to the management expense ratios (MERs) on five of its funds from 1 October.
The fund manager said that it had decided to drive down investing costs for its clients in Australia after it had first reduced the cost of investing with its mutual structure in the US.
The MERs reductions would apply to Vanguard's three wholesale managed funds and two exchange-traded funds (ETFs) and would see a drop in MERs by 0.02 per cent for Vanguard Australian Shares High Yield Fund, Vanguard International Credit Securities Index Fund (hedged) and for Vanguard Australian Property Securities Index ETF. At the same time, an MER reduction of 0.01 per cent would apply to Vanguard Australian Property Securities Index Fund and Vanguard Australian Shares Index ETF.
Vanguard Australia head of product, Evan Reedman, said: "For Vanguard, low-cost isn't a marketing strategy that we apply to select funds. It is in our DNA, it is how we do business.
"Some people may look at these reductions and question how one or two basis points off already low expense rations can possibly have an impact.
"But every basis point in costs counts, and over the long-term, the compounding benefits of these lower costs can meaningfully improve outcomes for investors.
"We absolutely believe in the power low-cost investing has in letting investors keep more of their returns."
AUTHOR
Mike Taylor
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
