Vanguard has unveiled a direct-to-consumer (D2C) platform for its UK customers, providing a lower-cost way to access the firm's passive and active fund ranges.
To access the funds, investors will pay an account administration fee of 0.15% per annum, capped at £375, in addition to the ongoing charges figure (OCF). However, no account fee will be charged above the first £250,000 invested.
There is a minimum investment of £500 to join the service or a monthly savings contribution of £100, which will provide access to the firm's suite of funds including the LifeStrategy range, index funds, ETFs, Target Retirement Funds (TRFs) and actively-managed vehicles.
All the funds are available via an ISA, Junior ISA or general account, while a SIPP will be added in the future.
The firm also pointed to the Financial Conduct Authority's (FCA) call for investors to receive "value for money" in its recent Asset Management Market Study, as another reason supporting the launch.
Sean Hagerty, head of European business at Vanguard, said: "Only recently, the FCA's interim Asset Management Market Study stressed asset managers' obligation to act in the best interests of investors, including requiring the industry to show how it delivers value for money.
"It also highlighted that fees have not decreased enough based on the economies of scale achieved by the industry.
"This is why we are launching our new service - we want to offer investors the value for money they deserve. We aim to offer investors the highest value investment products and services available with an unwavering commitment to lowering the cost of investing in the UK."
Ryan Barrows, head of personal investing at Vanguard, said: "Vanguard believes there are four simple and straightforward principles that lead to long-term investment success.
"These include creating clear, appropriate investment goals, developing a suitable asset allocation using broadly-diversified funds, minimising cost and maintaining perspective and long-term discipline.
"Vanguard's focus is on helping more investors harness these principles with clear information and education so they can keep more of their investment returns."
Investors can open accounts and manage investments using their smartphones, tablets and other devices.
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