You do not need to take any action as a result of these changes. The lowered fees will be applied to:
- LifeStrategy® funds from 27 January 2026
- LifeStrategy® MPS from June 2026
What's new
Lowering costs
We’re lowering the costs of our full LifeStrategy® range – funds and model portfolios. Helping you deliver more value to your clients.
Reducing home bias
We’re reducing the UK exposure of our LifeStrategy® funds and LifeStrategy® MPS Classic portfolios.
New fund range
We’re adding LifeStrategy® Global to our LifeStrategy® fund range. These new funds seek to deliver global market returns with no home bias.
Introducing changes to our LifeStrategy® range
Head of UK Adviser Solutions, Gillian Hepburn, explains the changes we’re making to our flagship product range.
Lowering costs
Lowering our costs, so investors keep more of their returns
We’re lowering the cost of our LifeStrategy® funds and model portfolios. It brings your clients the same high quality investments at an even lower cost.
- From 27 January 2026: LifeStrategy® funds will have their OCF (1) reduced from 0.22% to 0.20%.
- From June 2026: LifeStrategy® model portfolios will have their all-in costs (2) reduced from 0.20%–0.23% to an estimated 0.17%–0.18%.
(1) As at 31 December 2025. The Ongoing Charges Figure (OCF) covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees.
(2) As at 31 December 2025. All-in costs include Ongoing Charges Figures (OCF) and an annual portfolio management fee that covers the discretionary management of the managed portfolio service, ongoing oversight, and regular rebalancing of the portfolios. The portfolio management fee is exclusive of VAT and any adviser, platform, or dealing charges. The OCF covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees. The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
More information about lowering costs
We’re switching to institutional share classes for certain funds held in the portfolios. These share classes hold the exact same assets as the retail share classes currently in the portfolios, but have lower Annual Management Charges.
We’re passing 100% of this cost saving directly to your clients as part of our mission to deliver value to advisers and investors.
LifeStrategy® funds
There are no Capital Gains Tax implications from the cost reduction.
LifeStrategy® MPS
On most platforms, the share class switch required for the cost reduction will be processed as a "Sell and Buy" (a switch), rather than as a Share Class Conversion (corporate action).
This means the switch could trigger a Capital Gains Tax liability for investors holding their investments in a non-tax efficient account. For example, in a General Investment Account.
Investors holding their investments in a tax wrapper such as a Stocks and Shares ISA or SIPP should not be affected.
This information only applies to UK tax resident retail investors.
Any tax reliefs referred to are those available under current legislation, which may change, and their availability and value will depend on individual circumstances.
LifeStrategy® funds
There will be no time out of the market.
LifeStrategy® MPS
For most platforms, the change will be handled as a "Switch" so will follow the standard out-of-market time associated with a rebalance.
As this occurs during the scheduled rebalance cycle, we aim to minimise any disruption for clients.
Reducing UK home bias
LifeStrategy® is changing – to meet changing markets and preferences
We’re reducing the UK exposure within our Vanguard LifeStrategy® funds and LifeStrategy® MPS Classic portfolios:
- Fixed income: The UK exposure for the fixed income part of the portfolio will decrease from 35% to approximately 20%.
- Equities: The UK exposure for the equity portion of the portfolio will decrease from 25% to approximately 20%.
This gives UK clients the benefits of increased global diversification, while still meeting their preference for investing in their home market.
More information about reducing home bias
There are three reasons:
- Our in-depth research, analysing hundreds of home bias scenarios. We found that a 20% exposure to the UK is the optimal level for investors who want a home bias. This strikes the right balance between risk and return in today’s market environment as well as considering client preferences.
- The UK now makes up a much smaller share of global markets. Maintaining the previous allocation to the UK would result in an increasing home bias.
- Our research and investor surveys show that while investors continue to value a home bias, their preferred level has declined over time.
It will be phased in, starting from 27 March 2026 and finishing at the end of June 2026.
Clients do not need to take any action as the changes will be automatically applied for new and existing clients.
Introducing LifeStrategy® Global
A new LifeStrategy® range for the global investor
We’re launching a new range of 5 funds called LifeStrategy® Global.
They offer investors the same long-term, strategic asset allocation as our LifeStrategy® range but without any tilt towards UK bonds and equities.
- Seeks to replicate global market capitalisation for equities and fixed income.
- OCF of just 0.20% and 5 asset mixes to choose from.
- The same investment stewardship and expertise in indexing as our existing LifeStrategy® range.
More information about LifeStrategy® Global
There will be 5 funds:
- Vanguard LifeStrategy® Global 20% Equity Fund
- Vanguard LifeStrategy® Global 40% Equity Fund
- Vanguard LifeStrategy® Global 60% Equity Fund
- Vanguard LifeStrategy® Global 80% Equity Fund
- Vanguard LifeStrategy® Global 100% Equity Fund
All of the funds have an OCF of 0.20% and are available in both Accumulation and Income share classes.
The ranges differ in that LifeStrategy® Global funds invest in the UK in line with its share of global equity and bonds markets, whereas the LifeStrategy® funds features a higher proportion in UK equities and UK bonds.
For example, the LifeStrategy® Global 100% Equity Fund has approximately 3.4% of the portfolio in UK. equities and 4.1% in UK bonds, whereas the LifeStrategy® 100% Equity Fund has approximately 20% of the portfolio invested in UK equities and 20% in UK bonds.
The launch of the LifeStrategy® Global funds gives UK investors greater choice, while staying true to the same core principles that underpin the LifeStrategy® Funds.
We’ve seen a growing number of investors show a preference for a global market capitalisation approach, whether as an all-in-one solution or as building block funds.
This new range of funds will be structured in the same way as the existing LifeStrategy®, benefiting from Vanguard’s thought leadership and experience in multi-asset investing but without the home bias.
We will be making the funds available on UK adviser platforms, with a phased roll out starting 22 January.
Timeline of changes
22 January 2026
We launched 5 LifeStrategy® Global funds and announced planned changes to our existing LifeStrategy® range:
- cost reductions for funds and model portfolios
- home bias reduction for LifeStrategy® funds and LifeStrategy® MPS Classic
- cost reductions for funds and model portfolios
27 January 2026
- OCF for LifeStrategy® funds reduced from 0.22% to 0.20%.
27 March 2026
Phased reduction in home bias begins for LifeStrategy® funds.
June 2026
Cost reduction for LifeStrategy® MPS Classic and LifeStrategy® MPS Global takes place as part of our regular rebalancing cycle.
Home bias reduction for LifeStrategy® MPS Classic will also happen as part of that rebalancing cycle.
End of June 2026
Phased reduction in home bias for LifeStrategy® funds completes by end of June.
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.
Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund’s net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
For further information on risks please see the “Risk Factors” section of the prospectus on our website.
For further information on the model portfolio(s) risks please see the Understanding the Risks: Vanguard LifeStrategy model portfolio solutions document as well as the“Risk Factors” section of the prospectus of the underlying funds on our on our website.
Important information
This is a marketing communication.
This document is directed at professional investors and should not be distributed to, or relied upon by retail investors.
For further information on the fund's investment policies and risks, please refer to the prospectus of the NURS and to the KII before making any final investment decisions. The KII for this fund is available, alongside the prospectus via Vanguard’s website.
For further information on the investment policies and risks of the model portfolio(s), please refer to the prospectus and KIID of the underlying funds before making any final investment decisions. The KIID for each fund is available, alongside the prospectus via Vanguard’s website.
This document is designed for use by, and is directed only at persons resident in the UK.
The information contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and /or units of, and the receipt of distribution from any investment.
The Authorised Corporate Director for Vanguard LifeStrategy Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard LifeStrategy Funds ICVC.
For investors in UK domiciled funds, a summary of investor rights can be obtained via our portal and is available in English.
For investors in Ireland domiciled funds, view our summary of investor rights and is available in English, German, French, Spanish, Dutch and Italian.
Issued by Vanguard Asset Management Limited, which is authorised and regulated in the UK by the Financial Conduct Authority.
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