By 
Investment firm The Vanguard Group is set to reduce its investment fund fees as asset managers continue to compete in terms of their prices, FT reported.
Chief Executive Tim Buckley said Vanguard will reduce its investment fund fees by $1 billion by 2025, following the $140-million reduction it implemented in 2020. It has continuously cut down fund fees since its founding in 1975.
Vanguard’s fee reductions have helped the firm entice more clients, adding over 30 million into its fold. Investors entered some $299.4 billion in new cash to its funds in 2020, marking a 61% increase from the $186 billion in 2020.
The investment firm has been in a price war with competitors BlackRock, State Street, Charles Schwab, UBS, and Amundi, which have previously responded by also cutting down their respective fees.
Buckley said the reductions would cover active and passive funds amid heightened scrutiny over its fees and performance.
Comments