Vanguard launches new volley in European fund price war

|By:, SA News Editor

It's another round of fee cuts from Vanguard on a range of its European mutual funds and ETFs, as well as the company's entire suite of LifeStrategy funds. Annual management charges on Vanguard's index mutual funds will now range from 8 to 38 basis points, and fees on four ETFs have been cut by 7 to 29 bps, effective Monday.

Vanguard came onto the fund scene in Europe five years ago and doubled mutual fund sales in 2013 to €8.6B, making it the 4th best-selling manager (from 20th in 2012). ETF flows look good as well, with $4.3B of inflows this year already surpassing $3.6B for all of 2013.

Watching the competition are BlackRock (BLK -1.5%) and Deutsche Asset & Wealth Management (DB -2.1%).