Vanguard is lowering UK exposure in its LifeStrategy multi-asset funds to reduce “home bias” and increase diversification with global equities and bonds. The changes will be phased in by June 2026, with ongoing charges reduced from 0.22% to 0.20%. Vanguard also launched LifeStrategy Global for investors seeking global market weight and no UK bias.

Vanguard’s allocation changes will decrease UK equities from 25% to 20% and UK bonds from 35% to 20% in each fund’s stock allocation. Despite this, the UK allocation will still be above the category average for multi-asset funds. The move aims to improve diversification and align with changing investor preferences for more global exposure.

The average UK multi-asset fund has shown a consistent reduction in “home bias” over 15 years, with UK equity falling from nearly 60% to around 17% of total equity exposure, and UK bonds dropping from about 55% to 30% of total fixed income exposure. Vanguard’s changes reflect this trend and aim to offer investors a more globally diversified portfolio.

Investors in the LifeStrategy funds can expect slightly more exposure to global markets, particularly the US and other developed economies, due to the UK allocation cut. The fee reduction from 0.22% to 0.20% further positions LifeStrategy as a low-cost core holding. For those seeking a globally neutral approach, the new LifeStrategy Global range may be a better fit to minimize home bias.

Read more at Morningstar: Vanguard LifeStrategy Lowers UK Stock and Bond Exposure in Rebalance