LONDON, Jan 22 (Reuters) - Vanguard will scale back its exposure to UK stocks and bonds across a retail fund range managing about 52 billion pounds ($70 billion), despite government pressure on asset
Vanguard Reduces UK Investment Exposure in $70 Billion Fund Range
Vanguard's Strategic Shift in UK Investments
LONDON, Jan 22 (Reuters) - Vanguard will scale back its exposure to UK stocks and bonds across a retail fund range managing about 52 billion pounds ($70 billion), despite government pressure on asset managers to steer more money into domestic markets.
Changes to LifeStrategy Funds
Vanguard said it would reduce the "home bias" in place for its 'LifeStrategy' mutual funds, reducing this to 20% from 25% for equity products and to 20% from 35% for fixed income products.
Government Reforms and Market Response
The changes will be phased in from late-March to June this year, it added, alongside changes to reduce fees.
"Over time, as UK investors have grown more confident investing internationally, LifeStrategy has evolved to have a more global focus," Vanguard said, adding that it remained committed to the UK and "optimistic" about its future.
The British government has pursued a series of reforms designed to increase private investment into UK assets.
($1 = 0.7450 pounds)
(Reporting by Iain Withers, Editing by Louise Heavens)
