Finance
Vanguard to cut British exposure across $70 billion UK product range
Published by Global Banking and Finance Review
Posted on January 22, 2026
1 min readLast updated: January 22, 2026
Quick Summary
Vanguard reduces UK investment exposure in its $70B fund range, adjusting LifeStrategy funds' home bias amid government reforms.
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)
Key Takeaways
- •Vanguard reduces UK exposure in $70 billion fund range.
- •LifeStrategy funds' home bias reduced for equity and fixed income.
- •Changes align with increased global investment focus.
- •UK government encourages more domestic investment.
- •Adjustments include phased fee reductions.
Frequently Asked Questions about Vanguard to cut British exposure across $70 billion UK product range
1What is equity?
Equity refers to the ownership value in an asset or a company, representing the shareholders' stake in the business after all liabilities have been deducted.
2What is fixed income?
Fixed income refers to investment types that provide returns in the form of regular, fixed payments, such as bonds or loans, typically offering lower risk.
3What is a mutual fund?
A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.
