Vanguard Cuts Allocation to UK for £52 Billion Fund Range

Vanguard Group’s biggest UK fund range is set to reduce its exposure to domestic stocks and bonds, a move that runs counter to the Labour government’s ambitions to channel investment into the country’s markets.

The UK equity allocation will be cut to 20% from 25% while the fixed income portion will be reduced to 20% from 35%, according to a statement Thursday. The changes to the LifeStrategy fund series will be done in stages through June, it said.