One of the world’s second largest asset management company by assets Vanguard has entered into personal finance advice industry. To start with, the company has entered Britain’s financial advisory market, which is currently dominated by individual advisors.
The company will take robo advisory model to cater of retail investors in Britain and will charge advisory fees of 0.79% per year on the total assets under advisory.
According to a news report published on the Economist, there are 12.8 million adults with more than 10,000 pound in savings. These individuals do not have a financial adviser. Further, rising longevity and low returns on traditional assets indicate that these individuals will have to plan for future.
Currently, there are 36,000 financial advisers in Britain. On an average, they charge close to 1.9% of the total assets under advisory as annual fees.
