New Vanguard UK Sterling Money Fund
U.K.-based Investment Week writes "Vanguard launches sterling money market fund." The brief says, "The Vanguard Sterling Short-Term Money Market fund was launched today (17 July) with the A sterling share class carrying an ongoing charge figure (OCF) of 0.15%, while the "institutional plus" sterling share class OCF costs 0.10% per annum.... Matthew Piro, head of product, Europe, said the fund would focus on short-dated and high-quality investments with a view to minimising risk." Another update on the new fund, posted by Portfolio Advisor," tells us, "Vanguard could have 'missed a trick' by failing to incorporate an environmental, social and governance overlay on its first money market fund domiciled in the UK. The announcement comes as rival passives giant Blackrock prepares to unveil an ESG money market ETF this month. The Vanguard Sterling Short-Term Money Market Fund will be targeted at retail, intermediary and institutional clients.... Vanguard already looks after £240bn in money market strategies via its team with fixed income; however, this is the first UK product it has launched. It has managed money market products for over 40 years." It adds, "In June 2018, JP Morgan launched the Ultra Short Income Ucits ETF with sterling, euro and US dollar versions of the fund and a TER of 0.18%. It is not a money market fund but has been touted as a cash alternative. Within money markets, Commerzbank offers three UK-domiciled ETFs, while Lyxor offers the largest product in the space with the £1.2bn Smart Cash ETF."
