Leading the way, the pioneer of asset management cuts down on UK equity and bond allocation, the flagship fund of 52 billion pounds further shifts towards globalization.

One of the world's largest asset management companies, Vanguard Group, is making significant adjustments to its major fund series in the UK, planning to reduce its allocation to UK domestic stocks and bonds. This move goes against the goal of the UK Labour government to steer funds towards investing in the domestic market. According to a statement released on Thursday, Vanguard's LifeStrategy fund series will decrease the allocation of UK stocks from 25% to 20% and fixed income allocation from 35% to 20%. The adjustments will be made in stages and completed by June. The asset management company will also lower the fees of this series of funds: the fees for the LifeStrategy mutual fund series will decrease from 0.22% to 0.20%; the fees for the LifeStrategy Classic multi-asset investment portfolio series will decrease from 0.20%-0.23% to 0.17%-0.18%. As of the end of December last year, the total assets of the LifeStrategy funds reached 52 billion pounds. Vanguard stated: "The LifeStrategy funds under Vanguard were launched in 2011 with the aim of encouraging diversified investments." The company said that as UK investors' acceptance of global diversified investments has increased, the average "domestic bias" in the UK has gradually decreased. This comes as the UK government seeks to pressure fund managers to increase their allocation to UK assets in order to revitalize the country's weak financial markets. Some UK pension fund managers have agreed to invest at least 5% of their assets in the domestic private market through the Mansion House Accord, which is part of the government's efforts to channel billions of pounds into infrastructure projects and small business plans. However, some companies are resisting the introduction of voluntary minimum UK asset allocation measures, believing that such measures would hinder their ability to reduce risks. They argue that fund managers and financial advisors have a legal obligation to ensure that their actions are purely in the best financial interests of their clients. Vanguard stated in its Thursday announcement: "The adjustment to the 'domestic bias' will balance UK investors' willingness to continue investing in the domestic market with the returns from a globally diversified investment portfolio. Vanguard remains committed to the UK market and is optimistic about its future."