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Vanguard Takes Aim at U.K. as Fees Replace Commissions

Vanguard Group Inc. rose to the top of the U.S. mutual fund industry by preaching the merits of cheap index-tracking funds. Now it wants to convert U.K. investors as that country enacts new rules that may lower fund costs that are among the highest in the developed world.

The firm is seeking to expand its less than 1 percent share of the 629 billion pound ($998 billion) market in the U.K. by more aggressively courting financial advisers, who control much of the country’s fund distribution, and striking deals to make its products more broadly available. Vanguard last month won access to the 13,000 U.K. advisers who use Cofunds, a platform with 45 billion pounds under administration.