Vanguard, one of the largest defined contribution asset managers in the US, is ramping up its efforts to grab a larger slice of the UK market.

The world's second-largest fund manager is launching two new fund vehicles, common contractual funds, which the $3 trillion manager believes offer a cheaper and more secure alternative to traditional life funds. The firm has pulled in just under $2 billion since launching its first product, a US equity index common contractual fund, in 2011.