Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

20965

Vanguard launches four low-cost actively-managed funds

RELATED TOPICS​

Vanguard has launched four low-cost UK-domiciled actively managed funds as it continues to expand its range of index and active funds to give investors the best chance of investment success. 

Two of the funds will invest in global equities, the third invests in emerging markets equities, and the fourth will be balanced comprising global equities and fixed income.

The new funds will be actively managed by a selection of highly-regarded external sub-advisers appointed by Vanguard. They are Wellington Management, Baillie Gifford, Oaktree and Pzena Investment Management. Vanguard’s Quantitative Equity Group (QEG) will also co-manage one of the funds.

John James (pictured), Managing Director for Vanguard in Europe, says: “Vanguard believes it is important to offer investors the choice of low-cost, high-value index and active funds to help meet their needs. Although Vanguard is a globally recognised indexing expert, we have successfully managed active funds in the US for more than forty years and we have nearly USD1 trillion in global active assets under management. The firm uses in-house management and is one of the world’s largest buyers of third-party investment management, giving it extensive experience in internal active management as well as active manager selection.

“We strongly believe that our distinctive approach to active management, which offers a combination of low-fees, top talent and patience, will serve investors well over the long term. In particular, historical data shows that low costs can improve an investor’s odds of success with both active and index funds.”

The new funds are as follows:

The Vanguard Global Equity Fund is managed by Baillie Gifford (50 per cent) and Wellington Management (50 per cent) with an ongoing charges figure of 0.60 per cent. This fund offers investors a broad opportunity set that ranges from well-established companies in the developed markets of the US, Western Europe and Japan to the up-and-coming opportunities in emerging markets.

The Vanguard Global Equity Income Fund is managed by Wellington Management (65 per cent) and the Vanguard Quantitative Equity Group (35 per cent) with an ongoing charges figure of 0.60 per cent. This fund offers a broad opportunity set and takes an equity income approach to help investors earn a higher yield compared to the broad global equity market.

The Vanguard Global Emerging Markets Fund is managed by Baillie Gifford (33.3 per cent), Oaktree (33.3 per cent) and Pzena Investment Management (33.3 per cent). It has an ongoing charges figure of 0.80 per cent. This fund offers exposure to the up-and-coming opportunities in the emerging markets.

The Vanguard Global Balanced Fund is managed by Wellington Management (35 per cent Fixed Income, 65 per cent Equity) with an ongoing charges figure of 0.60 per cent. This fund offers a global balanced portfolio made up of shares in developed market companies, combined with a core holding of investment grade corporate bonds and a further allocation to highly liquid fixed income instruments.

Latest News

Preqin has announced the launch of Term Intelligence, writing that this latest offering introduces one..
Brown Brothers Harriman & Co. (BBH) have announced a new automated liquidity management tool (“LMT”)..
Pantheon, a specialist global private markets investor, and iCapital, the global fintech platform, have announced..

Related Articles

Frozen soap bubble
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct Authority says has a simple aim: “Financial products that are marketed as sustainable should do as they claim and have the evidence to back it up.”..
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct..
Global ESG Investing
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of climate change and ESG factors in state policymaking...
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of..
Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by