Vanguard launches active fund range

Added 25th May 2016

Vanguard has launched four UK-domiciled actively managed funds.

Vanguard launches active fund range

The new offering comprises two global equities fund, one of which has an income focus, an emerging markets equities fund, while the fourth will be a balanced global equities and fixed income fund.

The funds will be actively managed externally by Wellington Management, Baillie Gifford, Oaktree and Pzena Investment Management.

Vanguard’s Quantitative Equity Group will also co-manage one of the funds.

New funds

The Vanguard Global Equity Fund is managed by Baillie Gifford (50%) and Wellington Management (50%) with an ongoing charges figure (OCF) of 60bps. It will target “well-established companies in the developed markets of the US, Western Europe and Japan to the up-and-coming opportunities in emerging markets”.

The Global Equity Income version is managed by Wellington Management (65%) and the Vanguard Quantitative Equity Group (35%). It has an OCF of 60bps.  

The Vanguard Global Emerging Markets Fund is managed by Baillie Gifford (33.3%), Oaktree (33.3%) and Pzena Investment Management (33.3%). Its OCF is 80bps.

The fourth of the range, the Global Balanced Fund is managed by Wellington Management with 35%/65% fixed income and equity split, and an OCF of 60bps. It targets developed market equities, investment grade corporate bonds and “highly liquid" fixed income instruments.

Low cost, high value

Managing director for Vanguard in Europe John James said:  “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 US$1trn (£687.1bn, €894.2bn) 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.”

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Alex Sebastian

News editor

Alex joined Portfolio Adviser in April 2014 and has been a financial journalist since 2008. He has previously held editorial positions at the Financial Times Group and Euromoney Institutional Investor. Alex is NCTJ qualified and has a degree in economics from the University of Sussex.


Critical illness cover the next big opportunity for advisers

Critical illness cover the next big opportunity...Lock icon

Imagine your client owned a goose that laid a golden egg every month, says Chris Bagnall, chief underwriting officer and head of claims at Zurich International Life.




Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...



IA International Portfolio Bond Forum Leeds 2017
IA International Portfolio Bond Forum Leeds 2017

Thursday 27 April
Thorpe Park Hotel, Leeds

IA Best Practice Adviser Awards UK 2017
IA Best Practice Adviser Awards UK 2017

3 May 2017
Waldorf Hilton, London

IA Product & Service Awards 2017
IA Product & Service Awards 2017

Wednesday 3 May 2017
The Waldorf Hilton, London 

IA International Portfolio Bond and Financial Planning Forum 2017

Sponsored Content

Investment Strategy