Passive investment giant Vanguard has launched four actively-managed global equity funds managed by third-party investment managers as it looks to extend its range of low-cost products.
Two of the funds will invest in global equities, of which one has an income focus, the third will invest in emerging markets equities, and the fourth will comprise global equities and fixed income.
The fresh funds will be managed by a number of sub-advisers appointed by Vanguard, including Wellington Management, Baillie Gifford, Oaktree and Pzena Investment Management.
John James, managing director for Vanguard in Europe, said: “Although Vanguard is a globally recognised indexing expert, we have successfully managed active funds in the US for more than 40 years.
“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.”
He pointed to historical data which shows that low costs can improve an investor’s odds of success with both active and index funds.
| Fund | Sub-adviser | Ongoing charge |
| Vanguard Global Equity | Baillie Gifford and Wellington Management | 0.60 per cent |
| Vanguard Global Equity Income | Wellington Management and the Vanguard Quantitative Equity Group | 0.60 per cent |
| Vanguard Global Emerging Markets | Baillie Gifford, Oaktree, and Pzena Investment Management | 0.80 per cent |
| Vanguard Global Balanced | Wellington Management | 0.60 per cent |
Adviser View
Nic Round, managing director of Treowe Wealth Advisers, said: “I respect Vanguard. If they can deliver an active solution for investors at minimal cost, then it makes sense.
“The key for investors is to understand the funds remit and the risk. If that fits better than a passive, then that is fine. But if you invest it has to be low cost, otherwise there is no point whatsoever.”
katherine.denham@ft.com
