Vanguard replaces manager on UK active fund

Vanguard replaces manager on UK active fund

Vanguard will be changing the management of its UK Active Equity fund after a period of poor performance.

The firm said half of the fund would now be managed by Schroders - replacing Marathon Asset Management. The other half of the fund will remain managed by Baillie Gifford.

Over the past year, the fund been among the fourth quartile of performers in its sector, the IA UK All Companies. It has lost 13.5 per cent while its sector lost 5.6 per cent.

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Vanguard said its portfolio oversight function conducts ongoing reviews of the firm’s investment advisers, looking beyond short-term performance to understand drivers of long-term success for investors. 

As part of this review process, the company said changes to the advisory structure would be best for current and future shareholders of the fund.

“Vanguard has long advocated for a multi-manager approach on certain investment strategies, setting adviser allocations based on long-term, strategic targets,” it said.

The transition is expected to be complete in early September.

Vanguard said: “The investment objective, philosophy, and primary investment strategy of the fund will remain the same, and the expense ratio is not expected to change because of the adviser changes."

The fund will be managed by Schroder Investment Management North America, a US-based wholly-owned subsidiary of Schroders which was set up in 1999.

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