Vanguard today submitted a preliminary registration statement to the Securities and Exchange Commission for the launch of three new active equity mutual funds: Vanguard Advice Select Dividend Growth Fund, Vanguard Advice Select Global Value Fund and Vanguard Advance. The funds are expected to be launched in the fourth quarter of 2021 and will be available exclusively to clients of Personal Advisory Services (PAS), offering Vanguard’s industry-leading consultingD Which combines a virtual experience with sophisticated and customized portfolio management, financial planning tools and behavioral training and guidance of financial advisors. Funds will be made available to investor PAS clients through their advisory portfolios as part of the five-fund active equity offer, including two existing products ভ Vanguard International Core Fund and Vanguard Capital Opportunity Fund.
The active equity offer will primarily serve as a complementary allocation to the vast portfolio holdings of PAS clients ’diversified and low-cost index funds. Vanguard believes that fund-focused, high-alpha strategies are sufficiently appropriate for PAS clients to have risk tolerance and patience for active exposure because they can materially affect portfolio performance even in relatively small allocations. PAS advisors will evaluate suitability and ensure that funds have been prudently incorporated into their clients portfolio.
Matt Benchener, managing director of Vanguard Retail Investor Group, said: “We are expanding our world-class investment lineup by introducing a thoughtfully designed, proactive equity offer for personal consulting services.” “Vanguard has provided consistent and sustainable improved performance as a leader in active investment management,2 And the launch of this active equity offer will depend on that success. These funds, managed by top-level portfolio managers, will enable more personalized portfolio building and provide the client with the potential to achieve better results in the long run.
The PAS portfolio currently uses both active and passive fixed income and equity products to meet client preferences and needs. The new offer will provide global active equity exposure through a combination of five single-fund funds, including three new funds:
- Vanguard Advice Select Dividend Growth Fund As a result of their ability to increase revenue and their desire to increase dividends, they will try to outperform the larger American market, with the potential for long-term total returns across a wide range of financially sound, large-cap companies. A more focused version of the strategy used in Time Vanguard Dividend Growth Fund, the fund will be managed by Wellington Management Company LLP and will have an estimated cost ratio of 0.45% compared to the average spending ratio of 0.90% Large-Cap Core Fund. .3
- Select Vanguard Advice Global Value Fund Discounts that are being discounted or ignored will provide global, all-cap, contrarian-value exposure by investing in the company. The fund will be managed by Wellington Management Company LLP and will have an estimated cost ratio of 0.40%, compared to the average cost ratio of the global multi-cap value fund of 1.10%.4
- Vanguard Advice Select International Growth Fund Instead of a broad sector or industry, a bat-up equity strategy will be employed by analyzing the fundamentals of a particular company, focusing on exceptional international growth agencies. The fund will be managed by Bailey Gifford Overseas Limited as a more focused version of the strategy used in the Vanguard International Growth Fund. The estimated cost ratio of this fund will be 0.42% as compared to the average expenditure ratio of 1.13% International Large-Cap Growth Fund.5
“Patience, discipline and a long-term vision are central to Vanguard’s investment philosophy and portfolio building approach, and especially important for proactive management,” said John Cleiborn, head of Vanguard’s personal advisory services. “Active management is particularly appropriate for advisory portfolios, as advisors can ensure that expectations are properly managed, that allocations are consistent with risk tolerance, and that clients are supported and trained during times of low performance.”
About Vanguard Personal Advisor Services
Vanguard’s focus on consulting is directly linked to the firm’s mission to give investors the best chance of investment success. Vanguard strongly believes that advice brings better results for investors and is committed to making it more accessible, affordable and personalized.
PAS advisors work with their clients to identify investment goals and develop personalized and complete financial plans and portfolios designed to achieve them. In addition, PAS clients receive ongoing guidance from an advisor to navigate complexities such as ongoing portfolio restructuring, tax efficient management, and social security optimization, Medicare selection, retirement strategies, estate and tax planning, and charitable donations. PAS recommends 3 243 billion by June 30, 2021.
Vanguard is one of the largest investment management firms in the world. As of July 31, 2021, Vanguard had managed সম্প 8.0 trillion in global assets. Headquartered in Valley Forge, Pennsylvania, it provides 418 funds to its more than 30 million investors worldwide. For more information, see vanguard.com.
D Vanguard Personal Advisor Services recommends 30 243 billion as of June 30, 2021.
2 For a period of 10 years ending December 1, 2020, the Ang% Vanguard active funds exceeded the peer group average (source: Lipper, a Thomson Reuters company).
3, 4, 5 Source: Lipper, a Thomson Reuters company, until June 30, 2021.
Registration statements regarding Vanguard Advice Select Dividend Growth Fund, Vanguard Advice Select Global Value Fund and Vanguard Advice Select International Growth Fund have been filed with the Securities and Exchange Commission (SEC) but have not yet been implemented. The SEC did not approve or deny these securities or pass on the adequacy of the initial prospectus of the fund. Conversely no representation is considered a criminal offense. These securities cannot be sold or offered to be purchased before the registration statement takes effect. This communication will not constitute a sale offer or call for sale offer, nor will there be any sale of these securities in any state where such offer, application or sale will be illegal before registration or eligibility.
For more information about vanguard funds, visit vanguard.com to get a prospectus or, if available, a summary prospectus. The prospectus contains investment objectives, risks, charges, expenses and other important information about a fund; Read and consider carefully before investing.
“Vanguard PAS to launch 3 active equity funds”,