Vanguard has today launched its first UK-domiciled actively managed funds, including an income fund, emerging markets equities fund and a balanced fund.
Vanguard’s in-house quantitative equity group will co-manage the Vanguard Global Equity Income fund with Wellington Management, and will be the only fund not entirely run by external sub-advisers.
Wellington Management will also manage the Vanguard Global Equity fund, alongside Baillie Gifford, and the Vanguard Global Balanced fund, which is 35 per cent fixed income and 65 per cent equity.
The Vanguard Global Emerging Markets fund will be managed by Baillie Gifford, Oaktree and Pzena Investment Management.
Vanguard, which launched four smart-beta ETFs for the UK market in December, already runs more than $1trn of active assets in the US.
“Although Vanguard is a globally recognised indexing expert, we have successfully managed active funds in the US for more than 40 years,” says managing director for Vanguard in Europe John James.
“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.”
The emerging markets fund will have ongoing charges of 0.8 per cent, while the other three funds will have a 0.6 per cent ongoing charge.