Vanguard has made its first foray into the UK active management space with the launch of a four-strong range of sub-advised funds.
The launches comprise global equity, global equity income, balanced and global emerging market equity strategies. The former trio each have an ongoing charges figure (OCF) of 0.6 per cent, and the latter 0.8 per cent.
The funds will be managed using a combination of four external asset managers, alongside Vanguard’s own Quantiaitive Equity Group (QEG).
Vanguard managing director for Europe, John James, said it was important for the fund house to offer a choice of both index and active funds.
“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,” he added.
The firm manages around $1trn (£683bn) in active strategies in the US.
In its UK vehicles, the Vanguard Global Equity Fund will be managed on a 50/50 basis by Baillie Gifford and $904bn US giant Wellington Management.
Wellington will also run 65 per cent of the Global Equity Income fund, with the remainder run by Vanguard’s QEG.
Baillie Gifford, alternatives firm Oaktree and value investor Pzena Investment Management will equally split management of the higher-charging Vanguard Global Emerging Markets fund.
The Balanced fund – which allocates 65 per cent to equities and 35 per cent to fixed income – will be run by Wellington.
