Vanguard has launched two actively managed global balanced funds – Global Wellington Fund and Global Wellesley Income Fund.
Vanguard, which manages USD800 billion in multi-asset class portfolios, has appointed long-time investment advisory partner Wellington Management Company LLP to manage the new funds.
Wellington Management is a globally recognised investment manager with a proven track record and deep international expertise. The firm manages USD1 trillion worldwide and currently oversees USD351 billion across 23 Vanguard mandates. Wellington Management has advised the USD102.7 billion Vanguard Wellington Fund since its inception in 1929, and the USD54.2 billion Vanguard Wellesley Income Fund since its inception in 1970.
Global Wellington Fund will seek to provide long-term capital appreciation and moderate current income by offering a globally diversified portfolio invested in both equities and fixed income securities. The Global Wellington Fund will have approximately 65 per cent of assets invested in US and non-US equities and 35 per cent of assets invested in US and non-US fixed income securities. The Global Wellesley Income Fund will take a more conservative approach in primary pursuit of a high and sustainable level of current income, along with moderate long-term capital appreciation. Approximately 65 per cent of its portfolio will be allocated to US and non-US fixed income securities and 35 per cent to US and non-US equities.
“We will adhere to the same long-term, disciplined, balanced approach that has served Wellington and Wellesley fund shareholders well over decades, with the additional diversification benefits of global exposure,” says John Keogh, portfolio manager for the fixed income portions of the new global funds. “In our stock selection, we will focus on high-quality global companies with attractive valuations; in our bond approach, we will emphasise high-quality global corporate and government debt.”
Global Wellington Fund offers Investor Shares with an estimated expense ratio of 0.45 per cent, and Admiral Shares with an estimated expense ratio of 0.35 per cent. Global Wellesley Income Fund offers Investor Shares with an estimated expense ratio of 0.42 per cent, and Admiral Shares with an estimated expense ratio of 0.32 per cent. Both funds have a minimum initial investment requirement of USD3,000 for Investor Shares and USD50,000 for the Admiral Shares. The initial subscription period for the new funds will run from 18 October, 2017 to 1 November, 2017.
The portfolio managers for both Global Wellington Fund and Global Wellesley Income Fund have an average 27 years of investment management expertise.
Nataliya Kofman will serve as the portfolio manager for the equity portion of Global Wellington Fund. John Keogh, Michael Stack, and Loren Moran will serve as the portfolio managers for the fixed income portion of Global Wellington Fund.
Ian Link will serve as the portfolio manager for the equity portion of Global Wellesley Income Fund. Similar to Global Wellington Fund, Keogh, Stack, and Moran will also oversee the fixed income portion of Global Wellesley Income Fund.