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VanEck launches open-end mutual fund version of ‘wide moat-focused’ strategy


VanEck has launched the VanEck Morningstar Wide Moat Fund, an open-end mutual fund version of Morningstar’s ‘wide moat-focused’ strategy that VanEck originally launched in 2012 through the VanEck Vectors Morningstar Wide Moat ETF (MOAT).

The popularity and success of the “wide moat” strategy prompted VanEck to expand the strategy’s application, particularly to key institutional clients.
Like MOAT, which has total net assets of approximately USD1.3 billion as of 31 October, 2017, the VanEck Morningstar Wide Moat Fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar Wide Moat Focus Index SM (MWMFTR). The Index targets US companies with sustainable competitive advantages, ie “moats,” and attractive valuations in the view of Morningstar’s team of more than 100 equity analysts. According to Morningstar’s Equity Research group, companies with moats have the potential to create value and generate returns for longer periods of time.
Up to 31 October, the Morningstar Wide Moat Focus Index has outperformed the S&P 500 Index over the one-year, three-year, five-year, and 10-year periods. Over the 10-year period, the Index has outperformed the S&P 500 Index by over 4 per cent annually.
“MOAT has stood out from the time it was introduced to the market in early 2012 and has experienced a great deal of acceptance across different investor types,” says Kristen Capuano (pictured), Vice President and Head of Active Products with VanEck. “There are investors from various important institutional categories that have indicated interest in traditional mutual fund exposure. By launching this mutual fund with both I and Z shares, we’re now making the “wide moat” strategy more broadly available.”

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