Vanguard Investments Canada Inc. has introduced its first suite of actively managed mutual funds in Canada that are globally diversified and low-cost.
The mutual funds feature global investment strategies from some of Vanguard’s longest-tenured sub-advisors and complement the firm’s broad-based lineup of 36 ETFs.
“Vanguard has a deep 40-year history of active management expertise and we are excited to extend that to mutual fund investors in Canada, at a low cost,” says Atul Tiwari, managing director of Vanguard Investments Canada Inc. “These mutual funds reflect our philosophy as an organisation with a disciplined long-term approach and world-class investment managers that have worked with Vanguard for decades.”
Globally, The Vanguard Group, Inc. manages over USD5 trillion in assets under management and is one of the world’s largest active managers with USD1.2 trillion in global actively managed assets under management.
“The contributing factors to successful active management are low costs, talent and patience,” says Tim Huver, head of product, Vanguard Investments Canada Inc. “These mutual funds provide Canadians with access to proven global investment strategies in an innovative fee structure that aligns with the best interests of investors.”
Vanguard will use a unique pricing structure in the Canadian marketplace that aligns the interests of the sub-advisors with the funds’ investors. The maximum management fee for each mutual fund will be 0.50 per cent and the management fee will vary up or down, up to that maximum amount, based on the investment performance of each fund.
*The management fee is equal to the fee paid by the Vanguard fund to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard fund.
The first year management fee highlighted above is effective from 25 June 2018 to 30 June 2019. The funds will be available to financial advisors through Series F units and institutional investors through Series I units.
“As a group, Canadians hold about USD1.5 trillion in mutual fund assets,” adds Tiwari. “Vanguard has a long track record of lowering investment costs in the areas in which we operate, so we see providing greater choice and lower costs to a broader group of investors as very positive.”