The US-headquartered investment manager has expanded its range of index and active funds.

Vanguard has launched four low-cost UK-domiciled actively managed funds, two of which will invest in global equities, the third in emerging markets equities, and the fourth in global equities and fixed income.

The Vanguard Global Equity Fund will invest in well-established companies in the developed markets of the US, Western Europe and Japan, as well as up-and-coming opportunities in emerging markets. It will carry an ongoing charge of 0.60 per cent. The management of the fund will be split equally between Baillie Gifford and Wellington Management.

The Vanguard Global Equity Income Fund will be run by Wellington Management (65 per cent) and the Vanguard quantitative equity group (35 per cent). It will have an ongoing charge of 0.60 per cent and will target a higher yield compared to the broad global equity market.

The Vanguard Global Emerging Markets Fund will offer exposure to up-and-coming opportunities in emerging markets, with an ongoing charge of 0.80 per cent. Its management will be divided three ways by Baillie Gifford, Oaktree and Pzena Investment Management.  

Lastly, the Vanguard Global Balanced Fund will be managed by Wellington Management (35 per cent fixed income and 65 per cent equity), with an ongoing charge of 0.60 per cent. The fund will invest in a global balanced portfolio made up of shares in developed market companies, combined with a core holding of investment grade corporate bonds and a further allocation to highly liquid fixed income instruments.

“Vanguard believes it is important to offer investors the choice of low-cost, high-value index and active funds to help meet their needs. Although Vanguard is a globally recognised indexing expert, we have successfully managed active funds in the US for more than forty years and we have nearly $1 trillion in global active assets under management,” said John James, managing director for Vanguard in Europe.

“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.”