Vanguard Active Global Growth Fund
Vanguard has launched three new active funds as part of its Manager Select Series. The Vanguard Active Global Growth Fund is managed by Baillie Gifford and invests in businesses with a competitive advantage growing their earnings at a faster rate than the market over the long term.
The fund invests in 70 to 120 growth shares and will have a base fee of 0.60% per annum. It will also carry a performance fee. The Vanguard Active Global Growth Fund, along with the Vanguard Active Emerging Markets Equity Fund and the Vanguard Active Global Credit Bond Fund, represent Vanguard's first foray into fundamental active management in Australia.
“This launch marks an important milestone for Vanguard in Australia. Knowing that high costs represent a big headwind to outperformance, we can make a big difference for Australian investors in the future through introducing a lower cost alternative to traditional active management fee structures," Evan Reedman, head of product and marketing at Vanguard Australia said.