Vanguard launches new active UK equity fund
Vanguard Asset Management (Vanguard), a provider of high-value investment services, has launched the Vanguard Active UK Equity Fund.
The Vanguard Active UK Equity Fund is designed for investors seeking exposure to UK companies at a low cost. It will employ the approaches of two external fund managers focused on identifying growing UK companies, in a fund designed to be held for the long term.
The Vanguard Active UK Equity Fund is sub-advised by Marathon Asset Management (50 per cent) and Baillie Gifford (50 per cent). Marathon Asset Management look to identify UK companies that benefit from the flow of investments in and out of UK industries. Baillie Gifford’s investment methodology is aimed at finding companies with growth potential, through in-depth research.
The Vanguard Active UK Equity Fund embodies the three elements Vanguard believes are crucial to giving investors the best chance of investment success: top investment talent, with a long-term approach, delivered at a low-cost.
Robyn Laidlaw, Head of UK Distribution for Vanguard, comments: “The Fund blends the strengths and expertise of our sub-advisers, and we believe investors will benefit from the combination of two top quality firms with decades of UK investment experience, high quality portfolio management teams, and distinctive investment management approaches.
“Vanguard is a pioneer in index fund investing, however active management has been a part of our approach since our founding in 1975. Our team provides investors and advisers with high- quality, active and indexed funds at great value.”
The launch follows Vanguard reducing the fees across its UK domiciled active equity fund range in 2018. Since the launch of the active equity range in 2016, Vanguard’s funds have all outperformed their Morningstar peer group averages, with Vanguard Global Balanced Fund and Vanguard Global Emerging Markets Fund outperforming at least 90 per cent of their peers.