Investment advisory firm Vanguard is set to launch three new active equity funds in Q4 2021, having filed the necessary documentation with the Securities Exchange Commission.
In a press statement, Vanguard indicated that the new products would only be available to Personal Advisor Services (PAS) clients.
The funds, Vanguard Advice Select Dividend Growth Fund, Vanguard Advice Select Global Value Fund, and Vanguard Advice Select will be made to clients investing through their advised portfolios.
The Vanguard Advice Select Dividend Growth Fund will target large-cap companies from different sectors. Notably, the companies will have prospects for long-term growth in the broader U.S. market. Elsewhere, the Vanguard Advice Select Global Value Fund offers a global outlook for all-cap, contrarian-value exposure. The funds will invest in discounted companies that are being avoided or overlooked.
Finally, the Vanguard Advice Select International Growth Fund seeks to utilize the bottom-up equity strategy. The strategy aims to analyze the fundamentals of specific companies as opposed to broad sectors.
“We are enhancing our world-class investment lineup by introducing a thoughtfully designed, active equity offer to Personal Advisor Services. The funds, managed by top-tier portfolio managers, will enable more personalized portfolio construction and provide the potential to drive improved client outcomes over the long-term,” said Matt Benchener, managing director of Vanguard Retail Investor Group.
Benefits to PAS clients
Currently, the PAS clients are leveraging both active and passive fixed income products. The addition of equity products seeks to meet client preferences.
Furthermore, the PAS clients enjoy additional products such as low-cost index fund core portfolio holdings. Notably, the company notes that the PAS advisors will assess suitability to ensure the funds are prudently incorporated into their clients’ portfolios.
Additionally, clients who subscribe to the new funds will also be eligible to receive ongoing portfolio rebalancing, tax-efficient management, and retirement drawdown strategies.
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