Products March 28, 2011

Vanguard to Launch Emerging Markets Stock Fund

Vanguard filed a registration statement with the Securities and Exchange Commission (SEC) for an actively managed emerging markets equity fund.
Reported by

The fund will be managed by four advisers, each of which will initially oversee 25% of the fund’s assets.  

According to the announcement, the advisers are:  

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  • M&G Investment Management Limited. Portfolio managers Matthew Vaight and Michael Godfrey will use a valuation-based, return on capital-focused approach to create a portfolio with no country or sector constraints. 
  • Oaktree Capital Management, L.P. The portfolio managers, Tim Jensen and Frank Carroll, will employ a bottom-up research process to invest in a diversified portfolio, limiting exposures by country and industry to avoid concentrated bets. 
  • Pzena Investment Management, LLC. The firm will follow a deep value strategy to invest in stocks based on the research of the three portfolio managers, John Goetz, Caroline Cai, and Allison Fisch, supported by a team of analysts. 
  • Wellington Management Company, LLP. Portfolio manager Cheryl Duckworth, along with the experience of Wellington’s team of global industry analysts, will seek to add value through in-depth fundamental research. 

The Vanguard Emerging Markets Select Stock Fund is expected to have an expense ratio of 0.95% ($9.50 for every $1,000 invested) which is 40% less than the 1.68% expense ratio of the average actively managed emerging markets fund, the announcement said.

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