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Vanguard Personal Advisor Services introduces Five-Fund Active Equity offer

Vanguard announced the introduction of its new five-fund active equity offer available exclusively to PAS clients
7 minute read
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November 09, 2021
Company news

Firm launches three “Advice Select” funds and removes annual investment limit on Vanguard Capital Opportunity Fund for clients of Personal Advisor Services

Vanguard today announced the introduction of its new five-fund active equity offer available exclusively to clients of Personal Advisor Services (PAS). The offer is comprised of five single-manager funds, including two existing funds—Vanguard International Core Stock Fund and Vanguard Capital Opportunity Fund—and three funds launched today: Vanguard Advice Select Dividend Growth Fund, Vanguard Advice Select Global Value Fund, and Vanguard Advice Select International Growth Fund.

“Vanguard has thoughtfully crafted this new active equity offer for Personal Advisor Services to meet the evolving needs and preferences of our clients,” said Jon Cleborne, head of Vanguard Personal Advisor Services. “Vanguard’s legacy of active management leadership and outperformance1 is grounded in our ability to provide access to top-tier investment talent and strategies. Featuring five funds managed by three of Vanguard’s longest-tenured external investment managers, this offer underscores our commitment to continuously enhancing our investment lineup, enabling more personalized portfolio construction, and ultimately driving better outcomes for investors.”

PAS, Vanguard’s industry-leading hybrid advice service,2 combines sophisticated technology and an online experience with the expertise and behavioral coaching of a human advisor. Since its inception in 2015, PAS has crafted client portfolios with both index and actively managed fixed income and equity products. Vanguard believes actively inclined investors can be successful if they can gain access to top talent, exhibit patience and discipline, make effective asset allocation decisions, and invest at the right cost. PAS advisors carefully assess their clients’ risk tolerance and objectives to ensure actively managed funds are appropriate for their personal circumstances. If deemed suitable, advisors will incorporate the new offer into their clients’ customized portfolios.

Notably, the new Advice Select funds employ a more concentrated approach, which enables optimal blending within advised portfolios as a complement to broadly diversified and low-cost index fund holdings:

  • Vanguard Advice Select Dividend Growth Fund seeks to outperform the broader U.S. market, focusing on financially sound, large-cap companies across a diverse range of sectors that have prospects for long-term total returns, as a result of their ability to grow earnings and their willingness to increase dividends over time. Managed by Wellington Management Company LLP, the fund employs a more concentrated version of the strategy used in Vanguard Dividend Growth Fund, and has an expense ratio of 0.45%, half that of the average expense ratio for large-cap core funds of 0.90%.3
  • Vanguard Advice Select Global Value Fund provides global, all-cap, contrarian-value exposure by investing in discounted companies that are being avoided or overlooked. The fund is managed by Wellington Management Company LLP and has an expense ratio of 0.40%, compared with the average expense ratio for global multi-cap value funds of 1.09%.4
  • Vanguard Advice Select International Growth Fund employs a bottom-up equity strategy—analyzing the fundamentals of specific companies instead of broad sectors or industries—focused on international companies considered to have above-average growth potential. The fund is managed by Baillie Gifford Overseas Ltd. as a more concentrated version of the strategy used in Vanguard International Growth Fund. The fund has an expense ratio of 0.42%, compared with the average expense ratio for international large-cap growth funds of 1.13%.5

Vanguard today also announced it is removing Vanguard Capital Opportunity Fund’s $25,000 annual investment limit for PAS clients investing through their advised portfolios to ensure advisors can fully implement recommended allocations to the fund. The annual investment limit remains in place for other shareholders.

About Vanguard

Vanguard is one of the world’s largest investment management companies. As of September 30, 2021, Vanguard managed $8 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 417 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.

1 For the 10-year period ending September 30, 2021, 87% (81 of 93) of Vanguard active funds outperformed their peer group averages (source: Lipper, a Thomson Reuters Company). Only funds with a ten-year history were included in the comparison.  Results for other time periods will vary.  Note that the competitive performance data shown represents past performance, which is not a guarantee of future results.  For the most recent performance visit www.vanguard.com/performance.

2 Vanguard Personal Advisor Services advises $259 billion, as of September 30, 2021.

3, 4, 5 Source: Lipper, a Thomson Reuters Company, as of September 30, 2021.

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest.

Diversification does not ensure a profit or protect against a loss.

Investments in securities issued by non-U.S. companies and governments are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets.

Advice services are provided by Vanguard Advisers, Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited purpose trust company.

The services provided to clients who elect to receive ongoing advice will vary based upon the amount of assets in a portfolio. Please review the Form CRS and Vanguard Personal Advisor Services Brochure for important details about the service, including its asset-based service levels and fee breakpoints.

VAI is a subsidiary of VGI and an affiliate of VMC. Neither VAI nor its affiliates guarantee profits or protection from losses.