Vanguard is following the market's lead and readying a new value fund. The Valley Forge, Pennsylvania-headquartered fund giant has filed a registration statement with the SEC for the fund.

The new fund (Vanguard Capital Value) will be Vanguard's sixth value equity offering from among 20 no-load equity funds. It is expected to carry a 48 basis point expense ratio. It will be a multi-cap, no-load offering.

Long-time Vanguard partner Wellington Management will subadvise the fund. The Boston-based manager is already subadvisor on the Vanguard Windsor Fund and has subadvisory relationships on 12 Vanguard funds and 2 Vanguard annuities. Those mandatae amount to some $95 billion in assets. Vanguard manages some $530 billion in assets, making its relationship with Wellington vital to both firms.

Wellington's Charles T. Freeman will act as portfolio manager of the Capital Value Fund. Freeman will be assisted by David R. Fassnacht will serve as assistant portfolio manager for the Capital Value Fund. Both men serve the same role on the Windsor fund which holds roughly $17 billion in assets.

The new offering will bring Vanguard's active fund lineup to 20 equity funds, including six value equity funds. 

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