MutualFundWire.com: Vanguard Launches an Emerging Market Equity Fund
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Wednesday, June 15, 2011|
Vanguard Launches an Emerging Market Equity Fund
Vanguard [see profile] yesterday unveiled the Vanguard Emerging Markets Select Stock Fund, an actively managed emerging markets fund that will be subadvised by four firms: M&G Investment Management Limited, Oaktree Capital Management, L.P., Pzena Investment Management, LLC, and Wellington Management Company, LLP.
The fund's two-week subscription period ends on June 27. It will bet on equity securities of small-, mid-, and large-capitalization companies located in emerging markets. It will have an estimated expense ratio of 95 basis points and is available to individual retail investors for a $3,000 minimum initial investment.
Vanguard Launches Actively Managed Emerging Markets Select Stock Fund
Subscription Period Begins Today
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Vanguard today introduced the Vanguard Emerging Markets Select Stock Fund, an actively managed emerging markets equity fund that will employ four highly regarded global advisory firms: M&G Investment Management Limited, Oaktree Capital Management, L.P., Pzena Investment Management, LLC, and Wellington Management Company, LLP. The fund is now accepting investments during a two-week subscription period that is expected to conclude at the end of business on June 27, 2011.
Following the subscription period, fund assets will be allocated equally among the four investment advisors. The firms’ teams have decades of combined experience in emerging markets equity management, with differentiated but complementary investment approaches.
Vanguard Emerging Markets Select Stock Fund seeks to provide long-term capital appreciation by investing in equity securities of small-, mid-, and large-capitalization companies located in emerging markets. It will have an estimated expense ratio of 0.95% ($9.50 for every $1,000 invested), which is 40% lower than the average expense ratio of other emerging markets funds at 1.68% (source: Lipper, December 31, 2010).
The fund will be available to individual retail investors who invest directly with Vanguard and will require a $3,000 minimum initial investment. As with its other international stock funds, Vanguard will assess a 2% redemption fee on shares held less than 60 days in an effort to deter short-term trading. The fee, which is not a load, is paid directly back to the fund to offset transaction costs.
Vanguard has offered both index and active funds for more than 35 years, and some 44% ($748 billion) of the firm’s total assets under management are in 73 actively managed funds. Of Vanguard’s 29 actively managed stock funds, 15 use a multi-manager approach.
Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages more than $1.7 trillion in U.S. mutual fund assets, including nearly $175 billion in ETF assets. Vanguard offers more than 170 funds to U.S. investors and more than 60 additional funds in non-U.S. markets.
For more information about Vanguard funds, visit vanguard.com or call 800-662-744, to obtain a 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.
Mutual funds are subject to risks, including possible loss of principal. Foreign investing involves additional risks including currency fluctuations and political uncertainty. Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.
All asset figures are as of May 31, 2011, unless otherwise noted.
Vanguard Marketing Corporation, Distributor.
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