Vanguard Taps Experience And Expertise Of Wellington to Manage New Global Balanced Funds

News provided by

Oct 18, 2017, 09:30 ET

VALLEY FORGE, Pa., Oct. 18, 2017 /PRNewswire/ -- Vanguard today launched two actively managed global balanced funds: Global Wellington Fund and Global Wellesley Income Fund. Vanguard, which manages $800 billion in multi-asset class portfolios, has appointed long-time investment advisory partner Wellington Management Company LLP to manage the new funds.

Wellington Management is a globally recognized investment manager with a proven track record and deep international expertise. The firm manages $1 trillion worldwide and currently oversees $351 billion across 23 Vanguard mandates. Wellington Management has advised the $102.7 billion Vanguard Wellington Fund since its inception in 1929, and the $54.2 billion Vanguard Wellesley Income Fund since its inception in 1970.

Global Wellington Fund will seek to provide long-term capital appreciation and moderate current income by offering a globally diversified portfolio invested in both equities and fixed income securities. The Global Wellington Fund will have approximately 65% of assets invested in U.S. and non-U.S. equities and 35% of assets invested in U.S. and non-U.S. fixed income securities. The Global Wellesley Income Fund will take a more conservative approach in primary pursuit of a high and sustainable level of current income, along with moderate long-term capital appreciation. Approximately 65% of its portfolio will be allocated to U.S. and non-U.S. fixed income securities and 35% to U.S. and non-U.S. equities.

"We will adhere to the same long-term, disciplined, balanced approach that has served Wellington and Wellesley fund shareholders well over decades, with the additional diversification benefits of global exposure," said John Keogh, portfolio manager for the fixed income portions of the new global funds. "In our stock selection, we will focus on high-quality global companies with attractive valuations; in our bond approach, we will emphasize high-quality global corporate and government debt."

Global Wellington Fund offers Investor Shares with an estimated expense ratio of 0.45%, and Admiral Shares with an estimated expense ratio of 0.35%. Global Wellesley Income Fund offers Investor Shares with an estimated expense ratio of 0.42%, and Admiral Shares with an estimated expense ratio of 0.32%. Both funds have a minimum initial investment requirement of $3,000 for Investor Shares and $50,000 for the Admiral Shares. The initial subscription period for the new funds will run from October 18, 2017 through November 1, 2017.

The portfolio managers for both Global Wellington Fund and Global Wellesley Income Fund have an average 27 years of investment management expertise:

Nataliya Kofman will serve as the portfolio manager for the equity portion of Global Wellington Fund. John Keogh, Michael Stack, and Loren Moran will serve as the portfolio managers for the fixed income portion of Global Wellington Fund.
Ian Link will serve as the portfolio manager for the equity portion of Global Wellesley Income Fund. Similar to Global Wellington Fund, Mr. Keogh, Mr. Stack, and Ms. Moran will also oversee the fixed income portion of Global Wellesley Income Fund.

Vanguard: An Active Leader
As one of the largest managers of active funds, Vanguard partners with some of the world's top asset managers to oversee a full roster of active stock, bond, and balanced mandates. Today, Vanguard's actively managed mutual funds represent $1 trillion; $587 billion of which is managed by external advisors, including traditional active equity, bond, and balanced assets; $630 billion by the Vanguard Fixed Income Group, including taxable and tax-exempt bonds, and money market funds; and $35 billion managed by the Vanguard Quantitative Equity Group.

About Vanguard
Vanguard is one of the world's largest investment management companies. As of September 30, 2017, Vanguard managed $4.7 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 371 funds to its more than 20 million investors worldwide. For more information, visit vanguard.com.

Assets figures as of September 30, 2017 unless otherwise noted.

All investing is subject to risks, including possible loss of principal. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Diversification does not ensure a profit or protect against a loss.

Investments in bonds are subject to interest rate, credit, and inflation risk.

Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

For more information about Vanguard funds and ETFs, visit vanguard.com or call 800-662-7447 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.

Vanguard Marketing Corporation, Distributor.

SOURCE Vanguard