Vanguard Canada launches two actively managed global mutual funds

Vanguard Investments Canada Inc. has announced the launch of two new globally diversified and actively managed mutual funds it describes as being “low cost”: Vanguard Global Credit Bond Fund [VIC500] and Vanguard Global Equity Fund [VIC600.] complement the firm’s current line-up of 37 ETFs and four mutual funds.

Management fees will be 0.40 and 0.55% respectively. Asked whether this means payment of trailer commissions to financial advisors, Vanguard Canada spokesperson Matthew Gierasimczuk told the Hub: “No. Vanguard doesn’t pay trailing commissions in any of our markets since we have a longstanding belief it leads to a conflict of interest for investors.” The funds are available through most wealth advisors and also on Questrade and Qtrade, he added.

In a news release issued on Sept. 13, Vanguard Investments Canada Inc. Managing Director and Head Kathy Bock said:

“Within an uncertain investing climate, Canadian investors and their advisors are looking for quality, long-term and high-performing investment products, at a low-cost … These mutual funds provide that and reflect our deep 45-year history in active management with proven portfolio manager expertise that can help investors achieve success.”

Globally, The Vanguard Group, Inc. manages over USD $8.1 trillion in assets and is one of the world’s largest active managers with USD $1.7 trillion in global actively managed assets under management.

“Since introducing our mutual funds three years ago, Canadians have embraced our differentiated approach to active management, providing investors with access to skilled global investment managers with a long-term view,” said Tim Huver, Head of Intermediary Sales, Vanguard Investments Canada Inc. “These two global funds can act as a core holiding or complement to an investor’s equity or fixed income portfolios.”

Vanguard Global Credit Bond Fund seeks to provide a moderate and sustainable level of current income by investing primarily in non-government fixed income securities of issuers located anywhere in the world. The fund will have a management fee of 0.40%. The fund will be sub-advised by The Vanguard’ Group Inc.’s Fixed Income Group, a global team of more than 185 tenured and dedicated professionals overseeing USD $2.1 trillion in total assets. For 40 years, Vanguard Fixed Income Group has been distinguished in the industry by its deep investment capabilities, disciplined security selection process, rigorous risk management techniques and strong long-term performance.

Vanguard Global Equity Fund seeks to provide long-term capital appreciation by investing primarily in equity securities of companies located anywhere around the world. The fund will be sub-advised by Baillie Gifford Overseas Limited and Marathon Asset Management Limited. These sub-advisors have worked with Vanguard for decades and collectively manage over USD $500 billion in assets under management. The maximum management fee for the fund will be 0.55%.

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