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Vanguard low-cost active funds

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Our history in active management dates back to when Vanguard first took a stand for investors in 1975. We have since grown to become one of the world’s largest active managers, with more than £1 trillion in assets under management globally*.

Whether managed internally, or using carefully selected 3rd parties, we believe our active edge is built on three core principles: we look for world class talent, we are patient, allowing alpha to materialise over time, and we keep costs low to allow investors to keep more of their return.

45+ years

Our history of active management dates back to our beginning in 1975*

£1.2 trillion +

In active assets makes us one of the largest active managers in the world*

90%

of our active funds globally outperformed their peer group over the past ten years**

*Source Vanguard. Data as at December 31, 2020
**Source: Lipper, a Thomson Reuters Company. Data refers to Vanguard Active funds globally. Data as at December 31, 2020. For the ten-year period, 7 of 7 Vanguard money market funds, 38 of 44 bond funds, 6 of 6 balanced funds, and 30 of 37 stock funds, or 81 of 94 Vanguard funds outperformed their peer group averages. Results will vary for other time periods. Only funds with a minimum ten-year history were included in the comparison. Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks.

High investment costs, lack of discipline and frequent personnel turnover act as headwinds to active-investing success. We work to remove these headwinds, whether through our experienced internal active managers or the external managers who earn our confidence.

Matt Piro, Head of Product Europe

Our approach

When evaluating managers, we focus on strict qualitative criteria, not short-term performance. Sometimes our search ends with our own investment teams. Sometimes we look outside of Vanguard to find suitable external managers who share our beliefs on the importance of low costs, talented teams and long-term perspectives.

Cost

An ongoing commitment to driving down costs.

Talent

Unique access to a vast pool - both internal and external.

Patience

Designing for the long-term with your clients in mind.

Active fixed income

Our focus on generating consistent risk-adjusted returns means we take a long-term, sophisticated approach that emphasises smart risk taking, and true-to-label fund performance.

Vanguard Global Credit Bond Fund

Managed by: Vanguard Fixed Income Group

A core fixed income holding, aiming for consistent income and capital growth with an OCF of 0.35%4

4Source Vanguard. Data as at January 6, 2021. The OCF refers to the Investor GBP hedged Acc and Investor GBP hedged Dist share classes. The Ongoing Charges Figure (OCF) covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees.

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Vanguard Emerging Markets Bond Fund

Managed by: Vanguard Fixed Income Group

Seeks exposure to emerging market bonds, providing a moderate level of income with the potential for capital growth with an OCF of 0.60%5.

5Source Vanguard. Data as at January 6, 2021. The OCF refers to the Investor GBP hedged Acc share class. The Ongoing Charges Figure (OCF) covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees.


Active multi-asset

Our active multi-asset fund is the sister fund to the world’s longest running and largest multi-asset fund, the Vanguard Wellington Fund. Staying true to a philosophy that dates back to 1928, the fund aims to generate long-term growth by investing in quality companies, purchased when they are out of favour by the market.

Vanguard Global Balanced Fund

Managed by: Wellington Management

An actively managed all-in-one solution that invests in a balance of equities and bonds with an OCF of 0.48%6.

Active equity

By combining managers in many of our active equity funds, we can layer in a number of advantages, including balance, diversity of thought and robust risk control.

Vanguard Global Equity Fund

Managed by: Baillie Gifford and Wellington Management

A core global equity holding in a long-term investment portfolio combining both growth and value with an OCF of 0.48%6.

Vanguard Global Emerging Markets Fund

Managed by: Baillie Gifford, Pzena and Oaktree

A core holding for emerging market equities in a well-constructed, long-term investment portfolio with an OCF of 0.78%6.

Vanguard Global Equity Income Fund

Managed by: Wellington Management and Vanguard Quantitative Equity Group (QEG)

Two complementary managers, one traditional bottom-up and one quantitative, aim to deliver a core equity income fund with an OCF of 0.48%6.

Vanguard Active U.K. Equity Fund

Managed by: Baillie Gifford and Marathon

Two complementary active managers combined to deliver long-term capital growth in a low-cost UK equity fund with an OCF of 0.45%6.

6Source Vanguard. Data as at January 6,2021. The OCF refers to the GBP Acc and GBP Dist share classes. The Ongoing Charges Figure (OCF) covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees.


More information

Our approach to active investing

Download the brochure

Introducing "Active edge"

Read the blog

A long-view on active

Watch the webinar

Important risk information:

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

For further information on risks please see the “Risk Factors” section of the prospectus on our website.