Products March 28, 2011

Vanguard to Launch New Emerging Markets Stock Fund

March 28, 2011 (PLANSPONSOR.com) - Vanguard has filed a registration statement with the U.S. Securities and Exchange Commission for an actively managed emerging markets equity fund.
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The new fund will be managed by four advisers, each of which will initially oversee 25% of the fund’s assets.  

According to a press release, the advisers are:  

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  • M&G Investment Management Limited. Portfolio managers Matthew Vaight and Michael Godfrey will use a valuation-based, return on capital-focused approach to create a portfolio with no country or sector constraints. 
  • Oaktree Capital Management, L.P. The portfolio managers, Tim Jensen and Frank Carroll, will employ a bottom-up research process to invest in a diversified portfolio, limiting exposures by country and industry to avoid concentrated bets. 
  • Pzena Investment Management, LLC. The firm will follow a deep value strategy to invest in stocks based on the research of the three portfolio managers, John Goetz, Caroline Cai, and Allison Fisch, supported by a team of analysts. 
  • Wellington Management Company, LLP. Portfolio manager Cheryl Duckworth, along with the experience of Wellington’s team of global industry analysts, will seek to add value through in-depth fundamental research. 

 

The Vanguard Emerging Markets Select Stock Fund is expected to have an expense ratio of 0.95% ($9.50 for every $1,000 invested) which is 40% less than the 1.68% expense ratio of the average actively managed emerging markets fund, the announcement said.

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