Vanguard Active Emerging Market Equity Fund
About this Fund
|FUND MANAGER||Wellington Management Australia|
|ASSET CLASS||GLOBAL EQUITIES|
Wellington employs an emerging market strategy that utilises fundamental security analysis and a bottom-up stock picking
The Fund seeks to provide long-term capital growth by investing primarily in equity securities of companies located in emerging markets.
|BENCHMARK||MSCI Emerging Markets Index (with net dividends reinvested) in AUD|
|FUND SIZE||MSCI Emerging Markets Index (with net dividends reinvested) in AUD|
|NO. OF HOLDINGS||100-150|
Benefits of investing in the Vanguard Active Emerging Market Equity Fund
The Vanguard Manager Select Series are a suite of actively managed funds which seek to deliver on what we consider the three most critical factors to active management:
Buy and hold investors seeking long-term capital growth, international diversification, and with a higher tolerance for the risks associated with share market volatility.
|RISK LEVEL||High - The potential for higher returns than lower risk investments, however there is the higher potential for below-average returns and/or loss of capital.|
Buy and hold investors seeking long-term capital growth, international diversification, and with a higher tolerance for the risks associated with share market volatility
About the Fund
Vanguard Active Emerging Market Equity Fund, managed by Wellington, seeks to provide long-term capital growth by investing primarily in equity securities of companies located in emerging markets around the world.
The Fund, managed by Wellington, aims to pick the best companies in each industry by employing an industry specific, bottom-up research to anticipate fundamental changes and yield better stock level insights.
Wellington uses a team approach applying the expertise of their global industry analysts (GIA) that have developed in-depth industry expertise in emerging markets in addition to global perspectives.
Each GIA follows a unique investment philosophy, process and analytical framework that is most effective to the industry they cover. The portfolio maintains broad diversification across all industries by tying portfolio industry weights to the index, as well as diversification by investment style, which leads to a core, all-cap, and style-neutral portfolio. Wellington believes this leads to a more consistent return pattern over time.
Tracing its history to 1928 and with over US$1 trillion in assets under management as at 31 March 2019, Wellington Management1 serves more than 2,200 institutional clients and funds in over 60 countries. It is also one of the world's largest investment sub advisers, providing investment expertise and experience to banks, insurance companies, and wealth management firms. Its investment capabilities are built on the strength of rigorous, proprietary research and span nearly all segments of the global capital markets, including equity, fixed income, multi-asset, and alternative strategies. Being a private partnership whose sole business is investment management allows Wellington to take a long-term view and to be aligned with the interests of its clients.
Wellington Management believes its distinctive strength is its commitment to rigorous, proprietary research â€” the foundation upon which the firm's investment approaches are built. Another hallmark of Wellington is its culture, that is, its dedication to collaboration and a sense of community, a trait the firm believes is its sustainable competitive advantage. It has built its organisation to foster healthy debate, diversity of thought, and the free exchange of ideas â€” conditions that Wellington thinks are essential for informed investment decision making. Actively sharing insights across asset classes and investment disciplines help create a marketplace of ideas that is leveraged for the benefit of client portfolios.
How we invest your money
The Vanguard Active Emerging Markets Equity Fund is an actively managed portfolio of emerging markets stocks seeking to deliver long term capital growth. Wellington seeks to add value through fundamental security analysis and utilises a bottom-up stock picking approach to invest in companies they believe will outperform over the long-term.
The Fund consists of sector portfolios that are allocated to one or more of the Wellington's global industry analysts. The sector weight will be similar to that of the benchmark with each global industry analyst following a unique investment philosophy, process and analytical framework that is most effective to the industry they cover. This allows the Fund to maintain broad diversification across industries.
The process applies several index relative constraints such as security, asset sector and industry constraints with an aim to maintain a desired investment risk profile.
The Fund is unhedged and exposed to the fluctuating values of foreign currencies; these fluctuations may increase or decrease the value of the Fund. Expected changes in the relative values of currencies are considered at the company level as estimates of future growth are developed. Occasionally the Fund may hedge currency exposures defensively, but does not attempt to add value by actively managing currency or expect that currency will be a significant source of relative performance over time.