Cash slow is king for global asset manager's new active fund
Investors looking to add international companies with strong balance sheets and sustainable cash flow to their portfolios now have a new option.
Vanguard has announced its plan to launch an actively managed fund focused on those firms that are most likely to grow their dividends over the long term and are well positioned to navigate highs and lows of the business cycle with resilience to varied market conditions.
The Vanguard International Dividend Growth Fund is expected to be launched in the fourth quarter of 2023 and will have a competitive expense ratio of 0.54%. Investors will need a minimum US$3,000 for the single share class investment.
“Investors can use the International Dividend Growth Fund as a meaningful component of their international equity holdings, and it can be paired with the U.S.-focused Dividend Growth Fund to build a globally diversified, actively managed equity allocation,” said Dan Reyes, global head of the Portfolio Review Department at Vanguard.
Managed by Wellington
The new fund will be advised by Wellington Management and managed by Peter Fisher, who also co-manages the Vanguard Dividend Growth Fund alongside portfolio manager Don Kilbride.
Wellington Management is Vanguard’s largest and longest-serving external advisor, having been involved since Vanguard launched and having overseen more than $405 billion of Vanguard fund assets globally through to June 30, 2023.
“Vanguard creates products designed to meet the long-term needs of investors and help give them the best chance for investment success. Partnering with world-class investment talent is an integral part of Vanguard’s disciplined, research-based process for developing a product lineup with enduring investment merit,” added Reyes.
