The new products can only be bought through FAs
Four new global investment products have been launched Monday by Vanguard Canada.
The firm’s actively managed mutual funds are F-Series and only available through investors’ financial advisors and the firm aims to pique market interest with fees of 0.50%.
The Vanguard Global Balanced Fund seeks to provide long-term capital growth together with some current income by investing primarily in a combination of equity and fixed income securities of issuers located anywhere in the world. It requires a minimum investment of C$5,000.
The Vanguard Global Dividend Fund seeks to provide an above-average level of current income together with long-term capital growth by investing primarily in dividend paying equity securities of companies located anywhere around the world. It too requires a minimum investment of C$5,000.
The Vanguard U.S. Value Windsor Fund seeks to provide long-term capital appreciation and income by investing primarily in large- and mid-capitalization companies located in the United States whose stocks are considered to be undervalued. Minimum investment $5,000.
And the Vanguard International Growth Fund seeks to provide long-term capital appreciation by investing primarily in the stocks of companies located outside Canada and the United States.
Vanguard says that it thinks the Canadian mutual fund market can do with some price competition.
“Given our growth and popularity with Canadian ETF investors over the past seven years, we feel the time is right to launch mutual funds,” Atul Tiwari, managing director of Vanguard Investments Canada Inc., told The Globe and Mail.