MONEY MANAGEMENT

Vanguard offers first actively managed strategies in Australia

Vanguard on Monday announced the addition of the first active equity strategies to the firm's product offerings in Australia.

Vanguard said in a news release it is now offering “advisers, investors and institutional clients” in Australia three active quantitative strategies managed by the manager's quantitative equity group – the Vanguard Global Quantitative Equity fund, the Vanguard Global Value Equity Fund and the Vanguard Global Minimum Volatility fund.

The news release said the annual management fee for those strategies will come to 45 basis points, well under half of the average fee for Australian-domiciled active equity funds reported by Morningstar.

Vanguard currently manages more than A$110 billion ($84 billion) in passive strategies in Australia.

Roughly a third of Vanguard's more than $3 trillion in assets under management globally are in actively managed strategies. A spokeswoman for the firm said Vanguard will look to introduce “more low-cost active products across equities and fixed income in the future.”