Vanguard moves into mutual funds in CanadaBy The IJ Staff | June 26 2018 09:45AM
Vanguard Investments Canada Inc. has introduced its first suite of low-cost actively managed mutual funds in Canada. The mutual funds feature global investment strategies from some of Vanguard’s longest-tenured sub-advisors and complement the firm’s broad-based lineup of 36 ETFs.
“Vanguard has a deep 40-year history of active management expertise and we are excited to extend that to mutual fund investors in Canada at a low cost,” said Atul Tiwari, managing director of Vanguard Investments Canada Inc.
Globally, Vanguard Group, Inc. manages over US$5 trillion in assets under management and is one of the world’s largest active managers with US$1.2 trillion in global actively managed assets under management. “These mutual funds provide Canadians with access to proven global investment strategies in an innovative fee structure that aligns with the best interests of investors,” said Tim Huver, head of product, Vanguard Investments Canada Inc.
Vanguard will use a unique pricing structure in the Canadian marketplace that aligns the interests of the sub-advisors with the funds’ investors. The maximum management fee for each mutual fund will be 0.50% and is effective until June 30, 2019.
“As a group, Canadians hold about $1.5 trillion in mutual fund assets,” added Tiwari. “Vanguard has a long track record of lowering investment costs in the areas in which we operate, so we see providing greater choice and lower costs to a broader group of investors as very positive.”
The funds include a global balanced fund, a global dividend fund, the Vanguard Windsor U.S. Value Fund and the Vanguard International Growth Fund.