As emerging markets capture a growing share of U.S. investors’ attention, the country’s largest mutual fund company has announced the launch of an actively managed emerging markets stock fund.
Vanguard on Tuesday introduced the Vanguard Emerging Markets Select Stock Fund (VEIEX), an equity fund that will employ the advisory services of four global firms: M&G Investment Management Limited, Oaktree Capital Management L.P., Pzena Investment Management LLC, and Wellington Management Co. LLP.
The fund is now accepting investments during a two-week subscription period that is scheduled to conclude at the end of business on June 27. Following the subscription period, fund assets will be allocated equally among the four investment advisors.
Mutual fund trade group The Investment Company Institute reported in 2010 that Vanguard, headquartered in Valley Forge, Pa., had become the largest fund company, at $1.3 trillion in assets, surpassing Fidelity’s $1.2 trillion. Vanguard currently reports that it has $1.7 trillion of U.S. mutual fund assets under management.
Vanguard Emerging Markets Select Stock Fund seeks to provide long-term capital appreciation by investing in equity securities of small-, mid-, and large-capitalization companies located in emerging markets. It will have an estimated expense ratio of 0.95%. The fund will be available to individual retail investors who invest directly with Vanguard and will require a $3,000 minimum initial investment. As with its other international stock funds, Vanguard will assess a 2% redemption fee on shares held less than 60 days to deter short-term trading.