Vanguard lowered expense ratios on three international income-oriented funds and four externally managed equity funds.
The three international income-oriented funds affected are the $1.6 billion Vanguard International Dividend Appreciation Index Fund, including an Admiral Shares fund and an exchange-traded fund, whose expense ratios were lowered from 0.25% to 0.20%; the $1.5 billion Vanguard International High Dividend Yield Index Fund, including an Admiral Shares fund and an ETF, whose expense ratios were lowered from 0.32% to 0.27%; and the $1.9 billion Vanguard Emerging Markets Government Bond Index Fund.
The latter includes an ETF and an Admiral Shares fund, whose expense ratios were lowered from 0.30% to 0.25%, and an Institutional Shares fund, whose expense ratio was lowered from 0.29% to 0.23%.
Also lowered were expense ratios on the Vanguard Selected Value Fund Investor (from 0.36% to 0.33%); Vanguard Windsor Fund Admiral (0.21% to 0.20%) and Vanguard Windsor Fund Investor (0.31% to 0.30%); Vanguard Emerging Markets Select Stock Fund Investor (0.94% to 0.93%); and Vanguard Explorer Fund Investor (0.46% to 0.45%).
Separately, Vanguard said it made changes to the multi-manager structures of three value funds: the $47.5 billion Vanguard Windsor II Fund, $8 billion Vanguard Selected Value Fund and $951.5 million Diversified Value Portfolio of Vanguard Variable Insurance Fund.
Two new advisory firms joined Vanguard’s lineup of 24 external investment advisors, bringing “experience and talent that Vanguard believes will result in stronger long-term performance for the funds and better outcomes for clients moving forward,” the firm said.
Aristotle Capital Management was added to Windsor II Fund, joining existing advisors Lazard Asset Management, Hotchkis and Wiley Capital Management and Sanders Capital. Cooke & Bieler was added to Selected Value Fund, joining existing advisors Donald Smith & Co. and Pzena Investment Management. Lazard Asset Management and Hotchkis and Wiley Capital Management, two of the current managers of Windsor II Fund, were added to Vanguard Diversified Value Portfolio. The restructurings also resulted in Barrow, Hanley, Mewhinney & Strauss (BHMS) no longer serving as an advisor to the three funds, Vanguard said. Vanguard Quantitative Equity Group, which has managed less than 1% of Windsor II Fund’s assets for the last 10 years, was also removed from the advisory team.
SS&C Salentica Eyes Several Product Initiatives for 2020
SS&C’s Salentica division is working on several product enhancements for next year, according to Dave Ireland, co-general manager.
First, the company plans to provide “additional value” to its Salentica Elements customer relationship management solution and Salentica Engage wealth management platform customers “by adding more core features,” including time and cost tracking, as well as vendor contract management tracking and compliance reporting, he told ThinkAdvisor.
Salentica also plans to add Digital Account Opening integration with both TD Ameritrade Institutional and Charles Schwab to the cloud-based Salentica Data Broker wealth management integration platform, he said.
Also on tap is the addition of real-time account integration with BNY Mellon’s Pershing subsidiary, he said.
Salentica will also be “deepening our integration with the Black Diamond Wealth Platform to provide real-time, two-way data synchronization on our Data Broker platform,” he said.
Fee compression is having a “trickle-down effect” on advisors, brokerage firms and technology providers including SS&C, Bob Conchiglia, vice president of advisory sales at SS&C Advent, told ThinkAdvisor. As a result, “there’s a greater need now for advisors to be able to show their value,” he said, adding: “That communication channel between the advisor and end investor is more critical than it’s ever been.” And technology from SS&C and other firms help advisors achieve that and provide “internal efficiencies” that help achieve that and are now “absolutely necessary from a financial standpoint as we go forward.”
Pimco Launches RAFI ESG U.S. ETF
Pimco introduced the RAFI ESG U.S. ETF, which the company said is benchmarked to the RAFI ESG US Index and “seeks to outperform market capitalization weighted indices, while investing in” environmental, social and governance-conscious companies.